After yesterday's Chancellor meeting with the key finance players of the CDU-CSU and SPD parties....things have gone 'south'.
If you were wondering....yeah, gas/fuel prices are the number topic right now, and the public wants relief (asap).
So there are three 'players' in this 'act'....Chancellor Merz, the Finance Minister (Klingbeil/SPD), and the Economics Minister (Reiche, CDU).
There are three elements to this landscape:
1. Merz wanted options laid out and gave both Reiche and Klingbeil a couple of day. What Klingbeil went to...were three elements. He wanted a profits-tax laid down on oil/gas companies. Some gov't guy would decide how much profit you were allowed, and then taxes would kick in. Then Klingbeil started a talk on gas-caps....meaning the gov't would set a price. Finally...Klingbeil invited in a number of SPD-players (union folks, etc) to talk up his agenda items.
2. Reiche....said 'what-the-hell' on the Klingbeil's meeting and dumped massively on the tax and cap talk. This got the SPD membership all disturbed.
3. Finally, the talent/skills of Merz for leadership....fell into play where he tried to tell Reiche not to 'dump' so hard on Klingbeil. What's been known for three decades....Merz lacks authority skills.
So now...a funny factor starts to enter the scene.
There are elements of the CDU-CSU Party....which you'd call CINOs (CDU in name only)....meaning they lean pretty much in the center, or to the left. They want Reiche 'fired'.
If this firing were to occur....a fair number of CDU conservatives would begin to ask questions and the public support would drop.
Economic downturn? YES, and the polling (coming up this week) will reflect more disenchantment with Merz and the coalition.
Collapse coming? No one wants a new election....in fear of AfD numbers.
Two state elections coming up in the fall.....Mecklenburg-Vorpommern and Saxony-Anhalt....both slated as 'wins' for AfD....if polling stays in line.
The one act that resolve this mess? Either totally cut, or marginally cut the fuel-energy-CO2 tax (leaving the VAT sales tax in place). This would cut roughly 30 cents off the cost of fuel.
The problem? The SPD uses the revenue made off this tax for a bunch of their 'gifts' to SPD voters.
ARD/ZDF (the two public TV players)? Well...this whole story is marginally covered in Saturday night's news. If you did lay it out....Merz, the SPD, and element of the CDU....look pretty crappy.