German Finance Minister Christian Lindner has defended the supplementary budget for 2023, which suspends Germany's cap on borrowing this year due to a constitutional court ruling that annulled the government's spending plans. The ruling impacts the reallocation of €60 billion from pandemic-era unused debt to Germany's climate and transformation fund. Lindner, leader of the Free Democrats, supports the suspension but is cautious about extending it in 2024. The court's decision may lead to a potential economic contraction of up to 0.5% in 2024, adding strain to the country's coalition government led by Chancellor Olaf Scholz.

SOURCE:GOOGLE