FRANKFURT, Germany, July 5, 2024 (BSS/AFP) - Chancellor Olaf Scholz and his allies have struck an agreement in principle on Germany's 2025 budget, a source close to the ruling coalition said early Friday, ending a protracted clash over spending.

"An agreement was reached" at the end of the night between Scholz, vice-chancellor and economy minister Robert Habeck of the Greens, and finance minister Christian Lindner of the liberal FDP, who had been in talks since Thursday afternoon, the source said.