Germany’s chancellor-to-be Friedrich Merz has agreed a deal with the Green party to inject hundreds of billions into the country’s defence sector and ageing infrastructure, according to two people with knowledge of the discussions.

The parties hoping to form the next German government - the conservative bloc and Social Democrats (SPD) - are making significant efforts in winning over the Greens, whose votes they need to pass a multibillion-euro financial package.

Chancellor-to-be vows greater share of investments for green transition as outgoing Bundestag reconvenes to debate bills