The agreement reached with the Greens would allow Germany to spend up to €1 trillion on defence and infrastructure over the next decade. View on euronews

German conservative leader Friedrich Merz reached a tentative agreement with the Green party on a debt-funded spending package for defense and infrastructure, people familiar with the discussions said.

Germany's chancellor-in-waiting and leader of the Christian Democratic Union party (CDU) Friedrich Merz speaks during an extraordinary meeting of the German Bundestag to discuss a €500-billion infrastructure fund and a revamp of borrowing rules aimed at modernizing the military and stimulating economic growth ahead of the formation of a new parliament at end of March,

German Chancellor-in-waiting Friedrich Merz said he had secured the crucial backing of the Greens for a massive increase in state borrowing, clearing the way for the outgoing parliament to approve it next week.

Friedrich Merz and his prospective coalition partner the SPD’s plan to boost infrastructure spending and soften the debt brake treatment of defence spending

German finance ministry officials are considering a compromise debt deal, with some details still being worked out, according to sources. Conservatives led by Friedrich Merz and the Social Democrats,