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Germany Must Shrink! The Government Mandates Economic Collapse by Law – The Energy Efficiency Act (EnEfG) as Unconstitutional Sabotage of Prosperity


While industry is relocating abroad and households suffer under exploding energy costs, the cabinet passes a law designed to shrink our GDP by up to 14%. No joke: an absolute energy cap instead of genuine efficiency. The successors to the traffic-light coalition and Merz are carrying on – Germany is being deindustrialized. An attack on freedom, growth, and the welfare state.


The Scandal: The Energy Efficiency Act (EnEfG) and Its Amendment

The federal cabinet has approved the amendment to the Energy Efficiency Act (EnEfG) – disguised as a harmless “increase in energy efficiency.” In reality, it amounts to a centrally planned cap on Germany’s total energy consumption. Under the 2023 law (with its ambitions continued in the amendment), final energy consumption must be reduced to a maximum of 1,867 TWh by 2030 – a reduction of 26.5% compared to 2008. The federal government is required to “deliver” at least 45 TWh of final energy savings annually.

This sounds technical, but it is potentially devastating: the focus is not primarily on improved efficiency (more output per kWh), but on absolute reductions – whether achieved through efficiency gains or simply through less production, less heating, less mobility, and less digitalization. Even if massive efficiency improvements occur (e.g., better vehicles, condensing boilers instead of conventional systems, renewable instead of fossil energy sources), the law still mandates one thing: consumption must go down. The EU Energy Efficiency Directive (EED) provides the framework, but Germany has gone further through national “gold-plating” and rigid targets.

The Harsh Reality: Shrinkage as a Legal Requirement

Business organizations such as the CDU Economic Council and the German Chamber of Commerce and Industry (DIHK) have long warned that these targets can only be achieved through economic contraction. Realistic efficiency gains are estimated at around 1.4–1.7% per year. To comply with the absolute caps – even in the face of population growth or expanding AI data centers – GDP would have to shrink by 9 to 14%. This is not a prediction from conspiracy theorists, but a logical conclusion drawn from DIHK figures.

The law ignores the causal relationship between energy consumption and economic output. Energy is not just another input factor; it is the fuel that powers production, transportation, digitalization, and living standards. Historically and empirically, there is a strong positive correlation between primary/final energy consumption and GDP. Decoupling (using less energy per unit of GDP) does occur, but absolute caps place significant limits on growth.

Why Cheap and Abundant Energy Is Crucial for Prosperity

Numerous studies and basic economic principles show that affordable and readily available energy drives productivity, innovation, and growth. Without it, industry stagnates – including chemicals, steel, automotive manufacturing, and the very foundation of Germany’s export-driven model. Economic growth, in turn, finances prosperity: high wages, the welfare system, infrastructure, pensions, and public services.

A shrinking GDP means lower tax revenues, a higher debt burden per capita, increased pressure on social security systems, and declining real wages. Service-sector jobs cannot fully replace energy-intensive industrial employment. Germany is deindustrializing itself while China and other nations rely on cheap energy and continue to grow. The result could be an exodus of companies, potentially millions of lost jobs, the impoverishment of broad segments of society, and a collapsing welfare system.

What the Law Really Means: Restrictions and Consequences

To meet the targets, significant restrictions will be required:
  • For businesses (especially large and energy-intensive companies): mandatory energy or environmental management systems, waste heat utilization requirements, and audits. Data centers and AI operations face particular pressure – even if there is “no direct limitation,” the economy-wide cap still has practical effects.
  • For public authorities and households: annual savings requirements, fines, and reporting obligations.
  • For the economy as a whole: higher energy prices resulting from CO₂ certificates and consumption caps reinforce each other. Investment becomes less attractive when output is effectively capped.
Even with “Energy Efficiency First” as a guiding principle, the absolute consumption cap remains. Efficiency gains alone are not enough – the economy must shrink. This constitutes a severe infringement on Article 12 of the German Basic Law (freedom of occupation/entrepreneurial freedom) and on the welfare-state principle. Proportionality? Hardly. It is centrally planned sabotage that sacrifices prosperity for ideological objectives.

Assessment: This law represents a direct attack on the foundations of German prosperity. It accelerates deindustrialization, which is already being driven by high energy prices, bureaucracy, and energy-transition policies. Instead of relying on abundant and affordable energy (nuclear power, natural gas, modern technologies), the government is institutionalizing scarcity. Friedrich Merz and the CDU/CSU have not softened the amendment – making them fully complicit. The welfare system will come under immense pressure from stagnation and economic contraction. The public may not yet fully recognize the consequences, but they are coming: higher prices, fewer jobs, and a declining standard of living.

Germany does not need an EnEfG-driven shrinkage program; it needs an energy policy geared toward growth: greater supply, lower prices, and technological openness instead of bans and caps. Otherwise, the country is deliberately driving itself into a wall – in a manner that is unconstitutional and contrary to the interests of its people.

Sources are based on the video transcript, official legislative texts, DIHK analyses, and economic research concerning the relationship between energy and growth. It is time for the Bundestag to stop this disastrous law.

Author: AI-Translation - АИИ  | 

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