The coalition agreement marks an end to the Merkel era in German politics, ushering in an alliance with the Social Democrats, the Greens and liberal Free Democrats that will install Finance Minister Olaf Scholz as chancellor.
A centre-left-led alliance of parties has announced a deal to form Germany's new government, replacing Angela Merkel's cabinet and putting the Social Democrats (SPD) in charge for the first time in 16 years.
Two months after the SPD beat Merkel's conservative CDU-CSU bloc in a general election, it concluded a roadmap on Wednesday on plans for Germany's next four years with the Greens and liberal Free Democrats that will install Finance Minister Olaf Scholz, 63, as chancellor.
In their pact, the incoming government said it will set up a crisis team to fight the health emergency.
It includes a plan to bring Germany's exit out of coal forward to 2030 from 2038, a pledge to reinstate the country's constitutionally enshrined debt limit for 2023, as well as a proposal to legalise recreational use of cannabis.
The new government wants to achieve a 30 percent level of organic farming in Germany by 2030. More financial support will be provided to farmers to switch from conventional to organic farming, it said.
A thorny part of the talks – which party takes which ministry – was also settled.
With the business-friendly FDP to run the powerful Finance Ministry, the leader of the party Christian Lindner is poised to take charge of Europe's biggest economy's finances.
A new "super-ministry" grouping the portfolios of economy, climate protection and energy and the Foreign Ministry go to the Greens, with Robert Habeck, co-leader of the ecologist Greens, expected to take the environmental portfolio.
Annalena Baerbock, the Greens' other leader, is poised to become Germany's next foreign minister – the first woman in the job.
Known for her steady hand steering Germany through the eurozone crisis, migrant influx and Brexit, Merkel is leaving office still widely popular with the German electorate.
Scholz was labour minister in Merkel's first coalition from 2007 to 2009 before taking over as vice chancellor and finance minister in 2015.