German chancellor-in-waiting Friedrich Merz reached an agreement with the Greens on Friday on a massive increase in state borrowing, just days before a parliamentary vote on the issue, a source close to the negotiations said.

An agreement has been reached on plans by German chancellor hopeful Friedrich Merz to massively ramp up public borrowing, a source from the Greens party said on Friday, adding: "We are satisfied." Greens' support is seen as crucial to Merz's bid to pass the debt plan with a two-thirds majority in Germany's outgoing 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.

Germany's likely next chancellor, Friedrich Merz, on Friday hailed a cross-party agreement on a landmark infrastructure and defence package amounting to €500 billion ($545 billion). The agreement between his conservative bloc,

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.