Tax & Spend
Germany Looking at Relaxing Debt Restrictions After Court Ruling
- Government may be forced into drastic overhaul of 2023 budget
- Officials assessing broader impact of Wednesday’s judgment
This article is for subscribers only.
Germany is exploring a drastic overhaul of its federal budget for this year, including relaxing restrictions on net new debt, following last week’s ruling by the country’s top court, according to people familiar with the discussions.
Judges said that unused debt authorizations can’t be transfered into an off-budget fund for initiatives like greening manufacturing and expanding solar power. The ruling is likely to affect other such special funds, including one that pays for measures to ease the burden on households and companies from high energy prices.