BERLIN, Nov 22 Reuters German Chancellor Olaf Scholz39;s government looks set to delay talks on next year39;s budget as it struggles to find a way out of a deepening crisis caused by a court ruling that has forced a freeze on new spending pledges.

A delay to the talks scheduled for Thursday would underscore the challenge facing the government after the country39;s constitutional court blocked a move to transfer 60 billion euros 65.44 billion in unused funds from the pandemic to green investments.

In a bombshell ruling last week, the court ruled the budget manoeuvre was incompatible with the debt restrictions enshrined in Germany39;s constitution.

The three parties in Social Democrat SPD Scholz39;s uneasy coalition with the Greens and probusiness Free Democrats FDP are trying to hammer out a solution to keep as many spending pledges as possible and make them legally compliant.

With talks among politicians from all parties going on through the day, options include drawing up a supplementary budget for 2023 and suspending Germany39;s selfimposed debt brake before reinstating it for next year.

An email seen by Reuters from the head of the budget committee of the opposition conservatives, asked other members of the committee if they objected to cancelling Thursday39;s planned talks to thrash out next year39;s spending plans.

Such a move would probably mean next year39;s budget could not go to the Bundestag lower house of parliament next week which could increase…