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

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

German conservative leader Friedrich Merz reached an agreement with the Green party on a debt-funded spending package for defense and infrastructure, overcoming a key hurdle ahead of a crunch vote in parliament next week.

Germany’s election-winning center-right Christian Democratic Union/Christian Social Union, led by Friedrich Merz, and the Social Democrats have reached a preliminary agreement with the Green Party on a deal to exclude defense spending from the country’s constitutional debt break and establish a dedicated $545 billion fund for infrastructure investments.

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.