Today’s news / Germany – budget crisis

Germany – budget crisis

The budget crisis in Germany continues after the Constitutional Court punched a 60 billion euro hole in the country’s climate fund a week ago. Several media outlets, including Germany’s Bild and the Reuters news agency, are reporting that an extraordinary meeting of the country’s budget committee scheduled for Thursday will probably have to be postponed. A number of projects are at risk due to the ruling, in which the court found it unconstitutional to transfer unused funds from the coronavirus fight to a large climate fund. The projects are both within the green transition and in industry more generally. Chip factories, climate-friendly steel production and an expansion of battery supply chains could be affected, according to government sources. According to Bild, there is also concern in the construction sector. The three parties in the German government, led by Social Democrat Olaf Scholz, are in the process of finding a solution that can keep as many spending measures alive as possible – and ensure that they are legal.