The optimization of government governance is one of the important driving forces of regional economy. Drawing on the experience of the regional reconstruction of Ruhr in Germany, this paper is an analysis of its social market mode with the regional government playing the leading role. The old Ruhr mode caused high energy consumption and damage to environment, and a series of measures were taken such as stressing government policy orientations, establishing authority institutions, emphasis on applications of technology, infrastructure construction, strengthening environmental protection, etc. As a result, some competitive substitution industries were fostered to ensure structural transformation, and the problems of stagnant economy caused by large-scale industrial recession and deteriorated environment were resolved. On the basis of comparison, the paper concludes with some ideas and methods which could benefit China's regional economy.
