Upcoming Bundestag Elections: German Businesses Speak Out Against the AfD
As elections draw near in Thuringia and Saxony, the AfD's growing presence in Germany leaves its neighbors watching closely, fearing a replication of their own extremist right-wing parties' rise. German heavyweights in industry and economy have been vocal about their disapproval of the controversial party and its key figures.
With the eyes of Europe upon them, political analysts draw parallels between the escalating support for extreme right parties in both Germany and the Netherlands.
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The AfD's energy and climate policies are a stark contrast to those advocated by the CDU, SPD, and Greens. The CDU, alongside its allies, supports the phasing out of internal combustion engine (ICE) cars by 2035 and upholds emissions reduction mandates. The AfD, however, believes in technology openness and aims to reverse the ban on ICE cars, seeking to make them competitive alternatives to electric vehicles (EVs) using eFuels.
The SPD and Greens insist on maintaining the ban on registering ICE cars from 2035 to promote the shift to electric vehicles. They propose tax cuts for domestically manufactured EVs to support German car manufacturing and aim to establish a climate-neutral European aviation sector primarily using eFuels in aviation and shipping.
In contrast, the CDU and AfD argue that the market should determine the winner in the mobility race. They aspire to reverse the EU policy of banning new ICE car registrations from 2035 and make ICE cars running on eFuels a financially viable alternative to EVs. The AfD also opposes using public funds to establish electric vehicle charging infrastructure.
Industry figures are experiencing pressure due to intense competition and sluggish economic growth, causing a growing demand for consistent policy signals from the government regarding the shift to electric vehicles. The CDU's economic stance and potential coalition with the SPD and Greens could impact the rate of the energy transition in Germany.
In the 2025 elections, major parties have made promises regarding climate and energy. The SPD and Greens support the 2035 phaseout date for ICE cars, while the CDU and AfD aim to reverse this ban. The FDP and BSW advocate for dismissing the 2035 phaseout date and focusing less on the transition to electric cars.
German industries, including automakers such as Opel and Traton, are likely to criticize the AfD's stance on energy and climate policy, which they view as an obstacle to the shift towards electric vehicles and detrimental to environmental objectives. A CDU-led coalition that aligns more with industry demands for a sustainable transition could result in favorable policy directions.
However, this volatile political climate can distract industry leaders, making long-term planning difficult. The potential for policy uncertainty and economic stagnation is high, particularly in the transition to electric vehicles.
Furthermore, the AfD's anti-immigration and anti-EU policies, if realized, may lead to talent shortages, affecting the growth and competitiveness of the German automotive industry in the global market. In addition, tensions with the EU could result in the weakening of EU-wide initiatives related to climate change and energy transition, jeopardizing not only the shift to EVs but also Germany's position as a leader in the automotive industry.
