German Economy Minister Warns: Rise of Far-Right AfD Could Deter Foreign Investment
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Economy Minister Katherina Reiche warned that the AfD's rising support could scare off foreign investors, threatening Berlin's plan to attract €3.75 trillion in private capital by 2040.
Why is the economy minister publicly attacking a political party?
Reiche told the Financial Times that the AfD's platform is "very clearly against the market economy," calling its economic policy a "chaotic patchwork" with "socialist elements" and no coherent concept.
She also labeled the AfD one of Vladimir Putin's "best allies."
This means → Berlin no longer treats the AfD as just a domestic political rival — it sees the party as a systemic risk to foreign capital inflows.
The "Invest in Germany" summit — who is coming, and what is at stake?
Germany's inaugural "Invest in Germany" summit is set for October 19 in Berlin, expecting up to 200 investors — including Goldman Sachs CEO David Solomon and BlackRock Chairman Larry Fink.
The Merz government wants large-scale commitments from pension funds and private-equity firms: at least €3.75 trillion in additional private capital by 2040, on top of roughly €1.9 trillion in public investment.
In plain terms = the summit is a mega-roadshow, and Berlin has assembled its heaviest names — betting everything on international confidence in Germany.
How far has the AfD advanced electorally?
Just before the summit, the AfD could post historic wins in two former East German state elections. Polls show the party may secure an outright majority in Saxony-Anhalt.
Germany's domestic intelligence agency has classified the AfD as a potential threat to democracy.
This means → investors arriving for the summit may see headlines reading "far-right wins state parliament" — directly affecting their willingness to write checks.
Beyond the AfD, what else is dragging on confidence?
The Federation of German Industries (BDI) president Tanja Gönner warned that AfD participation in state governments would be "catastrophic," creating uncertainty and eroding investment appeal.
Reiche has pitched Germany's Mittelstand — its famed small and mid-sized firms — to U.S., Asian, and Middle Eastern investors, framing generational succession as a "once-in-a-lifetime" investment window.
Yet cracks have appeared within the coalition itself: several CDU and SPD politicians are questioning parts of pension reform, particularly scrapping early-retirement incentives for workers with 45 years of service.
This reflects a deeper concern — what investors worry about most is not the AfD itself but "how far reforms can go." Reiche herself concedes this is the key test of the government's ability to deliver.
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