TWILIGHT OF THE GODS

Observations of an Entrepreneur

Richard Wagner was, as is well known, not a man for half-measures. When something went wrong for him, the responsible state secretary wasn’t simply replaced; with Wagner, Valhalla itself would go up in flames.

In his Götterdämmerung (Twilight of the Gods), the old gods witness the disintegration of their order. They still possess their palaces, their titles, and their power. Yet they have already lost something crucial: the certainty that the world will continue to operate according to their rules tomorrow.

Why has this particular thought been on my mind these past few weeks?

Perhaps because of Saxony-Anhalt. Ahead of the upcoming state election, a political situation is emerging there that would have been unimaginable just a few years ago. Polls show the AfD at a level where the established parties’ traditional models for forming majorities are reaching their limits.

The “Blue” party’s lead candidate draws crowds in the streets and fills halls, galvanizing people, while the established parties focus primarily on how to keep him and his party out of power. One might well desire that outcome. But does it solve the problem?

If a party eventually reaches forty percent or more of the vote while being categorically excluded from power—how many coalition options actually remain?

We may not be witnessing a Götterdämmerung on September 6th. Yet, the flames are already flickering a bit in Valhalla. And still, the political debate revolves around the same question: How do we deal with the AfD?

I, for my part, am preoccupied with the question of why more and more people are voting for this party. For one thing has become hard to ignore: the way the AfD has been handled so far has not diminished it. Quite the opposite.

The more determinedly “firewalls” were erected, debates about banning the party were held, and its voters were politically ostracized, the stronger the party became. Perhaps, then, we ought to ask ourselves an uncomfortable question:

What if the current strategy is not merely failing to work, but is actually part of the problem? We might then focus more on the issues driving people toward the AfD in the first place. And perhaps the most effective “firewall” against this party wouldn’t be a firewall at all. Perhaps it would simply be good policy.

Let’s look at a few figures.

In 2025, Germany recorded more than 24,000 corporate insolvencies. That same year, nearly 180,000 industrial jobs were lost. This trend is continuing into the current year. The personal hardships resulting from this are also the consequence of poor policy.

The same applies to the ratio of government spending to GDP, which now exceeds 50 percent—reaching the level where, according to Helmut Kohl, socialism begins.
Our household electricity prices are among the highest in Europe. We spend vast sums on healthcare without achieving top-tier life expectancy in return.

The situation is no better regarding our most important resource. Germany has little oil, little gas, and hardly any other raw materials. This country’s true resource has always been the minds of its people.

Yet, relative to economic output, our spending on education falls below the OECD average. It will be difficult to remain a successful industrial nation and preserve our prosperity under these conditions.

I also find another contradiction striking. Regarding the Bürgergeld (citizen’s benefit), non-German nationals make up roughly 48 percent of recipients, even though they account for only about 15 percent of the total population. One could debate at length how these figures arise. One could offer nuances, put them in perspective, and provide explanations—and indeed, one should.

But eventually, a rather simple question remains: Do we actually consider this ratio acceptable? And if not—how do we intend to change it?

Even individuals wanted under arrest warrants continue to receive basic social security benefits here—partly because data protection regulations hinder the exchange of information between government agencies. Despite the sporting nature of the game—the longer I run, the longer I collect benefits—it is likely a bad idea to pursue these individuals using both the public prosecutor’s office and the welfare state at the same time.

This brings us to our northern neighbor. “Something is rotten in the state of Denmark,” Shakespeare has Marcellus say in Hamlet. Today, one could turn that phrase around: Something is rotten in the state of Germany—and Denmark, of all places, shows us that there is another way. For several years now, a Social Democratic-led government there has successfully pursued a clear, restrictive course on migration—a stark contrast to their party counterparts in Germany.

Have Danish Social Democrats suddenly turned right-wing because of this? Or have they simply realized that a democracy must solve problems before other parties win elections using those very issues?

People notice when their daily reality…no longer aligns with the political narrative being presented to them. Business owners know this well: if customers stop buying a product, the solution isn’t to tell them they simply misunderstood it—it is to improve the product. Why should politics be any different?

Yet, in politics too, progress is impossible without honest self-reflection. It also requires the courage to abandon a chosen path when it is clearly not working—the courage to speak openly about problems, correct mistakes, and set new priorities for the future, even if doing so sparks resistance.

In the end, Wagner has the old order go up in flames.

We Germans don’t need to go to such dramatic lengths. We have intelligent people, successful companies, and still possess enormous potential. What we lack is not the knowledge of what needs to be done; too often, we lack the courage to actually do it.

Perhaps, then, we need a bit of Götterdämmerung—not to burn down Valhalla, but to let the light back in.

With that in mind

Ernst-M. Ehrenkönig · CEO & Managing Partner