The ruling has sent budget talks into disarray and sparked calls within Chancellor Olaf Scholz's coalition to suspend a constitutionally enshrined "debt brake" that sets legal limits on borrowing.
WHAT IS THE DEBT BRAKE AND WHY WAS IT INTRODUCED?
HAS GERMANY SUSPENDED ITS DEBT BRAKE BEFORE?
Some analysts say the debt brake is ripe for reform and a more flexible fiscal policy would let governments take on more debt to fund much-needed investments.
The government is still weighing options, including suspending the debt brake or curtailing spending.
Persons:
Kai Pfaffenbach, Chancellor Olaf Scholz's, Angela Merkel's, Christian Lindner, Carsten Brzeski, Philippa Sigl, Robert Habeck, Riham Alkousaa, Holger Hansen, Matthias Williams, Christina Fincher
Organizations:
REUTERS, Rights, Finance, Reuters, Thomson
Locations:
Frankfurt, Germany, GERMANY, Ukraine