What: German tech founders are advocating for political change ahead of the snap election, prioritising issues like preventing far-right influence and fostering economic growth over reducing bureaucracy.

Why it is important: The election outcomes could significantly impact Germany's startup ecosystem, migration policies, and its position as a competitive business hub, with founders fearing the growing influence of far-right politics and its potential impact on international talent and economic stability.

As Germany approaches its critical February 23 snap election, tech founders have intensified their political engagement, driven by concerns about migration, the economy, and the rise of the far-right party AfD. Entrepreneurs, like Klim cofounder Nina Mannheimer, have shifted their focus from traditional business concerns to more urgent matters, such as the threat posed by war and extremism. Migration policies are a key election topic, with fears that stricter asylum and language requirements proposed by parties like the CDU and AfD may deter skilled foreign workers. Founders worry these changes, alongside the AfD's growing influence, could harm Germany’s perception as a safe and welcoming hub for international talent. Additionally, Germany’s economic struggles, marked by consecutive GDP declines, are pushing business leaders to advocate for reforms in bureaucracy, digitalisation, and green technologies. Founders like Emanuel Heisenberg and Eric Demuth emphasise the need for transformational leadership to revive Germany’s innovative edge and prevent further shifts toward extremism. Many are taking active roles in campaigning and donating, hoping to influence a more progressive and business-friendly political landscape.

IADS Notes: The German tech ecosystem faces a critical juncture as revealed by recent developments. While October 2024 saw Breuninger successfully transform into a digital multi-channel retailer with over 50% of sales now online, broader challenges persist. The country's retail landscape shows concerning trends, with department store sales falling 34.8% in real terms over the past two decades. However, new opportunities are emerging through the EU's EUR 200bn InvestAI initiative and the rise of European AI agent startups. This comes as German tech founders actively engage in political discourse, particularly regarding international talent attraction and economic growth. The contrasting experiences of traditional retailers and digital innovators highlight the urgent need for technological adaptation in the German market, especially as the country navigates economic headwinds and political uncertainties affecting its position as a competitive business hub.

What German founders want from the election