Under multiple internal and external challenges, Germany, the largest economy in Europe, has embarked on a deep transformation. On December 13th, Tongji University and Social Science Literature Press jointly released the German Blue Book "Germany Development Report (2025): Germany in the Context of Political 'Right Turn'".

　　The Blue Book pointed out that in 2025, the postponement of the Russia-Ukraine conflict will continue to pose serious challenges to Germany's domestic political, economic and social development. Under the background of the reduction of support for Ukraine by President Trump of the United States, Germany is under more pressure. The German economy still faces many challenges, but with the easing of inflationary pressures, the recovery of consumer confidence, and the gradual effectiveness of policy support, the economy is expected to slowly recover. However, the uncertainty of the global economic environment and the highlighting of economic structural issues have cast a shadow over the direction of the German economy.

　　Faced with numerous internal and external challenges in Germany, the Black Red Alliance, formed after the February elections by the Christian Democratic Union/Christian Social Union and the Social Democratic Party, has pledged to "take responsibility for Germany" and has planned a series of reform visions in areas such as immigration, economy, and defense. German Chancellor Mertz also emphasized the need for Germany to increase visibility and influence in the European Union and international affairs.

　　The background of the turning point of the times has prompted Germany to embark on a deep transformation and adjustment of its foreign and security policies. At the same time, Germany's foreign policy has maintained a certain degree of path dependence, still adhering to traditional principles and concepts such as multilateralism, free trade, sustainable development, and consultation and dialogue, and seeking a balance between values such as freedom, peace, and human rights and practical political interests such as security and economy.

　　The Blue Book believes that 2025 is a decisive year for determining the direction of Germany's energy and climate policies. The new federal government must ensure both energy supply security and climate protection, while not neglecting cost affordability. The success of energy transformation will depend on its social acceptance and sustainability, whether through technology openness schemes, national regulation, or pragmatic hybrid strategies.

　　The Blue Book predicts that the new German government led by Mertz will not change the overall goal of accelerating the expansion of renewable energy and achieving climate neutrality by 2045. However, compared to the economic issues that the new government needs to focus on solving, the attention to climate protection issues may decrease in the future, and the driving force for accelerating the transition away from fossil energy dependence will also weaken. One day, there may even be a renewed discussion on restoring nuclear power. Reducing electricity prices and enhancing the international competitiveness of German industrial enterprises have become the top priorities of the energy policy of the Merz government. Although 100 billion euros of Mertz's large-scale government borrowing measures must flow into the Climate Transition Fund, the specific expenditure scope of this fund remains to be determined.

　　As a benchmark country for technological innovation in Europe, Germany has gradually shifted its focus from basic research to industrial application priority since the release of its first National Artificial Intelligence Strategy in 2018. It has strengthened its technological sovereignty and ethical regulations through the Artificial Intelligence Action Plan and the EU Artificial Intelligence Act. The Blue Book also points out that in terms of global technological competition, Germany actively explores a "third path" that differs from the China US model, combining artificial intelligence with its advantageous industries, attaching great importance to "trustworthy AI" governance and technological sovereignty competition, and building competitive advantages through institutional innovation and value output.

　　At the European level, Germany ensures that its artificial intelligence strategy is aligned with the overall planning of the European Union by promoting standardization, facilitating cross-border research cooperation, and strengthening data sovereignty governance. At the domestic level, Germany further solidifies the local foundation of its artificial intelligence strategy by supporting the digital transformation of small and medium-sized enterprises, strengthening basic and applied research, promoting talent cultivation, and optimizing technology transfer mechanisms. The adjustment of Germany's artificial intelligence strategy has a significant impact on enhancing economic competitiveness, optimizing social governance, and reshaping European digital leadership. However, it also faces structural challenges such as weak computing infrastructure, significant pressure for small and medium-sized enterprises to transform, and insufficient talent supply.