German Court’s Verdict Causes Economic Uncertainty, Says Minister

German Chancellor Olaf Scholz and Transport Minister Volker Wiesing attend the third national aviation conference at Lufthansa Technik in Hamburg, Germany September 25, 2023. REUTERS/Fabian Bimmer/File Photo

BERLIN, Nov 21 (Reuters) – The transfer of funds back from Germany’s climate change fund following a top court ruling has set off a chain reaction that resulted in far more capital than previously expected. This €60 billion was canceled, but its impact on the economy is still being assessed. Economy Minister Robert Habeck emphasized the importance of these funds, stating that they are not an add-on that can be carelessly discarded. He expressed concern that the loss to the economy would be even greater if no investment was made now.

Habeck made this announcement at a press conference in Jena, where he also noted that the government is now urgently preparing and discussing how to establish its budget in light of the court ruling and missing funds. Transport Minister Volker Vissing also commented on this ruling, stressing the need to review and check budget prioritization in light of its consequences for government funds. Wissing stated that this reassessment must be carried out immediately, and at this time he could not predict the exact result.

Reporting by Riham Alkousa; Editing by Miranda Murray