🇩🇪💥German Industry Divided: A Crisis Unfolds!

World News

A number of German companies are withdrawing from a large business association due to its strategy of engaging with the far-right Alternative for Germany (AfD) party. The move has ignited a significant debate within Germany’s business community, centered around the question of whether to engage with the AfD. This controversy began in October when the business association, Die Familienunternehmer (The Family Entrepreneurs), invited AfD representatives to its parliamentary evening in Berlin for the first time. According to Marie-Christine Ostermann, the association’s president, this action lifted a national “contact ban” on the party, which has been classified by Germany’s domestic intelligence agency as “far-right and partially right-wing extremist.” Ostermann stated on the organization’s website that “family entrepreneurs do not want a government that includes the AfD.” She emphasized that “engaging in discussion with someone who thinks differently is not the same as accepting their positions. Talking does not mean working together.” Ostermann further asserted that “the time is ripe to talk to members of the AfD.”

“Feedback from our members supports our decision,” the association, Die Familienunternehmer, posted on Instagram, though it did not provide details regarding the scope of that support. Representing 180,000 family businesses in Germany, the association employs approximately 8 million people collectively. Notably, the Rossmann drugstore chain has withdrawn from the association, and the household appliance manufacturer Vorwerk announced its intention to terminate its dormant membership, with a formal departure planned. Christoph Werner, chairman of the dm management board, told the Süddeutsche Zeitung newspaper that “Vorwerk distances itself from the statements made by the association regarding One of Germany's leading companies in terms of employee friendliness, sustainability, and popularity with customers is the drugstore chain dm. The company has consistently rejected polarizing debates surrounding a ‘firewall’ and decisively opposes the positions of the AfD party, which question the free democratic basic order. dm stated that it had left the association several months prior and, consequently, was no longer involved in internal discussions. Despite being ranked number one in customer popularity earlier this year, dm is currently facing increasing dissatisfaction from customers expressed via social media channels, particularly on Instagram.

Statements within the German Trade Union Confederation (DGB) express significant concern regarding the Family Entrepreneurs Association’s (Die Familienunternehmer) recent actions. Many businesses are indicating a potential shift to rival retailer Rossmann if no corrective measures are taken. Furthermore, leading companies not affiliated with the business association are facing considerable pressure. Haribo, for instance, has been subjected to public criticism on Instagram, with individuals urging the manufacturer to distance itself from the Alternative for Germany (AfD), prompting pledges to cease purchasing their products. The candy manufacturer swiftly issued a public statement clarifying its non-membership within the association. Similarly, Henkel, the producer of Persil, has experienced pressure on Instagram, including demands for a statement concerning the Family Entrepreneurs Association and the AfD. Sharp criticism has also been levied by the Green Party and the Christian Democrats (CDU). Verdi and the DGB trade unions have strongly condemned the association's decision to invite AfD representatives to discussions. Verdi CEO Frank Werneke emphasized the historical importance of the business community’s clear distancing from right-wing extremism, referencing parallels with 1933 when industrialists supported the Nazi Party. Anja Piel, a member of the DGB’s executive board, also called on Die Familienunternehmer’s members to issue a decisive statement.

The Federation of German Industries (BDI) repeatedly voiced criticism of the AfD’s views, as well as those of other radical parties. Deutsche Bank also took a clear stance; according to information from Handelsblatt, it responded to an invitation from AfD representatives to attend a meeting of the association Die Familienunternehmer (The Family Entrepreneurs) at its premises by cancelling a contract for a future event. The Bakers’ Guild, or Central Association of the German Bakery Trade, stated it felt misrepresented by a report published in the German tabloid newspaper Bild, and emphasized that the guild rejected any form of extremism, adding that members of parliament would be provided with information or position papers regardless of their party affiliation, but the association would “not proactively approach parties on the political fringe and will not invite members of parliament from these parties to association events.” The German Farmers’ Association stated that it “limit[ed] our dealings […] to the minimum required by protocol,” and its first points of contact are the governing parties at the federal and state levels. Finally, the Federal Association of Wholesale, Foreign Trade and Services (BGA) called on the AfD to draw a line in the sand.

The remarks followed concerns regarding right-wing extremism and anti-European sentiment. “Until that situation is addressed, there is no justification for meaningful dialogue,” stated the speaker. This sentiment extended to the opponents of the market economy within the Left Party and the BSW, whom the speaker characterized as lacking a common basis for exchange. Meanwhile, the AfD party welcomed the business association’s initiative. “It is reasonable for the business community and small and medium-sized enterprises to seek dialogue with representatives of the opposition, particularly given their position as the strongest political force according to current polling data,” said AfD leader Alice Weidel. She further praised Die Familienunternehmer for their “courage,” adding that “other representatives of business, finance, and small and medium-sized enterprises would also be well advised to follow this example.”