The German government’s new coalition deal has been welcomed by institutions across Europe.

German Chancellor Angela Merkel's conservatives made major concessions to the centre-left Social Democrats (SPD) to agree after four months of uncertainty.

"It's not only good news for Germany, but good news for Europe as well. Because the fact that there would be a stable, solid, ambitious, pro-European government in Berlin, would allow for the decisions and thoughts regarding Europe's future to be tied together," said the European Commissioner for economic and financial affairs, Pierre Moscovici.

In Brussels, Manfred Weber, a German politician for the Christian Social Union in Bavaria and a Member of the European Parliament told Euronews what the new German coalition can do for the EU

"To strengthen the EU means to find a solution on the migration challenge."

"It means also that we have to stabilise our currency on the long run, we have now stability with 2,5 percent growth rate, but we have to work for long standing stability."

"And a third element which is crucial is having Putin in mind, having Erdogan in mind having the uncertainty in America in mind, we have to strengthen our common foreign and defence policy of the European Union."

"They are the areas we have to work on and there is a clear commitment inside of the coalition agreement to do so."

The new coalition should allow Germany to resume its leading role in international affairs and at least for now, put an end to questions about how long Merkel will stay in her job.