Merz Reaches Deal With Greens on German Spending Package

Merz Needs to Approach Greens to Pass Package: SchnitzerPhotographer: Krisztian Bocsi/Bloomberg
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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.

The deal is a breakthrough for Merz after the prospective chancellor’s Christian Democratic-led bloc and Social Democrats struggled this week to secure Green support, which is needed to win the required two-thirds majority to amend constitutional debt restrictions. The Greens rejected the initial package and demanded a greater commitment to climate protection.