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Germany’s association of family-owned companies has lifted its ban on engaging with lawmakers from the far-right Alternative for Germany (AfD), reflecting the party’s rising acceptance in sections of the business sector as it gains strength in national polls. Just two years ago, leading industry figures warned that right-wing extremism posed a threat to Germany’s global reputation and ability to attract investment and skilled labour.

The shift comes as the AfD has surged to first place in multiple nationwide surveys after coming second in February’s federal election. Association president Marie-Christine Ostermann said that political indignation alone is no longer effective and argued that addressing the AfD’s positions directly is more productive. While she maintained that the organisation rejects the AfD’s ideology and opposes the party’s participation in government, she stressed the need for dialogue given its support from around 25% of voters.

The association is among the first major business groups to advocate for more engagement with the AfD, though others remain firmly resistant. The BDI industry association said it does not seek contact with radical parties, warning that the AfD’s populist agenda risks undermining the stable economic environment on which Germany’s industry relies.

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A young politician from the far-right in Germany was arrested on allegations of displaying Nazi symbols, specifically after the “Sieg Heil” phrase was heard from the headquarters of a fraternity he is associated with. Daniel Halemba, who was elected to the Bavarian parliament recently, was detained just hours before he could gain immunity as an Alternative for Germany (AfD) MP during the parliamentary swearing-in. However, he was later released as a judge deemed him not a flight risk.

Halemba is among the 32 AfD members elected, marking the party’s best-ever performance in Bavaria, where it now stands as the largest opposition party. His immunity was lifted by the new legislature on Monday, but he expressed his intent to engage in parliamentary proceedings.

The police conducted a raid in Würzburg last month at the Teutonia Prag student fraternity’s premises following complaints from neighbors about hearing “Sieg Heil” chants from within. The police confirmed the allegations and confiscated prohibited material. Halemba is currently under investigation for suspected sedition and possessing banned symbols, both of which are unlawful in Germany. Prosecutors also suggested that he might have attempted to influence other fraternity members to alter their statements.

In a video shared on social media prior to his arrest, Halemba criticized the authorities, claiming that they were using an unjust arrest warrant against him. His lawyer, Dubravko Mandic, rejected the allegations, labeling them as baseless. Katrin Ebner-Steiner, the leader of the AfD in the Bavarian parliament, denounced the prosecution as politically motivated.

The AfD has recently witnessed record election results, securing the third position in the Bavarian elections and the second position in the state of Hesse. The party is consistently polling second nationwide, with Germany’s next federal election scheduled for 2025.

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