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Wednesday, May 14, 2025

Concerns Arise as Germany’s New Cabinet Features Business Leaders

Concerns Arise as Germany’s New Cabinet Features Business Leaders

Chancellor Friedrich Merz appoints former business executives to key government positions, raising lobbying concerns.
Germany's newly elected Chancellor Friedrich Merz, affiliated with the conservative Christian Democratic Union (CDU), has sparked debate over lobbying practices following his recent cabinet appointments.

Merz, who previously worked as a lobbyist for the global investment firm BlackRock, has chosen three individuals directly from the business sector to occupy top cabinet roles.

Katherina Reiche has been appointed as the Minister of Economic Affairs and Energy.

Reiche, a member of the CDU, previously served as the managing director of the Association of Municipal Enterprises (VKU) and held the position of CEO at Westenergie, an energy provider that operates under E.ON, one of Europe’s largest energy companies.

The Green Party, now in opposition, has criticized her appointment, labeling her a "gas lobbyist."

The new culture and media commissioner, Wolfram Weimer, brings a background in media entrepreneurship to the cabinet.

He previously served as the editor-in-chief of the right-leaning newspaper Welt and has no prior government experience.

His media company, Weimer Media Group, organizes annual summits for influential figures in business, politics, and media.

Following his appointment, Weimer announced that his wife, Christiane Goetz-Weimer, would assume sole control of the media group.

Karsten Wildberger has been appointed as Minister for Digitalization and State Modernization after resigning from his role as CEO of Ceconomy, the parent company of major consumer electronics retailers MediaMarkt and Saturn.

Like Weimer, Wildberger enters the political realm without any prior elected or governmental experience.

Ines Schwedtner, co-leader of the Left Party, criticized the center-left Social Democrats (SPD), who are currently in coalition with the CDU/CSU, for their support of what she described as a "CDU lobbyist cabinet."

The appointment of former business executives to cabinet positions is not typical in German politics, although it has become increasingly common, according to Norman Loeckel, a specialist in lobbying regulation at Transparency Germany.

Loeckel states, "It's actually better if you take someone who has the knowledge and expertise than a member of parliament who doesn't. But if there is a conflict of interest, that is a very critical situation, and there are no rules curtailing this effectively in Germany."

Lobbying, the practice of interest groups seeking to influence political decision-making, plays a key role in democratic systems.

In Germany, groups such as trade associations, NGOs, and think tanks engage in this process to advocate for various causes.

Since 2022, lobbyists in Germany are required to register in a database known as the Lobby Register.

This register encompasses all individuals who attempt to make contact with members of parliament, their staff, or the federal government.

However, certain exemptions apply to churches and trade unions, which are not mandated to register, although they can choose to do so voluntarily.

Failure to comply with registration requirements can result in prosecution under the Lobby Register Act, with penalties reaching up to €50,000 ($57,000).

Contributions to political parties exceeding €10,000 must be publicly disclosed.

Additionally, in 2021, members of the Bundestag were required to declare financial interests above certain thresholds, while laws prohibiting the acceptance of financial incentives for representing specific interests are also in place.

Cabinet ministers are prohibited from holding secondary employment under the Federal Ministers Act; however, this restriction does not extend to all Bundestag members.

Ministers planning to transition to private sector jobs must inform authorities and may be subject to a "cooling-off" period lasting up to 18 months.

In Germany, the number of lobbyists exceeds the number of parliament members, with nearly 6,000 entities registered—representing over 27,000 individuals advocating for various interests.

Advocacy groups have long called for enhanced transparency measures, such as an "executive footprint" that would document the development process of federal legislation.

While such proposals have been included in government ministry procedures, they lack binding authority and carry no penalties for non-compliance.

The introduction of the Lobby Register in 2022 followed significant lobbying scandals, including the case of Philipp Amthor, a CDU politician who was found to have lobbied for a US firm while also serving as a board member.

Although a cooling-off period for politicians transitioning to business was established after past controversies, further regulatory changes continue to be a point of discussion and advocacy among anti-corruption organizations.
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