German Chancellor-in-waiting Friedrich Merz announced Friday his conservatives had struck a deal with the Greens on massively boosting defense

A new deal with the Greens could allow for as much as €1 trillion in new spending for defense and infrastructure over the next decade.

By Holger Hansen, Markus Wacket and Andreas Rinke BERLIN (Reuters) -German Chancellor-in-waiting Friedrich Merz reached an agreement with the Greens on Friday on a massive increase in state borrowing in Europe's largest economy,

The party said they would not support the conservative chancellor-in-waiting’s paradigm-changing plan to invest massively in defense and infrastructure.

Merz, who aims to lead a government with the Social Democrats in the coming weeks, is in a rush to push through a big boost in spending on defence and creaking infrastructure. After winning elections last month,

The future Chancellor of Germany, Friedrich Merz, confirmed on Friday that the CDU/CSU Christian Democratic parties and Social Democrats have reached an agreement with the Greens to increase Germany's debt to allocate additional funds for defense purposes.

Germany’s next chancellor, Friedrich Merz, struck a deal to loosen borrowing limits, unleashing €500 billion for defence and infrastructure. Markets surged, while analysts debated its impact on inflation and ECB rate policy.

Germany's conservatives sealed a crucial deal Friday for a historic boost to defence and infrastructure spending, with leader-in-waiting Friedrich Merz declaring "Germany is back" as Europe grapples with the upending of the transatlantic alliance.