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Homeeurope newsGerman court dismisses legal challenge against the EU's pandemic recovery fund

German court dismisses legal challenge against the EU’s pandemic recovery fund

  • A group of euroskeptic citizens raised concerns that the additional EU borrowing could become a permanent feature in EU policymaking.
  • The statement from the German court highlights that the decision by the 27 heads of state in July is of a temporary nature.

A medical worker attends the opening of a Covid testing station on April 19, 2021 in Berlin, Germany.Sean Gallup | Getty Images News | Getty Images

LONDON — The German constitutional court decided on Wednesday to dismiss legal challenges against the EU's recovery plan, effectively paving the way for the unprecedented stimulus to be rolled out across the region.

The highest court in Germany had raised questions in late March about the EU's plan to raise 750 billion euros ($900 billion) in financial markets to fund projects across the bloc and thus reduce the economic shock from the Covid-19 crisis.

The move threw a curveball at the much-needed stimulus, and came after a group of euroskeptic citizens highlighted concerns that the additional borrowing could become a permanent feature in EU policymaking.

"Limits apply regarding the volume, duration and purpose of the borrowing to which the European Commission is authorised, as well as regarding possible liabilities incurred by Germany," the constitutional court said in its opinion on Wednesday.

"Moreover, the funds in question are to be used exclusively to address the aftermath of the Covid-19 crisis," the court also said.

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