Federal Minister for Economic Affairs Katherina Reiche (CDU) defended the party’s stance regarding stimulus measures. During a meeting of the CDU/CSU parliamentary group on Tuesday, Reiche reportedly stated that as a party representing the social market economy, they must acknowledge that the government cannot cushion every risk. According to the report from the “Rheinische Post” she explained that with the coalition’s “easing signal” from the previous weekend, they have the opportunity to alleviate the most acute difficulties faced by those who rely on their cars. Furthermore, Reiche added that while there are currently high prices due to disrupted markets, there are no physical shortages. Therefore, she argued that the state must use its resources selectively and with restraint, and crucially, ensure that if the crisis persists, they retain sufficient reserves or flexible options. Reiche emphasized that making the mistake of spending all available resources at the beginning of a crisis, or suggesting that the government can absorb every future risk, is a fundamental error. She praised the decision to avoid this mistake and noted that it was correct to reject the proposal for a windfall tax and asked the Finance Minister to first examine the matter on a European level, if it is to be considered at all.
Reiche Defends Tax Cuts Cautions State Cannot Absorb All Risk
