Germany Freezes Public Spending in New Setback for Europe.

Germany has frozen public spending for the rest of the year after a court declared the government's spending plans unconstitutional. This decision will complicate Europe's recovery efforts and its plans to strengthen its defenses and reduce carbon emissions. Germany's economy, the largest in Europe, is contracting due to surging energy prices and trade tensions. The court ruling raises questions about the use of off-budget special funds to finance public investments, including a plan to revamp Germany's military. The ruling imposes fiscal discipline but may hinder efforts to retool the economy and maintain competitiveness. Germany must now prioritize policy areas and review debt-financed expenditures to comply with the ruling. [Extracted from the article]