German Economy Chief Warns of Major Blow From Budget Ruling

  • Judgment may lead to higher power prices for households, firms
  • Habeck sees ‘massive implications’ for green transformation

Robert Habeck

Photographer: Krisztian Bocsi/Bloomberg
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German Vice Chancellor Robert Habeck said last week’s ruling by the country’s top court curbing the use of off-budget special funds is a major blow for Europe’s biggest economy and could lead to higher energy costs for households and companies.

Constitutional Court judges said that €60 billion ($65.5 billion) in untapped credit authorizations can’t be transfered into the government’s Climate and Transformation Fund, potentially threatening projects like the expansion of hydrogen infrastructure and charging stations for electric vehicles.