(MENAFN) In a parliamentary address on Tuesday, German Chancellor Olaf Scholz emphasized the need for modernizing the country's economy, citing the recent Constitutional Court ruling that thwarted the government's plans to redirect unused pandemic funds into the Climate and Transformation Fund. Scholz acknowledged the challenges Germany faces, including the COVID-19 pandemic, the conflict in Ukraine, and soaring energy prices, stressing the importance of preparing for unforeseen crises through economic modernization.
During his speech, Scholz cautioned against neglecting the modernization of Germany in the face of acute challenges, describing such oversight as a "grave and unforgivable mistake."
Despite the budgetary constraints, he underscored the necessity of transforming the German economy to navigate uncertainties effectively.
While advocating for economic transformation, Scholz assured continued support for Ukraine, stating that assistance would persist "as long as it is necessary." He highlighted the "existential importance" of this support not only for Germany but for all of Europe, warning of dire consequences if Russian President Vladimir Putin were to prevail in the ongoing conflict.
Earlier this month, the German government reportedly committed to doubling military aid to Ukraine, allocating a total of EUR8 billion (USD8.79 billion) for the coming year. Scholz reiterated the commitment to support Ukraine and address the energy crisis, emphasizing the government's determination to navigate the budget crisis.
However, the Chancellor's reassurances were met with skepticism from the opposition Christian Democrats (CDU), whose legal action led to the Constitutional Court ruling. Laughter erupted from the CDU as Scholz asserted that his government would manage the budget crisis.
Vice Chancellor Robert Habeck highlighted the potential "massive implications" of the legal decision for Germany's transformation into a cleaner and more technologically advanced economy. The complex interplay between economic challenges, budget constraints, and geopolitical considerations continues to shape Germany's policy landscape, with the need for strategic modernization and ongoing support for Ukraine at the forefront of Chancellor Scholz's agenda.
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