Overview
- U.S. officials announced a nearly $5 million State Department grants program earlier this week that aims to fund civil-society groups in Europe and has drawn criticism for language seen as sympathetic to nationalist causes.
- At his summer press conference on Wednesday, Chancellor Friedrich Merz publicly urged the U.S. government and U.S.-linked institutions not to interfere in German elections and reminded attendees that German law bans foreign financing of political parties.
- Merz directly addressed supporters of the far-right Alternative for Germany by asking them to judge his government on its record and to look beyond social media for information.
- Polls show the AfD leading in key eastern states and could win an absolute majority in Saxony-Anhalt in September, a result that would make coalition formation difficult for the CDU even if the AfD falls short.
- Merz also used the forum to press for EU dialogue with China over currency concerns and to flag investor questions about Volkswagen, underscoring that foreign-policy and economic issues are tied to the domestic political fight.