German lawmakers have reached an agreement to exempt some defense spending from the nation’s tight rules on running up debt.

The agreement between centrist parties, led by the likely next chancellor, Friedrich Merz, was billed as a response to America’s shrinking security guarantees.

Germany’s new leader has a majority in parliament to pass a deal that would unlock hundreds of billions in spending on defense and infrastructure.

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

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,

Germany's conservatives have agreed on a much-debated multibillion-euro financial package for defence and infrastructure with the centre-left Social Democrats (SPD) and the Green party, dpa learned on Friday.

Germany's likely next chancellor Friedrich Merz said Friday his conservatives had struck a deal with the Greens on massively boosting defence and infrastructure spending, paving the way for the plan's approval in parliament.

German Chancellor-in-waiting Friedrich Merz reached an agreement with the Greens on Friday on a massive increase in state borrowing just days ahead of a parliamentary vote next week, Reuters reported,