German court did not satisfy the Claim to the EU recovery Fund
2022.12.06 04:32
German court did not satisfy the Claim to the EU recovery Fund
Budrigannews.com – The European Union’s 750 billion euro ($786 billion) recovery fund, which saw the bloc assume joint debt to assist member states in overcoming the COVID-19 crisis, was overturned on Tuesday by Germany’s constitutional court.
At a time when member states are being forced to announce costly relief programs as a result of the Ukraine war and the ensuing energy standoff with Russia, the ruling will contribute to the discussion regarding whether the EU can take on joint debt for additional crises in the future.
The recovery fund, which was given the name Next Generation EU, allowed the European Commission to raise up to 750 billion euros on the capital markets and distribute the funds to member states in the form of loans and grants tied to reform and investment plans that were agreed upon together.
Over the course of the following decades, the funds will be repaid from the EU budget, with Germany bearing the vast majority of the burden.
Bernd Lucke, co-founder of the eurosceptic Alternative for Germany (AfD), and Heinrich Weiss, a businessman who was once the head of the industry lobby group BDI in Germany, filed the legal challenge on Tuesday. Both Bernd Lucke and Heinrich Weiss left the party after it moved further to the right.
