Frauke Petry Founds Radical Think Tank in Dresden – Named After Argentina's "Chainsaw President"
In Dresden, a new force is forming on the far edge of economic liberalism. Frauke Petry, former AfD leader and founder of the party "Die blaue Partei" (The Blue Party), has established an institute: The Javier Milei Institute. Named after Argentina's libertarian president, who is dismantling the state with a chainsaw. The goal: A radical deregulation blueprint for Germany.
Too complex? 🐿️ Read the simplified "Quick & Clear" version.
Following the Argentine model: Frauke Petry wants to radically downsize the German state.
🇬🇧🇺🇸 Understanding the Context
Frauke Petry was the face of the AfD (Alternative for Germany) before its hard right turn – think Nigel Farage before he became too moderate for Reform UK. She left when the party embraced ethno-nationalism.
Javier Milei is Argentina's anarcho-capitalist president, famous for wielding a chainsaw at rallies to symbolize cutting government. He's slashed state spending by 30% – a hero to American libertarians like Elon Musk and the Heritage Foundation.
Key Points
- New institute: Ex-AfD leader Frauke Petry has founded the "Javier Milei Institute" in Dresden – named after Argentina's libertarian president. Cicero, Dec. 2025
- Goal: An "action plan" for radical deregulation following the Argentine model – abolishing subsidies, privatization, cutting red tape. Brussels Signal, Dec. 2025
- Participants: Ex-AfD politician Joana Cotar, Austrian Hayek Institute president Barbara Kolm, and German economic liberals.
- Criticism: The left warns of "oligarchy instead of democracy." Jacobin, Dec. 2025
- Market niche: The institute targets economic liberals who find the FDP too soft, the AfD too extremist, and the CDU too statist.
The Provocative Name
The choice of name is a calculated provocation. Javier Milei, Argentina's president since 2023, is the global popstar of anarcho-capitalists. His symbol: The chainsaw with which he abolishes ministries and cuts state spending by 30%.
That Frauke Petry names a German institute after him – and reportedly has his personal blessing – is a clear statement: This isn't about minor reforms. It's about the total dismantling of the welfare state and bureaucracy.
Who's Behind It?
The institute brings together figures who no longer find a home in the established party spectrum. It's an alliance of disappointed conservatives, libertarians, and ex-AfD members who reject Höcke's ethno-nationalist course – but equally reject CDU/FDP state interventionism.
The key figures:
- Frauke Petry: Chemist, ex-entrepreneur, ex-AfD leader. Her thesis: Germany isn't suffocating from lack of money, but from too many regulations.
- Joana Cotar: Former AfD Bundestag member. She left the party over its Russia policy. Cotar is digitally savvy and represents a hard libertarian line ("Bitcoin instead of bureaucracy").
- Barbara Kolm: President of the Friedrich A. v. Hayek Institute in Vienna, former FPÖ member. She provides the theoretical foundation of the "Austrian School" of economics.
- Prof. Philipp Bagus & Carlos A. Gebauer: Academic thought leaders of the Hayek Society. They're meant to give the institute academic credibility.
The Agenda: The "German Action Plan"
What does the institute concretely want? Petry announces developing an "action plan". The model is Federico Sturzenegger, Milei's chief advisor, who wrote Argentina's "Omnibus Law" – a legislative package that eliminated hundreds of regulations at once.
The topics:
- Abolishing subsidies
- Privatizing state functions (broadcasting, Deutsche Bahn, etc.)
- Radical simplification of tax law
- Fighting the "fiscal dominance" of the ECB
- Labor market deregulation
The goal: A ready reform package sitting in a drawer – ready for the moment when the political situation shifts.
The Political Gap
Between AfD and FDP lies a gap – this is where the Milei Institute positions itself.
The institute targets a void in the German party system:
- The FDP is seen by many economic liberals as too compromised (especially after the traffic light coalition era).
- The AfD is unelectable for bourgeois economic liberals due to its extremism.
- The CDU is viewed as too statist and too willing to compromise.
Petry's "Team Freedom" and the institute try to fill this gap: Economically liberal, but not far-right. Radical, but bourgeois.
Criticism: Oligarchy Instead of Democracy?
Critics warn of the consequences. The left-wing magazine Jacobin writes that an "economic elite" is trying to replace democracy with technocracy and install an "oligarchy."
The concern: Petry and her allies don't want to democratically reform the state, but systematically starve it – at the expense of the welfare state, environmental protection, and public services.
Will This Work?
In Saxony, this seed could indeed take root. Trust in the state is traditionally low, the desire for "simple solutions" high.
It's an attempt to channel frustration with bureaucracy not into nationalism (AfD), but into radical market capitalism.
Whether the institute becomes more politically relevant than an academic fringe phenomenon depends on two factors:
- Can it find funders? Libertarian think tanks live on sponsors – usually from the finance industry or tech sector.
- Can it find political connections? Without a party adopting its ideas, the institute remains a niche.