Germany's Greens vowed to block plans by likely next chancellor Friedrich Merz for a massive increase in state borrowing but left room for compromise on Monday on measures to revamp the military and revive growth in Europe's biggest economy.

Germany’s Green party rejected a debt-financed package that would unleash hundreds billions of euros in defense and infrastructure spending, potentially imperiling the flagship policy of chancellor-in-waiting Friedrich Merz.

The CDU and SPD, likely coalition partners in Germany's next government, want to relax the debt brake for spending on defense and infrastructure. But the Greens said this would not invest enough in climate protection.

Germany's Greens may refuse to back plans by likely next chancellor Friedrich Merz for a massive increase in state borrowing, with a party source on Monday warning "approval is becoming less likely with each passing day".

Germany's Green party on Monday threatened to torpedo plans put forward by likely next chancellor Friedrich Merz to invest hundreds of billions in defence and infrastructure. The proposed constitutional changes to ease strict borrowing limits in the area of defence and establish a 500-billion-euro ($542-billion) fund for infrastructure were described as historic when they were presented last week.

Election winner and Chancellor-in-waiting Friedrich Merz is relying on votes from the Greens to push through parliament a special fund for infrastructure and defence. View on euronews