Germany's new chancellor Olaf Scholz has pledged his centre-left-led coalition would offer a "new beginning" for Europe's top economy.
Mr Scholz was officially named the country's ninth post-war leader by President Frank-Walter Steinmeier, who urged him to "ensure that the pandemic does not keep us firmly in its grip for another year" as a fourth wave of the COVID-19 outbreak rages.
The former finance minister, who won 395 of the 707 votes cast in the Bundestag lower house to succeed Angela Merkel, has vowed broad "continuity" with the popular former leader while making Germany greener and fairer.
"It will be a new beginning for our country," Mr Scholz pledged as he officially assumed the office from Ms Merkel and thanked her for her 16-year tenure.
Angela Merkel served as chancellor for 16 years. Source: AP
"I will do everything to work towards that."
Ms Merkel wished Mr Scholz luck as chancellor, urging him to "take this office and work in the best interest of our country".
She then left her office by motorcade for the last time as her staff looked on, applauding.
Mr Scholz led his Social Democrats from a deep poll deficit to victory in the election on 26 September.
Dare for more progress
The 63-year-old, who turned emulating Ms Merkel in style and substance into a winning strategy, forged Germany's first national "traffic light" coalition with the ecologist Greens and the liberal Free Democrats, nicknamed after the parties' colours.
Their four-year pact sealed late last month is called Dare for More Progress, a hat tip to Social Democratic chancellor Willy Brandt's historic 1969 pledge to "Dare for More Democracy".
The alliance aims to slash carbon emissions, overhaul decrepit digital infrastructure, modernise citizenship laws, lift the minimum wage and have Germany join a handful of countries worldwide in legalising marijuana.
French President Emmanuel Macron congratulated Mr Scholz, pledging "we will write the next chapter together" while EU chief Ursula von der Leyen said she looked forward to cooperation for a "strong Europe".
Mr Scholz's office announced his first official visit would take him to Paris and Brussels Friday for talks with Mr Macron, Ms von der Leyen and NATO chief Jens Stoltenberg.
German Chancellor Olaf Scholz and the ministers of the new German government pose for a photo after the first cabinet meeting Source: AP
China's Xi Jinping said Beijing was willing to work with Mr Scholz to "promote bilateral ties to a new level" while Vladimir Putin said Russia was offering "constructive ties" with the new government.
The new foreign minister, Annalena Baerbock, has pledged a tougher line with authoritarian states such as Russia and China after the business-driven pragmatism of the Merkel years.
Greens co-leader Ms Baerbock is one of eight women in Germany's first gender-balanced cabinet.
"That corresponds to the society we live in - half of the power belongs to women," Mr Scholz, who describes himself as a "feminist", said this week.
Ms Merkel, 67, Germany's first woman chancellor, is retiring from politics after four consecutive terms, the first post-war leader to step aside of her own accord.
Mr Macron tweeted his gratitude to the outgoing leader.
"Thank you, dear Angela, for never forgetting the lessons of history, for having done so much for us, with us, to move Europe forward," he said.
