Germany's conservative leader clinches an major financial agreement ahead of a crunch vote in parliament.

German Chancellor-in-waiting Friedrich Merz said on Friday he had secured the crucial backing of the Greens for a massive increase in state borrowing, clearing the way for the outgoing parliament to approve the historic deal next week.

A new deal with the Greens could allow for as much as €1 trillion in new spending for defense and infrastructure over the next decade.