London Daily

Focus on the big picture.
Tuesday, Jul 28, 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
France Evacuates Atlantic Coast Resorts as Wildfire Risk Rises Again
Magnitude 7.1 Earthquake Strikes Kumamoto as Rescuers Search Collapsed Buildings
OpenAI Faces Demands for Full Disclosure After Models Breach Hugging Face
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Trump says Israel ‘would not survive’ without US
Badenoch Offers Tory Votes to Keep Serious Offenders in Prison
Why Americans Queue for $15 Ice Cream and a $100 Caviar Pint
Another AI Genius Left the United States — and Silicon Valley Is Starting to Worry
Shein Reports $99mn Loss as Trade Barriers Test Low-Cost Model
CXMT Gains 466% in China’s Biggest IPO Since 2010
Amazon Seeks Approval for 5,105-Satellite Mobile Network
Burnham Puts School-to-Work Reform at Centre of Welfare Strategy
Johnson & Johnson Agrees to $5.5 Billion Talc Lawsuit Settlement
EU AI Act Shapes Global Corporate Standards, Study Finds
UK-Japan Relations Expected to Deepen Under Burnham Government
Burnham Signals Tough Decisions on Council Tax Reform
UK Inflation Slows to 2.6% in June
Bank of England Holds Interest Rates at 3.75%
Prime Minister Burnham Opens Talks With Business Leaders on Economic Growth
Government Launches 'Number Ten North' to Drive UK Devolution
Labour Regains Poll Lead After Burnham's First Weeks in Office
Prime Minister Burnham Rules Out Early UK General Election Before 2029
Burnham Rules Out Replacing Council Tax and Stamp Duty
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
The Burnham government is seeking to establish its credibility through ambitious social care reform while maintaining fiscal discipline and public confidence in the National Health Service. Labour's early improvement in opinion polls provides political momentum, but sustained support will depend on delivering tangible policy outcomes. Britain continues to reinforce its role in European security through long-term support for Ukraine, while climate-related risks, including increasingly severe wildfires across England and Scotland, are becoming a more prominent national resilience challenge alongside economic uncertainty.
United Kingdom Economy Remains Exposed to Global Energy Risks
Prime Minister Dismisses Calls for an Early General Election
Scottish Wildfires Continue to Stretch Emergency Services
United Kingdom Faces Rising Wildfire Risk as Heatwave Continues
Lower Oil Prices Ease Inflation Concerns and Support Financial Markets
Financial Conduct Authority Launches Consumer Campaign on Car Finance Compensation
Government Prioritises Employment Over Benefit Cuts in Welfare Reform Plans
Prime Minister Rules Out Sweeping Property Tax Changes Before Autumn Budget
AstraZeneca Beats Expectations as Cancer Medicines Drive Strong Profit Growth
Labour Regains Narrow Polling Lead After Burnham's First Week in Office
United Kingdom Reaffirms Long-Term Commitment to Ukraine Under Burnham Government
Prime Minister Andy Burnham Makes Social Care Reform the First Major Test of His Government
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
Autopsy Finds No Violence in Death of Epstein-Linked Model Scout
Indian Education Minister Resigns After Cockroach Youth Protests
California Desert Data-Centre Plan Stalls as Water and Power Disputes Mount
Northern Ireland Border Security Tightened After Military-Grade Explosive Interception
British Hospitality Sector Targets Summer Visitors Through Regional Promotions
England River Access Debate Intensifies After New Data Shows Limited Public Access
Royal Navy Strengthens Maritime Vigilance Amid Rising Security Concerns
UK Education Department Expands Mental Health Support for Young People Entering Work
UK Tourism Industry Launches Summer Campaigns to Boost Domestic Travel
North England Transport Plans Advance to Support Industrial Growth
Financial Markets Watch New Government’s Economic Strategy as Investors Assess Fiscal Risks
Royal Navy Continues Monitoring Russian Naval Activity Near UK Waters
×