German Finance Minister Olaf Scholz announced Friday that the Social Democratic Party of Germany, the Greens, and the Free Democratic Party reached a preliminary deal for Germany's next government.

This deal constitutes a step for Scholz toward becoming Germany's next Chancellor, succeeding Angela Merkel. Scholz said the parties had reached an agreement, which he said, "Clearly shows that a government that aims to ensure we achieve progress can be formed in Germany."

The three parties have different views and programs. They have been holding preliminary talks since early October in an attempt at forming this unprecedented alliance, which will not see the Merkel-led conservatives participating. The September 26 elections saw the German conservative party performing their worst, winning only 24.1% of the votes.

Friday's deal will see the three parties working together to establish dialogue channels and hold official negotiations to discuss the future of the coalition.

Germany's allies are impatiently waiting for a new government in Germany, as they fear challenges, especially in the European Union, if the political vacuum persists in Berlin.

A Greens official said the three parties have been holding intense talks for the Progress and Reform coalition to benefit from the upcoming agreement.

The developments do not mean that the coalition will form a government nor that Scholtz will succeed Merkel as Chancellor.

The parties vowed not to introduce any tax hikes and to maintain Germany's cherished no-new-debt rule - a red line for the FDP.

The Greens secured a pledge to end the usage of coal energy in Germany by 2030, eight years ahead of schedule.

The Social Democrats pushed for raising the minimum wage to 12 euros, which was one of Scholz's campaign promises.

The allies are planning on revising the government's current climate law in 2022 and introducing an immediate climate protection program, which will affect all sectors of the economy.