Association warns far-right state election wins would hurt economy

The Federation of German Industries (BDI) warned ahead of state elections in September that a shift to the political right would hurt Europe's largest economy. 

BDI Director General Tanja Gönner told the RND media group that any participation by the far-right Alternative for Germany (AfD) in government would undermine investment and deter skilled workers.

"We would consider AfD participation in government to be fatal," she said in comments published on Friday.

"The AfD offers no convincing answer to the country's key economic challenges. Its policies would make investment more difficult, create uncertainty and weaken Germany as a business location instead of promoting growth," she added.

State elections are due in September in the states of Saxony-Anhalt, Mecklenburg-Western Pomerania and Berlin. Opinion polls show the AfD leading in the two eastern states of Saxony-Anhalt and Mecklenburg-Vorpommern, with the party in Saxony-Anhalt aiming to secure an outright majority.

Gönner said the European Union and Germany's federal government were primarily responsible for setting the legal framework for business conditions, but added that state governments also shaped the investment climate.

She also pointed to growing labour shortages, saying Germany cannot afford to deter skilled workers from abroad.