Chancellor Olaf Scholz said on Tuesday that his government would push on with a drive to modernise the German industry despite challenges presented by a constitutional court ruling that tore a 60-billion-euro hole in the country's budget.
"It would be a grave, an unforgivable mistake to neglect the modernisation of our country in the face of all these acute challenges," Scholz said in a speech to parliament.
The country's states had the greatest interest in securing investment in areas like semiconductors, climate-friendly steel production and battery plants, he added.
Scholz said his government is working with parliament to draw up a 2024 budget "as quickly as possible". (Reporting by Miranda Murray and Rachel More)