Germany's Greens vowed to block plans by likely next chancellor Friedrich Merz for a massive increase in state borrowing to revamp the military and revive growth but forwarded rival proposals on Monday in a bid for compromise.

Germany’s Greens demanded tougher rules for defense spending, making a counteroffer in talks aimed at unleashing hundreds of billions of euros for a prospective ruling coalition of the conservatives and the Social Democrats.

A massive plan to loosen Germany's debt rules and spend hundreds of billions on defence and infrastructure has run into potentially decisive opposition from the Greens, whose votes in parliament would be essential for the legislation to be approved.

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".

Germany’s Green party rejected a debt-financed package that would unleash hundreds billions of euros in defense and infrastructure spending, potentially imperiling the flagship policy of chancellor-in-waiting Friedrich Merz.

Germany's Green party on Monday threatened to torpedo plans put forward by likely next chancellor Friedrich Merz to invest hundreds of billions in defence and infrastructure. The proposed constitutional changes to ease strict borrowing limits in the area of defence and establish a 500-billion-euro ($542-billion) fund for infrastructure were described as historic when they were presented last week.

Election winner and Chancellor-in-waiting Friedrich Merz is relying on votes from the Greens to push through parliament a special fund for infrastructure and defence. View on euronews