Doubts harm the economy
Sewing: AfD scares investors
January 29, 2024, 8:37 p.m
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According to Deutsche Bank CEO Christian Sewing, a shift to the right in Germany would not only divide the country. In his opinion, the AfD’s concepts also promote economic decline. International investors are already watching developments with skepticism.
Deutsche Bank boss Christian Sewing is worried about a shift to the right in the state elections this fall in Saxony, Thuringia and Brandenburg. The forecasts for the AfD there are dramatic. “It’s no longer just about parliamentary disruptive maneuvers,” said Sewing, according to the text of the speech, at the institute’s capital reception in Berlin. “It’s about the future of our democracy – and also our location.”
Right-wing populists and extremists would not only divide. Their concepts also encouraged economic decline. The AfD is against immigration, even though there is a lack of skilled workers. The party, which is sometimes the strongest force in some surveys for the state elections in the East, is also in favor of isolation, even though Germany’s economic success is based on globalization. In addition, the fight against climate change, humanity’s greatest challenge, is rejected.
“International investors are watching this with increasing skepticism.” Doubts would lead to lower investments. According to Sewing, without major reforms, Germany will have to get used to meager growth rates of 0.5 to 0.75 percent per year. Although interest rates are likely to fall this year, they will not return to previous levels for a long time. “We are not the sick man of Europe.” But Germany must set the course for more growth. There needs to be incentives for longer working hours. In addition, bureaucracy must be reduced, skilled workers attracted and the infrastructure expanded.
“We have to change the things that inhibit us.” However, the global environment is depressing. Sewing referred to the complex situation in the Middle East conflict and the lack of prospects for peace in Ukraine. The election of Republican Donald Trump as US President could bring completely new challenges for Europe. “The likelihood of this is growing.”