After a top court ruling, Germany’s Climate Transformation fund is facing a setback that will result in a chain reaction according to Economy Minister Robert Habeck. The now-cancelled 60-billion-euro in funds leverage far more capital than previously thought. Habeck emphasized the importance of these funds, stating that they are not expendable and that not making investments now would have a greater negative impact on the economy.
The government is now in the process of preparing and discussing how to set up its budget in response to the ruling and the lack of funds. Transport Minister Volker Wissing also commented on the situation, stating that the ruling and its consequences on government funds mean that budget prioritization must be re-evaluated and checked.
Wissing highlighted the need for this re-evaluation to take place now, but also expressed uncertainty about the exact result. The government is working quickly to address the situation and determine the best course of action in light of the ruling and its impacts on the budget. Ultimately, the outcome of these discussions will have significant implications for the allocation of government funds.