In coalition talks, the Christian Democrats (CDU/CSU) and Social Democrats (SPD) are preparing a huge increase in defence spending and corresponding social cuts. The Green and far-right Alternative for Germany also largely support this course.

Despite declarations by Friedrich Merz, the likely future chancellor, the future government's road to taking office looks to be long and strewn with pitfalls.

Germany's conservatives and Social Democrats (SPD) on Tuesday held talks on forming a coalition as hopes for buoying Europe's largest economy rose on the prospect of a nearly trillion euro borrowing boom to fund military and infrastructure spending.