Merz's Germany wants a more "reliable" energy policy

Germany must focus on a more diversified and "reliable" energy strategy, the new Minister of Economy said on Wednesday, May 7, arguing that renewables, on which the previous government had placed a lot of emphasis, would not be enough.

During the handover from her Green predecessor Robert Habeck, Katherina Reiche, a conservative like the new Chancellor Friedrich Merz, returned to the energy record of the previous government, which gave an unprecedented boost to the production of renewable energies.

These are "undoubtedly a success story" and "have enabled us to make great progress in climate protection," said the former head of a subsidiary of the energy supplier E.ON.

"But they will not be enough to provide electricity reliably and at affordable prices at all times of the year," according to the new minister, who calls for "cost control."

Security of energy supply, one of the headaches of Robert Habeck's mandate, will therefore be an "absolute priority" for Ms. Reiche.

After the outbreak of war in Ukraine in 2022, Berlin had to urgently wean itself off cheap Russian gas, which sharply increased energy prices and penalized the country's industry.

Ms. Reiche's Christian Democratic Party (CDU) has criticized the shift toward wind and solar power initiated by the environmentalist since 2021, criticizing the resulting increased volatility in energy prices.

"The blackout in the Iberian Peninsula" at the end of April, which some experts linked to renewable energy, "showed us how vulnerable our electricity system can be," added Katherina Reiche.

The Conservative Party is banking on the construction of gas-fired power plants with a capacity of 20 gigawatts by 2030, according to the coalition contract concluded with the Social Democrats.

According to Katherina Reiche, the crisis-hit German economy has a "very strong backbone" to cope with labor shortages and business bankruptcies.

"Europe is watching us," she said.

Under his supervision, the Ministry of Economy lost its "climate" label, introduced by Robert Habeck and replaced by "energy."

The new Finance Minister, Lars Klingbeil, placed a return to growth at the top of his priorities on Wednesday, after two consecutive years of recession, and promised to present a budget before the summer break.

The Social Democrat wants to make Germany a "safe haven" for private investment, notably through the establishment of the 500 billion euro infrastructure fund adopted in March.

"We are the country in which it is profitable to invest," he assured in his handover speech.