Several business associations have expressed concern that the far-right AfD and the left-wing, anti-immigration BSW made major gains in the state elections in Saxony and Thuringia.

Marcel Fratzscher, President of the German Institute for Economic Research, warned of significant economic and social consequences.

“The AfD in particular stands for an extremely neoliberal economic policy, for protectionism and isolation from Europe, for less immigration of skilled workers and less openness and diversity,” he told Reuters.

Fratzscher fears that the election result will lead to an exodus of companies and skilled workers from both countries.

The German Economic Institute (IW) also sees the results as a bad signal.

“This does not bode well for the economy, because it needs political predictability, institutional stability and reliable framework conditions,” IW director Michael Hüther told Reuters.

Ralf Wintergerst, President of the digital association Bitkom, described the results as a “warning signal for the digital economy”.

“Germany must remain a country that stands for cosmopolitanism and innovation,” he said. Neither the AfD nor the BSW represent these values.

Monika Schnitzer, chairwoman of the Council of Economic Experts, warned that forming a government in Saxony and Thuringia would be difficult and could “take weeks or even months”.

She said that without a stable democratic majority, no political decisions could be made.

“But that means there is no planning security for companies, universities, cultural institutions and citizens,” said the economist.

“But uncertainty is poison, especially for the economy,” she said, pointing out that “companies will postpone or abandon their investment plans, which will have a negative impact on growth.”