Germany’s government has clinched a last-minute budget deal, averting a financial shutdown in January and plugging a projected €17bn hole opened by a landmark court ruling.
After weeks of tense negotiations, Olaf Scholz’s coalition agreed painful cuts to green energy and construction subsidies, transport spending and support measures for industry in order to comply with Berlin’s strict public finance rules.
Funding for Ukraine against Russia’s full-scale invasion and social security spending would be protected, the chancellor said. The government will also raise the carbon price more than planned next year.
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