We have updated our Privacy Policy and Terms of Use for Eurasia Group and its affiliates, including GZERO Media, to clarify the types of data we collect, how we collect it, how we use data and with whom we share data. By using our website you consent to our Terms and Conditions and Privacy Policy, including the transfer of your personal data to the United States from your country of residence, and our use of cookies described in our Cookie Policy.
{{ subpage.title }}
FILE PHOTO: A placard reads, "deport AFD now", during nationwide protests against racism and plans of Germany's far-right Alternative for Germany (AFD) party to deport foreigners, in Bonn, Germany, January 21, 2024.
Can Germany defund its own far-right?
Germany’s Federal Constitutional Court ruled Tuesday that the small far-right Die Heimat party may not receive funding from the federal government because of its anti-democratic and ethno-nationalist goals. Die Heimat isn’t a big player in German politics, but the Alternative für Deutschland is. And as AfD is drawing the support of about 23% of Germans, according to recent polls, centrist parties are eyeing the same pathway to box them out financially.
The AfD has long taken anti-immigration stances, but some senior members may have put the party at risk by meeting with neo-Nazis last year to discuss plans for an extreme program to deport immigrants by the millions, including naturalized citizens. Hundreds of thousands of Germans took to the streets to protest, but calls to ban the party outright are likely to fail due to the high standards German courts impose on such a drastic move. Instead, the recent finding against Die Heimat is fueling calls for a similar motion against AfD, which stands to lose over $10 million in annual public funding.
It’s not all about morality, though. German Chancellor Olaf Scholz’s government faces a bruising negotiation over the 2025 budget, with a sluggish economy necessitating major cuts. The AfD could use the cuts as a populist cudgel to hammer the incumbent coalition in elections in the states of Saxony, Thuringia, and Brandenburg scheduled for September. Scholz’s government is struggling in the three eastern states — but if AfD finds itself light on funds, he might avoid the worst outcomes.Federal Chancellor Olaf Scholz on stage at the Digital Summit 2023 in November.
Wie sagt man: Not cheap as chips?
It committed $10 billion for Intel, which is building factories in Magdeburg; $5 billion in subsidies for a new fabrication plant built by Taiwanese giant TSMC along with Dutch company NXP, and German firms Bosch and Infineon. German Chancellor Olaf Scholz even noted in July how impressive it was that “so many German and international companies are choosing Germany for the expansion of their semiconductor production.”
But last month, a German court ruled that Scholz’s government violated its constitutional powers when he moved $65 billion in unused funds earmarked for the COVID-19 pandemic to the “climate and transformation” fund. The bad news for chipmakers? That was the money earmarked for their subsidies.
Germany wants to position itself as particularly friendly to industry, not only courting multinational tech corporations willing to build manufacturing plants, but also — in a recent shock move — by throwing a wrench in EU plans to heavily regulate large language models like OpenAI’s GPT-4.
Trouble is, to run the high-powered AI models, developers need high-powered chips – whatever the cost.