Merz’s Half Measures Won’t Fix Germany
The phaseout of nuclear energy was a political decision that can - and should - be reversed.
The 2024 demolition of the Graferheinfeld nuclear power plant.
Photographer: DANIEL PETER/AFPGerman Chancellor Friedrich Merz got elected on a manifesto of drastic change. While he promised a “politikwende,” a “political u-turn” in all areas of government, his top priority was the ailing economy. But his massive package of spending, tax cuts and subsidies won’t reverse the decline of the country’s all-important heavy industry unless Merz plucks up the courage to address the mistakes of his predecessors.
Beyond a €500 billion ($584 billion) investment fund, many measures are designed specifically to help the struggling manufacturing and industrial sectors — for example higher depreciation allowances for investments in machinery. And according to the Financial Times, Berlin is also exploring the possibility of spending €4 billion on reducing businesses’ electricity bills.