Deutsche Bank Chief Executive Christian Sewing has warned that the recent gains made by extremist parties in German state elections could deter foreign investors and undermine confidence in the country’s economic outlook.
In comments reported by Reuters on Sunday, Sewing said political developments in Germany’s eastern states risk being interpreted abroad as a sign of national instability. The far-right Alternative for Germany (AfD) has made strong gains in states including Saxony-Anhalt and Mecklenburg-Western Pomerania, while the Left Party has won support in Berlin with a pledge to expropriate property holdings to address high housing costs.
Sewing argued that both far-right and far-left agendas could pose risks to economic growth and investor confidence. He urged Chancellor Friedrich Merz’s government to move ahead with reforms to strengthen Germany’s competitiveness.
The warning comes as Germany faces pressure to revive economic momentum while political fragmentation and public concerns over migration, housing and living costs reshape the electoral landscape. Investors will be watching whether the government can deliver policy stability and reforms that support long-term growth.
