Fuestbewertet: Erfolg der AfD bedroht die Wirtschaft im Osten
Clemens Fuest, head of the IFO Institute, expresses concerns about the economic impact of the far-right AfD and BSW parties' success in eastern Germany. He believes their influence will make it more difficult for the traffic light coalition to work on economic improvements in the east.
Fuest shares his viewpoint on the impact of the AfD's triumph in the European elections, stating that their dominance in eastern German regions could hurt the region's economic outlook. However, he stresses that these results may not directly reflect the situation in state elections.
In response to the electoral success of the AfD and BSW, Fuest considers that larger reforms for economic development in the region are not likely. He added that the coalition's focus will shift to the upcoming federal election campaign.
In a broader perspective, Fuest points out that right-wing parties' influence in the EU could hinder cooperation in areas like defense, migration, and trade policy. He emphasizes the importance of enabling mutual concessions to strengthen European unity, while admitting that the EU has had limited success in achieving this so far.
Additionally, Fuest touches on potential risks brought about by conflicts within the Eurozone and the high debt levels in countries like France and Italy. He notices the market response, with an increase in interest rate differences between Germany and France/Italy, implying that investors perceive these risks. Beyond that, Fuest anticipates potential changes in the European Green Deal, with emphasis on reducing overly bureaucratic and inefficient aspects and possibly the reversal of effective tools like the CO2 price.
In summary, IFO president Clemens Fuest highlights the challenges posed by the growing influence of radical parties like the AfD and BSW in eastern Germany, and the possible economic repercussions in the region. He suggests that the traffic light coalition's focus may be shifted to federal elections, and while there's a chance for positive outcomes like removing wasteful policies from the Green Deal, potential drawbacks could come from the rollback of efficient tools, like the CO2 price.
