Score one for fiscal sanity in Germany:
Chancellor Angela Merkel’s conservatives and the centre-left Social Democrats (SPD) clinched a coalition deal early on Wednesday that puts Germany on track to have a new government in place by Christmas.
One of their top priorities will be a reform of the renewable energy law (EEG), which has sent costs for consumers soaring because of generous incentives for solar and wind power.
The subsidies are largely paid for by households, whose bills have almost doubled to an average of 300 euros ($410) per megawatt-hour (MWh) over the past decade and are now the second-highest in Europe behind bills in Denmark, according to Moody’s Investors Service.
Renewable energy has proven to be one of the 21st Century’s biggest scams.