CDU economic wing backs Reiche in dispute with Merz

The CDU's economic wing has rallied behind Economics Minister Katherina Reiche after her public clash with SPD Vice-Chancellor Lars Klingbeil over energy policy. Chancellor Friedrich Merz expressed dismay at the exchange. A resignation demand from the party's social wing was quickly retracted.

Economics Minister Katherina Reiche took a confrontational stance on Friday against Vice-Chancellor and SPD Finance Minister Lars Klingbeil in the coalition dispute over high fuel prices and energy policy. "The coalition partner has recently been known for submitting proposals that are expensive, ineffective, and constitutionally questionable," she said.

Chancellor Friedrich Merz was, according to sources close to him, "befremdet"—perturbed—by the public exchange and urged Reiche to show restraint. He had tasked Klingbeil and Reiche with developing a joint proposal to address high energy prices. The government plans a retreat to align the black-red coalition.

Christian von Stetten, chairman of the CDU/CSU parliamentary group's Mittelstand circle, backed Reiche: "The minister is entirely right on the merits and receives strong support from the parliamentary group." Johannes Winkel of the Junge Union praised her as "the voice of the social market economy."

Christian Bäumler from the CDU's social wing initially demanded Reiche's dismissal but retracted it. CDA leader Dennis Radtke emphasized the need for debates, not personnel discussions.

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German politicians in heated debate over electricity tax cut proposal amid coalition tensions.
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Finance ministry criticises Reiche's electricity tax cut proposal

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Germany's finance ministry opposes Economy Minister Katherina Reiche's proposal to cut the electricity tax for businesses and households. The dispute in the black-red coalition over relief from high energy prices is escalating after Reiche and Finance Minister Lars Klingbeil clashed on Friday. Chancellor Friedrich Merz has expressed annoyance at Reiche's push.

Top representatives of Germany's black-red coalition from CDU, CSU and SPD concluded their two-day talks on energy prices and social-tax reforms late Sunday night at Villa Borsig near Berlin. No results were disclosed immediately. It remains unclear if announcements will follow on Monday.

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Chancellor Friedrich Merz has called on coalition partner SPD to lift blockades on reform projects. At an event of the German Banks Association in Berlin, he announced serious talks for the evening. Energy policy, pension reform, and statutory health insurance are in focus.

Following the CDU's victory in Rhineland-Palatinate's state election, party leader Gordon Schnieder has been mandated to lead exploratory talks with the SPD's Alexander Schweitzer on forming a grand coalition, as alliances with the AfD remain off the table.

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Eight weeks after the Greens' narrow win in the March state election, they and the CDU have reached a coalition agreement in Baden-Württemberg. Top candidates Cem Özdemir and Manuel Hagel announced it in Stuttgart, with the treaty to be presented next week.

SPD politicians from Schleswig-Holstein criticize the collapse of the political firewall at EU level. Niclas Herbst of the CDU in Kiel defends his party's stance on demarcating from right-wing populists in Brussels and calls for better cooperation in the democratic center.

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Leaders of the CDU, CSU and SPD ended their coalition committee meeting in the Chancellery shortly before midnight. No results were announced, and no press conference is planned.

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