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
Fico accuses Merz of blackmail over threat to veto EU budget
Slovak Prime Minister Robert Fico has hit back after German Chancellor Friedrich Merz threatened to veto the EU budget unless funding for Ukraine is secured.
Merz said he would block the EU’s seven-year budget if no agreement is reached on financial assistance for Ukraine.
The chancellor’s intervention has angered Central European leaders who are net beneficiaries of EU funds but do not want to take part in the next round of funding to support Ukraine’s war effort.
“What the chancellor is doing is typical blackmail, and I will not bow to it,” Fico told reporters in Bratislava.
Fico spoke alongside his Czech counterpart, Andrej Babiš, whose government has refused to participate in a future loan to Ukraine.
“I do not know why he said this,” Babiš said, referring to Merz’s stance.
Merz wants EU leaders to discuss Ukraine’s financing needs at a summit in Dublin on Friday.
In a letter to European Council President António Costa, who will chair the meeting, obtained by The Guardian, Merz wrote:
“We must maintain our support for Ukraine in its struggle to defend itself. This is our shared vital interest. Yet bilateral aid provided to Ukraine is distributed unevenly, with the burden shouldered mostly by only a few member states.”
The EU agreed last year to provide a €90 billion loan to Ukraine, intended to cover two-thirds of its military and civilian spending for 2026 and 2027.
Since then, however, Russia’s relentless bombardment has placed a heavier financial burden on Kyiv, prompting President Volodymyr Zelenskyy to ask for €70 billion to plug the budget deficit.
The EU has endorsed Zelenskyy’s figures and pledged to find €45 billion. Ukraine’s other allies, such as Britain and Canada, are expected to cover the rest.
Last year, Merz launched an initiative to tap €210 billion in frozen Russian state assets held in the EU, but the plan fell through due to opposition led by Belgium, which holds most of the funds in Brussels.
The €90 billion loan was the backup plan. Having opted out of that loan, Hungary, Slovakia, and Czechia indicated that they would not take part in the next round either.
Bulgaria joined these three member states following the election of Prime Minister Rumen Radev last April.
The question of funding for Ukraine is now spilling over into the fraught negotiations on the 2028-34 EU budget.
Germany, the largest net contributor, wants substantial cuts to the proposed budget and opposes the EU providing generous funding to member states that refuse to contribute to Ukraine’s financial needs.
Merz states in his letter that a “collective commitment without exceptions” is a “fundamental prerequisite” for closing Ukraine’s financing gap and for “discussing other matters, particularly those with financial implications.”
He also notes that, in the context of the EU’s next seven-year budget, known as the Multiannual Financial Framework, all member states must contribute to a “robust” financial perspective for Ukraine from 2028 onwards.
A German government official said:
“For the Multiannual Financial Framework (MFF) to be successfully concluded, it is vital that all EU member states provide financial support to Ukraine.”
Berlin is also aiming to shift decision-making on funding for Ukraine from unanimity to qualified majority voting, in an effort to prevent a single government from blocking EU decisions.
The letter reflects mounting frustration among the EU’s northern member states, Ukraine’s most generous backers, over lower contributions from other EU countries in Central and Southern Europe.
The task of brokering an agreement on the budget falls to Costa, the former Portuguese prime minister.
Costa wants a deal by the end of the year, ahead of elections in France, Poland, and Italy in 2027 that could complicate the process.
A spokesperson for Costa confirmed receipt of the letter without elaborating on details. “President Costa will dedicate time to the Ukraine issue at the informal European Council meeting in Dublin this week,” the spokesperson said, adding that funding for Ukraine would be addressed at a dedicated summit on the EU budget scheduled for 26-27 November.
Europe
EU expects next Israeli government to adopt less aggressive posture
The EU expects the next Israeli government to mend its “difficult relationship” with Brussels and adopt a more constructive approach toward Gaza and illegal settlements.
Israeli President Isaac Herzog tasked Gadi Eisenkot, the leader of the anti-Netanyahu bloc, on Sunday with forming a government.
Eisenkot stated that the country faces a “catastrophic diplomatic crisis” as traditional allies begin to reassess their relations with Israel.
Speaking to Rapporteur, several European diplomats stationed in Tel Aviv said they expect ties to get back on track.
“Whatever government comes in, we can try to revitalize relations because Israel is clearly a very important partner,” one European diplomat said, adding that Brussels expects the next administration to be “less aggressive”.
The diplomat noted that relations with Europe are currently “not very good”.
Israel cut off communication with Kaja Kallas, the EU high representative for foreign affairs and security policy, after Rapporteur revealed in June that she had compared Israel to apartheid-era South Africa during a visit to Mexico.
The diplomat stated that this decision, taken ahead of elections, was political in nature. A second European diplomat based in Brussels explained that the announcement came only a few days before an official visit by Dubravka Šuica, the European commissioner for the Mediterranean.
“This could have been interpreted as a tactic to divide Europe, but Israel had asked Kallas to deny the report; she did not do so,” the second diplomat said.
Brussels has repeatedly voiced its frustration with Israel over the humanitarian crisis in Gaza and the expansion of West Bank settlements.
However, EU governments blocked almost all sanctions proposed by the European Commission.
A third diplomat said opposition parties would “almost certainly take the issue more seriously” when it comes to tackling violence by West Bank settlers:
“We see Palestinians being expelled from their homes and new illegal settlements being built in the West Bank. There is a reluctance on the part of the current government to address this issue, which causes problems in our relations.”
The new government is expected to ease pressure on Palestinians and halt construction of the E1 settlement project, a controversial plan to build settler housing in the West Bank east of Jerusalem.
“They will probably try to deal with the problem of extremist settlers in the West Bank,” the diplomat added.
On Gaza, the diplomat described the situation as “a complete nightmare”, with two million Palestinians crowded into an area that accounts for roughly 35% of the territory.
“There are not enough tents for the winter, and not enough vaccines are reaching the area despite an increase in diseases,” the diplomat said.
The European official argued that Donald Trump’s peace plan met all the conditions for Europe. Although the EU had much to offer, neither the US nor Israel appeared interested in EU involvement in the process.
“We are currently training Palestinian police in the West Bank, and if permitted, we could do the same in Gaza,” the diplomat said.
The diplomat disclosed that Israel had agreed with Šuica that Europe would finance two projects aimed at improving sewage and water infrastructure in Gaza, continuing:
“However, none of these projects has started yet because there is a serious problem with dual-use goods. Getting materials into Gaza is very difficult because the Israelis say they could be misused if they fall into the wrong hands of Hamas.”
Israel insists that Hamas must be disarmed before subsequent phases of Trump’s plan can proceed.
With disarmament unlikely to happen in the near term, the EU argues that certain measures can be carried out in parallel.
“We can begin rebuilding sanitation systems in Gaza. We can start building desalination plants. We can begin providing energy and water to Gaza,” one diplomat said.
While Brussels hopes for progress on Gaza and the West Bank, it maintains that expectations regarding the establishment of a Palestinian state need to be “managed”.
The EU continues to advocate a two-state solution, yet most leading Jewish parties oppose the creation of a Palestinian state.
The diplomat noted that the next Israeli government will likely have “a very slim majority and not much room for manoeuvre”.
There is also a “major misunderstanding” between the EU and Israel that must be addressed. According to the diplomat, Europeans fail to recognize the “psychological impact” of 7 October on Israelis.
“This event changed the country and made the two-state solution even more distant than before,” the diplomat said.
In return, some Israeli politicians believe Europe has betrayed Israel despite what they view as a fight against “Islamist terrorism”.
“Their argument is that European politicians are somewhat afraid of the Muslim population in Europe,” the European diplomat said.
Europe strongly opposes Iran and the possibility of Tehran acquiring nuclear weapons, imposing sanctions in response.
However, the diplomat argued that the EU would not participate in a war because it lacks a common army:
“We are a diplomatic and economic power, which is why we resort to sanctions and diplomacy. The expectation that we would take part in a military operation is unrealistic.”
Europe
Germany threatens EU budget veto over long-term Ukraine aid
Germany has threatened to veto the European Union’s joint budget for the 2028-2034 period, which is currently under negotiation, unless every member state commits to providing financial support to Ukraine in 2027 and subsequent years, German Chancellor Friedrich Merz warned.
According to a report by the Financial Times (FT), Chancellor Merz set out Berlin’s condition for the budget talks in a letter addressed to European Council President António Costa.
In his letter, Merz wrote: “A collective commitment that every single one of us, without exception, will make a fair contribution to closing Ukraine’s budget deficit is an indispensable prerequisite for resolving this budget issue and, in particular, for addressing subsequent matters that carry financial implications.”
The German Chancellor stressed that a formula backed by all member states must be established to provide Ukraine with a reliable, multi-year financial perspective starting from 2028.
Merz also insisted that any agreed solution must cover the interest payments on debts incurred to finance the assistance provided to Kyiv.
Conversely, several countries within the bloc have cut financial aid to Ukraine, and the number of capitals adopting this stance is projected to rise next year.
In December 2025, Hungary, Slovakia, and the Czech Republic approved the EU’s 90 billion euro loan package for Kyiv only on the condition that they would not contribute to its costs themselves.
Alongside these three countries, Bulgaria has also stated that it does not plan to participate in subsequent financial assistance packages for Ukraine.
In France, far-right leader Marine Le Pen, who could potentially win the presidential election scheduled for spring 2027, recently told the FT that Paris has run out of funds.
Le Pen assessed: “The honest approach is to tell Mr Zelensky clearly, and even warn him: ‘Look, we cannot do more. We have already allocated the 90 billion euro EU loan, in which France’s share amounts to 18 billion euros. 18 billion euros is genuinely a huge amount of money.'”
The EU’s 90 billion euro loan, covering the 2026-2027 period, aims to meet two-thirds of Ukraine’s financing requirements.
Brussels expects the remaining 45 billion euros to be covered by other partners, including Canada, the UK, Norway, Japan, South Korea, and Australia.
Germany remains the largest net contributor to the EU budget.
In contrast, the four Eastern European countries seeking to avoid financing Ukraine rank among the largest net beneficiaries of the bloc’s budget.
Leveraging this balance, Chancellor Merz aims to use his influence in the EU budget negotiations to secure uninterrupted support for Kyiv in 2027 and the years beyond.
According to the FT, Berlin is also demanding that future aid packages be decided by qualified majority voting rather than unanimity, which is required under the current system.
A German government spokesperson told the newspaper:
“The issue of Ukraine’s financial needs must be resolved within the framework of the next EU budget. Financial support for Ukraine from all EU members is decisive for the successful conclusion of the budget talks.”
-
Diplomacy1 week agoSecular dress code dispute exposes deeper Türkiye-Azerbaijan strains
-
Russia2 weeks agoUS and Russia weigh energy deals and corporate return in peace talks
-
Middle East2 weeks agoUS warns Gulf allies of possible Iran strikes after midterms
-
Opinion2 weeks agoGaza exposes the myth of the “most moral army in the world”
-
Europe5 days agoEU urges citizens to prepare 72-hour survival kits for crises
-
America2 weeks agoBolsonaro reportedly leaves Brazil on jet linked to scandal-hit firm
-
Asia1 week agoChina expands Africa arms sales, displacing France and Western rivals
-
Diplomacy2 weeks agoSteinmeier seeks to de-escalate German-Chinese tensions on visit
