LONDON/BERLIN (Reuters) - 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, their leaders said on Tuesday.

Christian Democrats, Social Democrats agree on constitutional changes to pave way for hundreds of billions of euros in borrowing to finance defense procurements, infrastructure investments - Anadolu A

BERLIN - Germany's conservatives and Social Democrats announced proposals on Tuesday to set up a 500 billion euro fund for infrastructure and overhaul borrowing rules in order to massively up defence spending.

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,