Germany's Budget Crisis Deepens Following Court Ruling

Finance Minister Christian Lindner Proposes Special Budget to Cover Energy Subsidies Amid Economic Contraction

Germany's constitutional court has ruled that the government cannot reallocate unused debt from the Covid-19 pandemic to current spending plans, causing a budget crisis.
The ruling has left a €60 billion hole in the budget, freezing spending across all ministries.
Finance Minister Christian Lindner announced a plan to adopt a special budget to cover the cost of energy subsidies, aiming to put expenditure on a constitutionally secure footing.
The German economy is expected to contract in 2023 due to flagging industrial production and high inflation.
The budget crisis could potentially endanger the future of Berlin's coalition government.