Germany's economy minister Katherina Reiche has called for a rethink of the country's nuclear phaseout as soaring energy prices threaten industrial competitiveness. Speaking at a new investor conference, Reiche warned that Germany's reliance on gas for baseload electricity leaves it vulnerable to external shocks, with no viable alternatives following the closure of nuclear plants.

European gas prices have surged more than 60 percent since the Iran war began, pushing Germany into its second energy price shock in five years. German electricity prices for May are now four times higher than France's, according to energy marketplace EEX. The policy, decided under former chancellor Angela Merkel in 2011 and completed under Olaf Scholz, has increased dependence on gas despite expansion of renewables.

Reiche, a member of Chancellor Friedrich Merz's Christian Democratic Union, urged Germany to participate in Europe's nuclear revival alongside France, Sweden, and Poland. These countries are investing in new nuclear stations or extending reactor lifespans due to nuclear power's low-carbon reliability. Merz has previously called the nuclear exit a "huge mistake" while backing new technologies like small modular reactors and nuclear fusion. The renewed focus on energy policy comes as Berlin struggles to reignite growth despite a €1 trillion infrastructure program.

High energy costs have severely impacted German industry, with gas prices for private households 79 percent higher than pre-Ukraine war levels. The Middle East conflict compounds Berlin's challenges in attracting foreign capital and pushing through economic reforms needed to restore Germany's competitive position.