The far-right German political party, Alternative für Deutschland (AfD), won state elections in Thuringia on Monday, marking the first victory for a far-right party in Germany since the end of World War II in 1945.
Known for its anti-immigration rhetoric, AfD secured 32.8% of the vote in Thuringia, ahead of the main center-right opposition party, the Christian Democratic Union (CDU). The left-wing Sahra Wagenknecht Alliance (BSW) finished third with 15.8% of the vote.
The election results put business groups on edge as they fear AfD’s political stance could exacerbate Germany’s already struggling economy. German media outlet DW reported that several business associations have expressed worry about votes shifting toward the extremes of the political spectrum.
Marcel Fratzscher, president of the German Institute for Economic Research, told German media that “the AfD in particular advocates an extremely neoliberal economic policy, protectionism, isolation from Europe, reduced immigration of skilled workers, and less openness and diversity.”
Fratzscher warned that the election outcome could lead to an exodus of companies and skilled labor from Thuringia, and from Saxony, where the CDU won 31.9% of the vote.
Michael Hüther, director of the German Economic Institute (IW), echoed these concerns, stating that the election results “cannot bode well for the economy.” Hüther emphasized that Germany requires “political predictability, institutional stability, and reliable framework conditions” to maintain economic health.
Business groups are particularly worried that the AfD’s protectionist inclinations could stifle the digital economy. Ralf Wintergerst, president of the digital association Bitkom, emphasized the importance of maintaining Germany’s openness and innovation. “Germany must remain a country that stands for openness to the world and innovation,” Wintergerst told DW.
Founded in 2013 in response to the financial crisis, AfD initially gained traction by rallying against Germany’s efforts to bail out struggling economies in the European Union.
While the party first focused on protectionist economic policies, it rose to prominence primarily for its anti-immigration stance following the massive influx of refugees from the Middle East in 2015. That year, Germany welcomed a record of over one million refugees, increasing its population by 1.2%.