Morning Briefing: VW kann Kompromisse schließen, aber reicht das?

VW's supervisory board reached a compromise on a restructuring plan, surprising many, including the author. The board approved the plan a day ahead of schedule, agreeing to cut 50,000 jobs and continuing to operate the four factories in Emden, Zwickau, Hannover, and Neckarsulm. The panel also agreed on a target of producing nine million vehicles annually and achieving an operational profit margin of around nine percent by 2030, with investments in 2027-2031 reduced to 135 billion euros from the originally planned 160 billion.

The decision not to separate VW from the conglomerate was challenged primarily by Lower Saxony. The market reacted positively, with preference shares of VW and Porsche SE rising by 3.4% and 2%, respectively. In the forthcoming state elections, the AfD is expected to secure a significant victory with 41% of the vote, compared to the CDU's 23%.

However, the democratic center is urged to prevent an AfD-led government at all costs. The AfD's success is attributed to its division, radical rhetoric, and opposition to European integration, as well as its perceived anti-democratic values. Despite the AfD's electoral gains, the author argues that a continuation of the current hard-line stance is not the solution. A balanced approach that engages with the AfD while rejecting its radicalism is advised.