BSW founder Sahra Wagenknecht has sharply criticized the government for its crisis management and demanded the replacement of Economy Minister Katherina Reiche (CDU) and Finance Minister Lars Klingbeil (SPD). Neither has so far come up with "any reasonable proposal" to lower fuel prices, she told the AFP news agency on Sunday.
The government is in a "miserable state" and "not only the economy minister, but also the finance minister should be replaced," Wagenknecht declared. Her criticism comes as the coalition government faces mounting internal tensions over how to address Germany's spiraling fuel costs, with Reiche and Klingbeil openly clashing over economic policy approaches.
The BSW leader's demand for ministerial resignations follows weeks of public disagreement between the two ministers. Finance Minister Klingbeil has been pushing for direct market intervention, including windfall profits taxes and fuel price caps, despite opposition from Chancellor Friedrich Merz and Economy Minister Reiche.
In recent statements, Klingbeil insisted that "the most effective action right now is market intervention," proposing a three-step plan that includes energy tax reductions and flexible fuel price caps. However, Merz explicitly rejected such measures, stating he does not want "interventions in the market that lead to supply shortages."
Meanwhile, Economy Minister Reiche has taken a markedly different approach, focusing on structural reforms rather than direct price intervention. In a guest article for Handelsblatt published this week, she positioned herself clearly against the coalition partner with proposals on social and tax policy, including advocating for a later retirement age and opposing increases in the top tax rate.
Reiche also rejected Klingbeil's proposal to abolish married couples' tax splitting for newly married couples. She has emphasized the need for "bold reforms" to address Germany's broader economic challenges, arguing that lowering energy costs requires improving labour markets, creating better conditions for innovative start-ups, and reducing regulatory barriers.
Moving beyond criticism of the existing government, the BSW is calling for a fuel price cap of €1.50 per liter, Wagenknecht continued. This would be possible if the federal government reduced taxes and levies on energy and established a price ceiling by law, as implemented in other countries.
Wagenknecht's proposal aligns more closely with Klingbeil's interventionist approach than Reiche's focus on long-term structural reforms, though the BSW leader clearly believes neither minister has gone far enough in addressing the immediate crisis affecting German households and businesses.
While Reiche has implemented some administrative measures, including legislation passed by the Bundestag limiting petrol stations to one price increase per day and strengthening the Federal Cartel Office's powers, these steps have been criticized as insufficient by opposition parties and even some coalition members.
Beyond her immediate policy demands, Wagenknecht expressed hope that German citizens would be "relieved" of the current federal government "as soon as possible." This comment referenced the BSW's ongoing legal challenge regarding last year's federal election results.
The party fell short of entering the Bundestag by approximately 9,500 votes and has brought the matter before the Federal Constitutional Court, blaming counting errors for their exclusion from parliament. A successful challenge could potentially alter the Bundestag's composition and provide the BSW with a parliamentary platform to pursue policies including their proposed fuel price cap.
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