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.

German government bond yields, equities and the euro all rose on Friday on reports Germany's Chancellor-in-waiting Friedrich Merz had reached an agreement with the Greens to reform debt rules and massively increase state borrowing.

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.

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 chancellor-in-waiting and leader of the Christian Democratic Union party (CDU) Friedrich Merz speaks during an extraordinary meeting of the German Bundestag to discuss a €500-billion infrastructure fund and a revamp of borrowing rules aimed at modernizing the military and stimulating economic growth ahead of the formation of a new parliament at end of March,

Germany's likely next chancellor, Friedrich Merz, on Friday hailed a cross-party agreement on a landmark infrastructure and defence package amounting to €500 billion ($545 billion). The agreement between his conservative bloc,

The future Chancellor of Germany, Friedrich Merz, confirmed on Friday that the CDU/CSU Christian Democratic parties and the Social Democrats have reached an agreement with the Greens to increase Germany's debt in order to allocate additional funds for defence purposes.