Upcoming elections and economic policies in Germany
Ahead of upcoming state elections in Germany, economists state that a possible coming to power of the far-right AfD would harm the labor market, growth, and the public budget.
Important warnings came from the economic world ahead of the critical state elections to be held in Germany in September. Experts emphasize that the xenophobic policies of the far-right AfD and its potential rise to power could deal a heavy blow to the labor market, economic growth, and the public budget.
State Elections and Political Polarization
Critical elections will be held in Germany in Saxony-Anhalt on September 6, and in Berlin and Mecklenburg-Western Pomerania on September 20. Recent polls show that the Left Party and the anti-immigrant AfD could emerge strong from the ballot box in these states.
Economic Growth and Loss of Prosperity
Analyses state that if the AfD comes to power, a 10 percent contraction in production could occur, which would mean an economic loss of approximately 450 billion euros for Germany.
Labor Crisis and Immigrant Contribution
It is stated that the AfD's rhetoric of mass deportations will trigger a labor crisis in the face of an aging population. It is projected that if immigration stops, a labor shortage of 7 million will emerge in the next 15 years.
European Union and Eurozone Scenarios
It is calculated that the party's policy of leaving the EU and the Eurozone would harm the export-oriented German model, and a potential exit would lead to a loss of 700 billion euros within 5 years.
Cost Analyses and Budget Deficit
Reports indicate that the AfD's tax and pension promises would punch a huge hole in the budget, and only a very small fraction of the promised costs can be covered.