Germany’s Foreign Ministry on 2 July said it is "concerned about democracy and the rule of law in Turkey" after the detention of 126 members of the main opposition Republican People’s Party (CHP) in the Aegean city of İzmir. Berlin questioned the independence of Turkey’s judiciary and called for transparent legal proceedings, noting that recent arrests suggest political competition is increasingly conducted through the courts. The latest sweep deepens a crackdown that began with the 19 March arrest of Istanbul mayor and opposition presidential hopeful Ekrem İmamoğlu. His detention ignited nationwide protests and a market rout that forced the Central Bank of Turkey to burn an estimated US$50 billion in reserves and lift benchmark lending rates, which have since pushed commercial borrowing costs to about 60 percent. President Recep Tayyip Erdoğan is simultaneously confronting a worsening economy. Annual inflation, although down from last year’s peak, is still near 40 percent, unemployment is rising and almost 1,000 companies sought bankruptcy protection in the first five months of 2025. Analysts warn that the combination of political repression and economic pain is eroding public support for the president and heightening the risk of renewed financial volatility.