A German court on Wednesday morning gave the green light for the payment of 750 billion euros from the emergency recovery fund of the European Union, dismissing legal objections and requesting precautions against it.
The Constitutional Court of the Federal Republic of Germany now allows the Berlin government to pass legislation to ratify the Recovery Fund to mitigate the economic impact of the coronavirus pandemic.
“The disadvantages arising from the failure to approve the precautionary measures and the fact that the law was later declared unconstitutional are less than the consequences of adopting these measures when the accusation of unconstitutionality was later found unfounded,” the court’s ruling explicitly states.
The change to be ratified by Berlin concerns the level of national contributions to the Community budget: an extraordinary increase of 0.6 percentage points, to 2% of gross national income, is foreseen by 2058 to ensure the payment of emergency loans in the event of non-refund of tax revenues earmarked for this goals.
The court took precautions in March after the German president signed legislation into law following extraordinary intervention by the far-right German Alternative for Germany (AfD) party and an organization called the Parliamentary Alliance.