Automotive Industry's Lobbying Shapes CDU Policies Amidst EU Policy Divisions

At the recent International Motor Show (IAA) in Munich, the close ties between the German automotive industry and political leadership were on full display. VDA President Hildegard Müller and Chancellor Friedrich Merz jointly underscored the sector's pivotal role in Germany's economy and the importance of securing favorable government support through lobbying efforts. According to Spiegel (ID 86287), the CDU has incorporated entire passages from the automotive lobby into its policies, highlighting the industry's significant influence on political decision-making under Chancellor Merz's leadership.

Meanwhile, at the EU summit in Copenhagen on October 1, 2025, Chancellor Merz confronted broader policy challenges facing Germany's coalition government. Merkur (ID 86283) reports that Germany remains divided on at least 11 contentious EU issues, including the EU supply chain directive (CSDDD), which mandates corporate responsibility for environmental and social standards in supply chains. Merz has advocated repealing the directive due to concerns over excessive regulation; in contrast, coalition partners like Vice Chancellor Lars Klingbeil oppose this position. Disputes also exist over the threshold of company size affected by the directive, with critical implications for ongoing EU negotiations.

These developments illustrate a complex balancing act for Merz and the CDU: while embracing the automotive lobby's priorities nationally, they face internal government disagreements on implementing EU-wide regulations that impact German industry. The automotive sector's lobbying influence may shape Germany's stance in Brussels, but the coalition's fractured views complicate efforts to present a unified front on EU policymaking. This dynamic underscores the lasting impact of the automotive industry's political leverage within both domestic and European arenas.