Germany's conservatives, SPD agree debt brake reform proposal

Friedrich Merz, Germany's chancellor-in-waiting and leader of the Christian Democratic Union party CDU, looks on, on the day they give a statement after coalition talks, in Berlin, Germany, March 4, 2025. REUTERS/Lisi Niesner

BERLIN (Reuters) - The conservatives and the Social Democrats (SPD) agreed to seek a loosening of Germany's debt brake to allow higher defence spending, and to propose the creation of a 500 billion euro infrastructure fund, their leaders said on Tuesday.

"We are aware of the scale of the tasks ahead of us, and we want to take the first necessary steps and decisions," Merz said.