Economists Slam AfD Auto Industry Boost Plans in Baden Wurttemberg

Economists Slam AfD Auto Industry Boost Plans in Baden Wurttemberg

Leading economists sharply criticized the AfD’s economic proposals aimed at boosting the automotive sector in Baden-Württemberg and warned of serious consequences for the region’s industrial base.
The plans for the March 8, 2026 state election, according to Marcel Fratzscher, president of the German Institute for Economic Research (DIW), would “cause enormous economic damage for Germany and especially for the people of Baden-Württemberg” he told the “Handelsblatt”. He said the demands reflected “blatant incompetence on economic‑policy matters”.

Clemens Fuest, president of Munich’s Ifo Institute, and Veronika Grimm, a well‑known economic journalist, echoed these criticisms. At the center of their concerns lies the AfD’s announced “Buy‑BW” programme, which would require public bodies to purchase vehicles only from manufacturers based in Baden-Württemberg.
Fratzscher warned that such protectionism would “hurt the open German economy the most”. He argued it violates fundamental principles of the European single market, could trigger a trade conflict across Europe, and would undermine Europe’s position relative to the United States and Donald Trump.

Grimm told “Handelsblatt” that “Buy‑BW clauses are neither goal‑oriented nor feasible”. She stressed that securing traditional industries first and foremost requires technological progress, and that regulatory frameworks-particularly in data protection, artificial intelligence, genetics, and nuclear technology-must adapt to foster this progress.

Fuest pointed out substantial legal obstacles. The “Buy‑BW” idea is “in conflict with a wide array of legal regulations that a single state cannot change”. Baden-Württemberg, as a highly export‑oriented region, has a strong interest in open markets. “If others were to buy only domestically produced goods, Baden-Württemberg would be the biggest loser” he said. He also noted that government procurement of vehicles would have little economic weight.