German economy frets about Saxony-Anhalt election results

The results came in as predicted: The AfD, which is considered far-right extremist in parts, won the election in Saxony-Anhalt and could now put forward the state’s minister-president and take over the state government .

What hardly anyone expected, however, was this: The governing CDU is now barely half as strong as it was, while the other parties have been left far behind. Calling it a landslide victory for the AfD is no exaggeration. And many commentators go so far as to call it a turning point in Germany’s postwar history.

"A state government led by the AfD would certainly be seen by many as a turning point and would further fuel the debate over how best to deal with the party," Commerzbank economist Ralph Solveen told Reuters.

At the same time, he advises waiting to see what happens, saying that things are rarely as bad as they seem.

"Many of these decisions are unlikely to affect the economy until the medium to long term," he said. "Decisions on most taxes, the structure of the labor market and social security systems are made at the federal level. That is why the AfD, in many of its pledges, only promises to advocate for something in the Bundesrat, which is unlikely to succeed given the foreseeable isolation of an AfD-led government."

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Many business community concerns had already been raised before the election. It also became clear that there are differing views within the AfD, which could lead to unpredictable policies.

For example, DW reported two months ago that Hannes Loth, a member of the AfD and the mayor in Raguhn-Jessnitz, Saxony-Anhalt, sought to have six new wind turbines installed. This pledge puts him at odds with the official stance of his own party.