(Bloomberg) — Germany’s economy would be ruined if it followed the UK out of the European Union as the far-right Alternative for Germany party has proposed, according to Finance Minister Christian Lindner.
The EU single market is of “utmost importance” for Europe’s biggest economy and a so-called “Dexit” would be the worst possible scenario for export-dependent Germany, Lindner said Monday in an interview with Bloomberg TV in London.
“It would ruin our economy,” he added. “This is why we have to tell people, OK, you maybe are not in line with government policies but this is no reason for changing the complete system and for changing what our wealth is based on.”
Leading politicians and business executives have repeatedly warned that the AfD’s vision of a German version of Brexit would be disastrous for economic activity.
AfD Co-leader Alice Weidel called Brexit a “model for Germany” in an interview with the Finance Times last month and proposed holding a referendum to “let the people decide, just as Britain did.”
The anti-immigrant party has been able to tap into voter anger to rise to second place behind the main opposition conservatives in opinion polls in recent months. Chancellor Olaf Scholz’s three—party alliance of his Social Democrats, the Greens and the Free Democrats has seen its support plunge.
Lindner’s Free Democrats are under particular pressure as polls suggest they’re in danger of missing the 5% threshold for getting into parliament at the next election due in the fall of 2025.
Lindner conceded that Germany’s competitiveness is “not as good as it should be” and said he’s preparing proposals over the next couple of months on how best to boost it, “especially in the financial sector.”
Read More: German Coalition Punished in Repeat of 2021 Election in Berlin
He said he’s “very optimistic” about the economic outlook and expects an upturn “very soon” — as long as the government manages to improve the framework for doing business.
Germany was the only Group of Seven economy to shrink last year, and an increasing number of economists — including at the country’s two largest lenders Deutsche Bank and Commerzbank — predict another contraction for 2024.
The outlook for the following years isn’t much better, with the government’s council of economic advisers pegging potential growth at just 0.4%.
©2024 Bloomberg L.P.
