Katherina Reiche: New Economics Minister with great expectations!

The German economy is getting a breath of fresh air with the appointment of Katherina Reiche as the new Economics Minister. Reiche moves from the top of the Westenergie company to the Ministry of Economic Affairs and is appointed to this office by Friedrich Merz (CDU). With economic growth stagnating for three years and a decline in international rankings, Germany faces urgent economic challenges.

Initial reactions from business to Reiche's appointment are cautiously positive. Tanja Gönner from the BDI and the employer president Rainer Dulger emphasize their extensive experience in politics and business. Katherina Reiche, the mother of three, previously gave up a well-paid position at Westenergie. The company achieved annual sales of over 7 billion euros and employs around 11,000 people.

Background and expectations

Katherina Reiche was general manager of the Association of Municipal Companies from 2015 to 2019 and previously held various political positions in the Bundestag from 1998 to 2015. She not only brings political experience, but also practical knowledge of the energy sector, which should benefit her in the new role. Privately, she is in a relationship with Karl-Theodor zu Guttenberg, a former economics minister.

Expectations of the rich are high, especially when it comes to energy policy, where it has to deal with issues such as cost efficiency and market economy instruments. It plans to develop a power plant strategy to promote the construction of new power plants. At the same time, Lobbycontrol warns of possible conflicts of interest due to their previous connections to the energy industry.

In eastern Germany, her appointment is seen as positive as she will act as a voice for business in the new federal states. However, Reiche is facing significant challenges as the Ministry of Economic Affairs is losing competencies, particularly in areas such as climate protection, which will in future be the responsibility of the Ministry of the Environment.

The task of tackling crucial challenges such as high energy prices, the tax burden and the labor shortage now lies on the shoulders of the new minister. Important legislative proposals that are waiting for the rich include the underground storage of CO₂ and state funding for new gas power plants by 2030. According to the coalition agreement, the network expansion is to be restructured.

The Ludwig Erhard Foundation, of which Reiche is a member, supports regulatory principles that could guide the new minister in her work. The German economy is facing turbulent times, and many those responsible are hoping for the decisions that Reiche will make in her new role.