What Would Happen If the AfD Led German Government?

Newsworm
Newsworm
with
AFP
July 23, 2026
An AfD-led government would hurt its own strongholds most, a new study shows. Saxony-Anhalt, where the AfD leads polls ahead of the September 6 state election, would see average income losses of €1,600 per person yearly and up to 10,000 lost jobs, according to the findings. Nationwide growth could also fall sharply as inflation and unemployment rise.
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What Would Happen If the AfD Led German Government?
Regions with a high percentage of AfD votes, such as Saxony-Anhalt, would suffer particularly severe economic hardship under an AfD-led federal government, according to a report in "Der Spiegel." - AFP

Regions with high AfD vote shares would suffer particularly severe economic damage under an AfD-led federal government, according to a report by Spiegel. The policies of the party, parts of which are classified as right-wing extremist, would hit people in Saxony-Anhalt especially hard, the magazine reported Thursday, citing a study by the German Institute for Economic Research (DIW) in Berlin.

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The DIW's Findings

Under the policies demanded by the AfD, people in Saxony-Anhalt would "on average lose around €1,600 per capita in income annually," DIW President Marcel Fratzscher writes, according to the report. "In addition, around 10,000 jobs could be lost."

How the Study Was Conducted

Fratzscher examined what consequences it would have nationwide if the AfD actually implemented its election manifesto, including withdrawal from the EU and the euro. According to Spiegel, the economist's calculations are not a precise forecast but a scenario based on figures drawn from scientific studies.

A Warning From the DIW President

An AfD government policy would trigger "national shocks," Fratzscher writes: "A course against Europe and the euro, isolation and border closures, the dismantling of state institutions, investment and public services, as well as increasing polarization, make the situation measurably worse for most people."

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A Look at the Bigger Picture

Particularly vulnerable would be regions with a small-scale economic structure and a high share of lower-skilled workers, precisely the areas where the right-wing populists are most successful. Saxony-Anhalt is one such region, where the AfD is clearly leading in polls ahead of the state election on September 6.

Over a five-year period, according to the assumptions in Fratzscher's scenario, nationwide economic growth would decline by around six percentage points under an AfD-led federal government, inflation would rise by just over five percentage points, and unemployment would increase by two percentage points.

The decisive factors behind this would be the AfD's demands for a freeze on immigration and for state spending cuts. The party's additional demand to leave the euro and the EU, however, could not be implemented by an AfD government without significant obstacles.

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According to the DIW's calculations, income losses for people in Saxony-Anhalt would be twice as high as the national average. The greatest income losses, up to eight percent, threaten the Saxony-Anhalt districts with the highest AfD vote shares: Burgenlandkreis, Mansfeld-Südharz, and Salzlandkreis. Fratzscher believes this will barely hurt the party at all: "Dissatisfaction fuels AfD support, but AfD policy further intensifies the problems and leads into a downward spiral."

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