German Chancellor Angela Merkel (File photo)

Berlin (People’s Daily) - Conservative and Social Democrats in Germany on Friday appeared close to reaching a deal on a coalition government following round-the-clock negotiations.

The party chiefs have reached an agreement in principle to start formal coalition negotiations that could lead to a new government in the coming months.

SPD leader Martin Schulz said the Social Democratic Party and coalition party will further their negotiations on the details of establishing a coalition government.

At the press conference on Friday, German Chancellor Angela Merkel pledged that the new government she is seeking to form would work toward a "fresh start" for Europe, after reporting a breakthrough in marathon coalition talks.

"The world is not waiting for us -- we need a fresh start in Europe," she said.  "A fresh start for Europe is also a fresh start for Germany."