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BERLIN, Nov 24 (Reuters) - The leaders of three German parties will on Wednesday present their deal to form a coalition government that will see Social Democrat Olaf Scholz replace conservative Angela Merkel as chancellor, according to an invitation distributed by the Social Democrats.
A news conference scheduled at 3 p.m. (1400 GMT) will follow a final round of talks between the centre-left Social Democrats (SPD), the ecologist Greens and the libertarian Free Democrats (FDP), the SPD said in the invitation.
The deal will install the first three-way federal coalition government in Germany since the 1950s and oust Merkel's conservatives after 16 years in power.
The alliance - named a traffic light coalition https://www.reuters.com/world/europe/jamaica-traffic-lights-or-kiwis-germanys-coalition-conundrum-2021-09-02 after the three parties' respective colours - has pledged to modernize Europe's largest economy by upgrading its infrastructure and accelerating measures to protect the climate.
Sources told Reuters on Tuesday https://www.reuters.com/business/cop/exclusive-germanys-government-in-waiting-agrees-phase-out-coal-by-2030-sources-2021-11-23 that the parties had agreed to commit to a coal phase-out by 2030 and to end power generation from gas by 2040.
Onlookers fear the parties will struggle to bridge their stark ideological divides, which could in turn paralyse a European Union that is grappling with threats ranging from the pandemic to the rise of authoritarianism.
Still, the parties have already defied predictions that talks could last into next year or even fail, promising to deliver a deal two months after September's inconclusive election. (Reporting by Holger Hansen, Markus Wacket; Writing by Maria Sheahan, editing by Emma Thomasson and Giles Elgood)