Far-right influence

Hello from the FT newsroom. Last weekend, for the first time in post-war history, a far-right party won a regional election in Germany. The Alternative for Germany party came out on top in the eastern state of Thuringia, and notched a close second in neighbouring Saxony. While the party remains some distance from real institutional power, it is in a position to wield a pernicious influence, writes the FT’s editorial board.

The results are disastrous for Chancellor Olaf Scholz. The vote share for each of the parties in his coalition slumped, as voters’ frustration with high inflation, economic stagnation and political squabbling was channelled into the ballot box. Germany’s centrists will now have to make some difficult decisions.

My choices this week

1. UK regulators are set to dramatically scale back the maximum losses that banks are forced to cover in fraud cases. An earlier plan would have compelled banks and payments companies to reimburse victims up to ￡415,000 of losses; the FT revealed that this will be slashed to just ￡85,000.
2. With globalisation on the retreat, nationalism is reshaping the world’s economy. In the first instalment of our series on the new economic nationalism, we look at how security concerns are altering policy in the US. (Free to read)
3. Russia has built a covert trade channel with India, secretly acquiring sensitive goods for the war effort through channels hidden from western governments. The plans were outlined in leaked files from Moscow. To read this story for free, download the FT Edit app featuring eight new stories daily, handpicked by FT editors.
4. Small European companies are missing out. Compared with their US counterparts, they face a very hostile environment when trying to access a market for corporate bonds, writes our markets columnist Katie Martin.
5. A government promise of 1.5mn new houses is all well and good, but who will build the parks to go with them? In his Nature Therapy column, Jonathan Guthrie channels Parks and Recreation to make the case for more urban green spaces.
6. Fans are enjoying the final few days of the summer of sport, as the Paris 2024 Paralympic Games continues this week. Tej Parikh examines why India has done so badly. (Free to read)

Thanks for reading,

Patrick Jenkins, FT deputy editor

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