What an AfD-Led Exit from the Euro and Schengen Would Mean for Germany

The common assumption about Germany's Alternative for Germany (AfD) party is that its primary focus remains strictly on domestic immigration quotas and cultural conservatism. However, the evidence points to a much broader structural ambition: dismantling the foundational pillars of the modern European Union. In a late August 2026 interview with public broadcaster ZDF, AfD co-leader Alice Weidel explicitly stated that if her party enters the federal government, it will seek to withdraw Germany from both the eurozone and the passport-free Schengen Area.[1][3]

This is not merely a rhetorical flourish designed to energize the base ahead of regional elections; it represents a formalized policy mechanism that would fundamentally rewire Europe's largest economy. During the broadcast, Weidel argued that Germany was "significantly better off before the introduction of the euro," characterizing the common currency as an inherently unstable mechanism. She asserted that the euro has actively eroded German household wealth and weakened industrial competitiveness over the past two decades, framing a return to a national currency as a necessary step for economic survival.[1][3]

The mechanism of a German exit from the euro—often dubbed "Dexit" in financial circles—would require unwinding decades of integrated monetary policy. The Eurozone currently binds 21 European Union countries under a single legal tender managed by the European Central Bank. If Germany were to revert to a national currency, economists warn it would likely trigger immediate capital flight from weaker Southern European economies and cause a massive appreciation of the new German mark, which would instantly price German exports out of global markets.[2][4]

Beyond monetary policy, the AfD's platform targets the physical infrastructure of European integration: the Schengen Agreement. Weidel announced plans to permanently close Germany's national borders and formally withdraw from the treaty that allows passport-free travel across 29 European nations. "We will close them, and we will leave Schengen," she stated, linking the move to a broader strategy of increasing deportations and reducing naturalizations. She specifically highlighted the forced return of Syrians whose protection status has expired as a primary objective of this newly secured border.[1][4]

The proposed border closures have immediately alarmed neighboring states whose economies are deeply intertwined with German supply chains. Poland's Foreign Minister Radosław Sikorski publicly warned that reinstating permanent border controls would have "serious consequences, including economic ones, for Poland." The logistical reality of the Polish-German border involves hundreds of billions of euros in trade; permanent checkpoints would devastate just-in-time manufacturing and cross-border labor markets that rely entirely on the frictionless movement of goods and people.[2]

The political timing of these declarations is highly calculated, designed to capitalize on shifting public sentiment in eastern Germany. The AfD is currently polling above 40 percent in the state of Saxony-Anhalt ahead of crucial September state elections, and sits at roughly 27 percent nationally. This places them significantly ahead of Chancellor Friedrich Merz's Christian Democratic Union (CDU), which currently polls at 22 percent nationwide, underscoring the AfD's transition from a fringe opposition group to a dominant electoral force.[1][4]

Despite this unprecedented electoral momentum, the path to federal implementation remains structurally blocked by the "firewall" (Brandmauer) maintained by Germany's mainstream political establishment. Chancellor Merz and SPD Finance Minister Lars Klingbeil have categorically ruled out any coalition or legislative cooperation with the AfD at both the state and federal levels. Weidel forcefully condemned this refusal to cooperate during her interview, asserting that the party will soon govern in its first federal states as an inevitable stepping stone to ultimate federal power.[1][3]

The broader European context adds friction to the AfD's proposals. While the Schengen framework does allow member states to temporarily reintroduce internal border controls for security reasons—a measure several countries have utilized during recent migration surges—a permanent, unilateral withdrawal by the system's geographic and economic anchor would effectively collapse the treaty. Without Germany's participation, the contiguous land bridge connecting Western and Eastern Europe would be severed, forcing a continent-wide renegotiation of transit and trade agreements.[4][5]

Analysts note that an AfD-led government in a single regional state like Saxony-Anhalt would not possess the constitutional authority to alter federal currency or international treaties. However, as Andreas Umland of the European Policy Institute points out, a regional victory for a party classified by domestic intelligence as a suspected right-wing extremist organization would represent a "sea change" in German politics, normalizing policies that were previously considered fringe and applying immense pressure on the federal government in Berlin.[2]

Ultimately, the AfD's dual-pronged attack on the euro and Schengen forces a profound reckoning for the German electorate and the broader continent. Voters are being asked to weigh the party's promises of restored national sovereignty and strict border control against the near-certainty of severe economic disruption. For a nation whose prosperity has been defined by its export-driven model since the end of the Cold War, dismantling the architecture of European integration represents a gamble with stakes that extend far beyond its own borders.[2][4]