Germany's Urgent Budget Crisis: What You Need to Know
German Chancellor Olaf Scholz has promised to present new budget plans "very quickly" to Parliament after a constitutional court ruling last week caused financial disarray and a €60 billion hole in the country's budget. The ruling has delayed next year's budget and may require an emergency budget for this year. Scholz's coalition is determined to move forward with new budget plans but has not specified where spending cuts will be made. The ruling will likely limit the use of special funds to circumvent the debt brake, and legal experts argue that a supplementary emergency budget will be necessary to account for energy subsidies. Finance Minister Christian Lindner evaded making a clear reply on potentially relaxing debt rules for this year.
