The two political parties expected to form the next German government have agreed to loosen the country's constitution restrictions on borrowing, enabling 1 trillion euros ($1.08 trillion) or more in spending on defense and infrastructure.

The debt brake was passed in 2009, when a global financial crisis led to sharp increase in government borrowing in Germany and around the world.

Germany has preached fiscal conservatism for years, but suddenly it’s taking the lead on pushing for European Union reforms aimed at freeing up more money for defense spending over the long term. A German envoy to the bloc has urged the bloc to change its budget rules in the face of geopolitical circumstances,

Tesla Inc.’s registrations plummeted in Germany last month as Chief Executive Officer Elon Musk irked voters taking part in the country’s closely contested federal election.

Tesla car sales in Germany fell by 76% in February, data showed on Wednesday, adding to the collapse in sales of Elon Musk's EV brand across Europe in what could be a loyalty test for the close ally of U.

February numbers show the U.S. electric-car maker is struggling to attract buyers in the region. Mr. Musk’s politics aren’t helping.

By Nikhil Sharma (Reuters) -German indexes led robust gains in Europe on Wednesday after sharp declines in the previous session as the country's leaders agreed to overhaul borrowing rules to boost defence spending and revive growth.

The conservatives and the Social Democrats (SPD) agreed to seek a loosening of Germany's debt brake to allow higher defence spending, and to propose the creation of a 500 billion euro infrastructure fund,

The conservatives and the Social Democrats agreed to seek a loosening of Germany's debt brake to allow higher defence spending, as well as proposing to create a 500 billion euro ($529 billion) infrastructure fund,