Germany's outgoing parliament on Tuesday passed a massive increase in government borrowing, including a sweeping change to the country's debt rules. Chancellor-in-waiting Friedrich Merz's conservatives and the centre-left Social Democrats,

Friedrich Merz, Germany’s likely next chancellor, passed a major test as the outgoing parliament voted 513-207 in its final meeting to approve the plans.

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.