Economic uncertainty after the state elections in Saxony-Anhalt

The result of the state elections in Saxony-Anhalt resulted in a clear winner, the AfD, but not a stable majority. There is a threat of a stalemate in Magdeburg that the business location has no time for. After election Sunday, the economic challenges for companies in Saxony-Anhalt are at least as great as the political tasks for the parties represented in the state parliament.

Most location problems cannot be solved in Magdeburg. The disappointment with federal policy has therefore cost the Union in Saxony-Anhalt in particular votes. However, uncertainty about the course of the next state government that lasts for weeks and months would exacerbate the situation. Because the AfD could take over the reins of government, a party that has never held government responsibility before, the imponderables are great.

In recent months, decisions on investment projects in Saxony-Anhalt have occasionally been postponed until after the election date at the beginning of September. But the situation didn't become any clearer the day after. Because the AfD has missed its electoral goal of an absolute majority. The instability of a possible minority government with the tolerance of the BSW could permanently deter potential investors.

A stable majority for the right-wing populist government program would only help companies to a limited extent. The AfD has no solution to the biggest challenges facing Saxony-Anhalt as a business location. She is countering the demographic change that is in full swing in the state with the highest average age in Germany with the hope of patriotic returnees from abroad. At the same time, she is raising the mood against “professionals from a foreign culture”.

Neither of these helps the job market or the attractiveness of the location for investors. Saxony-Anhalt urgently needs immigration and the relocation of companies in order to return to a growth path. Given the location conditions, the country cannot afford a slack situation in Magdeburg.