Germany rolls out 200B energy subsidy plan


Germany’s finance ministry is walking on eggshells today as it rolls out a huge energy subsidy scheme while trying to distance itself from the kind of overspending that has led to a crisis in the UK.

The package can reach 200 billion euros and they call it an “economic defense shield”.

A document was also leaked today that German nuclear power plants could stay open until spring 2023.

Part of the cost of the “shield” will be paid for by a levy on the oil, natural gas, coal and refinery sectors.

The exact mechanism of how people will be protected is unclear, but Scholz said there will be a “drag” on prices while saying there must also be an incentive to hold. Britain’s plan to cap energy bills was criticized because once consumption limits were reached there was no incentive to save.

German 10-year Bund yields are up 12 basis points to 2.26% today after hitting 2.29% earlier. Keep an eye on them.


cnbctv18-forexlive-benzinga

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button