Germany's reform paralysis risks fueling far-right surge before elections
Pressure is mounting on the German government to push through major reforms before the September elections. Experts warn that delays and a lack of vision are fuelling support for the far-right Alternative for Germany (AfD). Two leading economists have now urged swift action on tax cuts and a clear plan for the country’s future. Reint Gropp, head of the Halle Institute for Economic Research (IWH), criticised the government for hesitating on bold reforms. He argued that a meaningful tax cut would be the most effective way to weaken the AfD’s growing appeal. The proposed reduction should target middle earners, particularly those making between €50,000 and €60,000 a year, and must take effect by January.
Gropp also suggested that any budget gaps from the tax cuts could be balanced by trimming subsidies and grants. He accused officials of lacking the resolve to implement real change. Andrea Römmele, deputy director of Berlin’s Hertie School, echoed these concerns. She warned that the government’s failure to present a compelling vision for Germany’s future is helping the AfD gain ground. With the party at record poll numbers, Römmele called for a comprehensive reform package and a positive narrative to counter far-right momentum.
The government faces a tight deadline to finalise its reform agenda before the September vote. Both economists stressed that decisive action—especially on tax relief—could shift public sentiment. Without it, the AfD’s rise in the polls may continue unchecked.
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