Posted 11/28/2023, 5:16:23 AM
Germany Faces Budget Crisis Over Court Ruling Limiting Deficit Spending
- Germany is facing a budget crisis due to a struggling economy and a court ruling striking down billions in clean energy and utility bill funding
- The ruling cites constitutional limits on deficits, requiring cuts to next year's budget during an economic downturn
- Vice Chancellor Habeck says the limits tie Germany's hands while competitors invest heavily in green tech
- Economists estimate Germany may need to cut spending by up to 0.5% of GDP over the next 2 years to comply
- There are calls to loosen the strict debt rules, but the governing coalition lacks the 2/3 majority needed to change the constitution