Germany Prioritizes Economy Over Environmental Rules in Bold Policy Shift

A divisive coalition deal sacrifices green protections for growth. Critics warn the move could undermine Germany’s climate commitments.

, and Administrator

2025 December 13 . 4:19 PM

1 min read

As we can see in the image there are bicycles, trees, fence, car and buildings.

Merz gives clear priority to economic recovery over environmental protection - Germany Prioritizes Economy Over Environmental Rules in Bold Policy Shift

Chancellor Friedrich Merz has announced a major shift in policy, placing economic recovery above environmental safeguards. The move follows intense negotiations within the coalition government, where disagreements over infrastructure rules nearly stalled the plan.

The plan initially faced strong opposition from the SPD, which argued that any easing of environmental regulations should apply only to projects funded by the €500 billion special infrastructure fund. Party leaders insisted on stricter limits, calling broader deregulation unacceptable.

The decision will now accelerate infrastructure projects by cutting red tape, a move the government believes is essential for economic growth. Environmental groups and some lawmakers have already raised concerns about the long-term impact.