The dispute over solutions to Germany's energy price crisis has escalated into a full-blown coalition clash. After Economy Minister Katherina Reiche (CDU) went on an open confrontation course with Finance Minister Lars Klingbeil (SPD), she was reprimanded by Chancellor Friedrich Merz (CDU). Merz is "bewildered" by the dispute and urged Reiche to show restraint, according to sources close to him. The SPD accused Reiche of coalition-damaging behavior.
On Friday, Reiche publicly positioned herself against Klingbeil and the SPD in several appearances. "The coalition partner has been notable in recent weeks for submitting proposals that are expensive, ineffective, and constitutionally questionable," she said in Berlin. "This leads to confusion and does not help consumers."
The Economy Minister specifically mentioned the excess profits tax and issued "a clear rejection" of it. According to her words, there is disagreement not only between her and Klingbeil regarding the relief measures under discussion, but "within the entire federal government."
In a guest article for the newspaper Handelsblatt, Reiche also positioned herself clearly against the coalition partner with several proposals on social and tax policy. She once again proposed a later retirement age, opposed an increase in the top tax rate, and rejected Klingbeil's proposal to abolish the married couple's tax splitting for newly married couples.
On Friday, the CDU minister also caused confusion with the announcement of a crisis meeting of the coalition committee on Sunday, which was initially not confirmed by the federal government.
With her appearances, Reiche is now also testing the patience of the Chancellor. Sources close to him indicated that Merz is "bewildered" by the public exchange of blows. He is calling on the minister to show restraint and urged the coalition partners to present a united front. It's now about the country, not party sensitivities.
Already on Thursday, the Chancellor had called on Reiche and Klingbeil to pull themselves together. In the ministerial meeting on energy policy, there had been a clear agreement with the goal of developing proposals consensually, sources close to Merz indicated. The responsible ministries should prepare for the possibility that gasoline prices continue to rise permanently.
SPD parliamentary group manager Dirk Wiese found harsh words for Reiche’s behavior: “The statements made by Federal Minister for Economic Affairs Reiche are very disturbing,” he told the Rheinische Post. “They seriously call into question the cooperation within this coalition.” It gives the impression that Reiche has “unfortunately still not fully settled into her role.”
SPD Deputy Faction Leader Esra Limbacher also considers Reiche unsuitable. "Germany does not need a lobbyist minister, but an Economy Minister with vision and willingness to engage with the current challenges of many businesses," he also told the Rheinische Post. "Both are currently not present."
Merz himself drew criticism with his rejection of quick further relief for citizens and businesses. While he had indicated relief on Thursday if energy and fuel prices continue to rise as a result of the Iran war, he did not name any concrete measures. He also dampened expectations regarding the political scope for action given the continuing tense situation in the Gulf region - politics cannot protect people and businesses "from all disruptions in global markets."
Lower Saxony's Minister President Olaf Lies (SPD) certified that Merz and the federal government are giving "a very unfortunate picture" in the debate on relief. "People at the pumps, especially the many commuters, do not need ideology debates, but solutions," Lies told the news portal t-online.
"I do not understand what the Chancellor is still waiting for," wrote Mecklenburg-Vorpommern's Minister President Manuela Schwesig (SPD) on the internet service X. "Citizens and the economy are already at their limit. We need quick relief now."
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