Due to the budget crisis facing the German government following the ruling of the Federal Constitutional Court, Olaf Scholz’s cabinet is losing popularity.
The Federal Constitutional Court in Karlsruhe ruled on November 15 that the Berlin government’s transfer of resources from the fund to combat the consequences of the COVID-19 pandemic to the Climate and Transformation Fund was unconstitutional.
The judges of the German Constitutional Tribunal, who are called the ‘Cardinals of Karlsruhe’ because of the red robes they wear, blocked 60 billion euros in this way. They found that Scholz’s government had violated the budget rule established in the constitution, the so-called debt brake, according to which the allowable ceiling of the structural budget deficit (regardless of economic fluctuations) can reach 0.35%. GDP.
The German government must now find ways to close the huge budget gap. On Tuesday, the Ministry of Finance instructed other ministries to suspend new obligations from the state treasury for the current year.
Budget crisis in Germany. The ruling of the Constitutional Court has consequences for the ratings of the Scholz government
The budget problem has a negative impact on the government’s ratings. According to the latest research by the Forsa Institute for RTL and NTV television, no fewer than 66 percent of Germans believe that Scholz will not be up to this task in the current crisis situation. 24% have the opposite opinion. asked. Among SPD supporters – the party from which the chancellor comes – 79 percent trust him. subjects.
At the same time, more than half of respondents (62%) also doubt the powers of Vice Chancellor and Minister of Economic Affairs Robert Habeck, who represents the Greens in the government. The situation is similar with Finance Minister Christian Linder of the FDP (61%).
A total of almost 70 percent of respondents are convinced that the current budget crisis is placing an excessive burden on the SPD-Greens-FDP coalition. Only a quarter of respondents (26%) believe that the Scholz government is capable of solving this crisis.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
