German court ruling wipes billions from budget, threatens growth and climate goals
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German court ruling wiped billions from federal budget, potentially dragging down 2024 growth up to 0.5 percentage points.
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Ruling blocked transfer of 60 billion euros in unused pandemic funds towards green initiatives and industry.
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Creates tensions in Scholz's coalition government between Greens wanting more spending and Free Democrats rejecting more debt/taxes.
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Economy Minister warns ruling could damage industry, disrupt climate goals, and cause job losses abroad.
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Opposition party CDU considering further legal action against government's 200 billion euro Economic Stabilisation Fund.