Germany's Merz shocked by far-right state election triumph but doubles down on unpopular reforms

German Chancellor Friedrich Merz faced a stunning setback after the far-right Alternative for Germany (AfD) secured a commanding victory in the regional election in Saxony-Anhalt. Despite the loss, Merz reaffirmed his commitment to continuing controversial economic reforms aimed at revitalizing Germany’s struggling economy. The AfD, known for its anti-immigration stance and pro-Russian policies, captured nearly 44% of the vote, falling just short of an outright majority in the eastern state. This result marks a significant challenge for Merz, whose center-right Christian Democratic Union (CDU) suffered its most severe electoral defeat in decades. Merz described the outcome as “the most serious election defeat that the CDU has had for years, for decades.” However, he emphasized that stepping down was not an option. “Giving up is not an option for me,” he stated during a press conference following a meeting of the CDU’s federal executive committee. The AfD’s regional branch, which is classified as a right-wing extremist group by Germany’s domestic intelligence agency, is now poised to form the first far-right state government since the Nazi era. The AfD’s rise comes amid a challenging geopolitical landscape for Germany. The country is grappling with ongoing Russian aggression in Ukraine, a suspected sabotage campaign targeting NATO nations, and strained relations with U.S. President Donald Trump. Merz sought to reassure both domestic and international allies that Germany’s institutions remain resilient and committed to its constitutional principles. “We know that Germany carries special responsibility because of its history,” he said, emphasizing the nation’s resolve to uphold its democratic values. Merz reiterated his firm stance against Russia, vowing not to “budge one millimeter from my fundamental conviction that we must defend our freedom against Russia now.” Germany remains one of the strongest supporters of Ukraine in its conflict with Russia. The chancellor also noted that the AfD’s pro-Russian leanings would not influence Germany’s foreign policy. “If we stop supporting Ukraine, the situation will not improve by tomorrow; it will only get worse,” he warned. Despite the electoral loss, Merz maintained that the need for economic reforms remains urgent. His governing coalition, composed of the CDU and the center-left Social Democrats, has been criticized for its lack of unity and effectiveness in addressing Germany’s stagnant economy. Merz argued that these reforms, ranging from changes to the pension system to broader structural adjustments, are critical for securing the future of the country. “We need fundamental reforms in Germany,” he said. “It is a question of nothing less than the future of our country and the opportunities of our children and grandchildren.” Merz acknowledged the need to justify these reforms not only logically but also emotionally. “We must reach people more effectively, in the full range of their emotions,” he admitted, recognizing that his personal poll ratings might have contributed to the CDU’s poor showing. The AfD’s candidate, Ulrich Siegmund, a former fragrance salesman turned politician, capitalized on voter frustrations in the former East Germany, portraying Merz as a “very good campaigner” for the far-right party. The AfD’s success has raised concerns across Europe, particularly in neighboring countries such as France and Poland. While the party did not secure an outright majority in Saxony-Anhalt, it is expected to push for alliances and influence within the state legislature. Meanwhile, Germany faces additional regional elections on September 20 in Berlin and Mecklenburg-Western Pomerania, where the AfD also holds considerable support. Small and medium-sized enterprises, often referred to as the Mittelstand, have voiced growing concerns over the political climate and urged the federal government to accelerate long-promised reforms to stimulate economic growth. These businesses form the backbone of Germany’s economy and are crucial to its recovery efforts. Merz’s response to the election results underscores the deepening divide within German politics. As the country navigates complex domestic and international challenges, the chancellor’s determination to pursue his reform agenda appears unshaken, despite the setbacks.