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Court case threatens Covid-19 funds


European Commission “confident” German judges will “swiftly” consider complaint and fund will open on time

A potentially major obstacle has been thrown in front of the rollout of the EU’s planned €750 billion Covid-19 recovery fund for activities including R&D, in the form of a legal complaint against the debt plan underpinning the fund filed with Germany’s highest court.

Germany’s constitutional court (whose building is pictured) said on 26 March that it would consider the complaint against Next Generation EU, pausing German ratification of the 2020 EU law creating the fund. Money cannot flow to national governments until all member states have ratified the law on the fund’s use of revenue generated by the EU—technically known as ‘own resources’.

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