After nearly two months of negotiations following September’s Federal Election, Germany has announced a coalition agreement.

Olaf Scholz (the candidate of the Social Democratic Party from the centre-left) is expected to become Germany’s next chancellor. He will replace Angela Merkel, who led Germany for sixteen years.

The deal announced Wednesday afternoon that Christian Lindner, head of the probusiness Free Democratic Party is the new finance minister. Annalena Bock (Green Party leader) and Robert Habeck (Green Party coleader), are now set to be the next finance minister.

The draft coalition agreement covers a wide range of climate policies — including plans to adopt a climate protection program by the end of 2022, utilize all suitable roofs for solar energy and the intention to align an expansion of its power network with a new renewables target, Reuters reported, and also said immigrants shall be eligible to apply for German citizenship after five years in the country.

This agreement was reached after weeks of negotiations between the SPD and Greens. It will be the first time that they have governed together as a three-way alliance.

According to their traditional colors, the alliance is often called “traffic light” because it was a coalition of like-minded people.

Both parties pledged to modernize Germany. It is Europe’s largest economy. They also vowed that they would prioritise the development of a greener and more digitalized economy as well as investment in infrastructure.

German business are keen to know what the transformation will mean for them, both in terms of energy costs and business expenses.

Angela Merkel, outgoing leader, is now leading the conservative Christian Democratic Union (and Christian Social Union) into opposition.

—This is a breaking news story, please check for further updates.