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Robert Habeck Exits Office as German Economy Records Third Year of Stagnation

The outgoing Economic Affairs Minister leaves behind a legacy of zero growth, policy controversies, and mixed climate outcomes, as a Union-SPD coalition prepares to address unresolved challenges.

Wirtschaftsminister Robert Habeck (Grüne) verabschiedet sich trotz desaströser Bilanz lächelnd aus der Bundespressekonferenz.
Noch-Wirtschaftsminister Robert Habeck (Grüne).
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Overview

  • Germany's economy has experienced zero GDP growth for three consecutive years, a period coinciding with Robert Habeck's tenure as Economic Affairs Minister.
  • Habeck attributes the stagnation to external shocks, including the Covid-19 pandemic, Russia's invasion of Ukraine, and U.S. trade policies under former President Trump.
  • The controversial heating law, emblematic of overregulation, significantly impacted Habeck's political standing and contributed to his failure to secure a chancellor candidacy.
  • Mixed climate results marked his tenure, with renewable electricity generation falling 16% in Q1 2025, while heat pump sales rose by 35% year-on-year.
  • Industry leaders criticize Habeck's legacy, citing unresolved planning insecurity, unfulfilled promises on permitting reforms and bureaucracy cuts, and a challenging economic handover for the incoming Union-SPD coalition.