German Solar FIT Reduction Compromise proposed between Bundesrat and Bundestag

The German Solar Feed in Tariff Reduction got another twist as the Upper House Bundesrat refused to pass the proposal into Law.This threw a spanner into the proposed 16% one time special reduction in Solar FIT which was supposed to be implemented from 1st of July.Note the Bundesrat does not have powers to block the Lower House Bundestag drafts,however it is rare for Bundestag to overrule the objections of Bundesrat completely.

Like the US Parliamentary Procedure,a compromise is worked out between a committee of the Lower and Upper House members in case of disputes.This committee tries to resolve the differences between the versions of the Two Houses to find a middle way.The German committee which was formed last month has just done that, coming out with a proposal which will slightly reduce the drastic FIT cuts.The FIT reduction will be moderated by 3% for the first 3 months between July and September and will be applied retroactively from July 1. This will go on vote on Friday the 9th of July in the Upper House.This looks mostly like a face saving gesture for the Upper House  and should pass through.Note the German ruling coalition has seen plunging popularity ratings recently with the President elections proving to be a tough task for Angela Merkel.A negative vote by the Bundesrat will lead to additional headaches for the German government.

German committee proposes reducing solar cuts – Reuters

The mediation committee suggested reducing the cuts by 3 percentage points for the July to September period and applying them retroactively from July 1. From October, the originally proposed cuts would be applied.

The Bundesrat, which represents Germany‘s 16 states, is set to vote on the new proposals on Friday. If it rejects the bill, the Bundestag can still overrule the upper house but it would be yet another setback for Chancellor Angela Merkel’s beleaguered government.

Angela Merkel pushes for unity after election rebuke – CSM

Germany‘s election Wednesday of Christian Wulff, the youngest president in its history, and a backer of Chancellor Angela Merkel, should have been a formality given Ms. Merkel’s comfortable majority in parliament. Instead it turned into a big slap in the face at a time when her popularity is at all-time low.

Triggered by the unexpected resignation of Horst Köhler, the election by a special parliamentary commission of the young conservative had to go into a rare third round of voting. The election is the most blatant manifestation of the political turmoil within Merkel’s coalition and comes as a debt-ridden Europe searches for leadership from its largest economy.