Photo: Reuters
At the end of March, investors were absorbing an intervention by the German Constitutional Court that has delayed that country’s ratification of the €750 billion recovery fund under the NextGeneration EU (NGEU) budget. All 27 member states must ratify this.
The challenge comes from German academics who, it appears, object to the size and extended maturity of EU borrowing to fund economic recovery from the near-term emergency of the pandemic through long-term investments in green and digital technology. The complainants see this as
de facto fiscal union.
It is a reminder, suggests Reinhard Cluse, economist at UBS, that any steps toward EU integration and burden-sharing are – and will likely remain – subject to intense legal scrutiny in Germany.
EU executive confident law for EU recovery fund will pass in German court
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EU executive confident law for EU recovery fund will pass in German court
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