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Friedrich Merz warns of economic hit from AfD election win

German Chancellor Friedrich Merz warned that an AfD victory in Saxony-Anhalt would harm investment, while blaming Angela Merkel for the party's rise.

Friedrich Merz warns of economic hit from AfD election win

German Chancellor Friedrich Merz has warned that a far-right Alternative for Germany election victory in Saxony-Anhalt could severely damage the regional economy and deter international investors.

Speaking in an interview with German public television channel ARD just days before the state poll, Merz said that Saxony-Anhalt faced major economic disruption if opinion poll predictions were confirmed. He added that he could not imagine international companies establishing operations in the state under an AfD state premier.

While emphasizing that the ultimate choice remained with voters, the chancellor warned of significant problems for the region in the event of an AfD win. He stated that his Christian Democratic Union party would make every effort to prevent an AfD victory, though he declined to clarify whether the CDU might form a government relying on support or tolerance from The Left party.

Saxony-Anhalt is an eastern German state with a population of approximately 2.2 million people. The Alternative for Germany was founded in 2013 as a eurosceptic party before shifting toward anti-immigration stances, while the CDU is Germany's main center-right political force.

Criticism of Angela Merkel and migration policy

Turning to national political developments, Merz attributed part of the responsibility for the rise of the AfD to policies implemented under former Chancellor Angela Merkel. He argued that political leaders could have tackled issues arising from the migration crisis as early as 2018, which would have prevented the AfD from acquiring its current electoral strength.

Merz singled out Merkel's open-borders policy as a mistake, stating that his current administration is now tasked with resolving the resulting fallout. He noted that correcting those policy choices would require time to complete.

Angela Merkel served as Chancellor of Germany from 2005 until 2021, leading the CDU for nearly two decades. In 2015, her administration decided to admit over one million asylum seekers during the European migrant crisis, a move that heavily influenced subsequent domestic political debates.

Energy policy and nuclear plant closures

The chancellor also criticized the Merkel administration over Germany's energy strategy, specifically targeting the decision to decommission nuclear power stations. Merz said that had he been in leadership at the time, he would not have taken nuclear plants offline.

He stated that the fundamental error was shutting down nuclear generation facilities before viable alternative energy sources had been fully developed to replace them.

Germany began accelerating its phase-out of commercial nuclear power following the 2011 Fukushima disaster in Japan under Merkel's leadership. The nation completed its nuclear phase-out in 2023, transitioning toward renewable energy sources alongside gas and coal generation.

Government debt and credibility deficit

Addressing domestic political pressure, Merz acknowledged that his government is confronting a credibility deficit following weak poll ratings for the CDU. He explained that public skepticism stemmed in part from the ruling coalition's decision to authorize roughly one trillion euros in new borrowing for national infrastructure and defense capability enhancements.

The chancellor admitted that his party had explicitly opposed new state debt during pre-election campaigning, adding that he aimed to close this credibility gap. Looking ahead, Merz expressed confidence that the German economy could gradually recover its strength.

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