Germany’s government reaches a deal to resolve its budget crisis and keeps up support for Ukraine

By GEIR MOULSON
Associated Press

BERLIN (AP) — Germany’s governing coalition has reached a deal to resolve a budget crisis triggered by a court ruling last month. It agreed Wednesday to cut some subsidies and spending but stressed that Berlin will stick to plans to step up support for Ukraine. Chancellor Olaf Scholz’s three-party coalition has spent weeks wrangling over how to deal with the annulment by Germany’s highest court of its decision to repurpose 60 billion euros originally meant to cushion the fallout from the COVID-19 pandemic for measures to help combat climate change and modernize the country. That maneuver fell foul of Germany’s strict self-imposed limits on running up debt. The immediate result was a 17 billion-euro hole in next year’s budget.