Germany risks repelling foreign investors due to the growing influence of far-right and far-left political parties. Deutsche Bank CEO Christian Seeving warned in an interview with the German newspaper Bild.
The warning comes after the electoral successes of the “Alternative for Germany“ (AfD) in the eastern German states in September, as well as the “The Left“ party in Berlin. According to Seeving, the results could damage Germany's international image and reduce its attractiveness as an investment destination.
“This represents a significant risk for Germany and should not be underestimated“, said the banker. According to him, foreign investors do not always distinguish between the political situation in individual federal states and that of the country as a whole. Therefore, the election results at the regional level can influence investment decisions throughout Germany.
In the state of Saxony-Anhalt, the far-right AfD was only a few seats short of an absolute majority in the local parliament. Two weeks later, the party also won first place in the elections in Mecklenburg-Western Pomerania. Some of the regional structures of the party have been designated as extremist by the German security services.
Economists warn that the AfD's policy of restricting immigration could make it difficult to attract qualified foreign workers and investors, whom the German economy badly needs.
At the same time, the far-left party “The Left“ achieved its strongest election result in Berlin, promising to counter rising housing costs by expropriating properties owned by large housing companies.
According to Seeving, such policy proposals also create uncertainty for business. “Whether it is Saxony-Anhalt with the AfD or what is happening here in Berlin, this is in no way conducive to economic growth. And it certainly does not encourage investment“, he stressed.
The head of Deutsche Bank called on Chancellor Friedrich Merz's government to continue economic reforms aimed at restoring growth and improving business conditions.
According to him, successful economic policy is the most effective way to limit the influence of extreme political forces. "This is the only answer we have against the far-right and far-left extremists in the country," Zeving said.
The warning comes as Europe's largest economy struggles to overcome a prolonged period of weak growth, with political instability further complicating efforts to attract capital and stimulate investment.