AfD victory in Saxony-Anhalt puts economic risks under scrutiny
Economists and business leaders warn that an AfD-led state government could deter skilled workers and investment, while many of the party’s promises depend on federal powers.
The far-right Alternative for Germany (AfD) has won Saxony-Anhalt’s state election by a wide margin, with the governing Christian Democratic Union’s (CDU) support roughly halving. The result could allow the AfD to seek the state’s minister-president, although the next government has not been established.
Economists and business leaders have warned that an AfD-led administration could damage Saxony-Anhalt’s appeal to skilled workers and investors. They say the state’s labour shortages could worsen if people and companies become less willing to live, work or invest there.
Several of the AfD’s campaign pledges would depend on federal authority, according to economists cited by Deutsche Welle. Taxation, labour-market structures, social security and the immigration of foreign skilled workers are largely determined at national level. Other measures could face legal challenges or have limited direct economic effects in the short term.
The economists also pointed to uncertainty within the AfD over policy, including disagreement about support for new wind turbines. They said that even measures with limited legal effect could carry a symbolic cost by making the state appear less welcoming to foreign workers and international businesses.
Business representatives have called on the federal government to respond with reforms aimed at investment, innovation, competitiveness and growth. The election result, they argued, should not lead to political paralysis, while the state’s economic outlook could deteriorate if polarisation accelerates the departure of people and companies.
