After two months of protracted negotiations, Germany's two most popular parties finally formed a so-called "grand coalition" Wednesday, in a move that could determine how quickly the euro zone's financial problems will be solved.
(Read more: Germany's coalition deal)
While European markets were expected to open higher following the news, many analysts forecast there won't be that much change. After all, it has been clear from September's election that Angela Merkel will continue to lead the country, since her Christian Democrats (CDU) captured by far the most votes. And while the Social Democrats (SPD), who are joining her in coalition, are more left-wing, there are few real differences in their attitudes towards Germany's place in the euro zone.
Nonetheless, there are still problems in the region that require Germany's attention -- including the region's sluggish growth and the long-delayed attempts to overhaul and bolster its banking system.
The new coalition deal could be a "missed opportunity" to change Germany, according to Carsten Brzeski, economist at ING.
"It looks as if the new government's focus is on redistributing the harvest of earlier economic reforms, rather than using the economic good times for new structural reforms, increasing the economy's potential growth rate," he said.