Facing criticism in her own party about the loss of the Finance Ministry to the Social Democrats (SPD) during coalition talks, German Chancellor Angela Merkel defended the decision on Sunday.

In an interview with public broadcaster ZDF, Merkel described giving up the Finance Ministry as "painful," but said it would have been "irresponsible" to let coalition talks fail over how to divvy up Cabinet positions.

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The decision was not ideal for her Christian Democratic Union (CDU), but "acceptable," she said.

It was Merkel's first interview since her center-right CDU and its Bavarian sister party the Christian Social Union (CSU) agreed to a coalition deal with the center-left SPD on Wednesday.

The Finance Ministry will reportedly be headed by current Hamburg Mayor Olaf Scholz, who said on Saturday that Germany shouldn't dictate economic policies to eurozone partners. The coalition deal also saw the previously CDU-held Interior Ministry head to the CSU, where party leader Horst Seehofer will reportedly take the lead.

Read more: Olaf Scholz, the man headed to Germany's Finance Ministry?

Merkel's cabinet takes shape - who's in and out at Germany's ministries Shifting responsibilities There are five "classic ministries" in Germany's government – Finance, Foreign, Interior, Justice and Defense. Angela Merkel’s Christian Democrats (CDU) are ceding direct control of two of them. One, finance, is to change from right to left of the political divide, moving from CDU to Social Democrat (SPD) hands. Other switches are likely in less prominent portfolios.

Merkel's cabinet takes shape - who's in and out at Germany's ministries Major prize changes hands The transfer of the Finance Ministry from CDU hands to the SPD is the biggest surprise of the deal. The minister plays a major role at the European level as evidenced by the CDU’s Wolfgang Schäuble during the eurozone sovereign debt crisis. Hamburg Mayor Olaf Scholz, a centrist within the SPD, will likely get the title of deputy chancellor in addition to finance minister.

Merkel's cabinet takes shape - who's in and out at Germany's ministries Bavaria to take home ministry The Interior Ministry, which deals with law and order within Germany, looks set to stay in the hands of Merkel’s conservatives, but not her own CDU. Touted for the position is the leader of Bavarian sister party the CSU, Horst Seehofer (left). The Bavarian party has taken a tougher line than Merkel on immigration. The conservatives suffered losses to the far-right AfD in September's election.

Merkel's cabinet takes shape - who's in and out at Germany's ministries Who will be Germany's top diplomat? Under the deal, the SPD will keep control of the Foreign Ministry. Since 1966, the ministry has been run by a member of smaller coalition partners. Sigmar Gabriel has been in the role in a caretaker capacity since Frank-Walter Steinmeier was elected president. Martin Schulz (above), a former leader of the European Parliament, was expected to take over but pulled out in a bid to quell party unrest.

Merkel's cabinet takes shape - who's in and out at Germany's ministries Growing profile of defense The CDU’s Ursula von der Leyen, a key ally of Merkel who is thought to have her own ambitions to become chancellor, is likely to remain in her role at the helm of the Defense Ministry. The ministry has had a growing importance in recent decades as Germany became more involved in foreign military operations. In particular, the Bundeswehr maintains a significant deployment of troops in Afghanistan.

Merkel's cabinet takes shape - who's in and out at Germany's ministries Justice unlikely to change hands Typically a portfolio that goes to the junior coalition partner, responsibility for the Justice Ministry may well stay with the current incumbent — the SPD’s Heiko Maas. While individual states in Germany are generally responsible for the administration of justice, the federal ministry is charged with making and changing constitution-related laws. It also analyzes laws made by other ministries.

Merkel's cabinet takes shape - who's in and out at Germany's ministries Economic compensation Helping to make up for the CDU losing two major offices, the CDU will get its hands on the Economy Ministry, also responsible for energy policy. Merkel's right hand in the chancellery Peter Altmaier (pictured) — who has also been running the Finance Ministry since the departure of Wolfgang Schäuble — is expected to take over from the SPD's Brigitte Zypries.

Merkel's cabinet takes shape - who's in and out at Germany's ministries New girl on the block The favorite to take over at the top of the Ministry of Agriculture is the CDU’s Julia Klöckner, who leads the party in the western state of Rhineland Palatinate. Having twice failed in her bid to become state premier there, she'll be one of the relatively rare new faces in Berlin.

Merkel's cabinet takes shape - who's in and out at Germany's ministries Change of track The CSU will also retain the Transport Ministry with CSU Secretary-General Andreas Scheuer, from Lower Bavaria, taking charge. He’d also be responsible for digital infrastructure. The party will hold onto the Federal Ministry for Economic Cooperation and Development, with undersecretary in the Transport Ministry Dorothee Bär set to take the reins from current Development Minister Gerd Müller.

Merkel's cabinet takes shape - who's in and out at Germany's ministries Health in same party hands The Health Ministry remains a CDU concern, with Annette Widmann-Mauz, an undersecretary in the ministry from Baden Württemberg, expected to take over. She’d replace fellow CDU member Hermann Gröhe, who is touted to head up the Federal Ministry for Education and Research. Author: Richard Connor



'I understand the disappointment'

With many in the CDU unhappy about the loss of the key Finance Ministry, previously headed by EU austerity advocate Wolfgang Schäuble, Merkel said the criticism was not a sign that her authority in the party was declining.

"I understand the disappointment," Merkel said. She made clear, however, that she would not be stepping down from her role as party leader — or chancellor.

"For me, these two offices belong in one hand in order to be able to lead a stable government," she said, adding, "It will stay that way."

Merkel, who has been Germany's chancellor since 2005, also vowed to serve another full four-year term.

Watch video 00:39 Merkel hails deal on stable government that 'world expects'

The Cabinet isn't a 60+ club

During the interview, Merkel noted that she wanted younger members of the CDU to fill the open posts in the Cabinet.

"Now we need to show that we can start with a new team," she added. "We have six ministerial posts to fill and, from my point of view, we need to ensure that not only the over-60s are considered but also younger people."

The names of the CDU politicians who will fill the empty ministry posts will be announced by February 26, when party delegates meet to decide on the coalition deal.

Read more: New members in Germany's SPD may play pivotal role in coalition deal's success

The deal also faces a critical test from the SPD's 463,723 party members who are voting to accept or reject the deal. The results of the postal ballot will be announced on March 4.

The renewal of the right-left alliance that has ruled Germany since 2013 has sparked a fierce debate within the SPD. Following internal party backlash over current SPD leader Martin Schulz's attempt to become Germany's next foreign minister, Schulz announced on Friday that he was abandoning his bid for the post.

Merkel's standing in her party was weakened following last September's general election which saw the far-right Alternative for Germany (AfD) snag votes away from all of Germany's major parties.

rs/sms (AFP, dpa, Reuters)