Germany's Union, SPD, and Greens have reached a landmark agreement on a €500 billion debt-financed financial package.

The deal, crucial for defense, infrastructure, and climate investments, required a constitutional amendment needing a two-thirds majority in parliament.

After intense negotiations, the Greens secured a doubling of climate funds to €100 billion and ensured that infrastructure investments would not replace existing projects.

CDU leader Friedrich Merz called the agreement a significant achievement, emphasizing Germany's commitment to freedom and peace.

The package also includes €3 billion in additional aid for Ukraine.

The Bundestag is expected to finalize the deal next week, marking a pivotal moment in German politics.