Leading economists have issued stern warnings regarding the potentially disastrous economic consequences should the Alternative for Germany (AfD) assume power, either at the federal or state level.
Michael Hüther, Director of the Institute of the German Economy (IW), told the “Rheinische Post” that the AfD’s economic policies are unreliable and could extend the current crisis over decades. He specifically criticized the AfD’s stances on finance, migration, Europe, and energy. Hüther asserted that the party’s demand for exiting the Eurozone would be “economically suicidal” for Germany, noting that the German export sector cannot function without the Euro and the EU. Based on his calculations, an EU withdrawal would inflict economic damage of approximately 690 billion euros on Germany within five years and endanger around 2.5 million jobs.
The IW head also strongly challenged the AfD’s platform, stating that it is “bigoted” when the party criticizes state investment programs while simultaneously promising utopian pensions coupled with tax cuts. He declared that a 70 percent pension level is “simply not financially viable.”
Marcel Fratzscher, Director of the DIW (German Institute for Economic Research), echoed these criticisms in the “Rheinische Post”, characterizing the AfD’s approach as “extremely neoliberal,” consisting of tax reductions for the wealthy and cuts to social services. Fratzscher contended that the AfD’s demands are full of contradictions: higher pensions, lower taxes, and reduced immigration do not align. He concluded that the party suffers either from a lack of competence or from pure populism, warning that the primary victims would be the AfD’s own voters. Furthermore, he stated that a “Dexit” (exit from the Eurozone) would herald the end of the German economic model and destroy “millions of good jobs.”
Regarding migration, Fratzscher called the AfD’s suggestions a “deportation program.” He argued that Germany needs more, not less, immigration. He warned that if the country fails to open its borders, a significant amount of prosperity will be lost, adding that the AfD’s policies would likely lead to an increased emigration of Germans and German companies.
