Germany’s ruling coalition is set to fast-track long-delayed infrastructure projects and scrap the controversial clean-heating law, Chancellor Friedrich Merz announced Thursday. The measures are designed to revive the economy and restore public confidence in the government while giving homeowners greater flexibility in modernizing their properties. With five state elections scheduled next year, the coalition is under growing pressure to deliver tangible results and demonstrate effective governance.
Merz, who became chancellor seven months ago, said some transport projects will be marked as especially important to the public to move through planning and approval more quickly. The government will also complete more steps online to save time. New electric lines on railroads shorter than 37 miles will not need an environmental review. After Wednesday night’s meeting, Merz said protecting the environment is still important, but it should not stop progress.
Germany used to be known for strong infrastructure, but many now think it is getting worse. Some blame past governments for not investing enough. Earlier this year, Merz’s administration allowed more borrowing with a special fund. Some critics say this money is going to regular expenses instead of big upgrades.
Regarding heating, the government said it will drop the old rule that required most new systems to use green energy. Many homeowners and other groups opposed this rule, and it led the last government to lose support. The new Building Fix-Up Law will still aim to lower building emissions, but people can choose which technology to use and when to make changes. The government plans to bring this proposal to parliament by next spring. With state elections in 2026, Merz’s Christian Democrats and their coalition partners, the Social Democrats, need to prove they can govern effectively after recent mistakes. Their support has fallen since February, while the far-right party has gained popularity. The new plans for roads and buildings are meant to help win back voters before the elections.
This agreement is a big step toward fixing Germany’s problems with roads, energy, and the environment, while also being careful with money. By simplifying processes and giving people more choice, the government hopes to win back trust and show it can make real changes. They are getting ready for a challenging political year.
