Parties agree 23 February vote after chancellor torpedoed the coalition government by sacking finance minister.

After decades of relative stability, the country has entered a new era of political fragmentation and will hold new elections at a precarious time.

The collapse of Germany's ruling coalition is set to bring more economic pain in the months ahead and just a glimmer of hope for Europe's ailing economic giant if, and that is a big if, it can lead to a less fractious government and more coherent policies.