Current:Home > reviewsGermany’s highest court annuls a decision to repurpose COVID relief funding for climate measures -ProgressCapital
Germany’s highest court annuls a decision to repurpose COVID relief funding for climate measures
View
Date:2025-04-19 20:02:08
BERLIN (AP) — Germany’s highest court on Wednesday annulled a government decision to repurpose 60 billion euros ($65 billion) originally earmarked to cushion the fallout from the coronavirus pandemic for measures to help combat climate change and modernize the country, creating a significant new problem for Chancellor Olaf Scholz’s quarrelsome coalition.
The money at stake was added retrospectively to the 2021 budget in light of the COVID-19 pandemic, under rules that allow new borrowing in emergencies despite Germany’s strict restrictions on running up new debt.
But it eventually wasn’t needed for that purpose, and the center-left Scholz’s three-party coalition decided in 2022 to put the money into what is now called its “climate and transformation fund,” arguing that investment in measures to protect the climate would help the economy recover from the pandemic.
Lawmakers with the main conservative opposition bloc contended that it was a trick to get around Germany’s so-called “debt brake,” and 197 of them complained to the Federal Constitutional Court.
The court ruled that the government’s move was unconstitutional and said that it will have to find other ways of filling the resulting hole in the climate fund.
The debt brake, introduced more than a decade ago, allows new borrowing to the tune of only 0.35% of annual gross domestic product.
It can be suspended to deal with natural disasters or other emergencies that are out of the state’s control, and was for the three years after the coronavirus pandemic started in 2020 to allow for large amounts of borrowing to finance various support and stimulus packages.
Finance Minister Christian Lindner and his pro-business Free Democrats have been particularly adamant about saving money to adhere to those rules, and the coalition also agreed at their insistence not to raise taxes when it took office in late 2021. Financing has been one of many sources of tension between the partners in a coalition that has become notorious for infighting.
veryGood! (96)
Related
- Krispy Kreme offers a free dozen Grinch green doughnuts: When to get the deal
- The 30 Most Popular Amazon Items E! Readers Bought This Month
- The Biden administration sells oil and gas leases in the Gulf of Mexico
- Investigators looking into whether any of the Gilgo Beach murder victims may have been killed at home suspect shared with his family
- Scoot flight from Singapore to Wuhan turns back after 'technical issue' detected
- Get $112 Worth of Tarte Cosmetics Iconic Shape Tape Products for Just $20
- Octomom Nadya Suleman Shares Rare Insight Into Her Life With 14 Kids
- The SEC charges Lindsay Lohan, Jake Paul and others with illegally promoting crypto
- Travis Hunter, the 2
- Russia detains a 'Wall Street Journal' reporter on claims of spying
Ranking
- Tom Holland's New Venture Revealed
- As Illinois Strains to Pass a Major Clean Energy Law, a Big Coal Plant Stands in the Way
- Too many subscriptions, not enough organs
- The FBI raided a notable journalist's home. Rolling Stone didn't tell readers why
- Mets have visions of grandeur, and a dynasty, with Juan Soto as major catalyst
- The $7,500 tax credit to buy an electric car is about to change yet again
- Tom Brady Mourns Death of Former Patriots Teammate Ryan Mallett After Apparent Drowning
- Even Kate Middleton Is Tapping Into the Barbiecore Trend
Recommendation
What were Tom Selleck's juicy final 'Blue Bloods' words in Reagan family
11 horses die in barbaric roundup in Nevada caught on video, showing animals with broken necks
The 30 Most Popular Amazon Items E! Readers Bought This Month
As Illinois Strains to Pass a Major Clean Energy Law, a Big Coal Plant Stands in the Way
Senate begins final push to expand Social Security benefits for millions of people
The Young Climate Diplomats Fighting to Save Their Countries
The Perseids — the best meteor shower of the year — are back. Here's how to watch.
Disney blocked DeSantis' oversight board. What happens next?