Angela Merkel is set for a third term as Chancellor of Germany after striking a coalition deal with her largest rival.

The Chancellor's Christian Democrats, their allies the Christian Social Union and the left leaning Social Democrats agreed the deal after 17-hour marathon talks.

Merkel's party will now ballot its 470,000 members on the deal.

The proposed coalition deal doesn't mention Ireland's corporate tax rate, despite the Social Democrats insisting that the rate was too high.

There's also no agreement on whether the Eurozone's ESM bailout fund can be used to save struggling banks.