London Daily

Focus on the big picture.
Wednesday, Jul 22, 2026

Germany's Likely Next Chancellor Puts Economy Before Climate Policies

Germany's Likely Next Chancellor Puts Economy Before Climate Policies

Conservative Friedrich Merz vows to prioritize industrial competitiveness over ambitious green energy goals, challenging Germany’s climate policies.
Germany’s likely next chancellor, Friedrich Merz, has pledged to shift focus away from aggressive climate policies and prioritize restoring the country’s industrial competitiveness.

Speaking in Bochum on Monday, Merz criticized the policies of the outgoing coalition government led by Chancellor Olaf Scholz, which heavily focused on climate protection.

The coalition, including Scholz's Social Democratic Party (SPD) and the Greens, had committed to phasing out coal by 2030, ahead of the official EU deadline, alongside an ambitious transition to renewable energy.

Merz, a member of the Christian Democratic Union (CDU), has expressed concerns over the decommissioning of coal and nuclear plants without viable replacements.

He emphasized the risks of such policies to Germany’s industrial base and vowed to reconsider the pace of the energy transition.

“Decommissioning what we have is out of the question unless we have reliable alternatives,” Merz stated.

As the CDU and their allies lead in the polls ahead of the February 23 elections, Merz faces the challenge of forming a coalition with the SPD or the Greens, given the far-right Alternative for Germany (AfD) is also gaining support.

Despite this, he ruled out any cooperation with the AfD.

Merz also questioned the feasibility of hydrogen-powered steel production, a key part of Germany’s green steel ambitions, and criticized the government's €2 billion investment in hydrogen-based technology for steelworks.

Instead, he suggested focusing on carbon capture technologies as a way to reduce emissions from industrial production.

The response from the Greens and SPD was swift.

Green Party candidate Robert Habeck countered Merz’s claims, arguing that steel produced with coal-fired power has no future in the global market.

SPD leaders warned that rolling back climate policies would undermine crucial investments and jobs in green industries.

With climate change policy at the heart of Germany’s political debate, Merz's stance marks a significant divergence from the outgoing government’s green agenda.

As the elections approach, the clash between economic priorities and climate ambitions will continue to shape the country’s future leadership.
Newsletter

Related Articles

0:00
0:00
Close
Northern Ireland Secures Additional Infrastructure Funding From UK Treasury
Wales Approves Port Investment Plans to Support Green Energy Supply Chains
UK Financial Regulator Simplifies Stock Market Rules to Attract More Listings
UK Reports Decline in Small Boat Crossings Across the English Channel
UK Government Creates Emergency Support Fund for Financially Pressured Universities
Scottish Government Launches Economic Strategy Focused on Innovation and Renewable Industries
UK Expands Sustainable Farming Incentives to Support Environmental Measures
UK Government Introduces New Neighbourhood Policing Standards Across England and Wales
UK Competition Regulator Opens Review of Artificial Intelligence Foundation Models
UK Deepens Indo-Pacific Security Cooperation After Talks With Singapore and Japan
UK Announces Rail Modernisation Plan for Northern England With New Infrastructure Funding
UK Government Updates Housing Planning Rules to Accelerate Residential Construction
UK Approves Major North Sea Offshore Wind Project to Support Clean Power Goals
UK Health Service Begins Major Digital Upgrade to Cut Hospital Waiting Times
Bank of England Holds Interest Rates Steady as UK Inflation Pressures Remain Persistent
UK Universities and Industry Expand Space and Defense Research Partnerships
House of Lords Approves Social Housing Bill Amendments on Shared Ownership Rights
House of Lords Advances Civil Aviation Bill With New Passenger Protection Measures
UK Government Suspends Tariffs on Fertilizer and Food Imports to Reduce Costs
Russell Group Universities Support New UK Business Department Focused on Innovation
UK Parliament Opens Inquiry Into Transport Barriers Facing Young Jobseekers
Home Builders Federation Calls for Lower Costs as New UK Government Sets Housing Priorities
Andy Burnham Meets UK Devolved Leaders to Strengthen Regional Cooperation
Andy Burnham Holds First International Calls With Trump, Macron, and Zelenskyy
Andy Burnham Reshuffles Cabinet With John Healey Appointed Chancellor of the Exchequer
Andy Burnham Government Removes VAT From Electricity Bills to Cut Household Costs
Andy Burnham Becomes United Kingdom Prime Minister After Sir Keir Starmer Resigns
Miliband Sets Climate and International Law at Centre of UK Diplomacy
US Gasoline Returns to $4 as Renewed Iran Fighting Disrupts Oil Flows
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Orders 50% Tariffs on Selected Canadian Imports
Pentagon Discloses Nearly 100 US Troop Injuries During Renewed Iran Fighting
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
US Judge Pauses Paramount Skydance and Warner Bros Discovery Merger Over Antitrust Concerns
NHS England Faces Growing Retention Pressure Among Younger Midwives
UK Data Centre Expansion Faces Water and Grid Capacity Challenges
UK Defence Shares Rise After John Healey Appointment and Continued Spending Commitments
OECD Urges UK Government to Review Pension Triple Lock to Protect Public Finances
Bank of England Keeps Cautious Approach as Energy Costs Threaten Inflation Progress
County Councils Call for Wider Devolution and Long-Term Social Care Funding Reform
IMF Urges UK Government to Maintain Fiscal Discipline as Growth Forecast Slows
Russian Warship Holds Live-Fire Exercises Near UK Coast as Royal Navy Monitors Activity
Mitie Agrees Three Point One Billion Pound Takeover by OCS in Another Blow to London Listings
JPMorgan Chase Warns Bank Levies Could Hit UK Growth and Drive Capital Away
UK Unemployment Holds at Four Point Nine Percent as Labour Market Shows Resilience
UK Government Borrowing Falls Below Forecasts as Treasury Receives Early Fiscal Boost
John Healey Cuts VAT on Household Electricity Bills After Cancelling National Digital ID Scheme
Andy Burnham Forms New Labour Government With Ten-Year National Renewal Plan
EU Imposes Record €550 Million Digital Services Fine on AliExpress
UK Publishes Updated Consumption-Based Carbon Emissions Data
×