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Katherina Reiche’s bold return reshapes Germany’s economic future in 2025

A capitalist visionary with deep roots in energy and politics, Reiche now steers Germany’s economy. Can her bold reforms revive stagnant growth and empower small businesses?

In this image it looks like an open book, in which there are some text and images of two cars.
In this image it looks like an open book, in which there are some text and images of two cars.

Katherina Reiche’s bold return reshapes Germany’s economic future in 2025

Katherina Reiche has returned to German politics as the Federal Minister for Economic Affairs in 2025. Her career spans decades, from a record-breaking start in the Bundestag to roles in energy and business. Now, she brings her experience back to government with a focus on economic growth.

Reiche first made headlines at 25 when she became the youngest member of the Bundestag. Born into a family with deep capitalist roots, she completed her Abitur after the fall of the Berlin Wall and studied chemistry. Over 17 years in parliament, she worked across committees, including Family Affairs, Education, and Economic Affairs.

After leaving the Bundestag in 2015—just before a one-year cooling-off period took effect—she moved into the private sector. There, she worked for municipal companies and later joined Westenergie AG, a subsidiary of energy giant E.ON. Details of her employment between 2020 and 2024 remain unclear, as public records do not list her roles during that time.

Her political stance aligns with a vision of economic expansion. She advocates for lower corporate taxes, extended workweeks, delayed retirement, and increased reliance on gas and oil. These policies echo the ideals of Ludwig Erhard, Germany’s post-war architect of the social market economy, who aimed for 'prosperity for all'. Adam Smith’s view of capitalism as a system of overflowing wealth also underpins her approach.

Reiche’s return to politics places her at the centre of economic decision-making. Her policies target business growth, corporate strength, and a resilient Mittelstand. The next phase of her career will test how these ideas shape Germany’s financial future.

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