VDA President Müller on Hart aber fair: Populism is not a solution, but a danger to the economy

In the ARD debate show "Hart aber fair," the President of the German Association of the Automotive Industry, Hildegard Müller, strongly opposed populism and national isolation and clearly supported an open and democratic society, the EU internal market, and skilled labor immigration. The AfD, represented in the show by the Member of the Bundestag and economic policy spokesman Leif-Erik Holm, promises solutions that are not solutions but merely serve populism. Seventy percent of jobs in the German automotive industry depend on exports, and three out of four vehicles go abroad. The industry is an important part of an international production network. German manufacturers produce outside Germany in 20 countries, and suppliers in even more countries.

In light of this fact, it is absurd to retreat to national markets. Müller pointed to the negative example of Japan, where years of isolationist policies have resulted in massive loss of prosperity and a decline in economic performance. She called the AfD’s demands for an exit from the EU, the so-called "Dexit," or the reintroduction of the Deutsche Mark, completely absurd. Based on the Brexit experience, an EU exit would cause Germany’s economic growth to collapse by six percent, estimates the VDA chief.

Dexit: Massive Economic Losses Threaten

Over time, the effect would further intensify; in ten to fifteen years, we would face an economic loss of around ten percent – equivalent to approximately 400 to 500 billion euros, according to the VDA's calculations. Enormous impacts on the job market are predicted as a result: "Even with an optimistic growth decline of five percent, we would lose about 2.2 million jobs," forecasts the grim prediction. The currency union itself is a blessing for Germany, solely because of the elimination of exchange rate fluctuations.

Conversely, the EU internal market provides its member countries with a welfare gain of 643 billion euros per year, per calculations by the Kiel Institute for the World Economy. Without the EU internal market, the gross domestic product of the EU would be 643 billion euros lower. Germany alone accounts for a welfare gain of 132 billion euros, emphasizes the VDA. All of this should not be recklessly put at risk, says Müller.

Automotive Industry Dependent on Skilled Worker Immigration

The automotive industry is also urgently dependent on skilled worker immigration. 70 percent of small and medium-sized enterprises reported a shortage of skilled workers, especially among suppliers. Here, personnel shortages are now having a stronger impact on production disruptions than material shortages. Already last year (2023), the number of employees with a German passport shrank by a good 77,000, according to previously unpublished data from the Federal Office. The fact that the number of employees still increased overall was solely due to people without a German passport. For the first time, immigrants from non-asylum countries outside the EU, such as India or Turkey, contributed the most to employment growth, the association argues. In this context, it must be clearly shown to the willing immigrants that they are also wanted here. This also strengthens international competitiveness, as skilled workers are in demand worldwide.

"Germany must remain attractive as a country for foreign skilled workers," countered Müller to the AfD's calls for so-called "remigration."

Moreover, the topics should not be mixed. There are certainly difficulties in integrating immigrants, which can and must be solved. Immigration itself is without alternative from the perspective of the economy and demographics.