Landtagswahl Sachsen-Anhalt: Fuest: AfD, Linke, BSW Standortnachteil für den Osten

Munich – Ifo President Clemens Fuest warns that the rise of populist parties could lead to economic decline in Eastern Germany. "In the eastern federal states, parties such as BSW, Linke and AfD currently hold majorities," Fuest told the magazine "Capital." "Governments against them are no longer possible. This is a disadvantage for a location," he said.

Despite emphasizing that voters have the right to choose economic decline in a democracy, Fuest fears decreasing corporate investments in regions where populist parties promote economically irrational policies. "If the risk is high that parties in a region come to power that create unfavorable conditions for business, then investments will fall," he stated. Fuest's concerns extend to all regions with high support for radical parties, not just those with high AfD vote counts.

The economist also criticizes the lack of consequences for poor policy in state financing distribution. When a federal state faces economic difficulties, most of the costs are often passed on to the federal collective, Fuest noted regarding state financing distribution. "That has been a problem for a long time," he said, referring to Bremen and the Saarland, two western federal states with high debt.