Lower Thirds: 

0:03 	Report by Matthew Moore
0:20	Franziska Ertl, Market trader
0:45	Sven Maakl, Market trader
1:38	Christof Günther, CEO InfraLeuna
2:28	Lars Klingbeil, German Finance minister ( Date: May, 28)
2:49	Johannes Hillje, Political scientist

((Anmod vorschlag: For Germany, the fallout from the Iran war has been considerable. The closure of the Strait of Hormuz sent energy prices up, denting the country’s already fragile economic recovery. Temporary relief measures announced by the government have done little to calm the public's frustrations – approval ratings are at historical lows. Meanwhile, the far-right AfD party has seen its popularity soar. Political Correspondent Matthew Moore has been to Merseburg in the eastern state of Saxony-Anhalt where the AfD is on course to win upcoming regional elections.)) 

 Script:

In good times, a weekly market like this might have a dozen stalls on it.  
 
These are not good times.  

Traders say they’re in a fight to survive.  

A fight that’s only got harder since the Iran war began. 

+++Franziska Ertl, Market trader+++ 
“I know a food truck operator, he doesn’t come anymore either. It’s just too far away. With diesel prices like these, it’s no longer possible to make a profit."  

Reporter: What does that do to someone who’s the second generation in this business? 

Trader: It’s scary because we don’t know what’s going to happen next.” 

For Sven Maakl business is steady.

In part because he’s decided not to pass on costs to customers. 

+++Sven Maakl, Market trader+++ 
“And people don't have any extra money to buy lunch or groceries because of that. That's why we're doing this—we're not raising our prices.” 

But that means he’s tightening this belt. 

+++Sven Maakl, Market trader++ 
“I'm cutting back on a lot of things in my personal life right now. That's just how it is. So I'm skipping my vacation this year.  

Really?  

Yeah, I'd rather stay home and take care of my chickens.”  

((leuna chemical gvs)) 

Nearby... Leuna Chemical hub.  

Perhaps no single place in Germany is more impacted by the war in Iran than this one.  

15,000 workers. 

100 companies making products that underpin the economy. 

Soaps, plastics, oils and gases. 

Energy intensive.  

Sensitive to erratic price hikes and the closure of the Strait of Hormuz that limits the supply of products like sulphur. 

+++Christof Günther, CEO InfraLeuna+++ 

“The mood in the industry is complete down.” 

The man overseeing it all is blunt.  

+++Christof Günther, CEO InfraLeuna+++ 

If things go well, we’ll be able to pass on the price increases. This will trigger a surge in inflation throughout the entire value chain, starting with raw materials, through the chemical industry, and on to the manufacturing sector. This will fuel inflation, but it is still the better option. Because if we are unable to pass on the higher costs in our prices, then plants will have to be shut down. 

 
Such forecasts are nothing new for ministers in Berlin.  

Growth for this year has been cut in half to 0.5% 

++++Lars Klingbeil, Finance minister+++ Date: May, 28
The conflicts in Iran, the war in Ukraine, US tariffs, and competition with China, all of these pose enormous challenges for us." 

Since the start of the war, one party has seen its support grow: the far-right AfD. 

((poll gfx)) 
Polls indicate they’re now the most popular party.  

A historic high. 

++++Johannes Hillje, Political scientist+++ 
The AfD is growing because social anxieties were growing over the past months in Germany, and the AfD is very good in turning anxieties into rage against the government. 

The AfD is hoping to turn that anxiety into a first state election win here in September.  

Despite their popularity, some here not convinced that they have the answers. 

Woman: “Personally, I just can't understand how anyone could like this party or vote for it. If you take a look at their platform, it's a step backward. Ten kilometers back.” 

Woman: “In my view, they’re nothing more than pied pipers.” 

Man:   “They're doing it to send politicians a message, and they still haven't got it. They haven't grasped what's really at stake in Germany.”  

From market squares to heavy industry. 
 
The war may feel remote. But its impact certainly not.  

And it’s testing Germany’s economic and political resilience.