New Title: German Government Rejects Proposal for Economic Stabilization Fund

The Economic Stabilization Fund, which was created to support companies during the pandemic, has now shifted its focus to the energy crisis. In light of a recent ruling by the Constitutional Court that prohibited the transfer of 60 billion euros of unused funds from the pandemic to green projects, the German government has stopped spending from the economic stabilization fund. According to a source close to the Ministry of Finance, all spending not used in 2023 is now blocked and requires approval from the Ministry of Finance.

The verdict also affected payments related to energy price braking for this year. However, Werner Gatzer, state secretary in the finance ministry, explained in a letter on Tuesday that credit authorizations for the economic stabilization fund can no longer be used in 2023 under the current legal situation. The budget committee previously had the authority to approve such spending, but this is no longer possible due to the court ruling.

This decision was first reported by business daily Handelsblatt. The government is currently working on finding a solution to resolve the implications of this court ruling and block spending from the economic stabilization fund for this year.