Far-Right AfD Seizes Power in Saxony-Anhalt, Sparking Fears for Economy and Social Cohesion
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The extremist Alternative for Germany party clinched a troubling victory in Saxony-Anhalt, alarming economists and progressives who warn of looming economic risks and the urgent need for federal intervention.
The far-right Alternative for Germany (AfD) has captured the state election in Saxony-Anhalt, positioning itself to install its own minister-president and potentially take the reins of government. The conservative CDU, previously in power, suffered a dramatic collapse as its vote share was slashed in half, while progressive and centrist parties were left trailing, signaling a dangerous lurch to the right in regional politics.
Commerzbank economist Ralph Solveen told Reuters that an AfD-led government would represent a disturbing turning point, likely intensifying the national debate over how to confront the party’s xenophobic and regressive agenda. He stressed that, fortunately, most key economic decisions—such as those on taxes, labor rights, and social security—are made at the federal level, limiting the AfD’s ability to implement its reactionary proposals in the state.
Observers highlighted the AfD’s internal contradictions, pointing to a recent incident where an AfD mayor supported new wind turbines, defying the party’s anti-environmental platform. Such inconsistencies could result in erratic and unpredictable policy, further destabilizing the region, according to business leaders.
Economists voiced deep skepticism about the AfD’s anti-immigration rhetoric. Michael Berlemann of the Hamburg Institute of International Economics noted that many of the party’s exclusionary measures are not only unenforceable at the state level but would also violate the law. ING chief economist Carsten Brzeski warned that even symbolic anti-immigrant posturing could scare off much-needed foreign skilled workers, while Wido Geis-Thöne of the German Economic Institute cautioned that the state risks becoming a pariah for talent regardless of legal constraints.
Industry representatives underscored the vital importance of openness and diversity for attracting investment. Bitkom president Ralf Wintergerst told the Catholic News Agency that digital economies depend on inclusivity, and that companies seek locations welcoming to both domestic and foreign workers. DIW president Marcel Fratzscher characterized the election as a stinging rebuke of the federal government, warning that unless urgent structural reforms are enacted, the state could see an exodus of people and businesses.
Tanja Gönner, managing director of the Federation of German Industries, called for immediate federal action, insisting that the election result must not paralyze politics but instead spark a bold reform agenda to promote investment, innovation, and growth—values now under threat from the AfD’s rise.