European leaders Monday extended congratulations to German conservative leader Angela Merkel on her victory as next chancellor in a grand coalition government with the Social Democratic Party (SPD) of incumbent Chancellor Gerhard Schroeder.

Merkel's conservative Christian Democratic Union and outgoing Chancellor Schroeder's Social Democrats reached a power-sharing agreement on Monday, ending three weeks of political deadlock in the largest economy of the European Union (EU).

Merkel earlier Monday confirmed her chancellorship in the coalition government with the SPD as a junior partner. Under the deal, Merkel will become the first woman chancellor in German history and the SPD will grasp major cabinet posts. The new government is expected to be formally formed by late November.

European Commission President Jose Manuel Barroso on Monday congratulated both main German parties for having achieved an agreement to end weeks-long political deadlock since mid-September.

The chief of the EU executive arm said in a statement that the agreement "provides a strong and stable solution for the future German government."

Barroso also said that he was looking forward to working very closely with Merkel.

"I am looking forward to a constructive, forward looking German government, ready and willing to tackle today's problems and offering real and tangible solutions to Europe's citizens," said the president.

European Parliament President Josep Borrell also sent his congratulations on Monday to Merkel.

"It is important that the two big German parties have reached agreement on the formation of a future government. I need to congratulate Mrs. Merkel, who, moreover, will be the first female chancellor of the Federal Republic of Germany," said Borrell in a statement.

"Many European issues await urgent decisions. I am convinced that the next (German) government will throw its full weight so as to contribute to their progress," said Borrell.

French President Jacques Chirac called Merkel Monday evening to congratulate her on her winning and invited her to visit France as soon as possible.

According to a French presidential spokesman, Chirac said he was confident ties with Berlin would be strengthened under Merkel.

He also called Schroeder to hail his commitment to Franco-German ties and "expressed his confidence in Germany's ability to continue on the reform path."

Chirac "reaffirmed to her the priority he attaches to ties between France and Germany," his spokesman said.

The French president said last Wednesday when he met with his German counterpart Horst Koehler in Paris that he was "convinced that Germany was committed to seeing through its modernizing policies, and that the friendship between Germany and France remained the indispensable motor of European construction."

Meanwhile, Merkel pledged Monday to continue close ties with China forged by outgoing Schroeder and his predecessor Helmut Kohl.

"Ties with China are important," said Merkel hours after confirming her chancellorship.

She said the upgrading of Berlin's relations with China, begun by Kohl and expanded under Schroeder from 1998 to 2005, would continue under her leadership.

Merkel noted that the early German elections had forced her to cancel a planned visit to Beijing.

When asked about the direction of Germany's relations with the United States under her leadership, she said that transatlantic relations are an important issue and of interest for Germany.

"That doesn't mean we have to agree on every issue, but there needs to be a good, trustful relationship," she added.

Source: Xinhua