Financial Times FT.com

Germany halts push for extra budget

By Gerrit Wiesmann and Chris Bryant in Berlin and Stanley Pignal in Brussels

Published: October 22 2009 20:36 | Last updated: October 22 2009 20:36

The Christian Democratic Union and the Free Democratic party suffered an embarrassing setback in their attempt to forge a coalition on Thursday when they were forced to admit that a plan to shore up Germany’s finances with a special fund outside the federal budget might have been unconstitutional.

As the two parties met to finalise their agenda for government, officials said they had been advised the move would fall foul of the constitution that says special funds can only be used in extraordinary circumstances.

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