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Germany's Merz says victory for AfD in Saxony-Anhalt would deter foreign investors - Headlines news and analysis from Global Banking & Finance Review
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Germany's Merz says victory for AfD in Saxony-Anhalt would deter foreign investors

Published by Global Banking & Finance Review

Posted on August 30, 2026

2 min read

· Last updated: August 30, 2026

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AfD Win in Saxony-Anhalt Could Hurt Foreign Investments, Merz Warns

Potential Impact of AfD Victory on Saxony-Anhalt's Investment Climate

Merz's Warning to Voters and Investors

BERLIN, Aug 30 (Reuters) - German Chancellor Friedrich Merz said on Sunday that a victory for the far-right AfD party in next week's regional election in Saxony-Anhalt would damage the eastern state and deter foreign companies from investing there.

Concerns Over International Investment

"I cannot imagine international investors attending a ground-breaking ceremony with an AfD Minister-President to set up new plants and establish new businesses in Saxony-Anhalt," he told ARD public television in an interview.

Potential Consequences for the State

"However, that is a decision for the voters in Saxony-Anhalt to make. The state will suffer considerable damage if things turn out as we now fear they might," Merz said.

AfD's Position in the Polls

Current Polling Data

The anti-immigrant AfD or Alternative for Germany party currently holds a strong lead in opinion polls, on 42% compared with 22% for Merz's conservative Christian Democrats, according to a recent poll.

Election Threshold and Possible Outcomes

If that level of support remains unchanged until the election on September 6, it would probably leave the AfD just shy of an absolute majority of seats in state parliament. But the outcome of the vote could depend on whether smaller parties clear the 5% entry threshold needed to get into parliament.

Coalition Prospects and Political Responses

Main Parties' Stance on Coalition

All the main parties have said they will not enter a coalition with the AfD, meaning that the sitting Christian Democrat state premier Sven Schulze may seek to build a coalition of his own or form a minority government under some form of cooperation agreement with other parties.

CDU's Position on Cooperation

Merz, who has repeatedly ruled out cooperation with both the AfD and the far-left Left party, declined to say what the CDU would do if the AfD fell short of an absolute majority.

Commitment to Prevent Radical Takeover

"We will assess the situation in the light of the election result, and we will do everything we can to prevent Saxony-Anhalt from falling into the hands of the radicals," he said.

(Reporting by James Mackenzie, Editing by Louise Heavens)

References

Frequently Asked Questions

What did Friedrich Merz say about an AfD victory in Saxony-Anhalt?
Friedrich Merz said that an AfD victory in Saxony-Anhalt would damage the region and deter foreign companies from investing there.
How strong is AfD in the latest Saxony-Anhalt polls?
The AfD currently leads with around 42% support in the polls, ahead of the Christian Democrats' 22%.
Will mainstream parties cooperate with the AfD in Saxony-Anhalt?
All main parties have ruled out entering a coalition with the AfD in Saxony-Anhalt.

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