Saturday, April 11, 2026

Political Theatrics This Weekend

Back on Thursday AM....Chancellor Merz went to the Finance Minister (Klingbeil, SPD), and Economics Minister (Reiche, CDU)....asking them  to jointly present proposals for tax relief (over the escalating gas situation in Germany).

So 24 hours pass. Friday, the Finance Minister invited employers and unions to a high-level meeting. Reiche, went to the press and went  into a pretty critical commentary over the SPD's proposals.  For reference....the chief thing....was a profit-tax on gas/oil companies.  Her words?  "Expensive, ineffective, and constitutionally questionable." 

Things got heated, and Klingbeil mostly wanted Merz to yank on Reiche's chain. He had to....because the SPD is in such a weakened public perception (over the past year).

Merz did have a talk....from  what is suggested.....he told her to practice restraint. 

Merz caught in the middle?  Well...he kinda remembers how the SPD-led coalition in 2004 collapsed over money/tax issues.....and presently he appears drifting  toward the same 'mess'.

Where this is headed?  There's a fair amount of chatter today (Saturday) over dumping Reiche....within the CDU and CSU parties.

A bunch of them?  No.....it seems like there is a pro-SPD element within the CDU and CSU groups.  They have a point....they don't want a collapse, and things are pretty crappy if you have a forced-election right now.

Where all of this is headed?  

I'll make three observations:

1.  A lot of Germans remember 2024 and the SPD-led coalition collapsing.  Same path....same trend....arguing by SPD of new taxes.  This current trend reminds them of that spiral.

2.  I would imagine as Reiche gets 'dumped' (likely to happen shortly)....if you poll the parties at the end of April....the  CDU-CSU folks lose 2 points.

3.  As the profit-tax likely occurs (my belief is that it'll happen by early June)....the gas/oil companies will quietly add the tax to their costs, and pass it onto  the consumer.  Neither the SPD or CDU-CSU folks will admit this reality.  In fact, this might be so popular....that eventually every commercial company has profit-taxes.....which are all tied  in a bundle and passed onto consumers.  In a way....it is funny....but also tragic in how things occur these days.

As for who replaces Reiche?  I'm sure that Merz is asking around, and finding the top five CDU candidates on his list....all of them are saying no.  They all probably had critical comments over the profit-tax concept.

I will agree...it's a great 'show' to  view.

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