A growing rift is emerging within Germany’s governing coalition as the Social Democrats (SPD) are publicly urging greater action from their coalition partner, Christian Democratic Union (CDU) Minister for Economic Affairs, Katarina Reiche. SPD General Secretary Tim Klüssendorf has voiced concerns that the ministry’s implementation of key economic policy decisions, particularly regarding the newly agreed industrial electricity price, is lagging significantly.
Klüssendorf emphasized the SPD’s unwavering commitment to safeguarding jobs and stimulating economic growth, citing recent coalition decisions on issues like the industrial electricity price and power plant strategy as crucial steps. However, he critiqued a perceived lack of progress in the ministry’s execution of these measures. “Since those decisions were made, we have seen a worrying silence on many of the tasks assigned to the Economic Ministry under Minister Reiche” he stated.
The industrial electricity price, intended to mitigate costs for energy-intensive industries and bolster Germany’s competitiveness, is now considered a critical juncture. Klüssendorf pressed Reiche to accelerate its implementation and actively pursue a target price of five cents per kilowatt-hour at the European level. He underscored that businesses are actively awaiting these changes, a point reinforced by direct feedback received at the recent Gesamtmetall industry event.
This public rebuke from the SPD signals deepening tensions within the ruling alliance. While coalition consensus has previously guided major policy initiatives, Klüssendorf’s comments suggest a growing frustration within the SPD regarding the perceived slowness of the CDU’s economic policy delivery. The issue is slated for discussion at the upcoming coalition committee meeting, where Reiche is expected to face direct questioning and pressure to demonstrably advance the industrial electricity price plan. The effectiveness of the coalition’s response remains to be seen, but the public airing of these concerns underscores the fragility of the current political landscape and the ongoing struggle to balance competing economic priorities.
