Factbox-What Germany’s planned spending spree could mean for the economy By Reuters

Agreement on Increased Borrowing: German chancellor-in-waiting Friedrich Merz has reached an agreement with the Greens for a significant increase in state borrowing, including a 500 billion euro fund for infrastructure and changes to defense spending rules, aiming to boost economic growth.

Economic Impact and Debt Concerns: Economists predict that this spending could raise Germany's economic output significantly, but it may also lead to an increase in the debt ratio, potentially reaching 90% of GDP in ten years, raising questions about maintaining its AAA credit rating and influencing European Central Bank policies.