Germany's Economics Minister has called for a reassessment of the country's anti-nuclear stance, warning that excessive reliance on natural gas leaves the nation highly vulnerable to energy shocks.
Katharina Reich stated that past governments' decisions to decommission nuclear power plants have created a situation where Germany has "no alternative" but to depend on gas to meet its basic energy load requirements. "We must rely on natural gas to ensure energy supply; it is currently the only remaining baseload energy source, and politically, I have no other viable options," she admitted.
Reich's remarks reflect a growing debate within Germany regarding the legacy of its nuclear phase-out policy, which was finalized by former Chancellor Angela Merkel in 2011 and fully implemented under current Chancellor Friedrich Merz. Despite being accompanied by an expansion of renewable energy, the policy has made Germany's electricity baseload more dependent on natural gas.
Following the full-scale outbreak of the Russia-Ukraine conflict in 2022, Germany was forced to abandon pipeline gas imports from Russia, and its dependence on gas subsequently backfired. The nation had to turn to liquefied natural gas supplies, primarily from the United States, which now account for approximately 10% of its gas supply.
Persistently high energy costs since then have placed heavy pressure on German industry, which also faces increasing competition from Chinese companies both domestically and internationally.
Data from the Federal Statistical Office shows that in the second half of 2025, household natural gas prices in Germany were 79% higher than in the same period of 2021 (pre-conflict), while electricity prices rose by 23%.
A consortium of German economic research institutes warned that this energy price shock is expected to reduce the originally forecasted economic growth for 2026 by more than half. The group stated it expects Germany's GDP to grow by 0.6% in 2026, down from a 1.3% forecast last September, with growth of 0.9% projected for 2027.
Conflicts in the Middle East represent the latest external shock, further complicating the German government's efforts to attract foreign investment and push reforms to revitalize the economy.
Reich acknowledged that high oil and gas prices "place a heavy additional burden on the already heavily strained energy-intensive industries," but she also stated that Germany is not facing an energy supply shortage.
Chancellor Merz, who has led the Christian Democratic Union in a coalition government for a year, previously described the nuclear phase-out as "a huge mistake." Although his government rules out restarting traditional nuclear power plants, it is supporting new nuclear technologies such as small modular reactors and nuclear fusion. After his election victory last year, Merz pledged to no longer oppose nuclear power at the EU level as a gesture of goodwill towards France.
As the German government refocuses on energy policy, it is striving to restart economic growth. This effort comes despite Germany having launched a ten-year public spending plan totaling one trillion euros for infrastructure and defense modernization, the largest such investment since reunification.
As part of its economic revitalization measures, the German government will host a global investor conference in Berlin on October 19-20, aiming to position Germany as a "safe haven" for companies diversifying away from the United States. "I don't think there will be a flight from the US dollar... but we are indeed receiving a large number of inquiries from the US," Reich said.
The "Invest in Germany" summit, inspired by similar investment attraction events like "Choose France," aims to secure concrete investment commitments. "I speak with many investors seeking opportunities every week. They say Germany is currently in a weak phase but has a strong industrial base and capital-rich small and medium-sized enterprises... You have some structural problems to solve, but for us, it still holds significant strategic value," Reich added.
Minister Reich urged that Germany should participate appropriately in Europe's nuclear revival. Besides France, countries like Sweden and Poland are building new nuclear plants or extending the operational lives of existing reactors, recognizing nuclear power's advantages as a low-carbon, stable electricity source.
Reich stated, "With its comprehensive engineering expertise, Germany must have a seat at the table in international committees; if necessary, we should also be prepared to invest in Europe and certainly not oppose other countries choosing this path." She added, "Anyone who only comments from the sidelines loses influence. To be involved, you have to be on the field."
She concluded by outlining the choice: "We can continue to reject nuclear power, cling stubbornly to gas, and deepen our dependence on a single energy source; or we can embrace this technology again and make a change."
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