Fri. Dec 8th, 2023

In a significant development, the German government has stopped spending from the economic stabilisation fund for the year following a constitutional court ruling last week. The ruling prohibited the transfer of 60 billion euros in unused funds from the pandemic to green projects.

The government is currently working on a response to the court ruling, with Werner Gatzer, state secretary at the finance ministry, stating in a letter on Tuesday that credit authorisations for the economic stabilisation fund can no longer be used in 2023 under the current legal situation. All spending that has not been used in 2023 is now blocked and requires the consent of the finance ministry.

Despite this setback, payments related to the energy price brake for this year are not affected. The economic stabilisation fund, created in 2020 to support companies during the pandemic, has since focused on the energy crisis. Handelsblatt business daily was the first to report on the decision to block spending from the ESF.

The government is working to address the implications of this ruling and ensure that it continues to support businesses and individuals during these challenging times. It remains committed to finding innovative solutions that will help mitigate climate change while also supporting economic growth and stability.

By Editor

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