Full Breakdown
Deutsche Bank CEO warns that extremist state wins could scare off foreign investors
By Drooid · · How we work
Election Gains by Extremist Parties Trigger Investor Concerns
On Oct 11, Christian Sewing, chief executive of Deutsche Bank, warned that recent victories by parties on the political extremes in German state elections pose a “significant risk to Germany.”
Background: State Election Outcomes
In the state elections held last month, the AfD achieved some of its largest-ever vote shares in eastern Germany, narrowly missing an absolute majority in Saxony-Anhalt and later taking first place in Mecklenburg-Western Pomerania. Simultaneously, the Left Party secured its strongest result in the Berlin city-government race and pledged to expropriate holdings of residential property companies to curb soaring housing costs. Both parties are classified by German security services as extremist in certain regions.
Official Statements from Deutsche Bank
Sewing urged Chancellor Friedrich Merz’s government to continue economic-reform measures, arguing that only such reforms can counter the perceived threat from far-right and far-left forces. He emphasized that investors cannot easily separate state-level outcomes from the broader national environment, making the recent election results a potential deterrent to foreign capital.
Potential Economic Impact
Analysts note that Germany’s reputation as Europe’s economic engine relies heavily on foreign investment. If investors interpret the electoral shift as a sign of policy instability—particularly regarding immigration, property rights, and regulatory certainty—they may redirect capital elsewhere, potentially slowing growth and limiting the skilled-worker inflow that the German economy currently needs.
Verbatim Quotes
- “This poses a significant risk to Germany, and it should not be played down,” — Christian Sewing, chief executive of Deutsche Bank
- “And whether it's Saxony-Anhalt with the AfD or what's happening here in Berlin, it's anything but conducive to economic growth. And it's anything but investment-friendly,” — Christian Sewing, chief executive of Deutsche Bank