Germany's outgoing parliament could still greenlight a new special fund to boost defence spending but reforming strict limits on state borrowing will be deferred to the new one, a senior ally of election winner Friedrich Merz said on Tuesday.

Germany's likely next chancellor Friedrich Merz said on Monday he had invited Israeli Prime Minister Benjamin Netanyahu to visit and would find a way for him to do so without being arrested under a warrant by the International Criminal Court.

The 69-year-old faces lengthy coalition negotiations after the far-right AfD surged to a historic second place in a fractured vote following the collapse of Chancellor Olaf Scholz's unloved three-way alliance.

Friedrich Merz is on course to become post-World War II Germany’s 10th chancellor, the culmination of a yearslong political career that was once sidelined by his party’s iconic leader.

Germany has voted — and the exit polls show opposition leader Friedrich Merz and his Conservative Party on course for a lackluster victory in Sunday’s election.

Germany could approve a fund to boost defence spending before the outgoing parliament steps down next month, while leaving debate over state borrowing limits to new lawmakers elected on Sunday, an ally of vote winner Friedrich Merz said on Tuesday.

He has vowed to prioritize European unity and the continent’s security as it grapples with the new Trump administration and Russia’s war on Ukraine.

The likely next chancellor is unpopular, and his country’s economy has stalled. But his penchant for risks could help lead to a European showdown with President Trump.

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Merz, a man who has never held a government role, is preparing to take the reins in Germany just as the country faces economic and diplomatic crises.

The Christian Democrat, who appeared to have a path to a stable governing coalition, hopes to lead Europe’s response to President Trump’s reshuffling of alliances.