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Banca March: The Karlsruhe court has declared unconstitutional the transfer of €60 billion initially planned to combat the pandemic, but which has not yet been spent, to an extra-budgetary fund for weather and energy initiatives. The Minister of Finance sent an information letter to the rest of the cabinet to warn against freezing new spending. With the deficit rising, the German Constitution’s regulations on the debt ceiling are threatened. Regulations restrict the structural deficit to 0. 35% of GDP and can only be exceeded in exceptional cases of emergency. After the singularities of the pandemic in 2020 and the armed confrontation between Ukraine and Russia in 2022, they have been re-established this year 2023. Thus, the court’s ruling may only mean a violation of constitutional barriers and jeopardize aid for businesses and consumers, an era in which the country has been hit by an economic downturn.
Chirp