Three weeks of protracted negotiations between the CDU conservative party of the German Chancellor Angela Merkel and the liberal Free Democrats ended today with all the parties signing a coalition deal emphasizing tax cuts.

The moderate liberal-conservative coalition of Christian Democrats and Free Democrats: the very model of a modern centrist democracy, agreed on €24bn of tax cuts in an attempt to stimulate economic growth. The all-party agreement came after the contentious issues over corporate tax cuts, reform of inheritance laws and health reform were thrashed out over the last 3 weeks following the national election.

Out of 16 cabinet posts – delegated in proportion to the popular vote – 8 went to the CDU, 5 to the FDP, and 3 to the CSU.

The other dramatis persona in the new government along with Angela Merkel, include [the openly gay] Guido Westerwelle, head of the FDP, who will become the new foreign minister.

The appointment of  the CDU’s Wolfgang Schäuble, formerly the hard-line interior minister will take over the new finance ministry which was a bit of a surprise. Merkel might very well have chosen him because he is no threat to her as a potential chancellor and is often seen as straight-talking and experienced.

Rainer Brüderle, 64, also from the FDP, will take over from Karl-Theodor zu Guttenberg as economics minister. Zu Guttenberg, 37,  who emerged from no-where in February to become a government minister, will move to defence. It will become his main task to <<sell>> the un-popular and increasingly costly German Afghanistan policy.

There is also an another interesting appointment in the form of a complete newcomer and also the youngest cabinet minister Philipp Rösler, 36, the new  health minister. Born in Vietnam, he is a practicing medical doctor who was adopted at birth by German parents and will be Germany’s first Asian-born cabinet member.