Berlin – In an interview with Bild, Christian Sewing, chief executive of Deutsche Bank, warned that the recent success of parties on the political extremes in several German states could push foreign investors away. Sewing said the perception that Germany as a whole is shifting toward extremism is understandable from an investor’s viewpoint.
Election outcomes raise concerns
The Alternative for Germany (AfD), which seeks to restrict immigration and return asylum seekers to their countries of origin, achieved some of its strongest results in eastern Germany last month. In Saxony‑Anhalt the party fell just short of an absolute majority, and two weeks later it topped the vote in Mecklenburg‑Western Pomerania.
At the same time, the Left Party secured its biggest win to date in the Berlin city‑government election, pledging to expropriate holdings of residential property companies as a way to address soaring housing costs.
Potential impact on investment
“This poses a significant risk to Germany, and it should not be played down,” Sewing told Bild. “You can’t expect a foreign investor to immediately draw a distinction between a state government and Germany as a whole. It’s seen as Germany as a whole and I think that from an investor’s point of view, that’s understandable.”
He added that both the AfD’s rise in Saxony‑Anhalt and the Left Party’s agenda in Berlin are “anything but conducive to economic growth” and “anything but investment‑friendly.”
Call for continued reforms
In response to the political shifts, Sewing urged Chancellor Friedrich Merz’s government to press ahead with reforms aimed at reviving the economy. “That is the only response we have to the far‑right and far‑left extremists in this country,” he said.
Economists have warned that the AfD’s rhetoric could deter skilled workers and foreign capital, while the Left Party’s expropriation proposals raise concerns about property rights and market stability.
Broader context
Germany’s status as Europe’s largest economy makes it a key destination for foreign direct investment. Any perception of political instability or policy uncertainty can affect investment decisions, potentially slowing growth and job creation.
Deutsche Bank, as the nation’s largest lender, monitors these developments closely, emphasizing the need for a stable policy environment that encourages both domestic and international investors.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
