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By Michael Nienaber BERLIN (Reuters) -The three German parties working to form a new coalition government are discussing higher federal borrowing next year to allow a one-time, multi-billion-euro injection into the government s climate investment fund, two sources told Reuters. The centre-left Social Democrats (SPD), the ecologist Greens and the pro-business Free Democrats (FDP) face a massive spending problem as they agreed in exploratory talks to return to strict debt limits from 2023 and avoid tax increases. To create more fiscal fire power, the parties are mulling a proposal to use the emergency clause for the debt brake rule in the constitution for a third consecutive year and take on more debt than the initially planned 100 billion euros ($115.92 billion) in 2022, two people familiar with the talks said on condition of anonymity. The idea is to super-charge the government s Special Energy and Climate Fund (EKF) with a one-time, debt-financed injection worth several billion euros

Angela merkelMaria sheahanOlaf scholzAlison williamsMichael nienaberClimate fundEuropean recovery fundEnvironment officeSocial democratsFree democratsSpecial energyChancellor angela merkelMinister olaf scholzFederal environment officeAlternative energyMacro economics