BERLIN Germany 's likely next government under conservative leader Friedrich Merz has said it plans a shot in the arm for the flagging economy with a huge programme of investment in defence and infrastructure. But economists warn that Europe's largest economy will also need structural reforms for a sustainable recovery after two straight years of recession. Both Merz's centre-right CDU/CSU and the centre-left SPD, who are in talks on forming a coalition, say that they want to restore industrial