According to the BBC (hat tip: redstate), it appears the Angela Merkel will become the first woman chancellor of Germany. She comes to power through a coalition of Christian Democrats (Merkel) and the Social Democrats (Schroeder). The best part of the news is that Schroeder is said to have no part in the coaltion.
This could obviously be a fantastic opportunity to improve American-Germany relations. I need not detail the behavior and comments of Schroeder in the past--one can only assume things will be better from here.
The deal is very odd, however. In agreeing to step aside, Schroeder apparently argued for the Social Democrats to get eight seats on the cabinet, while Merkel's Christian Democrats get only six seats. This seems like a very unstable situation to me, though I am woefully ignorant of the details of German politics. More thoughts on that can be found here.