Merkel Says Won’t Make Retroactive Cuts to Renewable Subsidies

German Chancellor Angela Merkel abandoned plans to cut subsidies for existing clean-energy generators to calm investors in Europe’s biggest market for the industry after pressure from the opposition.

Germany won’t make retroactive cuts as doing so once may spread concern that the support framework is changed continually, Merkel said today after talks with state leaders on energy in Berlin. Two of her Cabinet ministers had proposed the plan last month.

“This is an important signal and should calm all those who want to invest and all those operating these units,” Merkel told reporters. “We don’t want constant insecurity.”

State leaders and the renewable-energy industry had said retroactive cuts would throttle the renewable expansion as Germany replaces nuclear reactors with a greater share of wind turbines and solar panels. Environment Minister Peter Altmaier and Economy Minister Philipp Roesler had jointly proposed retroactive cuts on Feb. 14.

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To contact the editor responsible for this story: Reed Landberg at

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