Germany's budget plan hit by €60bn court ruling

The court's decision forces the government to choose between slashing climate spending or finding new sources of financing

The ruling by the constitutional court dealt a major blow to an already fractious coalition under chancellor Olaf Scholz, whose popularity has slumped as Europe's largest economy teeters on the brink of another recession.

Germany's ruling coalition was scrambling to fix a large hole in its finances after a court ruling blocked the government from transferring unused emergency funds from the pandemic towards green initiatives and industry support.

The decision by the constitutional court to wipe €60bn from the budget has prompted the German government to postpone the formal vote of the budget committee until next week. The 2024 budget will however be passed as planned on December 1, according to members of the budget committee.