German Court Blocks Government's Green Initiative Funding Plan

The ruling coalition scrambles to fill a 60 billion euro hole in the budget, putting pressure on Chancellor Scholz and his team.

Germany's constitutional court blocked the government's plan to transfer 60 billion euros ($65 billion USD) of unused pandemic emergency funds towards green initiatives and industry support.
The court ruling has created a significant hole in the budget, leading to the postponement of the formal vote of the budget committee until next week.
The decision has dealt a major blow to Chancellor Olaf Scholz's ruling coalition, which is already facing internal friction.
Economy Minister Robert Habeck warned that the court ruling puts at risk support for the steel sector, which relies on subsidies to decarbonise and stay competitive.
Finance Minister Christian Lindner has stressed the government's commitment to its main policy planks, including no tax hikes and adherence to a constitutionally enshrined debt brake.