A prominent business leader cautioned that the far-right Alternative for Germany (AfD) poses a threat to the country’s economy, potentially causing “lasting damage” if it gains power. Bertram Kawlath, president of the Association of German Mechanical and Plant Engineering (VDMA), made these remarks during an interview with Deutschlandfunk radio on Tuesday. His comments follow a controversial decision by the Family Business Association to lift its ban on engaging with the AfD, Germany’s largest opposition party.
The Family Business Association’s reversal of its policy sparked backlash from member companies, including major players such as pharmacy chain Rossmann and beverage manufacturer Fritz Cola. Kawlath emphasized that the AfD’s stance against the European Union represents a significant concern for the business community. He pointed out that approximately 3,600 member companies under VDMA generate about 44% of their sales within Europe. “Then along comes a party that says we should leave the EU,” he noted, highlighting the potential risks of such a shift.
Kawlath further elaborated on the crucial role of the euro in bolstering the German engineering industry. He warned that the AfD’s anti-EU stance, along with its desire to abandon the common currency, could disrupt economic stability. Moreover, he addressed the party’s position on security policy, stating that the AfD advocates for Germany’s exit from NATO, which raises further concerns regarding the nation’s international standing and security.
Although there may be some alignment between the AfD’s views on inheritance tax and income tax and those of the business community, Kawlath stressed that adherence to core pro-European principles is paramount. He described the Family Business Association’s recent decision as a “desperate act,” urging the government under Chancellor Friedrich Merz to implement essential reforms aimed at countering the AfD’s growing influence.
The ongoing debate surrounding the AfD’s economic policies highlights a broader tension within German society about the future direction of the country, particularly regarding its relationship with Europe and international alliances. As the political landscape evolves, the business community remains watchful of potential impacts on trade, investment, and overall economic health.
