Bad news for Brussels as Germany’s £51bn economic hole threatens entire EU bloc

The European Union’s economic powerhouse, Germany, is facing a severe economic setback that could have far-reaching implications for the entire bloc.

The source of this crisis stems from a bombshell Constitutional Court ruling last month, which deemed Germany’s use of £51bn (€60bn) of special funds for financing energy and green subsidies a violation of the constitutional “debt brake”.

This brake restricts the federal deficit to a mere 0.35 per cent of the Gross Domestic Product (GDP).

The ramifications of this ruling are dire. Unless Germany swiftly finds an alternative method to bridge the resulting budget gap, such as declaring another emergency to bypass the “debt brake,” the nation risks falling behind on critical green and digital transitions.

Source: Express