Ruling has no impact on Rhineland-Palatinate according to the Minister
According to the Rhineland-Palatinate government, the ruling of the Federal Constitutional Court on the supplementary budget of the traffic light government in Berlin has no direct impact on the state. "There is no comparable situation for the state budget to that of the federal government," explained Finance Minister Doris Ahnen (SPD) when asked in Mainz. Beyond the core budget, there are neither secondary nor shadow budgets in the state budget, but only five special funds that do not have their own borrowing options. Three of these were due to expire in the foreseeable future.
The fundamental decision of the Federal Constitutional Court must now be evaluated intensively. "It is crucial that the state's ability to act in crises is guaranteed even if the debt rule applies," the statement reads.
On Wednesday, the Federal Constitutional Court ruled that the use of coronavirus loans for climate projects was unconstitutional. The ruling tears a 60 billion euro hole in the financing of the German government's climate projects.
In light of the Federal Constitutional Court's ruling on the unconstitutional use of coronavirus loans for climate projects, the Bundestag might need to reconsider Finances for Rhineland-Palatinate's Household budget, considering the potential impact on Germany's overall debt. The Finance Ministry in Rhineland-Palatinate, however, maintains that there are no comparable situations in their state budget as there are no secondary or shadow budgets.
Source: www.dpa.com
