(Reuters) - European shares were largely unchanged on Monday as investors started the new trading week with slight caution around the escalating trade war, while focus remained on the week's upcoming parliamentary vote on Germany's debt reform deal.

The pan-European STOXX 600 was up 0.1% as of 0812 GMT. The index climbed 1.1% on Friday after Germany's political parties agreed on a historic deal to ramp up state borrowing to fund defence and infrastructure investment.

The debt reform is likely to be approved in the lower house of Germany's parliament on Tuesday and by the upper house on Friday.

The benchmark STOXX 600 index had logged a weekly loss as U.S. President Donald Trump's constant flip-flops on tariffs amplified concerns about an economic slowdown, weighing on market sentiment.

The oil and gas index rose 0.7% on Monday, while the heavyweight healthcare added 0.6%.

Meanwhile, focus was also on the U.S. Federal Reserve's interest rate decision on Wednesday, with traders expecting the central bank to keep rates on hold.

Phoenix Group rose 6.1% after the British insurer reported a better-than-expected rise in full-year adjusted operating profit and total cash.