© Reuters. FILE PHOTO: Chancellor Olaf Scholz is watched by Finance Minister Christian Lindner and Economy and Climate Minister Robert Habeck during a hearing at Germany’s lower house of parliament Bundestag following the ruling of Germany’s Constitutional court t
By Maria Martinez
BERLIN (Reuters) – Germany’s ruling coalition on Thursday was scrambling to fix a large hole in its finances after a court ruling blocked the government from transferring unused emergency funds from the pandemic towards green initiatives and industry support.
The decision by the constitutional court to wipe 60 billion euros ($65 billion) from the budget has prompted the government to postpone the formal vote of the budget committee until next week after an extraordinary meeting to be held on Tuesday.
The 2024 budget will however be passed as planned at the end of the Bundestag’s budget week on Dec. 1, according to members of the budget committee.
Wednesday’s ruling by the constitutional court dealt a major blow to an already fractious coalition under Chancellor Olaf Scholz, whose popularity has slumped as Europe’s largest economy teeters on the brink of another recession.
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