Germany’s Chancellor Olaf Scholz, Finance Minister Christian Lindner, and Economy and Climate Minister Robert Habeck appeared before the Bundestag, the lower house of parliament, in Berlin on November 15, 2023. According to a source close to the finance ministry, the government has ceased spending from the economic stabilisation fund for the year following a recent constitutional court ruling that prohibited the transfer of 60 billion euros in unused funds from the pandemic to green projects.
The government is currently working on a response to the court ruling. Werner Gatzer, state secretary at the finance ministry, wrote in a letter on Tuesday that credit authorisations for the economic stabilisation fund can no longer be used in 2023 under current legal circumstances. All remaining unspent funds are now blocked and require approval from the finance ministry. Previously, payments related to energy price brakes for this year were approved by budget committees.
However, payments related to energy price brakes are not affected by this ruling. The economic stabilisation fund was established in 2020 to support businesses during the pandemic but has since shifted its focus towards addressing the energy crisis. Handelsblatt business daily was first to report on this decision to block spending from ESF on green projects in 2023.
The government is now working to address any implications of this court ruling and blocked spending from ESF for 2023. A source close to the finance ministry stated that payments related to energy price brakes are not impacted by this ruling. The economic stabilisation fund was initially created to help companies during the pandemic but has since shifted its focus towards addressing energy issues. Handelsblatt business daily reported first on this decision regarding ESF spending blocks for green projects in 2023.
In conclusion, Germany’s chancellor Olaf Scholz and his cabinet members have stopped spending from their economic stabilisation fund after a constitutional court ruled against it last week. The government is urgently working on finding a solution while blocking all remaining unspent funds until approved by finance ministry officials.
The previous article stated that Germany’s Chancellor Olaf Scholz, Finance Minister Christian Lindner