Friedrich Merz, the likely next chancellor of Germany, announced on Friday that he had cut a deal with the Green Party to allow extensive new government spending for defense, infrastructure and projects related to climate change, appearing to seal the votes for a stunning turnabout in German fiscal policy before he even takes office.
The deal, which Mr. Merz announced after days of negotiations, paves the way for a vote early next week to pass measures that are billed as a response...
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