Bundesbank President Nagel expresses concern over far-right rise in Europe

German Bundesbank President Joachim Nagel expressed concern over the rise of far-right parties in Europe following the election success of the Alternative for Germany (AfD) party in the eastern state of Saxony-Anhalt.

Speaking at a European Central Bank (ECB) press conference in Berlin, Nagel questioned the impact of this trend on society and shared values, stating that some of the far-right concepts are economically self-defeating. He emphasized that these developments would definitely not help attract foreign investors, who would likely shy away from doing business in the country.

The AfD surged into first place in Saxony-Anhalt on a platform advocating for leaving the European Union, curbing migration, and restoring ties with Moscow. Its success sent a warning to European leaders struggling with slow economic growth and disillusionment with mainstream politics. The AfD describes the euro as a failed system and calls for Germany to leave the common currency.

In response, ECB President Christine Lagarde stated that the euro has never been as popular, speaking after the central bank raised interest rates for the second time this year. According to the spring Eurobarometer survey, 82% of respondents in the euro zone and 74% in the European Union support the common currency, marking the highest support level for the EU since the euro's introduction in 2002.