Calls Intensify for Immediate Reforms to Boost Germany's Economy and Shift Energy Policy
Germany faces economic stagnation and must urgently implement reforms in business conditions and energy policy to enhance competitiveness and growth.
- • Germany's GDP stagnated in Q3 2025 after a previous decline, showing economic inertia.
- • DIHK calls for urgent political action to reduce costs and administrative burdens on businesses.
- • AfD criticizes the government's gas power plans, advocating for nuclear energy prioritization.
- • EU regulations are seen as obstacles to investment and energy transition by critics.
- • Political reform and energy strategy adjustment are crucial to restore Germany's industrial competitiveness.
Key details
Germany's economic growth stagnated in the third quarter of 2025, signaling the urgent need for political intervention to revitalize the business environment and energy policies, according to recent analyses from the Federal Statistical Office and statements from influential figures. The country's GDP remained unchanged after a slight decline in the previous quarter, reflecting a lack of economic dynamism amid rising external challenges.
DIHK's chief executive, Melnikov, highlighted that the high costs, complex reporting requirements, and lengthy administrative procedures continue to burden firms, hindering Germany's international competitiveness. She stressed the necessity for swift political action to improve the framework conditions for business activity. Proposed measures include lowering energy and labor costs, reducing tax burdens, and swiftly implementing the government's reform agenda to restore trust in Germany as a business location and to foster sustainable growth.
In the energy sector, Adam Balten of the AfD Bundestag criticized the current government strategy favoring gas power plants, urging a reduction of planned gas power capacity from 20 to 12 gigawatts. He pointed to technological advancements by companies like Amazon, which employs significant automation and is investing in nuclear reactors, as well as international efforts, such as those by Bill Gates-backed TerraPower, advocating for nuclear energy's recognition as clean and environmentally friendly. Balten condemned EU regulations and the supply chain law for stifling investment and called for an end to EU directives that hinder nuclear energy development and affordable energy access. He argued for a technology-neutral approach ensuring planning security for energy and digital infrastructure to prevent Germany from lagging as an industrial hub.
These differing perspectives underscore the complexity of Germany's economic and energy challenges. However, consensus exists around the urgency of decisive political measures to enhance competitiveness through regulatory reform and energy policy adjustments. The government is urged to translate reform promises into concrete relief for the economy promptly to sustain growth and international standing.