  By exploring the description of chiral blocks in terms of co-invariants, a
derivation of the Verlinde formula for WZW models is obtained which is entirely
based on the representation theory of affine Lie algebras. In contrast to
existing proofs of the Verlinde formula, this approach works universally for
all untwisted affine Lie algebras. As a by-product we obtain a homological
interpretation of the Verlinde multiplicities as Euler characteristics of
complexes built from invariant tensors of finite-dimensional simple Lie
algebras. Our results can also be used to compute certain traces of
automorphisms on the spaces of chiral blocks. Our argument is not rigorous; in
its present form this paper will therefore not be submitted for publication.
