German chancellor-in-waiting Friedrich Merz reached an agreement with the Greens on Friday on a massive increase in state borrowing, just days before a parliamentary vote on the issue, a source close to the negotiations said.

Under Germany's constitution, Merz needs a two-thirds majority to get the changes passed. With the support of the Greens and Social Democrats, he should succeed. Urgent motions by both the AfD and the Left to challenge next week's sessions of the outgoing parliament failed at the constitutional court on Friday, enabling the vote to go ahead.

An agreement has been reached on plans by German chancellor hopeful Friedrich Merz to massively ramp up public borrowing, a source from the Greens party said on Friday, adding: "We are satisfied." Greens' support is seen as crucial to Merz's bid to pass the debt plan with a two-thirds majority in Germany's outgoing parliament.