Categories: Economy

Supreme Court: Germany can participate in the EU recovery fund Related articles

Germany is allowed to participate in the European Union’s huge recovery fund, introduced to help Europe overcome the corona crisis. The German constitutional court ruled on such participation on Tuesday.

The German flag flutters in the wind on the roof of the Reichstag, the building housing the lower house of the German Parliament (Bundestag), on July 23, 2022 in Berlin. David GANNON/AFP (ANP/AFP)

Germany’s highest court in Karlsruhe therefore rejected two constitutional appeals against the corresponding law, which had already been approved by the German parliament last year.

For the recovery fund, the European Union takes on the debts at European level. This has been a sensitive issue in Germany, because member states whose household budgets are less organized would benefit from the high creditworthiness of the cheaper countries. The total fund has a size of 750 billion euros.

Recovery plan

Member states can only apply for the fund if they present a detailed recovery plan to Brussels, which must meet several conditions. Germany expects to receive nearly 26 billion euros in subsidies for hydrogen energy research, climate-friendly transport and a more digitized education system, among other things.

However, according to the German Federal Court of Auditors, Germany is the largest net contributor to the fund, with an expected total of around €65 billion. The authority had already warned of the risks to the German government’s budget.

Author: ap
Source: BNR

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