So, most of the details were laid out yesterday over the electrical and natural gas 'brake'. The German government will borrow around 200-billion Euro to cover the extra cost of energy on society. Yeah, it's a lot of money.
Things they didn't say? Well.....where the brake starts. My humble belief is that whatever your bill was for last year....they probably will say that 150-percent of that bill is acceptable, and they will cover remainder (be it 200, 300 or 400 percent).
How soon this can be put into effect? That's also missing. One government guy said you would see effects within 30 days.....but I think he's mostly talking about the paperwork that you'd have to fill out.
Germans not realizing that this is covered by taxation? I get the impression that half of the country will not grasp this part of the brake.
The round-number oddity? Yeah....200-billion is awful 'round'. It's possible to wake up in February and realize another 35-billion has to be added.
So to the final issue....will things correct themselves in 2023? No one discusses this part of the issue. My gut feeling is that by October 2023....another 200 billion Euro loan will be required, and massive taxation has to start up....to cover this loan.
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