Germany Defaulting

That’s not a pleasant headline. If that actually happens, Germany can of course kiss its AAA rating goodbye.

This post is part of a series discussing a new position paper by German Environment Minister Altmaier and Economy Minister Rösler on reducing cost of the feed-in tariff system.

The fourth proposal there wants to retroactively reduce payments under the feed-in tariff system. Starting in 2014, everything installed before August of this year will get 1.5% percent less. Only for the one year of 2014.

This is supposed to reduce costs by 350 million, or about 2% of the 2012 costs of 16.6 billion.

For this very limited cost reduction, Altmaier and Rösler are both willing to declare that the German government can’t be trusted to follow through on its promises.

I actually agree. The CDU and FDP can’t be trusted on energy matters and need to be defeated decisively in the elections later this year. This is just irresponsible, as I already said the first time around.