The decision follows a budget fight that prompted Chancellor Olaf Scholz to fire his finance minister and announce a confidence vote that is widely expected to fail.

Germany is set to hold fresh elections on February 23, eleven weeks after the collapse of Chancellor Olaf Scholz's governing coalition, with sources on Tuesday saying the Social Democrats, Greens and conservatives had reached a compromise on timing.

Bloomberg has learned that Olaf Scholz's social Democrats and opposition lawmakers reached an agreement finally told in the federal election on February 23rd. For more, let's bring in Bloomberg's Oliver Crook in Berlin.