Germany`s Merkel agrees coalition with Social Democrats

German Chancellor Angela Merkel Wednesday agreed to form a coalition government with campaign rivals the Social Democrats, two months after her conservatives won elections but fell short of a full majority.

Merkel`s coalition loses on her home turf

German Chancellor Angela Merkel`s
conservative-liberal coalition has suffered a debacle in her
home state of Mecklenburg Western Pomerania in an election
which was widely seen as a popularity test.