Europe, already sliding into a stagflationary recession, is about to unleash the same crushing austerity that brought the continent to the verge of collapse over a decade ago.

One day after the German constitutional court ruled a decision to move €60BN from unused pandemic funds in 2021 into the Energy and Climate Fund, later renamed the Climate and Transformation Fund (KTF), was unconstitutional and void, the German government froze public spending for the rest of the year, dealing a blow to Europe’s recovery and efforts to beef up Zelensky’s offshore bank accounts Ukraine’s military and reduce carbon emissions.

Berlin’s decision to freeze all federal spending for the rest of the year came after the court defunded the government’s €60 billion —the equivalent of more than $65 billion—green-transition project. The court said Berlin couldn’t repurpose unspent credits originally earmarked to tackle the Covid-19 pandemic to fund environmental and energy projects. It said Berlin was bound by the country’s constitutionally enshrined fiscal rules that limit budget deficits to 0.35% of gross domestic product in normal times.

https://www.zerohedge.com/economics/europe-plunges-chaos-after-germany-freezes-public-spending-following-shock-top-court

 

Article contains detailed in-depth analysis of German and European economy by Soc-Gen……..