German Chancellor Angela Merkel has been formally re-elected for a second term by MPs, as her coalition prepares to be sworn in, BBC reported.
The new coalition government is made up of Mrs Merkel's Christian Democrat CDU/CSU party and the Free Democrats (FDP).
It has already promised controversial tax cuts in an effort to boost growth and kick-start the economy.
But the idea of tax cuts has already been condemned by Germany's opposition parties and some regional governors.
The BBC's Steve Rosenberg in Berlin said the last time Mrs Merkel took the oath of office in 2005, she was in a weaker position.
She had been forced to share power with her centre left opponents in "awkward" Grand Coalition.
However, our correspondent said this time around things look very different and Mrs Merkel had developed "political muscle".
She is popular and she is able to govern now with her preferred coalition partner, the liberals.
Mrs Merkel may be stronger - but the Germany economy is far weaker now than it was four years ago.
The new coalition government has already proposed some controversial medicine.
It wants to kick-start the economy by cutting taxes - despite the fact that Germany's budget deficit is $2 trillion and rising.