Less money, more trouble: Why rich people and Wildbergers still become ministers

It was six minutes past nine on Monday when the electronics retail group Ceconomy sent out an ad hoc announcement that caused astonishment in the markets and a stir in Berlin's political circles. CEO Karsten Wildberger would be leaving the company at the beginning of May, it announced, before the actual message, somewhat awkwardly worded, followed: "Dr. Wildberger intends to accept the offer made to him by the designated Chancellor of the Federal Republic of Germany, Friedrich Merz, to serve as a Federal Minister in the Chancellor's future cabinet."

Boom.

Wildberger will become Digital Minister. After the electronics chains Mediamarkt and Saturn, the 56-year-old is now tasked with digitizing the entire country. The appointment is a huge surprise; even insiders hadn't considered the Giessen native, who was a management consultant at Boston Consulting before joining Ceconomy.

The second personnel decision – which is even more important for the economy – had been rumored for a few days, but hardly anyone would have bet on it a few weeks ago: Katherina Reiche, currently head of the Eon subsidiary Westenergie, and in her former life a CDU member of the Bundestag for the Potsdam constituency, will become Federal Minister for Economic Affairs and Energy.

By choosing Wildberger and Reiche, Merz has fulfilled two promises from his election campaign. He is ensuring personnel renewal in the cabinet and greater economic competence in the federal government. He has also achieved the feat of nominating two candidates perceived as politically aloof, yet whose loyalty to the party line is nonetheless in doubt. Reiche served, with interruptions, for twelve years on the CDU's federal executive board and for 18 years in the Bundestag; Wildberger is vice president of the CDU's Economic Council.

The appointment of the Ceconomy CEO is considered a coup, as the manager is foregoing a great deal of freedom and a lot of money to embark on the adventure of the Digital Ministry. According to the latest annual report, he earned at least €2.8 million in annual salary last year – not including long-term bonuses. As a minister, however, he is paid €219,561 annually – a decrease of more than 90 percent.

The designated Minister of Economic Affairs, Reiche, is also likely to accept salary cuts, albeit to a lesser extent.

Unlike Wildberger, she knows politics well. Reiche had an early career in the Bundestag and was already a member of the shadow cabinet of then-Union Chancellor candidate Edmund Stoiber in 2002—at just 29 years old.

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She later became Parliamentary State Secretary, first in the Ministry of the Environment and then in the Ministry of Transport, before turning her back on politics in 2015 and becoming Chief Executive Officer of the Municipal Utilities Association (VKU).

Managing the association is more political than business, as it involves representing the interests of municipally owned utility companies. Reiche mandated a digitalization campaign for the association and organized trips to Silicon Valley with municipal utility executives.

However, many who know her well knew from the outset that the association would not be the ultimate goal of her career. She was also said to have aspirations for higher positions at the E.ON subsidiary Westenergie, and was rumored to have ambitions for the company's board of directors. Now she's entering the political elite.

The fact that she originally comes from the East and is a woman likely played a role in her selection – even though Merz officially refuses to acknowledge quotas and proportional representation. An insider considers another factor crucial. "She is extremely well connected," he told the RedaktionsNetzwerk Deutschland (RND). "In both directions." By "both directions," he means politics and business; Reiche feels particularly comfortable at the interface between the two.

The chemist's enormous ambition is accompanied by an even greater work ethic, which can even lead to the depletion of her own health. There is talk of a pronounced tendency toward micromanagement: "She discovers a pitfall on page 158 of the draft bill that everyone else has overlooked," according to a former colleague. Such a thing can then be quite unpleasant for those directly affected.

With the Ministry of Economic Affairs, Reiche is dealing with a massive apparatus. Insiders doubt that the principle of micromanagement still works there. There's also a kind of shadow ministry: the Federal Network Agency, which has developed a life of its own in recent years and is headed by Klaus Müller, a former Green Party politician. "It's hard to imagine how this could work amicably," says one observer.

The new minister's brief is ambitious: New gas-fired power plants, new power lines, and a new hydrogen infrastructure must be built in the coming years. Reiche, at least, has prior knowledge of hydrogen. She is (still) chair of the National Hydrogen Council. And Reiche, a mother of three, has a private advisor who knows the Ministry of Economic Affairs on Scharnhorststrasse well: She is in a relationship with its former owner, Karl-Theodor zu Guttenberg.

From the business community, both appointments are met with cautious praise – coupled with high expectations. "Ms. Reiche is aware of the challenges facing politicians as well as those facing businesses and associations, and she recognizes the importance of dialogue," BDEW head Kerstin Andreae told RND. Early involvement of the industry in legislative processes is now essential.

Simone Peter, President of the German Renewable Energy Association, described Reiche as an “experienced energy practitioner,” but also warned that no disruptions to key climate protection measures should be risked.

The German Retail Association (HDE) welcomes the fact that the designated digital minister is aware of the concerns and needs of retailers. "We fundamentally think it's positive that someone is taking on political responsibility who can accurately assess the needs of the retail sector from a practical perspective and brings experience from day-to-day business operations to the political office," HDE spokesperson Stefan Hertel told RND.

Both candidates must now prove that they have not only economic competence but also the political sensitivity to tackle the big tasks.