German Government Freezes New Spending Amid Budget Crisis

Court ruling blocking use of pandemic funds for green initiatives sparks political tensions and threatens economic initiatives.

Germany's government has imposed a near-total freeze on new spending in response to a court ruling that blocked the use of 60 billion euros in unused pandemic funds for green initiatives.
The spending freeze has created tensions within Chancellor Olaf Scholz's coalition, which includes the pro-spending Greens and the fiscally conservative Free Democrats (FDP).
The court ruling and subsequent spending freeze have been heavily criticized by the opposition Christian Democrats (CDU), who claim that the government's financial mismanagement will lead to its downfall.
The spending freeze applies to all German ministries and a 200 billion euro fund set up to support businesses during the pandemic and the energy crisis following Russia's invasion of Ukraine.
The court ruling and spending freeze could hamper Germany's efforts to decarbonize its industries and build lucrative computer chip factories.