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German Firms Warn Democracy Faces Growing Strain

Companies say eroding institutional trust, social polarization, and weak economic growth threaten legal certainty and business planning.

Overview

  • The study, which was published Monday, July 6, 2026, combined a representative survey of 903 company representatives with 25 in-depth interviews to measure business views across Germany.
  • About 93% of respondents said democracy is important for Germany’s business location, and eight in ten reported taking steps to support democratic values over the past three years.
  • Roughly 60% of firms see themselves as having a democratic responsibility but most of that work is internal, such as mission statements and staff communication, rather than public political positioning.
  • Around 30% of companies say societal polarization harms workplace climate, and interviewees report worry that possible AfD electoral gains are prompting firms to consider strategic restraint in public statements.
  • The study finds clear East–West differences—73% of western firms call democracy 'very important' versus 56% in the East—and experts warn the pattern of internal-only engagement could reduce visible corporate support for democratic norms and shift how firms manage reputational and political risk.