The Germany finance ministry is walking on eggshells today as it rolls out a huge energy subsidy package while trying to distance itself from the kind of overspending that led to a crisis in the UK.
The package is for up to €200 billion and they're calling it an "economic defense shield."
A document was also leaked today that said German nuclear plants could stay open until Spring 2023.
A portion of the cost of the 'shield' will be paid for with a levy on the oil, natural gas, coal and refinery sectors.
The exact mechanism of how people will be shielded is unclear but Scholz said there will be a 'brake' on prices while saying there also has to be an incentive to conserve. The UK plan of capping energy bills was criticized because after consumer limits were hit, there was no longer an incentive to save.
German 10-year bund yields are up 12 bps to 2.26% today after rising as high as 2.29% earlier. Keep a close eye on them.
