The European Union is moving toward easing its fiscal rules to allow for more defense spending after a U-turn from Germany won support from some traditional opponents of increasing borrowing.

Germany opened the door on Wednesday to changing EU fiscal rules -- the Stability and Growth Pact -- to help governments spend more on defence in the long term without worrying about EU-imposed spending limits or disciplinary action,

The two political parties expected to form the next German government have agreed to significantly loosen the country’s constitutional restriction on deficits, enabling 1 trillion euros ($1.08 trillion) or more in new borrowing and spending on defense and infrastructure.