She has argued that the European Union must increasingly look after its own interests in the era of US President Donald Trump, who has questioned long-standing trans-Atlantic defense ties and threatened a trade war.
The vote in parliament Wednesday morning ends nearly six months of political turmoil after a federal election saw millions of voters desert the two mainstream parties - Merkel's CDU and the Social Democratic Party (SPD) - turning instead to parties on the left and right. The coalition enjoys only a small majority in the German Bundestag and has come under fire from both sides of the political spectrum.
The rise of populist fringe parties is also the central domestic threat for Merkel's new coalition, which faces the far-right Alternative for Germany (AfD) as the biggest opposition party.
The German parliament has elected Angela Merkel as Chancellor for the fourth time on Wednesday.
In contrast, the Social Democrats named several members with little or no government experience after party leaders faced pressure from grass-roots rebels who oppose serving as Merkel's junior partner for a third time since 2005.
Modi at 'Delhi End TB Summit'
This plan is backed by a historic funding of over 12,000 crore rupees for the next three years. He said the Government is working comprehensively towards this goal.
Thus, Merkel will take the post of Germany's Chancellor for the fourth term in a row.
The chancellor heads a much-changed Cabinet, with the governing parties - which are traditional rivals - keen to send signals of renewal after a September election in which all lost significant ground.
In a secret ballot, 364 of the Bundestag's 709 members voted in favor of Merkel - nine more than the 50% required.
German chancellor Angela Merkel receives her certificate of appointment from President Frank-Walter Steinmeier after being re-elected as chancellor, during a ceremony at Bellevue Palace in Berlin, Germany, March 14, 2018.
An often-awkward ally to Merkel, the leader of Bavaria's Christian Social Union party becomes Germany's top security official.