Germany Makes "Sea-Change Policy Shift" On Nuclear Power In Europe
Three weeks after widespread power grid failures disrupted Portugal and Spain—events triggered by unreliable solar and wind power—Germany is sharply recalibrating its energy stance. The new conservative government under Chancellor Friedrich Merz has decisively reversed its long-standing opposition to nuclear power, recognizing the economic and security risks posed by overreliance on intermittent renewables.
May 28, 2025
A Shift in European Energy Strategy
Three weeks after widespread power grid failures disrupted Portugal and Spain—events triggered by unreliable solar and wind power—Germany is sharply recalibrating its energy stance. The new conservative government under Chancellor Friedrich Merz has decisively reversed its long-standing opposition to nuclear power, recognizing the economic and security risks posed by overreliance on intermittent renewables.
This move signals a broader return to pragmatic energy policymaking in Europe, where nuclear power is increasingly seen as vital for reliable, low-carbon electricity generation—especially as France maintains its leadership in nuclear output.
What Changed?
German officials have informed Paris that they will no longer oppose French efforts to classify nuclear energy as equivalent to renewables under EU legislation. This signals a major policy shift after years of resistance led by former Chancellor Olaf Scholz, who treated nuclear power and renewables as fundamentally different.
"The Germans are telling us: we will be very pragmatic on the issue of nuclear power," said an anonymous French diplomat involved in the talks.
"All the biases against nuclear power, which still remain here and there in EU legislation, will be removed."
"This will be a sea-change policy shift," confirmed a German official.
Strategic Implications
Guntram Wolff, senior fellow at think-tank Bruegel, calls this move a “welcome rapprochement” that will ease the path to energy reforms in the EU. It reflects a recognition that overreliance on solar and wind has created instability and risk in energy supply, especially after recent grid failures.
Energy Grid Vulnerability Highlight
Berlin’s reversal follows closely on the heels of power outages across Portugal and Spain, caused by variable renewable generation.
Political Dynamics in Europe
Merz’s leadership underscores a strategic urgency to revitalize Franco-German cooperation, crucial for breaking decision-making deadlocks at the EU level. Berlin and Paris are signaling a pragmatic new phase where nuclear power is no longer sidelined but seen as essential to Europe’s energy stability.
"When France and Germany agree, it is much easier for Europe to move forward," says Lars-Hendrik Röller, former economic adviser to Angela Merkel.
“While several challenges remain, I believe this issue will be solved.”
Energy Security Risks and Economic Context
The new policy pivot comes amid rising natural gas prices fueled by the Ukraine-Russia conflict, which is driving up costs for manufacturing and end products. Solar and wind, while politically favored, have been shown to create power grid instability—a clear national security threat for many European countries.
The Road Ahead: What This Means for Global Trade & Energy Markets
Germany’s change signals a new era where net-zero ambitions must reconcile with reliable power generation. For global trade and logistics, a stable and cost-effective energy supply in Europe means less disruption risk to manufacturing and shipping hubs critical for world supply chains.