Germany’s Economy Minister Robert Habeck has stated that the transfer of funds back from the country’s Climate Transformation fund following a court ruling has caused a chain reaction. The now-cancelled 60 billion euro in funds leveraged far more capital than previously anticipated, according to Habeck. He emphasized the importance of these funds, stating that they are not an add-on that can be carelessly discarded.
Habeck made these remarks at a news conference in Jena, where he also mentioned that the government was now urgently preparing and discussing how to set up its budget in light of the court ruling and the missing funds. Transport Minister Volker Wissing also commented on the ruling, emphasizing the need for re-evaluation and checking budget prioritization in light of its consequences on government funds.
According to Wissing, this reassessment must take place immediately, and he could not predict the exact result at this time. The decision by Germany’s highest court ruled that the transfer of money from climate change funds to other areas was unconstitutional due to insufficient transparency in budgeting. This has resulted in a significant shortfall for Germany’s transportation sector, which relies heavily on these funds for infrastructure development projects.