Reform discussion after AfD election success: The economy wants things to continue as they are

The AfD election success in Saxony-Anhalt has reignited the discussion about the planned welfare state reforms. Trade unions and business associations are reacting with alarm. “The result of the state elections in Saxony-Anhalt is a historic warning signal for all democrats,” said the German Federation of Trade Unions (DGB) in a statement. The general manager of the BDI industry association, Tanja Gönner, warned that a possible AfD takeover of government would be “a negative signal for the internationally networked and export-oriented German economy”.

What business associations and unions have in common in their assessment of the election results: border controls, exit from the euro and mass deportations, as the AfD wants, are neither good for companies nor for their employees. The German Chamber of Commerce and Industry (DIHK) warns that more than seven million German jobs depend on the monetary union. At the same time, according to DIHK President Peter Adrian, the gap created by the retirement of baby boomers in the labor market “cannot be closed through isolation, but only through qualified immigration and better labor market participation”.

There is disagreement about how the AfD can be stopped. The federal government announced comprehensive reforms before the summer break, including the abolition of pensions at 63. With these, Chancellor Friedrich Merz (CDU) wants to get the economy fit again after years of economic slump. Above all, many of the planned reforms come at the expense of employees, while companies benefit from them. As a result, the discussion flared up again after the election.

“The answer to this state election result must not be a political standstill in the federal government,” demands BDI Managing Director Gönner. “We don’t need a new analysis now, but rather an effective implementation of the decisions that will make our economy more competitive and future-proof by the end of the year,” agrees DIHK President Adrian. The reforms announced by the federal government before the summer, for example in terms of labor costs and the reduction in bureaucracy, must now be implemented boldly and consistently.

The DGB, on the other hand, has been mobilizing for a day of action against the planned reforms on September 26th for some time. In 15 major cities, the unions want to protest against the reform plans under the motto "Hard earned! Your work. Your health. Your pension." Democracy does not gain trust through tactical debates, but through concrete improvements in people's everyday lives, the DGB explained after the election.

The chairman of the Verdi service union, Frank Werneke, therefore holds the federal government partly responsible for the election results in Saxony-Anhalt: “The wrong course is being taken in Berlin, which has fatal economic and political consequences.” Social cuts like those by the CDU/CSU and SPD divide society, unsettle people and do not promote the economy, says Werneke, calling for a course correction from the federal government.

This appears to be as divided as the social partners on the question of reform. “To question the reforms now would be completely the wrong answer,” warned Chancellery State Secretary Philipp Amthor (CDU) on Deutschlandfunk on Monday morning. For Finance Minister and SPD leader Lars Klingbeil, however, the election result is a “signal to Berlin” and a reason to “think about the federal government’s reform course”.