Guns For Ukraine ... Hunger For Workers -- the AFD rISE!
Nord Stream, energy shock —Volkswagen’s historic rupture and the Rise of the AFD
By Norris R. McDonald, DIJ, Author, Economic Journalist
@sulfabittasnews (UPDATED, September 6, 2026)
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| Norris R. McDonald, DIJ |
Germany for
decades was the industrial engine of Europe. Its factories powered the
continent’s prosperity. Its export machine set global standards in automobiles,
chemicals, precision tools, and industrial machinery. Its social market economy
balanced capitalism with worker protections in a way many nations tried to
emulate.
Today, that model is under severe strain. Germany faces a structural
economic rupture driven by energy shock, geopolitical alignment, and strategic
miscalculation. The destruction of the Nord Stream pipelines in 2022 was not
simply an infrastructure event — it was an economic turning point. Those
pipelines delivered the cheap and reliable Russian gas that underwrote
Germany’s industrial competitiveness for decades.
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| The German working class are going through extremely hard times not seen since the Post World War II era. |
Cheap Russian Gas Fueled Germany's Industrial Base
Before
2022, roughly 55 percent of Germany’s natural gas came from Russia. That supply
sustained energy-intensive sectors — chemicals, steel, fertilizers, glass,
aluminum, autos. When it vanished, Germany did not just lose fuel. It lost cost
stability.
The shift to higher-priced liquefied natural gas and emergency
substitutes has kept industrial energy costs elevated compared to pre-war
levels. For globally competitive manufacturing sectors, margins matter. And
when margins collapse, relocation becomes rational. Industrial production has
weakened. Investment has slowed. Executives increasingly explore expansion in
the United States or Asia rather than at home. Economists describe “structural
demand destruction.” Workers experience something simpler: layoffs, reduced
shifts, and long-term uncertainty.
Nord Stream and the Energy Shock
Energy is
the bloodstream of industrial society. Germany’s post-Cold War growth model
rested on abundant, affordable gas feeding vast manufacturing ecosystems. The
bombing of Nord Stream abruptly severed that lifeline. What followed was not a
short-term adjustment but a permanent increase in operating costs for German
industry. This shock ripples outward. Higher energy prices raise production
costs. Higher production costs reduce competitiveness. Reduced competitiveness
accelerates offshoring. Offshoring erodes employment, tax revenue, and
industrial know-how. Once this cycle takes hold, reversing it becomes extremely
difficult.
Volkswagen and the Symbolism of an 84-Year Pillar
Nowhere is
Germany’s vulnerability more symbolically visible than in the crisis facing
Volkswagen. For 84 years, Volkswagen has stood as a pillar of German industrial
identity. From the Beetle to the Golf, from Audi engineering to Porsche
performance, the company anchored vast supply chains across Europe. Entire
regions depend on its plants.
Today, Volkswagen confronts weak European demand,
fierce Chinese competition in electric vehicles, high domestic production
costs, and the broader energy burden weighing on German manufacturing. Reports
of restructuring, potential plant closures, or severe cost-cutting represent
more than corporate belt-tightening. They signal that even Germany’s most
iconic manufacturers are struggling to remain competitive at home. If
Volkswagen cannot comfortably produce profitably in Germany, the implications
extend far beyond one company. They point to a system-wide problem.
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| Volkswagen, once a great symbol of Germany's industrial might, has now collapsed. |
Political Polarization and the Rise of the AfD
Chemical
producers have cut output. Steelmakers warn of permanent capacity losses.
Fertilizer and aluminum plants have shut down or relocated. Economists
increasingly acknowledge that Germany is experiencing “structural demand
destruction” — a polite term for factories that will never reopen. This is not
a normal business cycle. It is deindustrialization in slow motion. Germany now
risks developing its own Rust Belt along the Rhine.
As economic
security weakens, political polarization grows. The erosion of industrial
confidence has accelerated a profound realignment of the German electorate.
Nowhere is this shift more dramatic than in the meteoric rise of the right-wing
populist Alternative for Germany (AfD). Once a fringe movement, the AfD
has capitalized on widespread frustration over rising energy bills, job
insecurity, immigration, and a general sense of national decline.
The party’s
ascent is no longer confined to protest votes; it has become a dominant
political force. The September 2026 regional elections have turned into
a historic breaking point. In the eastern state of Saxony-Anhalt, exit
polls show a sweeping, unprecedented victory for the AfD, capturing over 44% of
the vote. With crucial elections following immediately in Mecklenburg-Vorpommern
and Berlin, the traditional "firewall" — the unified pledge by
mainstream parties to never govern with the far-right — is fracturing under the
weight of mathematical reality. Mainstream state leaders are openly warning
that the old consensus-driven model is effectively dead.
Merz Falters Under the Pressure
This
populist surge has dealt a severe blow to the authority of Chancellor
Friedrich Merz. When Merz took office in May 2025, his core promise to the
nation—and his own Christian Democratic Union (CDU)—was that he would cut
support for the AfD in half by adopting a tougher stance on irregular migration
and rebooting the stagnant economy.
Instead,
under his leadership, the opposite has occurred. The AfD has doubled its
support in key regions, while Merz's own CDU has cratered, dropping to
historical lows in regional contests like Saxony-Anhalt. Consistently unpopular
and perceived as losing control, Merz is increasingly kept at arm's length by
regional peers who view him as a liability. Within his own fragile governing
coalition, panic is setting in. Speculation is already mounting that Merz may
face a leadership challenge or be forced out long before the next scheduled
federal election.
Rearmament Without an Industrial Base
Berlin’s
political leadership speaks confidently about transforming Germany into the
strongest military power in Europe. But military strength rests on industrial
strength. Tanks, aircraft, drones, ammunition, and advanced electronics require
factories, skilled labor, and affordable energy. A shrinking manufacturing base
cannot sustain long-term military ambitions. The contradiction is stark:
Germany is asked to shoulder greater geopolitical responsibility while its
productive core erodes.
Geopolitics and Double Standards
Ukraine is
framed as an existential moral cause. Gaza exposes glaring double standards in
how civilian suffering is judged. Principles appear selective. Credibility
erodes. For Washington, Europe’s break from Russian energy advances
long-standing strategic objectives. For Germany, the economic price has been
devastating. Energy independence from Moscow has translated into dependence on
higher-cost imports and reduced industrial competitiveness.
A Choice Still Exists
Germany
still possesses extraordinary assets: world-class engineers, research
institutions, skilled workers, and a respected industrial brand. But assets
require strategy. Without a coherent plan for affordable energy, competitive
production, and genuine strategic autonomy, Germany’s decline will deepen.
History shows that great economic powers rarely collapse overnight. They decay
through accumulated policy choices. If icons like Volkswagen stumble after 84
years, and the political center fractures at the ballot box, the warning could
not be clearer. Germany must decide whether it intends to remain a stable
industrial nation — or accept managed decline dressed up as moral virtue.
Final Word
Germany is
entering a new era where defense—not fiscal restraint—defines national policy.
The 2026 budget underscores a decisive pivot toward military strength,
industrial mobilization, and geopolitical influence in Europe. That is the
Bitta Truth.
Would you
like to expand further on the economic impacts of the regional elections
or focus on how Volkswagen's restructuring plans are playing into the
current political debate?
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| Russian cheap Nord Stream gas once have Germans a better quality of life than most Europeans. |
That is the Bitta Truth.
