Financial expert warns: Right-wing extremism and AfD threaten Germany as a business location

Financial expert warns: Right-wing extremism and AfD threaten Germany as a business location

According to a report by www.sueddeutsche.de, more and more entrepreneurs, managers and lobbyists are publicly positioning themselves against right-wing extremism, especially against the AfD. This is also reflected in the statements of prominent representatives of the electrical and digital industry, such as Gunther Kegel, boss of Pepperl+Fuchs and president of the ZVEI association.

Kegel expressed concern about the influence of right-wing extremist parties on Germany as a business location. Despite a lack of statistical evidence, there are signs of problems in recruiting new employees for East German locations and greater reluctance among foreign investors. The economic effects of the shift to the right in Germany and Europe are also worrying international business partners who have perceived Germany as traditionally more resilient to right-wing tendencies.

With regard to the economic prospects of the electrical and digital industry, the ZVEI predicts a real decline in production of two percent for the current year. This is in the context of a decline in orders since March and current capacity utilization of just over 80 percent. This is already resulting in isolated overcapacities and a growing number of companies that want to introduce or apply for short-time work.

Despite these challenges, the industry benefits in the long term from megatrends such as electrification, automation and digitalization. However, geopolitical tensions, particularly the relationship with China, are Kegel's greatest concern. Stopping supply relationships with China would have a negative impact on employment in Germany and prosperity.

Overall, the influence of right-wing extremist parties on the economy, the current decline in production and the geopolitical risks could have long-term effects on the electrical and digital industries. It is important that companies and political decision-makers take measures to overcome these challenges and maintain the stability of Germany as a business location.