“The government is now bracing for the potential of far wider financial implications stemming from the ruling that may limit its ability to draw money from a variety of special funds that have been established to circumvent the country’s debt brake, which restricts the federal deficit to 0.35 percent of GDP, except in times of emergency.
In a letter to all ministries, State Secretary Werner Gatzer said the finance ministry is freezing spending “in order to avoid further upfront burdens on future financial years.” The step does not impact those financial commitments that have already been made, Kevin Kühnert, the secretary general of Chancellor Olaf Scholz’s Social Democratic Party (SPD), told public television on Monday.”
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