Germany’s leader vows to fix a spending crisis that’s worsening gloom in the struggling economy

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — German Chancellor Olaf Scholz has promised quick action to fix a budget crisis after a court decision blew a large hole in the almost-finished plan for next year. It also threatens to disrupt spending on efforts to fight climate change and cushion the impact of high energy prices caused by Russia’s invasion of Ukraine. Scholz said in a video Friday that the government is “firm” in its push to modernize Germany so there’s strong industry and good-paying jobs when the economy is climate neutral. But the budget crisis threatens to exacerbate problems in the world’s worst-performing major developed economy. New figures show that Germany’s economy shrank in recent months, and business confidence is still in the dumps.