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.

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,