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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Federal Economics Minister Katherina Reiche (CDU) has rejected demands for an excess profits tax to address high fuel prices. She called measures like fuel vouchers misleading and proposed raising the commuter allowance instead. The price surges stem from the Iran war.

CDU General Secretary Carsten Linnemann has assured Friedrich Merz of support ahead of the party congress in Stuttgart. Despite poor poll numbers and discontent within the party, delegates expect a strong re-election of the chancellor as party leader. The congress will also address controversial issues like a social media ban.

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The leaders of CDU, CSU, and SPD have declared 2026 the 'year of getting down to business' in their first coalition committee meeting this year and presented a masterplan for greater resilience. The focus is on protecting critical infrastructure following an attack on Berlin's power supply. Chancellor Friedrich Merz emphasized that security takes precedence over transparency.

The CDU showed great unity at its 38th federal party congress in Stuttgart, confirming Chancellor and party leader Friedrich Merz with 91.2 percent. Despite government challenges, the party avoided confrontations with coalition partner SPD. General Secretary Carsten Linnemann also received a strong result with 90.5 percent.

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German Chancellor Friedrich Merz discussed strengthening bilateral ties with Saudi Crown Prince Mohammed bin Salman in Riyadh. The talks focused on economic issues like energy and technology, as well as regional conflicts. Merz aims to elevate the partnership to a new level, including less restrictive arms exports.

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