Deutsche Bank CEO Christian Sewing says electoral gains by far-right and far-left parties in recent regional German elections could deter foreign investors and undermine growth. He urged Chancellor Friedrich Merz's government to keep pushing structural reforms.
Deutsche Bank's chief executive warned that political extremes' recent election gains pose a significant risk that could deter foreign investors and undermine economic growth in Germany. Christian Sewing voiced concern over surges by both the far-right Alternative for Germany (AfD) and the far-left Left Party, in an interview published Sunday by the Bild newspaper.
According to Bild: "This poses a significant risk to Germany, and it should not be played down," Sewing said. He added that a foreign investor cannot be expected to immediately distinguish between a state government and Germany as a whole.
AfD and Left Party gains in the states
In Saxony-Anhalt, the AfD, which regional security services classify as extremist, nearly secured an absolute parliamentary majority before finishing first in neighboring Mecklenburg-Western Pomerania. Economists caution that the party's anti-immigration platform risks alienating skilled foreign workers and global capital.
Meanwhile in Berlin, the Left Party achieved a strong municipal result after campaigning on promises to tackle soaring housing costs by expropriating residential real estate holdings from large corporate landlords. Sewing said both developments are anything but conducive to economic growth.
Sewing's call for reforms
Sewing urged Merz's government to maintain momentum on structural reforms to jumpstart the national economy. In his view, that is the only response to extremists on the right and left.
Source: Investing.com
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