On March 31st, 2026, the UC Berkeley Haas School of Business held a lecture at the Connie & Kevin Chou Hall, featuring Germany’s former Vice Chancellor and Federal Minister for Economic Affairs and Climate Action from 2021-2025, Robert Habeck, in conversation with UC Berkeley Economics and Haas Professor Ulrike Malmendier. IES Associate Director Akasemi Newsome opened the event before turning over the discussion to the two panelists. Professor Malmendier asked Vice Chancellor Habek about the intersection of energy policy, geopolitical conflict, and democratic governance. In response, Habeck drew heavily on his experience managing Germany’s energy crisis following Russia’s invasion of Ukraine. The event invited the one hundred seventy-eight attendees to consider how governments respond to large-scale disruptions, and what these responses reveal about the strengths and limitations of democratic systems. This lecture was sponsored by the Clausen Center, the O’Donnell Center for Behavioral Economics, the Institute for Business Innovation and the Institute for European Studies.
A central topic of discussion was the growing role of energy as a geopolitical tool. Habeck compared the European energy crisis triggered by Russia’s cutoff of gas supplies in 2022 to current concerns with instability in the Middle East, particularly the potential closure of the Strait of Hormuz. He explained that Europe’s dependence on Russian gas left it highly vulnerable, forcing Germany to rapidly secure alternative energy sources under intense pressure. Reflecting on this experience, Habeck emphasized that “dependency… on one country, not a reliable country in this case, is a dangerous thing.” He argued that future energy policy must prioritize diversification and long term independence through renewable energy and electrification.
When asked by Professor Malmendier about the role of crisis in politics, Habeck pointed out that a crisis can accelerate political action. He described how Germany was able to build liquefied natural gas infrastructure and fast-track energy permitting processes in a matter of months, when these projects would typically take years to complete. Although this demonstrated the capacity of governments to act decisively under pressure, he cautioned that such urgency is often absent outside of crisis conditions. He expressed concern that political leaders may lack the clarity and decisiveness necessary to respond effectively to emerging energy risks.
Professor Malmendier also asked Vice Chancellor Habeck to talk about some of the challenges facing political leadership in democratic societies. Habeck noted effective governance requires more than technical expertise, and demands the ability to communicate complex policies to the public and build broad support. He described politicians as translators who must bridge the gap between expert knowledge and public understanding. Reflecting on his own tenure, Habeck pointed to Germany’s controversial heating law as an example of where this process fell short. While the policy aimed to reduce reliance on fossil fuels, he acknowledged that his sense of urgency did not align with public sentiment, leading to backlash and misunderstanding.
Habeck also addressed concerns about the state of democracy, emphasizing the dangers of increasing partisanship. Habeck argued once politicians enter government, their primary responsibility should be to the public rather than their party, and observed the weakening of this norm particularly in Germany in recent years. This shift, he warned, risks undermining trust in democratic institutions and weakening governments’ ability to respond to crises effectively.
Through his insights on energy policy, political communication, and democratic leadership, Habeck offered a nuanced perspective on the challenges facing both Europe and the broader global order, highlighting the complexities of governing in an era defined by overlapping crises.