What are the implications of AfD’s electoral rise for Germany and Europe?

The Alternative for Germany (AfD) finished on top in the regional elections in Saxony-Anhalt with about 44% of the vote, nearing the status of being the first far-right party to lead a German state since World War II. The party has gained support from voters' economic concerns and rising anger over immigration. However, Germany's domestic intelligence agency has classified its Saxony-Anhalt branch as a right-wing extremist group, a label the AfD has rejected.