BERLIN (Reuters) - A senior Greens legislator said there would still be a sufficient, albeit different, majority to reform Germany's debt brake once the newly elected parliament had been seated, in an indication they might continue to block conservative chancellor-in-waiting Friedrich Merz's plan for reform.

Germany’s government is in a state of uncertainty as the outgoing government races to push through a huge, and highly controversial, new spending package before its term ends early this spring.

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,

German conservative leader Friedrich Merz reached a tentative agreement with the Green party on a debt-funded spending package for defense and infrastructure, people familiar with the discussions said.

Germany's chancellor-in-waiting and leader of the Christian Democratic Union party (CDU) Friedrich Merz speaks during an extraordinary meeting of the German Bundestag to discuss a €500-billion infrastructure fund and a revamp of borrowing rules aimed at modernizing the military and stimulating economic growth ahead of the formation of a new parliament at end of March,

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,

Friedrich Merz and his prospective coalition partner the SPD’s plan to boost infrastructure spending and soften the debt brake treatment of defence spending