Germany’s economy and energy ministry has dissolved a key division for liaising with the wind and solar industry, a move that reflects policymakers’ shifting priorities as the country looks to overhaul its spending.

The division within the industry department was dissolved effective Oct. 2 to “best reflect current industrial policy priorities” and to implement staffing reduction mandates, a ministry spokesperson said. The unit’s tasks will instead be handled by two other divisions that mainly focus on energy-intensive or consumer goods industries, while overall wind, solar and grid issues will still be addressed in the ministry’s power department.

The government of Chancellor Friedrich Merz — which increased borrowing to support its military and infrastructure drive — aims to reign in spending in part by proposing cuts for healthcare and renewables. Economy Minister Katherina Reiche wants to scale back some subsidies for wind and solar to save costs and address frequent grid backlogs, proposals that have prompted pushback from financial investors.

At a debate in parliament on Wednesday, Reiche said she remained committed to the nation’s goal of producing 80% of its power from green sources by 2030. She referred to additional solar and wind auctions, “but we are synchronizing the expansion of renewables with grid development.”German media first reported on the closure of the renewables division.