As a result of the ruling, a supplementary budget for 2025 is now deemed necessary, with expectations of increased borrowing by the state.

The Schleswig-Holstein State Constitutional Court ruled that the 2024 budget proposed by the black-green state government was unconstitutional due to a lack of adequate justification for emergency loans.

This ruling arose from a legal challenge by the SPD and FDP parties, who contended that the government failed to establish a clear causal link between the state's financial needs and the emergencies it cited.

The government justified the need for three emergency loans based on the October 2023 storm surge, the ongoing Russian invasion of Ukraine, and the COVID-19 pandemic.

However, the court found insufficient evidence that these crises significantly impacted the state's financial situation in 2024.

Finance Minister Silke Schneider acknowledged the ruling and indicated that future budgets would require more thorough justifications for emergency loans, anticipating stricter standards.

The court's decision is seen as a setback for the state government, prompting calls for effective repayment plans for existing loans and adherence to constitutional requirements in future budgets.

The ruling sets a precedent for how emergency loans are handled in Schleswig-Holstein, necessitating compliance with new guidelines established by the court.

Despite the ruling, the current budget for 2025 still includes an emergency loan of 272 million euros, justified solely by the impacts of the Ukraine war.

The opposition criticized specific projects funded by the emergency loans, questioning their relevance to the stated emergencies, such as financing for bike paths.

The SPD interpreted the ruling as a significant defeat for Minister-President Günther, reflecting poorly on the performance of the black-green government.

The recent reform of the federal debt brake allows federal states to borrow within a limited framework, potentially enabling Schleswig-Holstein to access substantial funds annually.