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Katherina Reiche Named Germany’s New Economic Affairs and Energy Minister

Reiche faces economic stagnation, energy transition challenges, and a reduced ministerial scope as she prepares to take office in May.

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Overview

  • Katherina Reiche, a seasoned energy manager and CDU veteran, has been appointed to succeed Robert Habeck as Germany's Economic Affairs and Energy Minister.
  • Her portfolio will lose significant climate-protection responsibilities, which will now fall under the Environment Ministry as part of the coalition agreement.
  • Germany's economy is projected to enter its third consecutive year without growth, prompting calls for reforms to reduce bureaucracy, lower taxes, and accelerate planning processes.
  • Reiche’s immediate priorities include reforming the controversial Heating Act with a technology-open approach and ensuring continuous expansion of renewable energy and grid infrastructure.
  • Economic and energy associations emphasize the need for stability in investment frameworks and public acceptance of new high-voltage transmission lines to support the energy transition.