Key facts
- The AfD secured 43.8% of the vote in Saxony-Anhalt, falling short of an outright majority.
- The AfD's victory has created tensions within Chancellor Friedrich Merz's coalition government.
- SPD partners are demanding changes to planned economic and social reforms.
- The AfD's 100-day plan includes media reform and increased use of the German flag.
- Economists express concern that the AfD win could negatively impact foreign investment and skilled labor.
Germany's far-right Alternative for Germany (AfD) party is seeking coalition talks after achieving a significant electoral victory in the eastern state of Saxony-Anhalt, winning 43.8% of the vote and falling just short of an outright majority. This result has reopened divisions within Chancellor Friedrich Merz's federal government, with his center-left SPD coalition partners demanding that planned economic and social reforms be softened.
The AfD's surge reflects voter frustration over bureaucracy, the rising cost of living, and economic insecurity. While Merz insists that reforms, including raising the pension age and tightening sick pay rules, must proceed, the SPD is pushing for discussions on changes to pension and care reform proposals, as well as a re-evaluation of the 2027 budget and inheritance and wealth taxes.
Analysts suggest these calls could delay or even derail the reforms, potentially increasing tensions within the coalition. The AfD's rise forces mainstream parties to cooperate to keep the far-right out of power, but internal disagreements over the election's meaning—with the SPD blaming spending cuts and the CDU citing high taxes—further complicate the political landscape.
Despite Saxony-Anhalt's small share of national GDP, economists worry the AfD victory could deter foreign investment and skilled workers, and signal a broader decline in support for European integration and open markets. Pro-reform voices argue for significant structural changes to Germany's economic model to address challenges posed by Chinese manufacturing and the loss of cheap Russian energy, warning that failure to adapt could lead to further AfD gains.