German court dismisses challenge to 750 bln euro EU recovery fund

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German court dismisses challenge to 750 bln euro EU recovery fund
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Germany's constitutional court on Tuesday threw out a legal challenge against the European Union's 750-billion-euro ($786 billion) recovery fund, which saw the bloc take on joint debt to help member states overcome the COVID-19 crisis.

The ruling will feed into debate on whether the EU can take on joint debt for other crises in the future, at a time when the Ukraine war and the resulting energy stand-off with Russia are forcing member states to announce costly relief programmes.

The funds are to be repaid from the EU budget over the coming decades, with Germany shouldering by far the biggest share of any member state. The complaints were brought by Bernd Lucke, co-founder of the eurosceptic Alternative for Germany , who left the party after it drifted further to the right, and Heinrich Weiss, a businessman who once served as the head of Germany's industry lobby group BDI.

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