Overview

• The Schleswig-Holstein constitutional court ruled the 2024 budget unconstitutional due to inadequate justification for three emergency credits and the absence of a clear repayment plan.
• The credits were justified by crises including the October 2023 storm flood, the Russian invasion of Ukraine, and the lingering effects of the COVID-19 pandemic.
• The court emphasized the lack of a causal link between the crises and the state's financial burden, as well as insufficient explanation for the financial impact of older crises like the pandemic.
• Although the 2024 fiscal year is closed, the ruling is expected to shape stricter guidelines for emergency credit use, with adjustments planned for the 2025 budget.
• Schleswig-Holstein continues to face financial strain, operating with a €272 million emergency credit in 2025 and carrying a debt burden of approximately €32 billion.