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Internal Unrest Erupts in German Economy Ministry as Key Aide Departs

Published July 28, 2026 at 5:02 PM UTC

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The German Ministry of Economic Affairs is facing fresh turmoil after the head of the management department serving State Secretary Katherina Reiche was removed from their post. The move, reported by Der Spiegel and Frankfurter Allgemeine Zeitung, has intensified concerns about instability within the ministry under Minister Robert Habeck. The departed official was responsible for coordinating Reiche's day-to-day operations, a role central to executing the ministry's economic agenda. Sources within the ministry describe growing unease among staff, with some questioning the leadership's direction. The shake-up comes as the ministry grapples with complex policy challenges, including the energy transition and industrial competitiveness. Observers note that frequent personnel changes could slow decision-making and erode morale. The ministry has not officially commented on the reasons for the reassignment, but internal debates over strategy and structure are believed to be contributing factors. The impact on policy implementation remains uncertain, but the timing is sensitive given Germany's economic headwinds.