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

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,

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.

Germany's outgoing lower house of parliament will hold a special session on Thursday to debate a 500 billion euro fund for infrastructure and sweeping changes to borrowing rules in Europe's largest economy to bolster defence.

Germany's likely next leader Friedrich Merz said Thursday urgent action was needed to boost the country's under-resourced military and ailing economy, as he defended plans for a spending bonanza durin