Germany's anti-euro party eyes breakthrough in state vote

(DRESDEN) - Germany's fledgling anti-euro party, which rejects Chancellor Angela Merkel's handling of the economy, hopes to gain a political foothold Sunday by winning its first seats in a state parliament.

Voters in Saxony kick off the first of three elections in ex-communist eastern states in a fortnight as Germany gears up to mark 25 years since the Berlin Wall fell.

Formed in early 2013, the Alternative for Germany (AfD) narrowly missed entering the German parliament in last September's general election but made its debut at the European Parliament in May.

Analysts say the party, which wants the orderly dissolution of the euro, must broaden its appeal from a single issue to appear relevant at a regional level.

Merkel positioned herself as the currency's champion during the eurozone debt crisis and Germany financed the lion's share of bailouts for stricken nations but demanded strict austerity measures in exchange.

A recent poll for ARD public TV suggested the party would win around seven percent of the vote, clearing the threshold to enter the Saxony parliament in Dresden and providing momentum for votes in neighbouring Thuringia and Brandenburg on September 14.

AfD lead candidate Frauke Petry, 39, a trained chemist and mother of four, who has already raised her profile as a national party spokeswoman, said the Saxony ballot was "decisive" and voiced confidence.

Merkel's Christian Democrats (CDU) have been in power in Saxony, which borders Poland and the Czech Republic, since Germany's 1990 reunification and are expected to remain the biggest party but will likely need a new coalition partner.

Saxony's CDU state premier Stanislaw Tillich has avoided ruling out any possible tie-up with the AfD but such an alliance seems unlikely as it would flout the party line.

Merkel stressed again Sunday that the CDU leadership opposed teaming up with the AfD, telling ARD in an interview that "the AfD, as a coalition partner, is out of the question for us".

- 'Taboo issues' -

Some 3.4 million people are eligible to vote after a campaign dominated by a looming teacher shortage, policing cuts and concern over cross-border crime such as car thefts and drug use.

"We're the party which simply addresses many taboo issues which are no longer broached by other parties for fear of scaring people off," Petry told AFP at a rally in Dresden city centre this week.

"In Germany, like in other European countries, we have no discussion about an orderly migration policy and that's a problem that relates to the whole of Europe," she said.

Petry firmly rejected claims that the AfD had flirted with the far-right, but a poll for Stern magazine and RTL TV this week showed 39 percent of people viewed the party as having settled "on the far-right fringe".

Saxony is one of two regional parliaments to include members of the far-right, anti-immigrant National Democratic Party of Germany but polls suggest its re-entry after Sunday could be a close call.

While the CDU is expected to win around 40 percent, its current coalition allies, the pro-business Free Democrats (FDP), face a similar fate as in last year's general election when they failed to win enough votes and were kicked out of parliament.

Werner Patzelt, of the Dresden Institute for Political Science, said the AfD's success in establishing itself as a political force nationally after its "important test" in Saxony hinged more on other parties' reactions.

Should other parties also take a tougher line in defending German national interests in Europe, then the "death knell will soon sound for the AfD", he told AFP.

Its support comes mostly from traditional non-voters and the FDP and CDU camps, he said.

Henning Richter, 58, a shopkeeper, who attended the small AfD rally, said he was impressed by the party's support for referendums to enable taxpayers to have a say on where German money goes.

"I see the chance of having subjects close to one's heart no longer just raised but also acted on," he said.