The German Ministry of Finance warned about the consequences of withdrawing €60 billion from the budget

Christian Lindner

The withdrawal of €60 billion from the budget will entail dire consequences, German Finance Minister Christian Lindner said in an interview with Bild.  In mid-November, the German Constitutional COURT withdrew this amount, considering the German government’s actions to transfer money set aside to fight covid-19 into a fund to finance green projects unlawful.

Asked about how much “the Germans will have to tighten their belts” due to the €60 billion budget cut, Lindner noted that “in the future there will be a lack of public funding that was intended to update the economy and infrastructure.”

“The short-term consequences are severe. We can gain benefits in the long run. Now we are forced to modernize the economy with less government subsidies,” the minister added. According to Lindner, “good economic policy does not have to cost money if it stimulates the entrepreneurial spirit.”

The HEAD of the Ministry of Finance noted that the department is working on new concepts that should change the sphere of economic development in Germany.

On November 16, the German Constitutional Court withdrew €60 billion from the budget following a claim by the CDU/CSU opposition bloc. In January 2022, the government of Chancellor Olaf Scholz retroactively changed the 2021 budget to include unspent €60 billion in loan funds intended to combat the consequences of the CORONAVIRUS pandemic.

The authorities planned to use this money to finance green energy projects over the next few years. However, the CDU/CSU considered such actions illegal, and the court agreed with the plaintiff’s opinion.

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