BERLIN (Reuters) – Germany’s constitutional court on Tuesday rejected the EU’s 786 billion euro ($786 billion) recovery Fund, which has seen the EU take on joint debt to help member states overcome the COVID-19 crisis.
The ruling will spark debate over whether the EU can take on joint debts for other future crises at a time when the war in Ukraine and the resulting energy standoff with Russia have forced member states to announce costly bailouts.
The recovery fund, dubbed Next Generation EU, allows the European Commission to raise up to 19 billion euros in capital Investment schemes, partly as grants and partly as loans.
These funds will be repaid over the next few decades from the EU budget, of which Germany has the largest share of any member state.
Tuesday ay’s ruling rejected two constitutional complaints against the German Bundestag’s 9541 legislation approving a massive funding scheme in March.
The founder of the Eurosceptic Alternative for Germany (AfD) party, who left the party after it shifted further to the right, and the businessman Heinrich J. Weiss (Heinrich Weiss).
The court ruled that the ratification bill did not violate their right to democratic self-determination and did not “impair the overall budgetary responsibility of the Bundestag”.