Merz reaches out to AfD voters before pivotal German regional election

BERLIN, July 15 (Reuters) – German Chancellor Friedrich Merz appealed to supporters of the far-right Alternative for Germany (AfD) to judge his government on its merits ahead of an election in September that could propel the AfD to power at regional level for the first time.

“… I am addressing AfD voters as well, telling them: Look closely,” Merz said, at a summer press conference, urging voters to look beyond social media for their information. “We are striving to preserve this country’s freedom and peace. We are striving to improve the economic situation.”

He also said European Union dialogue with China was urgently needed to address what he said was China’s artificially undervalued currency.

In a fracturing domestic political landscape, Merz’s conservatives trail the AfD in national polls and face the prospect of the AfD winning a majority and possibly taking power in the eastern state of Saxony-Anhalt in September.

In a 90-minute press conference in Berlin that was light on new announcements, Merz touted his government’s record in driving reforms to gee up growth in Europe’s largest economy but repeatedly faced questions about the AfD.

“We are doing what we are doing today for our country, and we are doing it above all to give our children and grandchildren the chance to live just as well, as freely, and as peacefully as we have had the great privilege of doing in Germany over the past 70, 75, or 80 years,” he said.

Merz reiterated that his party would not break the so-called “firewall” – a taboo on mainstream parties forming coalitions or cooperating with the AfD.

He also played down the prospect of Germany further loosening its debt rules, as this would need support from opposition lawmakers, which could include the AfD or the hard-left Linke party.

Merz also said Chinese investors taking a stake in troubled carmaker Volkswagen would be a last resort and up to the company itself to decide.

(Reporting by Andreas Rinke, Miranda Murray, Maria Martinez; writing by Matthias Williams; editing by Linda Pasquini and Kevin Liffey)