Tax & Spend
German Budget Crisis Deepens With Freeze on New Spending
- Finance Ministry puts a block on almost all outlays for 2023
- Existing liabilities will be honored, no new ones authorized
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Germany imposed an emergency spending freeze in response to last week’s ruling by the country’s top court, deepening an unprecedented budget crisis that has rocked Europe’s biggest economy.
Chancellor Olaf Scholz’s government has been racing to work out the implications of the Constitutional Court judgment, which called into question hundreds of billions of euros of financing in special funds that are not part of the regular federal budget.