Analysis

Germany’s economic crisis: How much climate action is to blame

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Published: February 26th, 2025,
Last updated: March 13th, 2025

Die deutsche Wirtschaft steckt seit zwei Jahren in der Krise. Wie groß ist der Anteil des Klimaschutzes an der Flaute?
The German economy has been in crisis for the past two years. How much is climate action to blame for the slump?
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The EU’s Clean Industrial Deal aims to reconcile climate action and industrial policy. With this comprehensive program, the EU Commission aims to reduce bureaucracy, lower energy prices and stimulate investment in green technology. So are climate action and decarbonization measures to blame for Germany’s weak economy? After all, CDU chancellor-designate Friedrich Merz has accused the last German government coalition of „reducing CO2 through recession.“

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IWF Digitalisierung Car Industry Climate protection Climate policy Dekarbonisierung Energy Prices Wärmewende