The three parties will enter formal and detailed coalition talks after each side agrees on the outcomes of the exploratory talks.

The SPD has scheduled a special national conference on Jan. 21 in Bonn, where party members will vote whether to join the formal grand coalition talks or not.

However, the SPD is still facing strong opposition to a renewed grand coalition, especially from its grassroots and youth members, who are worried about further marginalization of the party in its cooperation with the CDU.

Observers and members of the three parties hope that the breakthrough in the talks will help avoid a minority government led by Merkel or snap federal elections.

The negotiations came more than three months after the national elections saw large losses for the CDU, CSU and SPD, which together had been governing as a "grand coalition" since 2013.

The new grand coalition will see the far-right populist Alternative fur Deutschland as the largest opposition party in the Bundestag, the federal parliament.

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