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.

Germany’s Greens are prepared to reach an agreement as soon as this week that would pave the way for hundreds of billions of euros in defense and infrastructure spending with the country’s prospective next chancellor,