German lawmakers have reached an agreement to exempt some defense spending from the nation's tight rules on running up debt.

Germany’s likely next chancellor on Thursday urged outgoing members of parliament to exempt some defense spending from the nation’s tight self-imposed rules on running up debt.

Germany's outgoing parliament is set to meet on Thursday to discuss a constitutional amendment to enable a massive government spending package on defence and infrastructure, despite ongoing wrangling among lawmakers.

Germany's outgoing lower house of parliament began a special session on Thursday to debate a 500 billion euro fund for infrastructure and sweeping changes to borrowing rules in Europe's largest economy to bolster defence.