Business Leaders Issue Dire Warnings over AfD’s Economic Consequences
As Germany inches closer to its federal election, leading economic figures have raised alarm over the potential ramifications of a strong showing by the far-right Alternative for Germany (AfD) party.
Damaging Economic Policies
Hildegard Müller, president of the German Association of the Automotive Industry (VDA), denounced the AfD’s economic platform as "harmful to the economy" and "would result in a massive loss of prosperity." She pointed to a study conducted by the Institute of the German Economy (IW), commissioned by the "Diversity is Future" business initiative, which highlighted the dire consequences of the party’s proposals.
Chief among these concerns is the AfD’s plan to potentially withdraw Germany from the European Union (EU) and the eurozone. Müller labeled this as "dangerous and growth-stifling." According to the IW, a so-called "Dexit" could lead to a 5.6% decline in real gross domestic product (GDP) over the first five years – equating to €690 billion – and cost around 2.5 million jobs.
Müller also criticized the party’s stance on innovation, particularly in the areas of electric mobility and renewable energy. "Those who deny climate change and fail to see the future as an opportunity condemn us to a long-term economic decline," she asserted.
Digital Backwardness
Fabian Zacharias of the digital industry association Bitkom echoed Muller’s concerns, characterizing the AfD’s digital policy orientation as "backward-looking" and "focused on societal division and exclusion." He emphasized that Germany’s digital economy thrives on innovation and global interconnectedness, which would be "severely damaged" by the AfD’s proposed policies.
"We must enhance the competitiveness of the German economy, strengthen our digital sovereignty, and, at the same time, improve participation in the digital society for all people in Germany," Zacharias stressed.
Immigration a Necessity
The IW study also underscores the AfD’s negative impact on potential immigration. It highlights that Germany’s demographic crisis can only be addressed by attracting workers from abroad. Currently, 6.7 million foreign workers contribute 13.2% to gross value added. In East Germany in particular, foreign labor has been instrumental in driving economic growth.
"Without third-country immigration, there would have been no growth in social security-related employment there in recent years," the study notes.
Call for Unity
In light of these concerns, business leaders have urged German society to stand united against the AfD. Müller urged voters to "make it clear that hate and exclusion have no place in our society."
Zacharias echoed this sentiment, emphasizing that "we must not allow ourselves to be divided. We are all part of German society, regardless of our origin, religion, or political views."
The upcoming election represents a critical moment for Germany’s economic future. The warnings issued by business leaders serve as a stark reminder of the potential consequences of allowing the AfD’s divisive and harmful policies to gain traction. As voters head to the polls, they must carefully consider the long-term well-being of their country.
