Global protectionism threatens economic stability and Europe’s competitiveness, warned Germany’s Minister for Economic Affairs and Climate Action, Robert Habeck, during the presentation of the 2025 Spring Economic Forecast. In his address, the minister emphasised the need for a strategic response based on cooperation, investment in clean technologies, and the protection of critical infrastructure.
“We can no longer believe in the blind optimism that supply and demand will regulate everything”, Habeck states, referring to the paradigm shift European economies face amid rising nationalist economic policies from powers such as the United States and China.
From his perspective, economic security comes at a price, requiring Europe to take a more active role in defending its strategic interests. “The idea of security in a changing global landscape means we must invest more in our own competitiveness”, the minister asserts, highlighting the importance of reinforcing Europe’s industrial base.
Energy Transition and Industrial Competitiveness
A cornerstone of Habeck’s policy vision is the transition to climate neutrality as an economic driver. He criticised approaches aimed at prolonging fossil fuel use for competitive reasons. “It is wrong to think we will strengthen the economy by returning to coal or clinging to fossil fuels”, he emphasises.
In this regard, the minister calls for clean technologies to be developed within Europe, particularly in sectors where Germany is already falling behind, such as solar panel manufacturing. “We must develop the next generation of climate-neutral technologies here”, he affirms.
Habeck also highlighted progress in renewables, noting that Germany is on track to achieve 70% to 80% renewable electricity generation by 2030. However, he warned that effective energy storage and the conversion of gas plants to hydrogen will be crucial to ensuring system stability.
Energy Diversification and Infrastructure Protection
Another key point in his speech was the need to diversify energy sources and raw materials to reduce dependency on single partners. Habeck proposed implementing quota systems to compel companies to engage with multiple suppliers. “Companies must not depend on a single energy source, as it is public money that ends up covering these risks”, he explains.
He also defended the Europeanisation of investment screening for critical infrastructure, citing examples such as the port of Hamburg and semiconductor technologies. “This must be strictly European to prevent external actors from controlling critical assets”, he insists.
Structural Reforms and Economic Growth
Regarding growth prospects, Habeck acknowledged Germany’s challenge after years of economic stagnation. He forecasts 1% growth for 2025, driven by structural reforms including increased labour capacity, skilled immigration, and faster administrative approvals.
“These are joint efforts that must be resolved swiftly and decisively”, he notes, referencing the 49 measures agreed upon in 2024 under the growth initiative.
Industrial Policy, Climate Action and Economic Security
Habeck advocates for aligning industrial policy with climate action. “You cannot pursue climate policy without considering economic and industrial factors, nor industrial policy without accounting for climate legislation”, he remarks.
He warned against future attempts to separate these domains, arguing that a unified strategy has been essential for advancing Germany’s energy and industrial transformation.
Reflections on Leaving Office
In his farewell, Habeck expressed satisfaction that many of his proposed policies are now being adopted by former opposition parties. “I am pleased that the ideas we prepared will likely be implemented, even if under a different political banner”, he states.
However, he regretted that delays in implementing key measures had negatively impacted citizens and businesses. “I feel for those who, due to late action, faced fear, unemployment, or insolvency”, he acknowledges.
He concluded by advising his successor on the importance of maintaining strategic vision amid global challenges. “Europe must take care of itself across various sectors; there is no time to lose for the new government”, he concludes.
