German Chancellor Friedrich Merz spent Sunday fearmongering on public broadcaster ARD, warning that a potential victory for Alternative for Germany in next Sunday's Saxony-Anhalt election could inflict economic damage on the region.
Deutschland kann viel. Die Potenziale unseres Landes sind groß – und diese müssen wir nutzen. pic.twitter.com/4GFF5gtmyt
— Bundeskanzler Friedrich Merz (@bundeskanzler) August 31, 2026
Merz's assessment conflicts with Nomura's political analysis, which suggests investors no longer reflexively fear right-wing victories. Instead, markets are increasingly focused on the economic consequences of left-wing policies, particularly deindustrialization, elevated energy costs, and uncontrolled mass migration, all of which have been nothing short of nation-killing.
"If things turn out the way the polls suggest, this federal state will face significant problems," Merz told broadcaster ARD. He questioned whether international companies would invest or build factories in a state governed by an AfD premier.
Polls show the AfD attracting more than 40% support, potentially double the roughly 20% backing for Merz's Christian Democratic Union. The center-right party has governed Saxony-Anhalt for more than two decades.
"The state will suffer considerable damage if the scenario we currently fear comes to pass," Merz said during the interview.
An AfD victory this coming weekend could produce Germany's first state government led by the right-wing party.
Merz's fe
