German Chancellor Friedrich Merz has reignited a fierce national debate by labeling the country’s total phase-out of nuclear energy a “serious strategic mistake.” Speaking at a business reception in Dessau on Wednesday, January 14, 2026, Merz argued that the decision has left Germany with the most expensive energy transition in the world. He noted that the reliance on state subsidies to keep market prices acceptable is unsustainable in the long run. The Chancellor’s comments directly challenge the policies initiated under Gerhard Schröder and accelerated by Angela Merkel, which saw the final three nuclear reactors shut down in April 2023.
Beyond energy, Merz addressed the polarizing issue of migration, maintaining a delicate balance between security and economic necessity. He reiterated that his government must “restrict illegal migration” to maintain social order and national security. However, he also emphasized that Germany must remain an attractive destination for skilled workers from around the globe. “We also want and must remain a country that welcomes people… if they wish to live and work in Germany,” Merz stated, acknowledging the country’s deepening labor shortage and the need for international talent to drive industrial growth.
The Chancellor’s dual focus on energy reform and migration comes at a time of significant diplomatic tension with Iran. Merz recently drew a sharp rebuke from Tehran after he predicted the “imminent demise” of the Islamic Republic during the ongoing protest crisis. Iranian Foreign Minister Abbas Araghchi accused Merz of “double standards,” questioning Germany’s human rights stance. Despite the international friction, Merz remains popular domestically for his “Germany First” economic roadmap, which prioritizes industrial competitiveness and a return to pragmatic energy solutions for the 2026 fiscal year.
