The apparent deal with the Greens paves the way for up to €1 trillion in new spending for defense and infrastructure.

The deal jointly proposed by the center-right CDU, whose leader Friedrich Merz is likely Germany's next chancellor, and center-left Social Democrats also calls for a €500 billion special fund for infrastructure spending.

German conservative leader Friedrich Merz reached a tentative agreement with the Green party on a debt-funded spending package for defense and infrastructure, people familiar with the discussions said.