German Chancellor Friedrich Merz on Monday doubled down on his push to push through unpopular reforms in Europe’s largest economy after a far-right party won a landslide victory in a regional election, with a very good chance of forming the first far-right state government since the Nazi era. Merz said his center-right Christian Democratic Union was “deeply shocked” by what he called “the most serious electoral defeat the CDU has had in years, in decades.” But he indicated he is determined to remain in charge, saying that “surrendering is not an option for me.” The anti-immigration, Russia-friendly Alternative for Germany, or AfD, fell short of a majority in Sunday’s vote in Saxony-Anhalt, a small eastern state that gained enormous prominence as the AfD aimed for power there. Its regional branch is one of several considered a far-right group verified by Germany’s domestic intelligence agency. Merz says Germany will stick to its values and Russia’s stance. The AfD victory is a major distraction for Germany and Merz at a time when Europe faces several challenges, including Russia’s continued aggression against Ukraine, an alleged sabotage campaign targeting NATO countries and difficult dealings with US President Donald Trump. Merz said he wanted to reassure Germany’s allies that “our institutions are resilient and stable” and that the country will stick to its values and constitution after the AfD victory. “We know that Germany has a special responsibility because of its history,” he said. He vowed that he will not “move one millimeter from my fundamental conviction that we must defend our freedom against Russia now.” Germany is one of Ukraine’s biggest supporters in its war against Russia. Due to Germany’s Nazi past, far-right movements have always come under heavy scrutiny. Other major parties have refused to cooperate with the AfD on the so-called “firewall”. Unlike many countries in Europe, modern Germany has not yet had a far-right or far-right populist party leading a national, state or major city government. Determination to continue ‘uninterrupted’ reforms Get the latest national news Get the latest Canadian news delivered to your inbox as it happens so you don’t miss any breaking news. Merz promised to weaken the AfD before coming to power last year, but has instead seen the party’s support rise. The ruling coalition of his Union bloc and the centre-left Social Democrats has gained a reputation for bickering and has become deeply unpopular, as has Merz himself. The government has struggled to persuade voters that it can advance the country’s chronically sluggish economy through potentially painful reforms, including to the pension system. But Merz insisted Monday that “we need fundamental reforms in Germany.” He said it is about “nothing less than the future of our country and the opportunities of our children and grandchildren, and we must not waste them. That is why my determination to continue the course of reform is unwavering.” He recognized the need to “justify them, not only rationally but also emotionally.” Germany faces two more regional elections on September 20, in Berlin and in another eastern state, Mecklenburg-Vorpommern, where the AfD is also strong. AfD seeks a path to power in Saxony-Anhalt. As Merz continues to reject resistance to reforms, the AfD, whose victory was applauded by far-right parties across Europe, faces potentially difficult situations. maneuvering to put his candidate for governor in Saxony-Anhalt, Ulrich Siegmund, in power. Siegmund had pushed for an absolute majority in the state legislature that would allow the AfD to escape rejection by traditional parties. After the vote, he noted that the AfD is still unwilling to make concessions, insisting that “we do not want to be like the parties that were punished” by breaking pre-election promises. He also rejected the idea of a minority government, but said he has “a very clear mandate to form the government” and that his party would reach out to other groups in the legislature and even individual lawmakers. “Our goal now is to build precisely this stable majority in the coming days and weeks,” he said. More about the world More videos The AfD is three seats short of a majority. It could approach the far-left BSW party, which won five seats. The two parties share a pro-Russia course and oppose immigration, but disagree on other issues. BSW has criticized the “firewall” against the AfD and signaled again on Monday that it could allow Siegmund to become governor by abstaining from a possible third round of voting for a new governor in the state legislature, in which a simple majority would be sufficient. It is also possible that newly elected lawmakers from other parties defected to the AfD, which would only need three to break ranks. Forming a government that excludes the AfD would only be possible if all other parties in the legislature worked together. However, an alliance of any kind between these parties is unlikely and would be prone to instability. Jubilation of Musk and right-wing populists Billionaire Elon Musk congratulated the party on its electoral victory with a “Well done!” on his online platform X. Siegmund immediately thanked him for his support. Trump posted a screenshot of the election screening on his Truth Social platform without any comment. Russian presidential envoy Kirill Dmitriev in X described the election result as a “historic victory for the pragmatic AfD that will put migration under control.” Dmitriev also said that “AfD will restore Germany and Europe by leading the common-sense approach that pro-immigrant, Biden-style EU politicians tried to eradicate.” Leaders of right-wing populist parties in Spain and Portugal also congratulated the AfD. Story continues below advertisement The Polish Prime Minister was critical. “In Poland, only idiots or traitors could rejoice in the AfD’s victory in Germany,” Donald Tusk wrote in Among voters who did not support the AfD, the reaction was one of deep dismay. Horst Walter Boerner, an 86-year-old man from Magdeburg born during World War II, expressed surprise. “It’s terrible for us,” he said, calling the election “driven by fear.” He said the AfD’s victory was foreseeable given the crowds it attracted during the campaign, but said “this should never have happened.” Associated Press writers Claudia Ciobanu in Warsaw, Poland, and Kerstin Sopke in Magdeburg, Germany, contributed to this report.