Germany shifts focus from climate goals to fast-track infrastructure growth

A bold policy pivot sparks debate as Germany trades stricter environmental laws for rapid industrial revival. Will this gamble pay off for Merz’s coalition?

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2025 December 13 . 5:19 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 shifts focus from climate goals to fast-track infrastructure growth

Chancellor Friedrich Merz has announced that Germany will prioritise economic recovery over environmental policies. Speaking after coalition talks, he described the move as essential to prevent further damage to the country’s industrial base. The decision follows weeks of debate over how to speed up infrastructure projects while easing regulations.

Negotiations between Merz’s CDU and the SPD proved difficult. The Social Democrats initially opposed the plan, pushing to limit relaxed rules only to projects funded by the €500 billion special infrastructure fund. They wanted to exclude road construction from fast-track measures, but Merz called this position 'unthinkable.'

The agreement will now allow faster approval for infrastructure projects, including roads. Environmental regulations will be scaled back, though the government maintains its commitment to long-term climate targets. The shift marks a clear policy direction under Merz’s leadership.