DIW President calls for a change of economic course by the federal government after the AfD election success

After the AfD's victory in the state elections in Saxony-Anhalt, DIW President Marcel Fratzscher is calling for a change of economic course by the federal government.

“This election result is above all a vote of no confidence in the federal government,” said the President of the German Institute for Economic Research (DIW) in Berlin to the Reuters news agency.

“The only right consequence for our democracy from this election result can only mean that the federal government changes course and implements profound, structural reforms in subsidies, bureaucracy, taxes, the social system and Europe.”

The Berlin economist calls for a realignment.

“We urgently need change in Germany with reforms that go many times further than the Agenda 2010 reforms 25 years ago,” said Fratzscher, referring to the reforms implemented by then Chancellor Gerhard Schröder (SPD).

“Failure will make it more likely that the AfD will win an absolute majority in 2029,” he added, referring to the scheduled federal election.

According to initial projections, the AfD has clearly become the strongest party in Saxony-Anhalt with a good 44 percent.

It was initially unclear whether she would be able to govern Magdeburg in the future.

In a functioning democracy, there would normally be no way around bringing a party into government that has such strong support from citizens, said the DIW President.

“It is to be feared that this election result will only have losers, regardless of whether the CDU or the AfD will provide the Prime Minister.”

The government work of a CDU-led state government that has so little support and legitimacy would become significantly more difficult.

“The economic and social situation in Saxony-Anhalt is unlikely to get better, but worse - even if an AfD-led state government would cause far greater damage to the economy, society and democracy, emphasized Fratzscher with a view to the election outcome.

Regardless of the next government constellation, a controversial or weak state government and the polarization in the election campaign are likely to accelerate the migration of people and companies from Saxony-Anhalt and thus significantly worsen the situation in the eastern German state.