
German Chancellor Friedrich Merz and the Minister-President of Saxony-Anhalt (CDU)
INTRODUCTION
New elections to replace reactionary authorities in the state of Saxony-Anhalt are taking place against the backdrop of the failure of the government led by Chancellor Friedrich Merz—a coalition between the CDU/CSU (the "Christian Democrats") and the Social Democratic Party (SPD). Within this governing coalition, the junior partner—the SPD—acts as the partner "dissatisfied" with the social and labor policies of the coalition majority, even though all those anti-popular measures—as well as others that restrict and abolish rights—were agreed upon in the "Coalition Agreement."
The government's measures shift the burden of the crisis onto the shoulders of the workers to facilitate renewed capital accumulation and greater concentration and centralization of capital within the financial oligarchy. This is accompanied by a further shift toward reactionism in the State and the legal system.
The result is growing discontent among the working class and the majority of the population—directed both against the government leading this imperialist bourgeois state (controlled by the financial oligarchy) and against the governments of the federal states (Länder).
The election results reflect voter protest and dissatisfaction with the system; this allows even more reactionary representatives of the system to present themselves as "anti-establishment" and capitalize on a vote that, according to polls in Saxony-Anhalt, largely favors Alternative for Germany (AfD), a fascist party.
SAXONY-ANHALT STATE ELECTIONS AND POLITICAL CRISIS
- The elections in Saxony-Anhalt will be held on September 6. In an ARD poll conducted last Wednesday, the CDU—with its lead candidate Schulze—ranked second with 22%, trailing far behind the AfD, which polled at 42%. The AfD presents itself as the party defending German culture, opposing immigration, and advocating for cheap energy. ...importing gas and oil from Russia, etc. We quote part of an article from the World Politics and Economy section of the magazine *WirtschaftsWoche * (economic week), which states:
- "Ulrich Siegmud, the 35-year-old lead AfD candidate in the Saxony-Anhalt elections, is a former small business owner... his supporters take selfies with him and shout 'East, East, East Germany'… The facade... The election campaign he leads is perfectly staged and choreographed... The party behind this public face is undoubtedly right-wing extremist (a term used to avoid calling it fascist—our note). Crowding around Siegmund are former members of the now-banned 'Homeland-Loyal German Youth' (neo-Nazis—our note). Many people support Siegmund—both in spite of and precisely because of this. He has 800,000 followers on TikTok and just over 580,000 on Instagram. These figures demonstrate the professionalism with which the AfD markets its politics... The goal is to win an absolute majority—the first AfD government in a federal state.
Siegmund no longer really needs the traditional platform of the Chamber of Commerce and Industry... [He uses] Simson-brand motorcycles from the GDR era, and a podcast titled 'We Are Not Right-Wing Extremists'—one episode of which has reached millions—where he declares: 'We are extremists for rights.'
(...) Their platform is 250 pages long. From the very first pages, it reads like a feverish manifesto. There are only a few lines regarding economic policy, starting on page 141. Just a few sentences: cutting red tape, supporting small and medium-sized enterprises, eliminating taxes on product packaging, a somewhat hidden criticism of public broadcasting, generous promises of financial handouts, and the aim of restarting the Nord Stream gas pipeline (to bring in gas from Russia—our note)."
The magazine *WirtschaftsWoche* sought to speak with Siegmund about his economic policy plans, but the inquiry went unanswered (we observed the same thing during this morning's interview with ARD television in Magdeburg, the state capital—our note)… The Leibniz Institute for Economic Research Halle has determined that the plan faces a funding shortfall of 2.2 billion euros. It describes it as "not serious" (WirtschaftsWoche No. 36, August 28, 2026).
We have quoted the preceding paragraphs from the magazine to demonstrate that the AfD’s electoral platform offers nothing novel or particularly impactful that would explain the growing support it enjoys in the polls—aside from the familiar electoral demagoguery typical of all reactionary campaigns. It is a platform filled with promises, peddled with a feverish intensity designed to manipulate the masses' basest and most backward instincts, thereby exploiting the anger and discontent prevalent during crises like the current one. Its goal is simply to win elections.
- The CDU—hitherto the leading party in Saxony-Anhalt—and Chancellor Merz are seeking to regain electoral ground
- use of the "friend-versus-enemy" electoral tactic -
- The CDU, currently the leading party in Saxony-Anhalt, is trying to regain ground and gain enough points to continue governing the state, potentially by bringing the SPD and the Greens on board as coalition partners. An electoral debacle here—and in the two subsequent elections in East Germany—would jeopardize its chances of securing the government in the 2029 federal elections. Moreover, failure in these three contests could lead to the collapse of its current coalition government.
- The CDU has stepped up its campaign on all fronts, employing a "friend-versus-enemy" electoral tactic that divides the electorate into those who stand with Germany and those who stand with Russia and Putin. In other words, those who stand with Germany are expected to vote for the CDU or another "friendly" party—such as the SPD or the Greens—while those voting for the AfD or "revisionist" parties like Die Linke (DL) or the BSW are portrayed as siding with Russia and Putin.
- The "Summer Interview" held on August 30, 2026, in Berlin—broadcast on the ARD channel—with Federal Chancellor and CDU party leader Friedrich Merz focused on the complex scenarios likely to emerge from the elections in Saxony-Anhalt. And a question was also raised regarding the incident that took place in Leipzig four weeks ago. - Chancellor Friedrich Merz (CDU) announced the response to the attempted explosive attack at Leipzig/Halle Airport: "This will also be finalized in the coming days with the European Union and NATO partners," he stated in an ARD interview. There will be a reaction from Germany, but it will not come as a surprise to partners.
A drone rigged with explosives was discovered in early August within the airport's security zone, amidst Ukrainian cargo planes. Experts suspect the incident was a hybrid attack by Russia.
- August 31, 2026. In Saxony-Anhalt, CDU lead candidate Schulze is distancing himself from Chancellor Merz and federal policy during the election campaign. Nevertheless, a joint appearance took place. Merz used the occasion to once again issue a clear warning regarding the AfD.
- Merz expressed confidence that a turnaround would occur in the final week before the election. Much is at stake, "but I am confident that Sven Schulze and the CDU will achieve a good result on Sunday," Merz declared in Quedlinburg.
- At the same time, Merz maintains his stance labeling the AfD and the (revisionist) Left Party as "radicals." "We will do everything possible to prevent Saxony-Anhalt from falling into the hands of radicals."
- On September 1, 2026, at 5:45 PM, it was revealed that, according to the German government, the failed drone attack on Leipzig/Halle Airport was carried out on orders from Russia. Federal Interior Minister Alexander Dobrindt (CSU) stated this in Berlin on Tuesday. Federal Foreign Minister Johann Wadephul (CDU) announced strong measures against Russia.
- The announcement blaming Russia for the attack, along with the diplomatic measures taken by the German government, has sparked a major diplomatic and media scandal. It is no coincidence that this occurred in the midst of the final week of the election campaign... In Saxony-Anhalt, the close ties between AfD party leaders—and especially the lead candidate—and Russia and Putin are well known.
- This situation has intensified the diplomatic conflict with Russia. Given the background, this development is impacting the election campaign during its crucial final week. Journalists are pressing candidates and voters to take a stand: where do they stand?
ON THE POLITICAL CRISIS IN THE GOVERNMENT LED BY MERZ (CDU)
- The root of the crisis at the top is the recurring economic crisis -
The political crisis within the government led by Merz—who has held the office of Federal Chancellor for just over a year—is not limited to the government itself; it encompasses the other parties and institutions of that formal Republic—the bourgeois dictatorship directed by the financial oligarchy that constitutes the German imperialist state. The root of this crisis at the top is the recurring economic crisis of the last 12 years. However, in the specific case of Chancellor Merz’s government, this crisis is clearly manifested in economic stagnation—with growth barely exceeding 0.5%—persisting for three consecutive years. Economic institutes now forecast an upward revision of growth projections for the current year—moving from 0.8% to 1.4% or 1.3%—driven not by private capital investment in the economy, but by public investment in infrastructure and armaments, and the militarization of the economy.
Naturally, the cause of the current crisis lies in advanced parasitism or imperialist decay. This is evidenced by Germany’s status as the world's third-largest economic power, characterized by growing capital exports; this capital is not invested domestically but is instead deployed to exploit the entire world in pursuit of imperialist super-profits, amidst a dynamic of both collusion and contention with other imperialist powers. It is a fact that the underlying cause is not to be found in high energy prices, taxes, or the excessive regulation and bureaucracy facing businesses.
While the aforementioned factors may hold true for small and medium-sized enterprises—which are also affected by the offshoring of production facilities by large monopoly corporations— Rather, the reason for the country's economic decline is that German financial capital is being invested in China or in cutting-edge sectors like AI in the US—in partnership with US financial capital (through equity participation)—while labor-intensive industries, which are less competitive and less productive, are shifting to semi-colonies in Eastern Europe, Brazil, and Mexico. All of this is driven by the economic policies of the State and the government currently in power. We must not forget that this is state-monopoly capitalism.
POLITICAL ECONOMY AND ECONOMIC POLICY AMIDST THE CRISIS
- STATE-MONOPOLY CAPITALISM, ECONOMIC CRISIS, INDEBTEDNESS, AND THE MILITARIZATION OF THE ECONOMY:
“Finance Minister Klingbeil also justifies the increase in debt by citing the threat posed by Russia. ‘You cannot defend yourself against Putin with a balanced budget,’ the SPD leader declared on Sunday evening during a summer interview with the broadcaster ARD.”
Following last year’s debt package—which required a constitutional amendment—a new package is now set to follow, aimed at further militarizing the economy and the country; a move that is also inextricably linked to the escalating tensions with Russia. Let’s look at the information regarding the new debt packag:
“The new debt amounts to more than €200 billion. The Finance Minister projects net borrowing of €118.7 billion for the general budget. €98 billion has been allocated for the current fiscal year. However, that is not all. The federal government is taking on new loans through special funds for infrastructure and climate neutrality, as well as for the armed forces. In total, the state plans to incur new debt exceeding €200 billion in 2027. This figure is expected to rise further in the coming years. The federal government projects new borrowing of €219.5 billion for 2030. The coalition intends to invest a large portion of these funds. €117.5 billion has been budgeted for this purpose next year. Among other things, dilapidated bridges and roads will be renovated, and the railway network modernized. Defense spending is increasing by a third. The federal government is making a particularly large outlay for defense. In the 2027 main budget, around €109.7 billion has been allocated for this purpose—one-third more than in the 2026 budget. The federal government plans to allocate another €11.6 billion to support Ukraine in its war against Russia. Klingbeil also justifies the increased debt by citing the threat posed by Russia. 'You cannot defend yourself against Putin with a balanced budget,' the SPD leader stated on Sunday evening during a summer interview with the broadcaster ARD. At the same time, the weakening economy is complicating the Finance Minister's task. Due to the war with Iran, the federal government had to lower its growth forecasts; consequently, Klingbeil anticipates lower tax revenues than initially projected.” (July 6, 2026)
Following the Following the cabinet decision, the draft budget now moves to the Bundestag. Parliament is expected to approve it in late November. Until then, the plans are likely to undergo significant changes.
VW: AN EXAMPLE OF THE PARASITISM AND DECAY OF GERMAN IMPERIALISM
- The Automotive Industry and changes in production -
. Capital export and imperialist super-profits -
Volkswagen Restructuring: What is VW doing differently in China? Updated: August 25, 2026 • 10:50 Volkswagen is undergoing a corporate restructuring.
“ Possible changes are already taking shape in China. There, VW produces relatively affordable electric cars. But is this model suitable for Germany as well?
By Jörg Endriss, ARD Beijing
VW’s latest model on the Chinese market is the ID.Era 5 S, a plug-in hybrid featuring the most advanced driver-assistance system as standard. This sedan—similar in size to the VW Passat—is priced at the equivalent of just under €12,000 in China, roughly half the price of the Polo in Germany. This year alone, VW will launch around 20 new or updated models for the Chinese market—manufactured and developed in China, with many based on designs from Chinese partners.
Meanwhile, at VW’s main plant in Wolfsburg... Crisis at Volkswagen: Employees accuse management of "disastrous communication." In an internal survey, VW employees sharply criticize the management board's communication. Plus: Cost-cutting.
"Anyone wanting to compete here has to survive a fierce price war," declared CEO Oliver Blume at the Beijing Auto Show in the spring. "Thanks to initiatives over the past few years, we have managed to significantly reduce our costs—by between 40 and 50 percent."
But how is this possible? An old plant in Nanjing was closed, and a modern one was built in Anhui province, featuring a development center modeled on Chinese practices.
The heart of connected cars: Young Chinese software engineers write code right next to testing stations, allowing for the immediate reporting of errors. A new car is expected to be market-ready in just 18 months—half the time it used to take. Furthermore, an engineer's salary in China is up to two-thirds lower than in Germany.
Far East Strategy: How VW plans to reinvent itself in China. Driven by competitive pressure, the automaker is doing many things differently in the People's Republic of China compared to its home market. Few jobs: The factory is located near the development center. Hardly any people are in sight. Automated robotic carts move through the production halls; over 1,000 robots weld car bodies or fuse the chassis platform to the body. Around 150 workers are still employed here, primarily in quality control. Typical starting wages for workers in the sector amount to about 450 euros a month—assuming they are still needed at all. "We have an automation level of nearly 95%; there are practically no manual jobs left," states Thomas Schinke, manager of Volkswagen Anhui.
The automotive industry is seeking to cut costs, with serious consequences. Background – July 24, 2026 – Automotive industry in crisis: Cost-cutting measures affecting entire regions. German automakers are facing the deepest crisis in their history. Read more. Intense Price War
To date, VW has produced vehicles solely for the Chinese market and select export markets in Asia, finding itself locked in a fierce price war with local Chinese manufacturers. Production conditions in Germany differ, primarily due to wage disparities. Nevertheless, Chinese manufacturers are making significant inroads into the German market as well. The government of the state of Lower Saxony is now proposing that VW cars developed in China be manufactured in Germany—a move also considered feasible by Stefan Bratzel of the Center of Automotive Management in Bergisch Gladbach. "I believe that leveraging Volkswagen's development capabilities in China to create vehicles cost-effectively, and subsequently producing them in Europe, is undoubtedly a viable option. In the medium to long term, of course, it must be possible to build similar capabilities in Germany, following a model akin to the one used in China." VW's experience in China demonstrates the pressure the automotive industry is facing.