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POLITICS

Germany’s far-right AfD hopes for first state election wins

Germany is bracing for what could be the first outright election victories for the far-right AfD party on Sunday, when voters in two states in the ex-communist east go to the polls.

Germany's far-right AfD hopes for first state election wins
AfD supporters at a campaign rally in Oranienburg, Brandenburg. Photo: DPA

Even strong vote results, coming 30 years after the fall of the Berlin Wall, would badly rattle Chancellor Angela Merkel's fragile coalition government.

The anti-immigration Alternative for Germany has polled strongly in both Brandenburg and Saxony states, part of its eastern electoral heartland.

In Brandenburg, which surrounds Berlin, the AfD has been polling at around 21 percent, neck and neck with the governing Social Democratic Party (SPD).

Brandenburg's SPD state premier Dietmar Woidke has voiced hope that the vote winner will not be “a party that stands for exclusion, hatred and agitation”.

READ ALSO: Brandenburg elections – in east German rust belt, economic fears boost far right

In Saxony, home to the city of Dresden, the AfD has slipped back somewhat to poll at 25 percent, behind the 29 percent for Merkel's centre-right Christian Democrats (CDU).

A third election will be held on October 27th in the eastern state of Thuringia.

The AfD, formed six years ago as a eurosceptic group, now focuses mainly on fear and anger over Germany's mass migrant influx since 2015.

It already has seats in all 16 German state assemblies and the national and European parliaments.

Eastern Germany is home to several of the AfD's most extremist leaders, among them Björn Höcke, who has labelled Berlin's Holocaust memorial a “monument of shame”, and his close ally Andreas Kalbitz, the top candidate in Brandenburg.

The chancellor, who also grew up in the east, has avoided campaigning ahead of Sunday's polls in the region, where she has in the past faced harsh abuse.

'Hostile takeover'

Aside from railing against Islam and immigrants, the AfD has capitalized on lingering resentment since the 1989 fall of the Berlin Wall, as The Local has reported.

READ ALSO: Could the far-right AfD really win in upcoming German state elections?

“Let's complete the Wende” (turnaround), it has vowed, referring to the 1989 peaceful revolution that ended the Soviet-allied one-party state.

Those turbulent changes brought freedom and national reunification in 1990 but also painful factory closures, mass layoffs and an exodus of young people.

The AfD has long co-opted the former pro-democracy chant “We are the people” and turned it against what it labels the “Merkel regime”.

Thomas Kliche, political psychologist at the University of Magdeburg-Stendal, said that “in economic terms, the East Germans in fact experienced a hostile takeover”.

“Every year thousands of doctors and teachers migrate to the West where they earn more… Many East Germans have completely lost confidence in social justice.”

Sunday's election results could reverberate across German politics.

For Merkel, an election debacle for either her CDU or junior coalition partner the SPD would pose another threat to their uneasy coalition.

The veteran leader has already pledged to step down when her current term ends in 2021, but regional election upsets could speed up her government's demise.

Poor results for the SPD, already demoralized by a string of election defeats, would boost internal critics who want the party to leave Merkel's government quickly.

READ ALSO: Chemnitz: Portrait of a city shaken by anti-foreigner riots

 

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ECONOMY

‘Turning point’: Is Germany’s ailing economy on the road to recovery?

The German government slightly increased its 2024 growth forecast Wednesday, saying there were signs Europe's beleaguered top economy was at a "turning point" after battling through a period of weakness.

'Turning point': Is Germany's ailing economy on the road to recovery?

Output is expected to expand 0.3 percent this year, the economy ministry said, up from a prediction of 0.2 percent in February.

The slightly rosier picture comes after improvements in key indicators — from factory output to business activity — boosted hopes a recovery may be getting under way.

The German economy shrank slightly last year, hit by soaring inflation, a manufacturing slowdown and weakness in trading partners, and has acted as a major drag on the 20-nation eurozone.

But releasing its latest projections, the economy ministry said in a statement there were growing indications of a “turning point”.

“Signs of an economic upturn have increased significantly, especially in recent weeks,” Economy Minister Robert Habeck said at a press conference.

The ministry also cut its forecast for inflation this year to 2.4 percent, from a previous prediction of 2.8 percent, and sees the figure falling below two percent next year.

READ ALSO: Can Germany revive its struggling economy?

“The fall in inflation will lead to consumer demand — people have more money in their wallets again, and will spend this money,” said Habeck.

“So purchasing power is increasing, real wages are rising and this will contribute to a domestic economic recovery.”

Energy prices — which surged after Russia’s 2022 invasion of Ukraine — had also fallen and supply chain woes had eased, he added.

Several months ago there had been expectations of a strong rebound in 2024, with forecasts of growth above one percent, but these were dialled back at the start of the year as the economy continued to languish.

‘Germany has fallen behind’

But improving signs have fuelled hopes the lumbering economy — while not about to break into a sprint — may at least be getting back on its feet.

On Wednesday a closely-watched survey from the Ifo institute showed business sentiment rising for a third consecutive month in April, and more strongly than expected.

A key purchasing managers’ index survey this week showed that business activity in Germany had picked up.

And last week the central bank, the Bundesbank, forecast the economy would expand slightly in the first quarter, dodging a recession, after earlier predicting a contraction.

German Economics Minister Robert Habeck

Economics Minister Robert Habeck (Greens) presents the latest economic forecasts at a press conference in Berlin on Wednesday, April 24th. Photo: picture alliance/dpa | Michael Kappeler

Despite the economy’s improving prospects, growth of 0.3 percent is still slower than other developed economies and below past rates, and officials fret it is unlikely to pick up fast in the years ahead.

Habeck has repeatedly stressed solutions are needed for deep-rooted problems facing Germany, from an ageing population to labour shortages and a transition towards greener industries that is moving too slowly.

“Germany has fallen behind other countries in terms of competitiveness,” he said. “We still have a lot to do — we have to roll up our sleeves.”

READ ALSO: Which German companies are planning to cut jobs?

Already facing turbulence from pandemic-related supply chain woes, the German economy’s problems deepened dramatically when Russia invaded Ukraine and slashed supplies of gas, hitting the country’s crucial manufacturers hard.

While the energy shock has faded, continued weakness in trading partners such as China, widespread strikes in recent months and higher eurozone interest rates have all prolonged the pain.

The European Central Bank has signalled it could start cutting borrowing costs in June, which would boost the eurozone.

But Habeck stressed that care was still needed as, despite the expectations of imminent easing, “tight monetary policy has not yet been lifted.”

In addition, disagreements in Chancellor Olaf Scholz’s three-party ruling coalition are hindering efforts to reignite growth, critics say.

This week the pro-business FDP party, a coalition partner, faced an angry backlash from Scholz’s SPD when it presented a 12-point plan for an “economic turnaround”, including deep cuts to state benefits.

Christian Lindner, the fiscally hawkish FDP finance minister, welcomed signs of “stabilisation” in the economic forecasts but stressed that projected medium-term growth was “too low to sustainably finance our state”.

“There are no arguments for postponing the economic turnaround,” he added.

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