Merkel's Christian Democratic Union, its Bavaria-only sister party the Christian Social Union, and the center-left Social Democrats signed their coalition agreement Monday.
The path was finally cleared for Chancellor Angela Merkel to revive the coalition of her Christian Democrats (CDU), her Bavarian-based allies the Christian Social Union (CSU) and the SPD after Social Democrat members voted to approve the deal two weeks ago.
"I accept the vote", Ms Merkel told the Bundestag lower house of parliament after the vote.
Merkel, who is due to be sworn-in on Wednesday will head a much-changed new Cabinet.
She said that "we need Europe - a Europe that shares the same values and acts together, particularly toward the outside world, and we. will make our contribution".
Merkel listed internal security and European cooperation among the new government's priorities, as well as new challenges such as responding to import tariffs announced by U.S. President Donald Trump.
The grand coalition, mockingly dubbed a "GroKo" in German, didn't start as a "love marriage", her designated vice chancellor and finance minister, the SPD's Olaf Scholz, drily observed this week.