German court steps aside to clear path for EU recovery fund

By Lewis McLellan
21 Apr 2021

Germany’s Federal Constitutional Court said on Wednesday that it will not block the ratification of how the EU finances its budget, meaning the bloc will likely be able to start borrowing to fund its pandemic recovery fund in July.

The Own Resources Decision will allow the EU to generate around €15bn of revenue per year to service its debt. Once all of the member states have ratified the ORD, the EU will begin borrowing an average of €150bn a year to finance the Next Generation EU programme, ...

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