Germany is having a budget crisis. With the economy struggling, it’s not the best time

DAVID MCHUGH

With its economy struggling, Germany now is wrestling to find a way out of a budget crisis after a court struck down billions in funding for clean energy projects and help for companies and consumers facing high utility bills because of Russia’s war in Ukraine.

Chancellor Olaf Scholz plans to lay out how he and his quarrelsome governing coalition aim to fix things in a speech to parliament Tuesday. The government must hastily find cuts in the almost-finished spending plan for next year, analysts say, which could further slow what is already the world’s worst-performing major economy.

A long-term solution, however, could take years, possibly until after the next national elections scheduled for 2025. That’s because the strict legal limits on borrowing cited in the Nov. 15 court decision are enshrined in the country’s constitution, and a two-thirds majority in parliament is required to soften them.

Economists say