Germany's would-be next chancellor, Friedrich Merz, won lawmakers' approval to loosen strict debt rules for higher defense spending as doubts mount about the strength of the trans-Atlantic alliance.

Germany's parliament approved plans for a massive spending surge on Tuesday, throwing off decades of fiscal conservatism in hopes of reviving economic growth and scaling up military spending for a new era of European collective defence.

Germany's lower house of parliament is set to vote on Tuesday on a massive surge in borrowing that could boost Europe's largest economy and stimulate growth across the region, even as it faces trade tensions with top partner the United States.

Apple lost its challenge at Germany's top civil court on Tuesday against its classification as a significant market power, a label which gives antitrust regulators more scope and flexibility to scrutinise its business practices.