The German government is looking for ways out of the budget crisis


Germany is the largest economy in the EU, accounting for a quarter of the union's GDP and the same share of the EU budget. In 2023, the country's economy is teetering on the brink of zero growth and recession.

According to the IMF's latest forecast (October 2023), real GDP will decline by 0.5% this year. This reflects the effects of recent high inflation, including higher energy prices, rising interest rates, disruptions in global value chains due to the war in Ukraine, and geopolitical tensions between the West and China, which are hitting the country's export-oriented economic model.

The government and the coalition planned to support the weak economic recovery by diverting unused €60 billion in borrowings from the Covid-19 Fund to the Climate and Transformation Fund for green initiatives and support for industry. 

At the expense of the Fund, the planned volume of which is 212 billion euros, it was planned to finance various subsidies and expenses to increase production in promising sectors of the economy (production of microchips, batteries for electric vehicles, thermal modernization of buildings, green energy, etc.) by