AfD’s Saxony-Anhalt win sparks reform fears; party eyes Musk cooperation

The AfD's victory in Saxony-Anhalt's state election has prompted warnings from German industry that federal reform efforts must not stall, while the party plans cooperation with Tesla CEO Elon Musk and a special economic zone for eastern Germany. Business associations and economists urged the federal government to continue its reform agenda despite the election outcome, with the BDI and VDMA calling the result alarming and a mandate for action. However, economist Joachim Ragnitz fears reforms will be delayed, worsening the crisis. AfD leader Ulrich Siegmund dismissed predictions that his party's governance would hurt investment, citing interest from companies and a congratulatory message from Musk. The party also renewed demands for a special economic zone, a concept Chancellor Friedrich Merz has shown openness to discussing.