Germany’s constitutional court declared on Wednesday that the coalition government’s move to reallocate 60 billion euros ($65.21 billion) of unused pandemic-era debt to its climate and transformation fund violated the constitution.
This ruling establishes a precedent for Germany’s fiscal actions during future crises, potentially sparking tensions within the coalition during a crucial week of budget negotiations.
The finalization of Germany’s 2024 budget and financial plans through 2027 on Friday comes as the nation, Europe’s largest economic power, seeks to rein in spending that escalated in response to COVID-19 and the Ukraine war.
The constitutional court’s verdict adds further strain to the ongoing budget deliberations.
