Merkel as a spectator at the meeting of the new German Parliament

While the SPD's Olaf Scholzi is expected to replace Merkel as chancellor, the party has nominated health policy expert Baerbel Blas to replace Wolfgang Schauble as Bundestag speaker in a bid to ensure that the three top political posts rather than being held by men. She is the third woman to be appointed to this position

Outgoing German Chancellor Angela Merkel watched from the visitors' gallery on Tuesday as the new parliament elected a woman from the center-left Social Democrats (SPD) as speaker.

The 67-year-old Merkel, who did not run for re-election in the Sept. 26 federal vote after four terms in office, will serve as acting chancellor until a new government is formed, Reuters news agency reported.

The SPD, which won the election, is involved in official talks on forming a governing coalition with the pro-business Greens and Free Democrats until December 6, when Merkel's conservatives would move into opposition after 16 years in power.

While the SPD's Olaf Scholzi is expected to replace Merkel as chancellor, the party has nominated health policy expert Baerbel Blas to replace Wolfgang Schauble as Bundestag speaker in a bid to ensure the country's top three political posts not to be held by men. She is the third woman to be appointed to this position.

"The responsibility has not yet been shared equally between everyone and I see this as one of my main duties as president of the Bundestag," said Blas in her first speech in this capacity. "Diversity is an opportunity for all of us in this house, but also outside it," Reuters quotes her statement.

The new Lower House of Parliament, or Bundestag, is made up of a higher number of women and ethnic minorities than before, although critics point out that it still does not reflect the wider makeup of German society.

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The SPD, the Greens and the FDP are describing their coalition as a new beginning for Germany that will focus on modernizing Europe's largest economy and combating climate change. The three parties have so far projected a more consensual front than most expected, especially due to ideological differences between the FDP and the left-leaning Greens and SPD.

That could allay fears in Germany and elsewhere that Merkel's departure could herald a period of political instability. The new Bundestag, which this time has a larger composition of 736 legislators, is not expected to pass any law until the new coalition is formed and it is expected to then vote on the new chancellor.