Political Crisis in Germany as Merz Fails to Win First Vote as Chancellor

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WSJ What’s News 13 min 8 speakers transcribed
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AlphaSense Voiceover 0:00
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Luke Vargas 0:34
The Trump administration cuts off Harvard from new federal funding, plus political crisis in Germany as election winner Friedrich Merz fails to become the country's next chancellor.
Matthias Diehling 0:46
Him not being elected on the first ballot is a major surprise. It certainly weakens him as a candidate. It is not possible to say who exactly was responsible for this because the vote is secret, but it is certainly unprecedented in German history.
Luke Vargas 1:00
And a storm of uncertainty makes the fence job a whole lot harder as policymakers meet today. It's Tuesday, May 6th. I'm Luke Vargas for The Wall Street Journal, and here is the AM edition of What's News, the top headlines and business stories moving your world today. We begin with the Trump administration's battle with leading American universities, as the Education Department has informed Harvard that it's been cut off from any new federal grants, with Secretary Linda McMahon accusing the school in a scathing letter of violating federal law and losing its privilege of partnering with the federal government, adding that it could instead draw on its $53 billion endowment and tap wealthy alumni.
Luke Vargas 1:47
As a part of the funding fight, the government has demanded oversight of Harvard's admissions, faculty hiring, and governance in order to address what it said was the school's failure to stop harassment of Jewish students on campus. A Harvard spokesperson said those demands would have chilling implications for higher education. And in an interview with the journal, University President Alan Garber said the administration's attack on fellow Ivy League school Columbia had in part informed his decision to fight.
Harvard President Alan Garber 2:16
What I have heard is that Columbia had still not resolved their issues with the federal government after many weeks of negotiations. So undoubtedly, that has made institutions think that that may not always be the most promising path.
Luke Vargas 2:32
Well, speaking of Columbia, we are reporting that the Trump administration has proposed terms for federal oversight of the university, which could see a judge ensure that the school has viewpoint diversity among its faculty and does not consider race in admissions. A Columbia spokesman said the journal's story didn't hold merit and pointed to prior comments from the university's president that the school would reject any agreement requiring it to relinquish its independence. We are exclusively reporting that Defense Secretary Pete Hegseth's use of the messaging app Signal for official Pentagon business was more extensive than previously disclosed. According to people familiar with his management practices, that included engaging in at least a dozen separate chats and in one case telling aides to inform foreign governments about an unfolding military operation. We report that Hegseth also set up many of the chats himself, sending texts from an unsecured line in his Pentagon office, as well as from his personal phone.
Luke Vargas 3:35
Hegseth didn't respond to requests for comment. The Pentagon's acting inspector general is currently investigating Hegseth's use of Signal, and while previous administrations have used non-government message apps, a 2023 Pentagon directive restricted the use of Signal for official business. Experts say that using Signal could put sensitive information at risk of landing in the wrong hands. And given that, as we report, Hegseth's messages in some cases disappeared without being properly recorded, it could potentially violate laws requiring the preservation of official records. Canadian Prime Minister Mark Carney is in Washington today to meet with President Trump at the White House.

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