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Germany: Olaf Scholz’s government faces a budgetary crisis
The Karlsruhe Court refused to allow the federal government to use the 60 billion euros from the post-Covid European recovery plan to finance its 2024 budget. – (France 2)
The Karlsruhe Court refused to allow the federal government to use the 60 billion euros from the post-Covid European recovery plan to finance its 2024 budget.
The German government needs money and there was the post-Covid European recovery plan. But the Germans didn’t use all that money. There remained 60 billion euros unused. Olaf Scholz took this 60 billion euros and wanted to use it for his federal budget. But the Court Constitutional Court of Karlsruhe said no to this sleight of hand: Covid money is not intended to finance the general budget. If we were in France and we couldn’t make ends meet, what would we do? We would go into debt.
A double risk
But in Germany, the Covid crisis is over and they have reactivated the debt brake. This is no more than 0.35% of GDP additional debt. So the Germans are unable to complete their 2024 budget. There is a double risk. On the one hand, a political crisis, since the liberals do not want to incur debt: the coalition could explode. Next Wednesday, there is a European meeting where we must give money to the Ukrainians. The Germans are incapable of spending a single euro. This shows whether this budgetary crisis threatens Germany and Europe, specifies the journalist from France Télévisions, Axel de Tarlé
