Deutsche Bank’s chief executive has warned that Germany’s attractiveness to international investors is at risk following the election victory of a fringe party.
Earlier this month, the far-right party AfD won state elections in Saxony-Anhalt. Last week, the party also won state elections in Mecklenburg-West Pomerania, and the left-wing Die Linke won elections in Berlin.
The AfD proposes significant restrictions on immigration and asylum. Die Linke’s campaign in the capital focused on bringing housing owned by big corporate landlords into public ownership.
One economist previously told CNBC that the results showed “there is not enough public support” for Chancellor Friedrich Merz’s growth reforms, which are losing support in the federal government.
Deutsche Bank President Christian Sewing said in an interview with CNBC’s Annette Weisbach on Wednesday that the election result was “not positive for Germany” and offered investors “this stable environment, this rule of law, which is clearly on the side of the European Union as well.”
“Many investors are also looking at Europe because they think we haven’t benefited enough from the European Community yet. If some parties actually turn their backs on Europe, that’s clearly not in the interests of international investors,” he added.
Sewing, who was interviewed alongside Siemens CEO Roland Busch, added that Germany “needs to make sure that Europe becomes our home market and that we actually excel in that respect. That’s what international investors want.”
“The last three weeks have clearly not helped,” he added.
Sewing and Busch are among the businessmen who co-founded the Made for Germany initiative last year to support Merz’s transformation and encourage participants to invest in the country.
