Germany's Chancellor Says Nuclear Power 'Dead Horse' Despite Energy Crunch

Berlin's move to join the West's energy sanctions against Russia and ditch Moscow’s reliable and abundant energy supplies, along with the Nord Stream pipeline sabotage and the “green agenda” aimed at replacing fossil fuels and phasing out nuclear energy, have all contributed to Germany's dismal economic data and looming deindustrialization.

Chancellor Olaf Scholz has insisted that nuclear energy “is over" in Germany, and firmly dismissed calls from Free Democrats (FDP) lawmakers in his coalition government to re-embrace the technology in light of the ongoing energy crunch.

"The issue of nuclear energy in Germany is a dead horse. Anyone who wanted to build new nuclear power plants would need 15 years and would have to spend €15-20 billion ($16.2-21.6 billion) each," the chancellor said in an interview for German radio.

He added that the phase-out "has been done by law... I don't need to put my foot down at all."

The issue of nuclear energy has fired off a fierce debate among Germany’s coalition partners in the government: Chancellor Olaf Scholz's center-left Social Democrats (SPD), the Free Democrats, and the Greens. The energy crisis and soaring electricity costs have prompted the FDP to argue the need for halting the dismantling of Germany’s nuclear power plants. The door for resorting to nuclear power ought to be left open, the FDP - a proponent of the technology - has argued. The FDP's parliamentary group approved a policy statement earlier in the week that called on Germany "to stop the dismantling of the nuclear power plants that are still fit to use," adding:

"That is the only way we will remain capable of acting in every situation."

The Christian Democratic Union (CDU)/Christian Social Union (CSU) opposition alliance also argued the need for a limited nuclear reboot. However, the Green Party has been a major driving force behind the country’s nuclear phase-out, which resulted in the remaining NPPs being shut down.

Codified in a 2002 law, the nuclear phase-out in Germany was finalized after the 2011 Fukushima disaster in Japan. The country's last trio of operating nuclear power plants, Emsland, Neckarwestheim 2 and Isar 2, were finally shuttered on April 15, 2023. While initially slated to be closed on December 31, 2022, the German government coalition was forced to extend their operation amid the raging energy crisis.

Nuclear power accounted for close to 30 percent of German electricity generation at its peak use in 2000, plunging to just around four percent shortly before the NPPs were shuttered.

Economic Decline & Deindustrialization

The debate over nuclear energy in Germany comes as the country has been slipping further and further into crisis, with a stagnating economy and dismal forecasts all around. The German economy is expected to be the worst-performing among the G7 nations this year, with the country’s gross domestic product likely to plummet by at least 0.3%, as per an International Monetary Fund (IMF) forecast.

Grim economic indicators, including a rise in unemployment, a contraction in industrial production, and a 16% increase in bankruptcies in the first half of 2023 have all been feeding into speculation that the country is heading towards further economic decline and deindustrialization. Europe's one-time leader, Germany slid into a technical recession in mid-July, according to international economists.

The Ukraine conflict and related anti-Russia sanctions have taken their toll on the German economy. After Berlin opted to voluntarily strip itself of access to Russia's cheap and abundant energy, and in the wake of the destruction of the Nord Stream natural gas pipelines, which, according to Pulitzer Prize-winning journalist Seymour Hersh, was orchestrated by the US and Norway, Germany has been plagued by hardships. Berlin's decision to follow in Washington's footsteps and slap energy sanctions on Russia backfired on German manufacturers. Some large German enterprises, like BASF and Lanxess, relocated their businesses, setting the trend towards deindustrialization in motion.

Moscow warned early in 2022 that the push by Europe to ditch Russia's oil and gas was "suicidal."

Germany's ruling coalition is also having to pay for its decisions with plummeting voter approval, according to the latest "Deutschlandtrend" survey.

Screenshot of chart showing "Deutschlandtrend" survey of approval ratings for Germany's ruling coalition, its opposition parties, published on August 31, 2023.

© Photo : ARD-DeutschlandTrend

While the opposition CDU and right-wing Alternative for Germany (AfD) are on an upswing, Chancellor Olaf Scholz's government is registering record lows. Only 19% of respondents said they were "very satisfied" or "satisfied" with the performance of Scholz's government.