On Sunday, the head of Germany’s largest bank warned that a withdrawal of international capital could be triggered by last month’s state election results where parties on the political extremes gained ground.
Primarily, the AfD which wants to restrict immigration and send asylum seekers home secured some of its unprecedented victory in eastern Germany last month. At the same time, The Left Party at the same time achieved a sweep in the Berlin city state election committing to the expropriation of real estate portfolios.
In this connection, Christian Sewing, chief executive of Deutsche Bank said: “ You can’t expect a foreign investor to immediately draw a distinction between a state government and Germany as a whole,”
“It’s seen as Germany as a whole and I think that from an investor’s point of view, that’s understandable.”
The AfD has been accused by economists of creating a hostile economic environment that deters vital talent and foreign capital. Meanwhile, The Left Party vowed to tackle Berlin’s rising housing costs by confiscating the holdings of large residential property companies.
Sewing stated, “ Whether it’s Saxony-Anhalt with the AfD or what is happening here in Berlin it is anything but conducive to economic growth..”
