Depends on the environment you are talking about.
If you are talking about an environment in a test lab, or in an operating room, it should be germ free to prevent infection or contamination.
If you are talking about the environment in general, then freedom from germs would quickly cause the death of most, if not all, organisms. Germs are invaluable for many processes, such as the decaying of dead matter, the fixation of nitrogen (an essential process: without nitrogen compounds, nothing can live) and controlling each other.