Germany's Chancellor-in-waiting Friedrich Merz and the Greens reached a breakthrough agreement on Friday to ramp up state borrowing, according to sources close to the negotiations told Reuters.
The deal, reached on Friday, paves the way for a sweeping EUR500 billion infrastructure package and a revamp of fiscal rules in the Eurozone's largest economy.
EUR responded positively to the news, as investors bet on stronger government-led growth and expanded military investment.