AfD successes endanger Saxony's economy: experts sound the alarm!

AfD successes endanger Saxony's economy: experts sound the alarm!

Companies in Saxony and Thuringia are currently under pressure. After the state elections in September 2023, many are asking themselves how the AfD's successes will influence the economic landscape. Marco Wanderwitz, a CDU politician and former federal government representative for the East, expressed his concerns as early as 2021: Companies are now seriously considering withdrawing, even though the AfD does not yet have government responsibility. This warning is supplemented by the assessment of Marcel Fratzscher, head of the German Institute for Economic Research, who warns of an impending “exodus of companies”.

In a comprehensive study published by the Leipziger Volkszeitung and the Sächsische Zeitung, experts and plant managers spoke to company representatives from around 20 central German companies. Seven key findings about the AfD's impact on Saxony were brought together that are worrying. In addition, a current study by the Ifo Institute shows that 67 percent of economists expect negative economic developments in Saxony and 74 percent in Thuringia.

Worrying forecasts

The survey by the ifo Institute made it clear: only a small minority believes that the election results will have positive effects. It is also frightening that 84 percent of those surveyed see negative consequences for the attractiveness of the countries among skilled workers. This is also reflected in companies' investment decisions: 77 percent of experts fear serious setbacks. Niklas Potrafke, head of the Ifo Center, speaks of a wake-up call for the population.

Another aspect that affects the economy in the region is the shortage of skilled workers. According to a survey, 44 percent of companies stated in 2024 that they would not be able to fill vacancies in the long term. Sectors such as healthcare, construction, IT, education, logistics and transport are particularly affected. The reasons for this shortage are complex, including demographic change, a lack of incentives and a training system that no longer meets the requirements.

The challenges for companies

The consequences of the shortage of skilled workers cannot be overlooked: companies have to accept losses in sales, the workload increases and there is a backlog of innovation. This has a direct impact on economic dynamism and social equality in the regions. The increase in labor costs and declining mobility in the labor market are further concerns that cannot be ignored.

How are companies responding to these challenges? Many are investing in further training and trying to increase their attractiveness as employers. At the same time, initiatives to simplify the immigration of skilled workers and targeted recruitment abroad are required in order to break the vicious circle.

In this tense situation, it will be crucial how the political landscape continues and what measures are taken to secure the economic stability and attractiveness of the region. However, concerns about economic development in Saxony and Thuringia remain great, while those involved in the economy have to arm themselves against the pressure.