Germany isn't facing a debt crisis, but a crazy budget crisis triggered by the ruling of our constitutional court. Here's a🧵what this is all about. In the media you read about 60 bn unused "Corona debts" shifted to a climate fund. But actually, the issue runs much deeper. /1

Aside from the 60bn, the court has decided that the federal budget has to strictly follow the "principle of annuality" (Jährlichkeit) This is actually the *major* impact of the court's ruling. And from an economic point of view, it is pretty crazy. Let me illustrate. /2

Ich bin mir nicht sicher, ob man die Nothaushalte nicht so gestaltet kann, dass die Liquidität verteilt fließt. Eines ist aber klar, wenn das Instrument nicht mehr gewollt / tauglich ist, dann bedarf es einer Verfassungsänderung. Dazu sind politische Mehrheiten zu organisieren.