German Parliament Approves Giant Fund to Tackle Energy Crisis

Germany’s lower house of parliament approved the ruling coalition’s plan to borrow as much as €200 billion ($195 billion) to tackle the energy crisis as well as the required suspension this year of a constitutional limit on net debt.

Chancellor Olaf Scholz’s administration announced last month it would repurpose a fund used to help offset the impact of the coronavirus pandemic and bolster it with additional cash. Scholz said the new off-budget stabilization mechanism would allow measures to put a “large protective umbrella” over Europe’s biggest economy.