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.

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.

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,