Latest news with #Habeck
DW
24-05-2025
- Business
- DW
Is Germany's new government weakening climate protection? – DW – 05/24/2025
When Katherina Reiche of the center-right Christian Democratic Union (CDU), took over from her predecessor, Robert Habeck of the Green Party, as the new Federal Minister for Economic Affairs and Energy, she had warm words for him. That was surprising. During Germany's recent federal election campaign, Habeck had been flooded with criticism from conservative politicians. The head of the conservative Christian Social Union (CSU), Markus Söder, for example, repeatedly complained about the "worst economics minister of all time." Reiche's view differed. She recalled how Habeck had managed the post-pandemic energy crisis, after Russia began its war of aggression against Ukraine, in the spring of 2022: "I would like to thank you for that almost superhuman achievement," Reiche said. Habeck contributed to "this country getting through this crisis," even with his unpopular policy decisions. The Ministry of Economic Affairs staff responded with prolonged applause, and Habeck was visibly moved. German industry calls for more proactive growth policy To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Abolishing 'Habeck's' law on heating In the meantime, Reiche is working towards amending Habeck's most important law: the "Building Energy Act" (popularly known in Germany as the Heating Law), she wants to dismantle its substance almost entirely. That goal is indeed clearly stated in the new coalition agreement between the CDU, CSU, and the center-left Social Democratic Party (SPD): "We will abolish the Building Energy Act." Habeck, who was also responsible for climate protection, attempted to tackle one of the key weaknesses in German climate policy during his time in government from 2021 to the beginning of May 2025: While the expansion of renewable energies such as solar and wind is progressing, Germans still predominantly heat their homes with climate-damaging natural gas. The Building Energy Act was intended to promote the installation of new, environmentally friendly heat pumps in homes and set end dates for operating old gas heating systems. However, the law caused a great deal of resentment, and critics accused the Greens of interfering in Germans' boiler rooms. Reiche now wants to change the law. On the podcast, Table Today, she said that the law in its current form more or less prescribes just one technology: the heat pump. "There is a de facto operating ban on gas boilers installed before 1991," said the CDU politician. "First of all, we need to abolish this operating ban in order to restore calm to the market." Climate change takes back seat in Germany's 2025 election To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video After initial problems, the installation of heat pumps has recently picked up significantly. In the first three months of this year, sales in Germany rose by 35% year-on-year to 62,000 units. The German Heat Pump Association announced in a press release. The managing director of the organization, Martin Sabel, spoke of "light at the end of the tunnel." The state subsidy of up to 70% of the costs is now "established," the association expects sales of 260,000 heat pumps for the year. Habeck's dream of 500,000 heat pumps per year That demonstrates how bold Habeck's original ideas were. In 2022, he stated that his target was the installation of around 500,000 new heat pumps each year. "The market is gradually gaining momentum because people are realizing that it makes sense to move away from fossil fuels," Sabel said in an interview with Der Spiegel. Reiche also announced that securing the energy supply is now a priority for the government in addition to climate protection. That will include constructing new gas-fired power plants with a total capacity of around 20 gigawatts. Gas is more environmentally friendly than coal, which Germany wants to phase out by 2038 and still supplies around 20% of German electricity. For that reason, the previous government had also supported the construction of gas-fired power plants — albeit not to the extent mentioned by Reiche. Germany's heat pump makers look to expand at home and abroad To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Reiche's plans 'completely oversized' Reiche's gas plans drew the attention of energy expert Claudia Kemfert from the German Institute for Economic Research (DIW). In the Bavarian Media Group's newspapers, Kemfert said the plans are "completely oversized," adding that "Hydropower, making the energy system more flexible and the use of increasingly cost-effective large-scale batteries would also be viable alternatives." According to Martin Kaiser, climate expert for the environmental group Greenpeace, Germany should finally break the fossil fuel chains that tie the country to expensive fossil fuel imports. "Instead of making Germany more independent by accelerating the expansion of renewables, Katherina Reiche wants to steer us into new fossil dependencies," Kaiser said. So, does climate protection no longer play a significant role in the new government? Even if critics suspect this, Germany took a decisive step for climate protection in the coming years even before Friedrich Merz was elected Chancellor: The new government decided on a gigantic investment program for infrastructure of €500 billion ($565 billion). However, Germany's Basic Law had to be amended for this, which is why the CDU, CSU and SPD also needed the votes of the Greens. And they succeeded in ensuring that €100 billion of the €500 billion would be spent on climate protection. Some observers spoke of the Greens' greatest success at the end of their time in government. High expectations of the new environment minister Less at the center of the debate is the new Environment Minister Carsten Schneider, who is now also responsible for international climate protection in the new government. Martin Kaiser has clear expectations of the SPD politician. "He rightly sees German climate foreign policy as an essential part of security policy. Schneider wants to, and must save global climate protection in foreign policy — despite Trump." Minister Schneider must now draw up a climate protection program by the end of the year, which will oblige his colleagues in the cabinet to take immediate action." However, it remains to be seen whether Schneider will get the chance to do that within the cabinet against the strong force of Economics Minister Reiche. This article was originally written in German. While you're here: Every Tuesday, DW editors round up what is happening in German politics and society. You can sign up here for the weekly email newsletter, Berlin Briefing.
See - Sada Elbalad
25-04-2025
- Business
- See - Sada Elbalad
Germany Expects Zero Economic Growth in 2025
Taarek Refaat Outgoing German Economy Minister Robert Habeck said on Thursday that the German economy is expected to record zero growth this year, attributing this to the sweeping tariffs imposed by US President Donald Trump. 'US trade policy, which includes the threat of tariffs, has a direct impact on the German economy, which is highly dependent on exports,' Habeck explained while presenting the economic forecast. The German government had previously forecast a slight growth in GDP of 0.3% this year for Europe's largest economy, which has been shrinking for the past two years. The German government also lowered its growth forecast for 2026 to 1% from 1.1%. The United States is Germany's largest trading partner, accounting for about 10% of its exports last year, from cars to chemicals. The German Economy and the Challenges of Tariffs Under the Trump administration, the United States has now imposed a 10% tariff on EU exports to the country, after previously announcing a 20% tariff that was later suspended. 'Tariffs and trade policy fluctuations affect the German economy more than other countries,' Habeck added. 'We rely on open markets, efficient markets, and a multinational world, and that is what made this country rich.' German GDP contracted by 0.3% in 2023 and 0.2% in 2024, hit by rising energy prices following Russia's full-scale invasion of Ukraine. The German economy has also been affected by increased Chinese competition in key industries such as automobiles and machinery. 'I would say that we are now undergoing a fundamental change in the foundations on which the German economy relies,' Habeck said. He added: 'Our main trading partners, China, the United States, and our neighbor Russia, are causing us problems.' Habeck also said that the government has not taken significant steps to stimulate the economy since the collapse of the coalition government led by former Chancellor Olaf Scholz in November, paving the way for elections next February. He said, "There have been no concrete initiatives to combat the recession through legislation or measures for half a year." Habeck expressed hope that a new investment package worth several hundred billion euros could help revitalize the economy under the leadership of Governor Friedrich Merz, who is expected to take office in early May. "It is good that investments are finally being made," Habeck said, adding that they "could somewhat offset the decline or pressure on foreign trade." The growth forecasts took into account the "positive impetus" from debt-financed investments and assumed there would be no further escalation of the tariff "madness," according to Habeck. He also called on his successors to strengthen European unity and independence so that Germany could confront the two economic giants. He said, "Made in Germany is over. We are a single market, and through this market we will bring investment back to Europe." He continued, "We must support the European Union in taking a clear position, negotiating confidently with the United States, and at the same time being prepared to impose effective countermeasures." Helena Melnikoff, president of the German Chamber of Commerce and Industry, said, "The situation of the German economy is grave." She called on "the next federal government to move forward and find solutions to the tariff dispute with the United States at the EU level," stressing that time is of the essence. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Egypt confirms denial of airspace access to US B-52 bombers News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Lifestyle Pistachio and Raspberry Cheesecake Domes Recipe News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Arts & Culture Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized Videos & Features Bouchra Dahlab Crowned Miss Arab World 2025 .. Reem Ganzoury Wins Miss Arab Africa Title (VIDEO) Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple
The Star
24-04-2025
- Business
- The Star
1st LD Writethru: Germany slashes 2025 growth forecast to zero amid U.S. tariff fallout
BERLIN, April 24 (Xinhua) -- The German government has sharply downgraded its economic outlook for 2025 and is now projecting zero growth. According to the spring forecast announced Thursday by acting Economy Minister Robert Habeck, Europe's largest economy could stagnate or contract for a third consecutive year. This follows back-to-back declines in 2023 and 2024. The latest revision marks a significant shift from the previous official forecast issued in the autumn of 2024, which projected growth of 1.1 percent. Habeck attributed the downgrade primarily to "Donald Trump's trade policies," saying the U.S. threat and imposition of tariffs have significantly heightened global economic uncertainty and dampened growth prospects. Habeck emphasized that these unpredictable trade policies have once again posed serious challenges for Germany's export-reliant economy. He pointed to the country's integration into global supply chains and its openness to international trade. The concern is echoed in a joint report released earlier this month by Germany's leading economic think-tanks, which also slashed their 2025 growth projections to near zero. The report cited U.S. tariffs as a major headwind, particularly the 25-percent levy on car imports, which threatens to severely weaken Germany's automotive industry. The report estimated that these car duties could reduce German GDP by 0.1 percent in both 2025 and 2026. Calculations by the German Economic Institute (IW) also suggest that Washington's so-called "reciprocal" tariff of 20 percent on EU imports could additionally cut Germany's economic output by as much as 290 billion euros (330 billion U.S. dollars) over four years. This equates to an average annual GDP loss of 1.6 percent by 2028. Domestically, Habeck noted that economic conditions have begun to stabilize. A decline in political uncertainty could help spark a gradual recovery in private consumption, he said, adding, "The fiscal policy decisions of the incoming government may provide positive momentum, although their effects will likely only become noticeable in the coming years." Germany has introduced an expansionary fiscal policy after amending its basic law to allow for increased public borrowing, including the creation of a 500-billion-euro infrastructure fund aimed at addressing long-standing public investment deficits. "But money alone won't solve the problem," Habeck warned, citing persistent structural challenges such as skilled labor shortages. He urged the next government to address these issues "quickly and decisively." So far, in its coalition agreement, the incoming federal government has outlined a range of measures aimed at boosting the sluggish economy. These include corporate tax cuts, more flexible labor regulations, and the expansion of renewable energy. According to the government projection, the German economy is expected to grow by 1 percent in 2026. (1 euro = 1.14 U.S. dollar)
Jordan Times
24-04-2025
- Business
- Jordan Times
Germany expects zero GDP growth this year, blames Trump tariffs
People walk on the main shopping Zeil street in front of the banking district skyline in Frankfurt am Main, western Germany, on April 23, 2025 (AFP photo) FRANKFURT, Germany — Germany's economy is expected to post zero growth in 2025, outgoing Economy Minister Robert Habeck said Thursday, blaming US President Donald Trump's trade policy. "The US trade policy of threatening and imposing tariffs has a direct impact on the German economy, which is very export-oriented," he said, presenting the forecast. The German government had previously expected slight GDP growth of 0.3 per cent for this year for Europe's top economy, which shrank for the past two years. It also cut its growth forecast for 2026 to one per cent from 1.1 per cent. The United States is Germany's largest trading partner and last year took about 10 percent of its exports, from cars to chemicals. Under Trump it now levies a 10 per cent tariff on European Union exports into the country, having earlier announced a 20 per cent rate which was then paused. "Tariffs and trade policy turbulence are hitting the German economy harder than other nations," Habeck said. "We depend on open markets, functioning markets, and a globalised world. That's what has made this country rich," he told a Berlin press conference. 'Made in Germany is over' German GDP shrank by 0.3 per cent in 2023 and by 0.2 per cent in 2024, suffering from higher energy prices following Russia's full-scale invasion of Ukraine. It has also been hit by increasingly fierce Chinese competition in key industries such as automobiles and machinery. "I would say that we are going through a paradigm shift when it comes to the basic earners for the German economy," Habecksaid. "Our big trade partners, China and the USA, and our neighbour, Russia, are causing us problems." Looking ahead, Habeck voiced hope the impact of a major new spending package worth many hundreds of billions of euros could help revive the economy under the next government under conservative Friedrich Merz, who is expected to take power in early May. "It's good that investments are finally being made," Habeck said, adding that they "can offset the slump or the pressure on foreign trade to some extent". The growth forecast took into account the extra public investment and also assumed there would be no further escalation of the tariff "madness", he said. Habeck also called on his successors to strengthen European unity and independence so that Germany could hold its own against economic giants. "'Made in Germany is over'," he said. "We are a single market and it is through that market that we will bring investment back into Europe." "We must support the EU in taking a clear position, in negotiating confidently with the USA and at the same helping it be prepared to impose effective counter-measures."
Int'l Business Times
24-04-2025
- Business
- Int'l Business Times
Germany Expects Zero GDP Growth This Year, Blames Trump Tariffs
Germany's economy is expected to post zero growth in 2025, outgoing Economy Minister Robert Habeck said Thursday, blaming US President Donald Trump's trade policy. "The US trade policy of threatening and imposing tariffs has a direct impact on the German economy, which is very export-oriented," he said, presenting the forecast. The German government had previously expected slight GDP growth of 0.3 percent for this year for Europe's top economy, which shrank for the past two years. It also cut its growth forecast for 2026 to one percent from 1.1 percent. The United States is Germany's largest trading partner and last year took about 10 percent of its exports, from cars to chemicals. Under Trump it now levies a 10 percent tariff on European Union exports into the country, having earlier announced a 20 percent rate which was then paused. "Tariffs and trade policy turbulence are hitting the German economy harder than other nations," Habeck said. "We depend on open markets, functioning markets, and a globalised world. That's what has made this country rich," he told a Berlin press conference. German GDP shrank by 0.3 percent in 2023 and by 0.2 percent in 2024, suffering from higher energy prices following Russia's full-scale invasion of Ukraine. It has also been hit by increasingly fierce Chinese competition in key industries such as automobiles and machinery. "I would say that we are going through a paradigm shift when it comes to the basic earners for the German economy," Habeck said. "Our big trade partners, China and the USA, and our neighbour, Russia, are causing us problems." Looking ahead, Habeck voiced hope the impact of a major new spending package worth many hundreds of billions of euros could help revive the economy under the next government under conservative Friedrich Merz, who is expected to take power in early May. "It's good that investments are finally being made," Habeck said, adding that they "can offset the slump or the pressure on foreign trade to some extent". The growth forecast took into account the extra public investment and also assumed there would be no further escalation of the tariff "madness", he said. Habeck also called on his successors to strengthen European unity and independence so that Germany could hold its own against economic giants. "'Made in Germany is over'," he said. "We are a single market and it is through that market that we will bring investment back into Europe." "We must support the EU in taking a clear position, in negotiating confidently with the USA and at the same helping it be prepared to impose effective counter-measures." The German government had previously expected slight GDP growth of 0.3 percent for this year after Europe's top economy shrank for the past two years AFP
