Europe
German businesses begin dismantling the political firewall against the AfD
Many sectors within the German economy are increasingly open to cooperation with the AfD.
According to a report in the online magazine The Pioneer, cited by German Foreign Policy, the association “Die Familienunternehmer” (“The Family Entrepreneurs”), which is predominantly composed of small and medium-sized enterprises (SMEs), is now inviting Alternative for Germany (AfD) deputies to its “parliamentary evenings.” The association states, “We are bidding farewell to firewalls.”
In the SME sector, for example in Saxony, “one in every two entrepreneurs” now sympathizes with the AfD, particularly because the party presents a business-friendly stance, much like the Free Democrats (FDP) once did.
Even large corporations say they have “no fundamental reservations about the AfD.” If the party enters government, cooperation could happen “very quickly.”
The collapse of the “firewall” in the European Parliament (EP) last week is a positive development “for the European economy,” as stated by Manfred Weber, leader of the majority “center-right” European People’s Party (EPP).
The AfD is in the process of mitigating a central obstacle to coalition-building—its proximity to Russia—and is instead shifting towards cooperation with a potential Trump administration.
Anti-AfD reactions from the business world before the elections
Shortly before the federal elections on February 23, 2025, two influential think tanks of the German economy had taken a clear stance against the AfD.
Marcel Fratzscher, president of the German Institute for Economic Research (DIW), rejected the AfD’s proposal for “€181 billion in tax cuts per year,” which he said could only be financed by “a massive national debt.”
The Cologne Institute for Economic Research (IW) also wrote that the AfD was still considering leaving the euro and even the EU (“Dexit”). However, the cost of a Dexit would reach 5.6% of real gross domestic product after just five years, totaling approximately €690 billion, and “the economic consequences of leaving the single currency would be added to this.”
Another problem was the “effect of the AfD on potential immigrants,” who were necessary to offset the “demographic crisis.”
According to the IW, entrepreneurs gave the AfD a direct ‘F’ grade on energy policy: they did not find the combination of dismantling wind turbines, reintroducing nuclear energy, and tax cuts for the repair of Nord Stream 2 convincing.
AfD replaces the FDP before the CDU
Meanwhile, the mood is beginning to change within the association structures of the German economy, which are dominated by SMEs, if not in the think tanks.
This is the case, for example, with Die Familienunternehmer, an association composed mainly of medium-sized companies but also including large corporations from Oetker to Merck and BMW.
Albrecht von der Hagen, the association’s managing director, recently organized a parliamentary evening in Berlin for AfD members of the Bundestag, stating, “This firewall against the AfD… has achieved nothing. … We are bidding farewell to firewalls.”
Mathias Hammer, an entrepreneur from Saxony, is considering voting for the AfD in the next election and says that “one in every two entrepreneurs” in his state sympathizes with the AfD.
The reason for this is that the party shares many views with the FDP, which has worn itself out in the “traffic light” coalition (SPD-Greens-FDP).
The association quotes AfD leader Alice Weidel as saying: “We are also increasingly noticing that business representatives who previously pinned their hopes on the FDP for a sensible economic policy are now turning to us.”
Nearly one-third of voters who left the FDP voted for the AfD on February 23.
Increased dialogue with the AfD
Sympathy for the AfD in the business world is still limited. On one hand, this is related to its policy platform.
According to von der Hagen, the AfD’s demand for a 70% pension level is “unaffordable.” The party’s goal of forcing women “back to the kitchen” also means the “end” for businesses, most of which depend on female employees. For this reason, they are engaging in an “expert exchange” with AfD politicians.
Leading representatives of large corporations are also showing restraint. According to a recent report, they have “no fundamental reservations about the AfD”; after all, it is pointed out that in other countries, the business world cooperates with figures like the “post-fascist Giorgia Meloni.”
However, they currently fear that their image would be severely damaged if their contacts with the AfD were made public. “At the moment, no one wants to take the first step towards the AfD because the reputational risk is too high,” said a senior lobbyist, who naturally assumes that “if the AfD comes to power, everything will happen very quickly.”
An example of this is Meta CEO Mark Zuckerberg, who suspended Donald Trump’s account on Facebook in 2021 but publicly endorsed him after the elections at the end of 2024.
“Firewall” collapses in the EP
Last week, the “center-right” European People’s Party (EPP) group in the European Parliament (EP) contributed to strengthening the business world’s willingness to break down the firewall.
On Thursday, it voted with the European Conservatives and Reformists (ECR), the Patriots for Europe (PfE), and the Europe of Sovereign Nations (ESN) in favor of a significant loosening of the Supply Chain Directive, which had previously been rejected by members of the traditional coalition of liberals and social democrats.
Within the ESN faction, AfD deputies also voted in favor. For the first time, the EP’s far-right majority passed a fundamental and far-reaching decision, rather than one of limited importance.
Manfred Weber, the EPP group chairman and CSU member who is seen as the architect of this move, said of the vote that the EP had simply “taken a step for the European economy.”
The Russia obstacle in the AfD can also be overcome
As growing support from the business world increases the likelihood of the firewall against the AfD collapsing in the not-too-distant future, some factions within the party are now pushing to eliminate another obstacle to its integration into a ruling coalition: its close ties to Russia.
Currently, a trip by three AfD politicians to Sochi to attend a meeting called “BRICS Europe” is drawing heavy criticism; contrary to its name, this event is not a regular activity of the BRICS alliance.
While a fierce media campaign has been launched against the delegation that went to Sochi, AfD leader Weidel and several other AfD politicians are trying to use this to push back the pro-Russia wing within the party.
“I personally would not have gone there. I wouldn’t recommend it to anyone either, because I don’t know what the final outcome will be,” Weidel said.
Retired Colonel Rüdiger Lucassen, the AfD parliamentary group’s defense policy spokesman, argued that Russia “shows no willingness to move towards peace,” so there was little point in going to Sochi.
“MAGA-like” policy is in vogue in West Germany
The conflict between the two wings of the AfD is intensifying. While ties with Russia are considered strong, especially in the AfD regional associations in East Germany, they are weaker in the associations in West Germany.
Another important point is that federal elections are not won in the relatively sparsely populated eastern states, but in the much more populous western states like Bavaria and North Rhine-Westphalia.
In these states, cooperation with the MAGA movement in the US, which is currently being promoted by the prospect of a Trump administration, is quite popular.
Therefore, the wing around Weidel aims to reduce relations with Russia to “communication channels” and focus instead on cooperation with the MAGA right in the US.
The plan to be “compatible with the Union parties and their supporters” is also said to play a role in this.
Europe
EIB to unveil 15 billion euro tech initiative to scale European startups
The European Investment Bank (EIB) will announce a €15 billion initiative today, in collaboration with EU capitals and private investors, aimed at supporting the growth of European technology companies.
For decades, startups on the continent have struggled to raise the large-scale funding rounds necessary to scale on this side of the Atlantic, frequently turning to US investors or relocating abroad as they expand.
“We are catching up. Now we need to accelerate,” EIB President Nadia Calviño said.
Under the existing European Tech Champions Initiative, the EIB had already pooled resources with six EU governments to establish funds that invest in high-growth companies across the EU.
Calviño described the initiative as “very successful,” noting that it has supported 12 European “unicorn” companies valued at over $1 billion, including the German artificial intelligence translation firm DeepL.
The bank is now expanding the program with a new phase nearly four times the size of the original.
Twenty-five EU governments, alongside private investors such as Santander and Danske Bank, are expected to participate in the program.
This initial €15 billion aims to mobilize up to €80 billion in total investment. Calviño stated that this estimate is based on the multiplier effects achieved under previous programs.
As part of these efforts, the EIB also aims to attract European pension funds, which manage immense pools of capital but have historically allocated fewer resources to technology investments compared to their US counterparts.
In addition to the new funding, Calviño noted that the EIB will create a platform providing a single point of access for existing European scale-up initiatives, including the European Commission’s Scaleup Europe Fund, France’s Tibi initiative, and Germany’s Win initiative.
Europe
Germany to purchase US Tomahawk missiles to build own long-range strike capability
Germany will purchase Tomahawk cruise missiles from the United States and deploy them on German territory, Chancellor Friedrich Merz announced on Thursday.
The move marks a shift away from planned US deployments and toward Germany establishing its own long-range strike capability.
Merz told lawmakers that he finalized the agreement with the US government during the NATO summit in Ankara, adding that the talks held on Tuesday and Wednesday had exceeded his expectations.
“While we close a critical strategic gap in our defense, we are also working to develop our own European systems and deploy them in Europe,” the Chancellor said.
According to German government sources, Washington committed in a letter of intent signed on Tuesday to approve Germany’s acquisition of Tomahawk missiles and their land-based Typhon launchers in August.
The number of missiles and launchers Germany plans to purchase was not disclosed because the information is classified.
The planned acquisition appears aligned with US President Donald Trump’s pressure on European allies to cover their own security costs, such as by purchasing US weapons.
The fate of the Tomahawk procurement had become uncertain after Trump announced in May that he would reduce the US military presence in Germany.
That development was seen as a cancellation of a plan made under the previous administration to deploy a US battalion equipped with long-range Tomahawk missiles to Germany.
That original plan was designed as a temporary solution to serve as a strong deterrent against Russia while Europeans developed their own versions of such weapons.
Germany produces its own cruise missile, the Taurus, but its range of approximately 311 miles is three to five times shorter than that of the Tomahawk missiles.
Europe
Apple loses EU court appeal over Digital Markets Act gatekeeper designation
The General Court of the European Union has rejected Apple’s challenges against its “gatekeeper” status designated under the Digital Markets Act (DMA).
With this ruling, the company’s designated status for the App Store and iOS remains valid, while its applications regarding iMessage were also rejected.
Apple had argued that the five separate App Stores it operates for the iPhone, iPad, Apple Watch, Mac, and Apple TV should be evaluated as distinct, individual services.
The court rejected this argument, ruling that these stores serve a common purpose of connecting developers and users, regardless of the specific device.
The court also dismissed Apple’s defense that the DMA’s interoperability obligations violate its fundamental rights.
However, it did not conduct a substantive assessment on the legality of this obligation, stating that a direct legal link could not be established between the regulation in question and the determination of “gatekeeper” status.
Following the ruling, Apple argued that the obligations under the DMA “exceed the boundaries of legality and proportionality.” The company asserted that the new rules jeopardize the work it has carried out for years to ensure user privacy and security.
Apple retains the right to appeal the decision, though a company spokesperson did not comment on whether there are plans to do so.
Apple previously declared that DMA rules prevented the launch of the updated version of Siri in Europe, resulting in European users being unable to benefit from the service.
In force in the European Union since 2024, the DMA covers a total of 22 services and products belonging to Alphabet, Amazon, Apple, ByteDance, Meta Platforms, and Microsoft.
The regulation obliges these companies to share certain data with competitors, provide access to user-generated data, and offer verification tools to advertising partners.
Additionally, it prohibits platforms from engaging in anti-competitive practices that favor their own products. Companies failing to comply with the rules face fines of up to 10% of their global turnover, which can rise to 20% in cases of repeated violations.
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