German Chancellor-in-waiting Friedrich Merz was set to make a last-ditch attempt on Friday to convince the Greens of his plans for a massive increase in state borrowing to bolster defence and infrastructure ahead of a parliamentary vote next week.

Germany’s chancellor-in-waiting Friedrich Merz reached an agreement with the Greens party on a fiscal reform package for large investments on infrastructure and defense, according to a report by newspaper Handelsblatt.

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".