Germany's Chancellor Questions Coal Phase-Out Amid Soaring Inflation and Energy Crises
German Chancellor Friedrich Merz has raised doubts about the country's planned coal phase-out. His comments come as consumer prices surge at the fastest rate since late 2024. The sharp increase is partly linked to rising oil and gas costs, as well as tensions in the Iran conflict. Consumer prices in Germany are set to jump by 2.6% compared to the same month last year. This marks the highest inflation rate since December 2024. In March alone, prices are expected to climb by 1.1% from February.
Merz suggested that some coal-fired power plants may need to stay operational longer than planned. He also proposed constructing new gas power plants to provide steady energy alongside renewables. While ruling out a near-term return to nuclear power, he left open the possibility of future research into small modular reactors (SMRs) and nuclear fusion. Despite these adjustments, Merz reaffirmed his commitment to expanding renewable energy. His remarks reflect concerns over energy security and cost pressures as inflation accelerates.
The inflation spike is driven by higher fuel prices and geopolitical tensions. Merz's proposals signal a potential shift in Germany's energy strategy, balancing renewables with extended coal use and new gas plants. The government now faces decisions on how to manage rising costs while maintaining long-term climate goals.
