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What is the AfD to do about the EU and NATO?

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Last month, the draft manifesto of the Alternative for Germany (AfD) for the 2014 European Parliament (EP) elections was leaked to the press, unveiling one of its most prominent stances – advocating a ‘controlled disintegration of the EU’. Despite labeling the EU as ‘deeply undemocratic’ and raising doubts about the legitimacy of the EP, the AfD is actively preparing for the 2024 elections with a robust ‘eurosceptic’ list.

During the first part of the AfD congress last weekend, however, party leaders Tino Chrupalla and Alice Weidel referred to the term ‘controlled disintegration’ in the manifesto as an ‘editorial oversight’ and stated that it would be removed in the second part of the congress this weekend.

These statements created a commotion within the party. Björn Höcke, the party’s Thuringia chief and alleged member of the ‘radical’ faction, insists on retaining the statement and has even threatened a ‘revolt’ if he is not given the opportunity to speak. On the other hand, Christine Anderson, ranked fourth on the EP list and allegedly part of the ‘moderate’ wing of the party, continues to advocate for Germany’s immediate departure from the EU.

A federation of nation-states instead of the EU

“We demand a restructuring of Europe in order to use the potential of nation-states and rebuild the bridge to the east,” Chrupalla said last month.

Arguing that the European Union ‘usurps national competences without replacing the nation-state’ and that the European Commission is ‘not democratic enough’ because it ‘lacks legitimacy’, Chrupalla also cited EU sanctions against Russia as a prime example of the EU’s ‘illegitimacy’, saying they ‘do not benefit citizens’ and lead to rising inflation and stagnation.

Instead of the EU, the AfD proposes ‘a new European economic and interest-based community, a league of European nations’, the co-chairman said.

AfD’s quest for ‘Staatsvolk’

In its manifesto, the AfD explicitly rejects the idea of a ‘federal Europe’. “Such an entity has neither a Staatsvolk, which are necessary prerequisites for successful states, nor the necessary minimum cultural identity,” the AfD’s draft reads.

The emphasis on Staatsvolk is ours. In literal translation, the concept of ‘people of the state’ encompasses both all national origins of a sovereign state and another, more ‘ethnonationalist’ meaning, which emphasizes the dominant national element in a sovereign state to the exclusion of other minorities. The first meaning refers to all citizens living on the territory of a country, regardless of their ethnic origin; the second refers to an exclusionary ethnonationalism.

It is important to remember that the meaning of many words in Germany was transformed with the National Socialist government. ‘Volk’ is one of them. This word, which we can easily translate into Turkish as ‘people’, for example came to refer to the German nation bound by blood and soil in the Nazi dictionary.

There are clearly people within the AfD who can defend both meanings of Staatsvolk. The AfD’s arguments in the manifesto strongly revolve around the concepts of ‘nation’, ‘sovereignty’ and ‘identity’. The terms ‘nation’ and ‘national’ alone appear 145 times in the election program.

Is the AfD changing instead of the EU?

The AfD argues that decisions should not be made in Brussels but at the center of the nation-state. The program’s introduction talks about ‘globalist elites’ taking over the EU.

The debate around the controlled disintegration of the EU could become even more heated now that the AfD has accepted the application to join the right-wing group Identity and Democracy (ID) in the EP. The current main ID parties, the French National Union (Marine Le Pen) and the Italian Lega (Matteo Salvini), seem to have softened their positions on a federal Europe.

Marine Le Pen, for example, has abandoned her previous advocacy of dissolving the EU and is instead pushing for a ‘fundamental reform’ of the bloc. Similarly, the Lega is now gradually abandoning its ‘eurosceptic’ ideas and is trying to build a broad alliance with center-right forces for the upcoming elections.

In an interview with Deutschlandfunk at the end of last month, Harald Weye, the AfD parliamentary group’s spokesman for European policy, argued that the phrase ‘controlled disintegration of the EU’ was literally ‘one person’s grammatical carelessness’. In the elections of 2017, 2019 and 2021, the AfD openly advocated a ‘Dexit’ – Germany’s exit from the EU – as a ‘must’. The program for the 2021 Bundestag elections stated: “The transformation of the European Union into a planned economic superstate in recent years has led us to the realization that our fundamental reform approaches cannot be implemented in the EU. We consider it necessary for Germany to leave the European Union and establish a new European economic and interest community,” it said.

AfD’s plan for a ‘more German Europe’

An analysis of the Magdeburg party conference in the Frankfurter Allgemeine Zeitung (faz) claims that the co-chairs have different views on the issue. According to faz, Alice Weidel sees withdrawal as absurd, but Tino Chrupalla is as sympathetic to a controlled break-up of the EU as he is to withdrawal from NATO.

According to a report in WELT, sources close to AfD leader Weidel say that the AfD is advocating a softer wording in order not to scare its partners in the ID, including its allies in the EP, the National Union and the Lega. Weidel recently told Stern, “I prefer to talk about breaking up the EU into parts, which makes sense in some parts, such as common security and defense policy. But that’s where it has failed so far,” he said.

A similar attitude can be seen in the attitude towards the eurozone. “Germany doesn’t need the euro,” the party’s 2013 Bundestag election campaign said. The following year, this position was softened and a ‘more flexible monetary order’ was proposed for the EU and ‘the stability-oriented euro countries should create a smaller monetary system among themselves on the basis of the Maastricht Treaty’.

Ten years later, the draft European Election Program for 2024 does not even mention leaving the Eurozone. It is now only about changing the Eurosystem. In fact, the AfD’s proposal to keep Germany in the eurozone and introduce a more ‘stability-oriented’ monetary system is criticized as making the EU ‘even more German than before’. The European economic area, which is very favorable for German capital, should remain with a common currency, but the costs of maintaining it should be reduced. Above all, there should be no ‘transfer payments’ to other countries at Germany’s expense.

It is important to note that the AfD is not alone. During the Greek crisis, the Free Democrats (FDP), and Frank Schäffler in particular, opposed the bailout package for Greece and financial aid for the Eurozone in general. There is no doubt that these ideas are also quite widespread within the CDU/CSU.

Germany’s withdrawal from NATO is being discussed

In addition to the EU, another topic of discussion is the US and NATO.

In the party’s European election manifesto, seven AfD state leaders, including Björn Höcke, call for ‘European states to finally take responsibility for their own security in their own hands’ and describe NATO as ‘the so-called protective umbrella of a distant hegemon’.

The Seven’s motion argues that the ‘Zeitenwende’ (turning point) that Chancellor Olaf Scholz proposed last year for the reform of the German army should mean that European states should ‘take responsibility for their own security into their own hands’ instead of seeking refuge under the ‘so-called protective umbrella of a distant and self-serving hegemon’.

The motion goes on to say that European countries have been ‘set back’ by the policies of the European Union and that “the policy of military alliance has exacerbated these developments. The EU’s Common Security and Defense Policy (CSDP) has failed to establish an independent European collective security system in the face of the US-led NATO,” the motion says.

The motion seeks to amend the preamble of the Federal Program Commission’s draft motion. The proposal states that the eastward expansion of the EU and NATO has given the US ‘even deeper influence over the European order’. The seven believe that European countries are being drawn into conflicts that are not their own and are diametrically opposed to their ‘natural interests’, such as ‘fruitful trade relations in the Eurasian region’.

But Martin Vincentz, the leader of the state of North Rhine-Westphalia, does not want the motion to be perceived as a position against NATO. “As one of the signatories, I don’t see the motion as an exit from NATO, but as a strengthening of European defense policy in the interest of NATO,” Vincentz told WELT AM SONNTAG.

It is hard to say that there is a clear consensus within the party on relations with the US and NATO. For example, a joint motion by Kurt Kleinschmidt, president of Schleswig-Holstein, and state parliamentarians from North Rhine-Westphalia and Berlin states that ‘excellent political relations require that American foreign and security policy strategies do not contradict German and European strategies’.

The group also wants to include in the European election manifesto a sentence from the basic program adopted in 2016: “NATO membership is in Germany’s foreign and security policy interests insofar as NATO limits itself to its task as a defense alliance.”

Another motion for an amendment on NATO was submitted by some state parliamentarians from Hamburg and North Rhine-Westphalia. “In view of the emerging and possibly unstoppable bloc formation between the two rivals, the United States and China, we believe that it is best for Germany to remain in the current alliance and use all possibilities to prioritize its own national interests,” the motion reads.

This includes expanding NATO’s European footprint and thus Germany’s own economic, cultural and military capabilities “in order to have a stronger influence in the world and to avoid having to obey Washington’s every whim,” according to the motion. According to the AfD, “then there would also be no need for a permanent deployment of US troops in Europe.”

The AfD’s 2017 party program ‘Manifesto for Germany’ also states that “NATO membership is in Germany’s interests in terms of foreign and security policy as long as NATO’s role remains as a defense alliance. We are in favor of a significant strengthening of the European pillar of the North Atlantic Alliance.” However, the AfD favors the withdrawal of allied troops and nuclear weapons deployed on German soil.

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German defense minister clears way for Scholz to lead SPD into elections

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Defense Minister Boris Pistorius has officially withdrawn as the Social Democratic Party’s (SPD) top candidate for the upcoming election, ending weeks of speculation about his potential to replace Chancellor Olaf Scholz.

In a video message released by the SPD on Thursday evening, Pistorius stated that the ongoing public debate had harmed the party’s unity. He informed the party leadership that he was unsuitable for the chancellorship.

“Olaf Scholz is a strong chancellor and the right candidate for the chancellorship,” Pistorius said, emphasizing that the party leader embodies “reason and common sense.” He further urged, “We now have a joint responsibility to bring this debate to an end because there is a lot at stake.”

When Scholz triggered early elections two weeks ago, many assumed he would automatically serve as the SPD’s candidate, given his role as the incumbent chancellor. However, polls revealed that Pistorius, who has been defense minister since early 2023, had become Germany’s most popular politician, sparking a de facto leadership race.

Scholz faces declining approval ratings

In contrast to Pistorius’ popularity, Scholz suffered from one of the lowest approval ratings among German politicians. Voters blamed him for months of political infighting that crippled the three-way “traffic light” coalition, which ultimately collapsed earlier this month.

Despite this, the SPD central leadership continued to back Scholz. Meanwhile, Pistorius faced increasing criticism for failing to address the leadership speculation. In his video message, Pistorius denied initiating the controversy but acknowledged that it had caused “growing uncertainty” within the party and “resentment” among voters.

He emphasized that the decision to step aside was his own and pledged his full support to Scholz, whom he described as an “extraordinary” chancellor. Pistorius also affirmed his commitment to campaigning for the SPD’s re-election.

Supporters react with disappointment

Pistorius’ withdrawal left many of his supporters disheartened. “I regret this development. The aim now must be to work together and achieve the best possible election result for the SPD,” said Joe Weingarten, an SPD member of parliament, in an interview with Der Spiegel.

Another MP, Johannes Arlt, remarked, “I would have preferred a different decision, but now we have one. It is good for the party and the country. We will now go into the federal election campaign united.”

A two-way race for the chancellorship

With Pistorius stepping down, the race for the chancellorship is now expected to be between Olaf Scholz and Friedrich Merz, leader of the opposition Christian Democrats (CDU). Merz, a millionaire and former BlackRock Germany executive, has been polling ahead of Scholz since taking over the CDU leadership in 2022. Scholz’s supporters, however, remain optimistic that he can close the gap and outperform Merz in the upcoming election.

Pistorius: A proponent of German remilitarization

Known for his pragmatic approach to military affairs, Pistorius, 64, earned respect for his tough stance on Russia and advocacy for Germany’s rearmament. Following his appointment as defense minister in 2023, he made clear his opposition to the SPD’s historical reluctance to increase military spending.

Describing Vladimir Putin as “the despot in the Kremlin,” Pistorius warned that Germany must boost defense investments and ensure it is “combat ready.” His hardline approach on security and defense issues distinguished him within the SPD and cemented his popularity among voters.

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Poland urges EU to increase spending on eastern defence

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Poland, NATO’s largest defence spender, has urged its EU partners to bolster border defences with Russia and Belarus. The move aims to demonstrate a firm commitment to European security, particularly in light of Donald Trump’s influence on global defence policies.

Magdalena Sobkowiak-Czarnecka, the deputy minister responsible for preparations for Poland’s EU presidency, set to begin in January, told The Financial Times (FT) that the EU should invest in strengthening border fortifications and air surveillance systems under the Eastern Shield initiative.

“I think solidarity on the Eastern Shield could help show Trump that, as the EU, we understand what needs to be done for defence. If Trump says he will only work with countries that invest in defence, that’s fine for Poland, because we already spend 4% of GDP on defence. But what about the others? Funding the Eastern Shield would demonstrate the shared commitment of European countries,” Sobkowiak-Czarnecka explained.

The Eastern Shield, announced in May, comprises advanced fortifications and air surveillance systems along Poland’s borders with Belarus and the Russian exclave of Kaliningrad. This initiative is central to Polish Prime Minister Donald Tusk’s strategy to counter what he describes as “Russian aggression”, including the “hybrid war” linked to facilitating illegal migration from Belarus into Poland.

The Tusk government has allocated PLN 10 billion (€2.3 billion) for the Eastern Shield as part of broader defence expenditures. These investments will increase Poland’s defence spending from 4.1% of GDP in 2023 to 4.7% by 2025, the highest in NATO and more than double the alliance’s 2% GDP target. In contrast, some EU nations, such as Italy and Spain, have yet to meet this benchmark.

“All our partners must understand that the Eastern Shield is not solely about Poland but also about safeguarding the EU’s borders,” said Sobkowiak-Czarnecka.

Trump’s potential return to the presidency has heightened concerns across EU capitals, given his promises to impose tariffs on the bloc and signals of a potential resolution to the Ukraine conflict that could favor Russia.

Sobkowiak-Czarnecka underscored Poland’s commitment to enhancing EU security on multiple fronts, from increasing military equipment production to countering disinformation and securing energy supplies.

“This Polish presidency comes at a critical juncture. As an expert on Ukraine and one of the strongest U.S. allies in Europe, Poland will be a guiding light in these challenging times,” she concluded.

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European energy market in turmoil: Gas prices reach one-year high

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The European energy market faces significant challenges as natural gas prices soar to their highest levels in a year. A combination of escalating tensions between Russia and Ukraine, Gazprom’s suspension of natural gas supplies to Austria, and colder-than-expected weather has placed substantial pressure on the market.

Industry representatives acknowledge that while sufficient gas supplies exist, the supply-demand balance remains fragile. Negative developments or geopolitical news could quickly trigger additional price surges.

On Thursday, Dutch TTF futures—a key European natural gas benchmark—rose to €48.8 per megawatt-hour (MWh) (equivalent to $538 per 1,000 cubic meters), a level last observed in November 2023. Since the end of the heating season on 31 March, prices have climbed by more than 150%.

The price surge accelerated on Wednesday after Ukraine targeted Russian territory using British-made Storm Shadow missiles. By the close of the trading day, prices had increased by 2.5%, reaching €46.8/MWh.

On the same day, the United States issued a warning based on intelligence reports, predicting a major air strike in the region. Following this warning, many Western countries evacuated their embassies in Kyiv.

Adding to the tensions, the Ukrainian Air Force reported that Russia test-fired an intercontinental ballistic missile (ICBM) capable of carrying nuclear payloads. This event aligns with speculation about changes in Russia’s nuclear doctrine and the US’s authorization for Ukraine to target Russian territory with long-range missiles.

While liquefied natural gas (LNG) demand in Asia remains low, traders are turning their focus to Europe to capitalize on surging prices, according to Bloomberg.

Despite the increased volatility, Gas Infrastructure Europe reports that gas storage facilities across Europe are 90% full. However, the heating season, combined with freezing temperatures in Northern Europe, has amplified concerns about market stability.

Torgrim Reitan, Equinor’s Chief Financial Officer, emphasized that the market’s fragile balance increases the influence of external factors on pricing dynamics.

The state of pipeline gas supplies from Russia is another major concern. On 16 November, Gazprom halted deliveries to Austria’s OMV, citing unresolved payment issues. The company is attempting to recover part of a €230 million arbitration judgment through this suspension.

Despite this, Gazprom continues to supply 42.4 million cubic meters of gas daily to Europe via Ukraine. However, OMV cannot access these supplies and must turn to other sources, such as Slovakia, to meet Austria’s energy needs. According to OMV officials, Austria’s energy requirements are fully covered by alternative suppliers.

Jon Treacy, editor of the investment newsletter Fuller Treacy Money, noted that although Austria maintains official neutrality, most of OMV’s customers are NATO members. Treacy added that Russia’s “long, cold winter” strategy aims to exert pressure on regions beyond Ukraine over the long term.

Market analysts warn that transit through Ukraine—a minor contributor to the European Union’s total gas imports—could be entirely cut off by January 2024. Such a development would further strain an already delicate market, potentially driving prices even higher.

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