Germany Faces the Green Fiscal Truth

Things have gone from bad to worse in Germany this week after a court ruling that’s forcing the government to do something truly shocking: level with voters about how much the net-zero energy transition will cost. Please pass the smelling salts.

The country’s highest constitutional court ruled this month that one of the coalition government’s main gimmicks for funding green projects violates Germany’s version of a balanced-budged amendment. That amendment, known as the debt brake, caps the government’s fiscal deficit at 0.35% of gross domestic product per year except in emergencies (as defined by special legislation passed with a majority in the Bundestag).

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