Germany's major political parties—Union, SPD, and Greens—have reached a landmark agreement on a €500 billion debt-financed package for defense and infrastructure.

The deal includes €100 billion for climate initiatives, a move praised by economists for its focus on additional investments.

However, the Left Party and AfD have criticized the compromise, with concerns over social equity and debt burden.

CDU leader Friedrich Merz hailed the agreement as a turning point, emphasizing Germany's readiness to defend freedom and peace.

Meanwhile, the Greens secured key climate provisions but face internal dissent.

The package, described as the largest infrastructure program in Germany's history, aims to modernize the nation while adhering to European debt rules.