Analysis-Scholz's coalition buckles but unlikely to break - for now

FILE PHOTO: Chancellor Olaf Scholz speaks next to Finance Minister Christian Lindner and Economy and Climate Minister Robert Habeck during a hearing at Germany’s lower house of parliament Bundestag in Berlin, Germany, November 15, 2023. REUTERS/Annegret Hilse/File Photo

BERLIN (Reuters) - A court ruling that risks torpedoing key aspects of the German government's legislative agenda has further strained the coalition but is unlikely to split it as all three parties currently stand to lose from a breakup.

The constitutional court last week ruled illegal a budget manoeuvre that would have reallocated 60 billion euros of unused pandemic funding to green initiatives, unexpectedly blowing a hole in the government's financial plans.