Scholz Says Unforgivable If Budget Shock Halts Germany’s Transformation
- Governing coalition will push ahead with necessary investments
- Chancellor determined to keep pace with rivals like US, China
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German Chancellor Olaf Scholz promised that his government will forge ahead with investments needed to modernize the economy and maintain international competitiveness even after this month’s court ruling upended its budget planning.
The Constitutional Court judgment means Scholz’s ruling alliance has to move tens of billions of euros in special funds into the regular federal budget. That will drastically limit its room for maneuver and potentially threatens projects ranging from greening manufacturing to building out solar energy and expanding battery and semiconductor production.