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German Chancellor Friedrich Merz has clashed with AfD leader Alice Weidel in parliament following the far-right party’s major victory in Saxony-Anhalt. The AfD secured nearly 44% of the vote, while Merz’s conservative CDU saw its support fall sharply. Weidel called Merz’s coalition government a failure, while Merz described the AfD as a “destructive force” and criticised its migration policies.

Merz warned that the AfD’s proposed “remigration” policy could affect millions of people and harm key sectors that depend on migrant workers. He argued that migrants make up a significant share of Germany’s skilled workforce and said mass deportations could leave hospitals, care homes and restaurants struggling to operate. The heated parliamentary debate was repeatedly disrupted by AfD MPs, prompting Bundestag President Julia Klöckner to threaten disciplinary action.

The AfD’s victory has intensified debate over Germany’s political future, although the party fell three seats short of an outright majority in Saxony-Anhalt. It has indicated that it could seek support from another party to form a government, potentially challenging Germany’s long-standing political firewall against cooperation with the far right. The result has also drawn praise from US President Donald Trump, adding further international attention to Germany’s shifting political landscape.

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Germany needs to take on new debt to strengthen its defence and infrastructure, Finance Minister Lars Klingbeil said while defending the government’s 2027 budget. He argued that increased borrowing is necessary to address growing security threats and years of underinvestment. Germany plans to borrow €838.2 billion between 2027 and 2030, while total investment is expected to rise to €117.5 billion in 2027 from €78.9 billion in 2025.

Defence spending is set to increase significantly, with core defence expenditure projected at €109 billion in 2027, up from €82.2 billion in 2026. Including support for Ukraine and other security measures, total defence and security spending will reach €130.1 billion. Klingbeil said the increased spending is intended to protect Germany from potential conflict, amid concerns over Russia and growing cyber and hybrid threats.

The government’s spending plans face political challenges after the far-right Alternative for Germany (AfD) won a state election in Saxony-Anhalt, exposing divisions within the ruling coalition. Klingbeil also defended the investment programme as a way to revive Germany’s weak economy. The economy grew 0.3% in the second quarter, while several economic institutes have raised their growth forecasts for 2026 and 2027, citing stronger government spending.

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Germany’s far-right Alternative for Germany (AfD) is seeking a majority in the Saxony-Anhalt state election, hoping to gain government power for the first time at state level in post-war Germany. A strong result could also strengthen the party’s position ahead of its broader push for national influence.

AfD candidate Ulrich Siegmund has dominated campaigning in the eastern state, where the party has gained support amid concerns over immigration, public safety, the economy, energy costs and Germany’s foreign aid policies. The party’s controversial proposals include stricter immigration measures and changes to education and cultural policies.

The AfD remains strongest in eastern Germany and is also performing strongly in nationwide polling. However, other major parties have ruled out forming coalitions with it under Germany’s political “firewall” against the far right. A decisive victory in Saxony-Anhalt would therefore present a major test of that barrier and give the AfD significant influence over areas such as education, policing and culture.

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German Chancellor Friedrich Merz said on Sunday that Germany is finalising its response to the suspected drone attack near Leipzig/Halle airport earlier this month. He said the government was coordinating its actions with European Union and NATO partners, with an announcement expected in the coming days.

The incident took place on August 4, when a drone carrying explosives was discovered near a Ukrainian Antonov cargo aircraft used to transport military supplies. Germany has not officially identified those responsible, although Interior Minister Alexander Dobrindt described the incident as a potential “hybrid attack scenario” and raised the possibility of foreign involvement.

German media have reported that Berlin could publicly blame Russia and introduce sanctions in coordination with EU partners. Merz did not comment on the suspected perpetrator but said Germany’s response had been agreed in principle and that its European and NATO allies would be involved in the final decision.

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German Chancellor Friedrich Merz is facing growing political pressure after a cabinet reshuffle triggered internal divisions within his conservative CDU/CSU alliance. Lawmakers are set to vote on his nomination of Thorsten Frei as parliamentary faction leader, with the outcome expected to be closely watched as a measure of support for Merz’s leadership.

The reshuffle follows the resignation of senior party figure Jens Spahn and comes as Merz’s government struggles with declining public approval. Recent opinion polls show the far-right Alternative for Germany (AfD) leading national support, while Merz’s personal approval ratings have fallen sharply. The AfD has also overtaken the conservatives on voters’ perceptions of competence, increasing pressure ahead of key state elections in September.

Further criticism emerged after changes to the cabinet angered members of Merz’s own party, including regional leaders and ministers who said they were not properly consulted. Despite the backlash, Merz has expressed confidence that tensions will ease before parliament reconvenes in September, as his government focuses on advancing economic reforms and countering the AfD’s growing influence.

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The man suspected of carrying out the deadly attack at Berlin Pride has been shot and killed during a police operation in the Spandau district of the German capital. Authorities said the 21-year-old suspect allegedly rushed at officers with a knife, prompting police to open fire. The attack, which involved a vehicle being driven into a crowd followed by a stabbing, left one woman dead and at least 29 others injured.

German officials said evidence suggests the incident was likely an Islamist terrorist attack. According to prosecutors, the suspect had a criminal record and had previously been convicted for preparing a serious act of violence endangering the state. Investigators also said he had traveled to Lebanon in 2025, where he allegedly attempted to establish links with the Islamic State group.

Following the attack, Germany announced heightened security measures and increased the national threat level. Chancellor Friedrich Merz visited the scene, pledging to protect the country’s freedom and openness while condemning extremism. Members of Berlin’s LGBTQ+ community later gathered at the Brandenburg Gate to honor the victims and reaffirm their commitment to celebrating Pride despite the tragedy.

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Investor confidence in Germany improved sharply in July, exceeding market expectations, according to the latest survey by the ZEW economic research institute. The economic sentiment index more than doubled to 26.3 points, up from 10.5 in June, outperforming analysts’ forecast of 17.5 points.

ZEW President Achim Wambach said the stronger outlook reflects growing optimism that the German government’s recent reform package is beginning to have a positive impact. The measures, announced by Chancellor Friedrich Merz, include pension, tax, labour, and bureaucracy reforms aimed at boosting economic growth, employment, and competitiveness.

Despite the improved sentiment, the assessment of Germany’s current economic conditions remained negative, though it showed slight improvement. The current conditions index rose to -77.6 points in July from -81.0 points in June, indicating that while confidence is strengthening, economic challenges persist.

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France and Germany have agreed to strengthen their defence partnership as Europe seeks greater military autonomy amid evolving global security challenges. During a joint meeting in Bruehl, German Chancellor Friedrich Merz and French President Emmanuel Macron announced plans to expand cooperation on missile defence, long-range strike systems and broader security initiatives.

In a landmark move, German troops will participate in a French nuclear exercise for the first time, reflecting closer strategic coordination between the two countries. Macron reaffirmed that France would continue to fully finance its own nuclear deterrent, while Merz said any future cooperation would complement NATO’s existing defence framework rather than replace it.

The two leaders also voiced concerns over China’s industrial overcapacity and currency policies, arguing they place European industries under increasing pressure. Despite recent setbacks in their joint fighter aircraft programme, France and Germany confirmed that key elements of the Future Combat Air System (FCAS) project will continue, with improved oversight to strengthen future defence collaboration.

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France used its annual Bastille Day parade to highlight European unity and support for Ukraine, with around 500 troops from the “Coalition of the Willing” marching along the Champs-Elysees in Paris. The parade also featured about 25 Ukrainian soldiers and came a day after President Volodymyr Zelenskiy joined more than 25 world leaders in Paris for a summit focused on strengthening support for Ukraine amid its ongoing war with Russia.

French President Emmanuel Macron welcomed leaders including Ukrainian President Zelenskiy, British Prime Minister Keir Starmer, and German Chancellor Friedrich Merz to the national day celebrations. The event also included a joint fly-past by French and allied European aircraft, with Mirage fighter jets flown alongside Ukrainian co-pilots currently undergoing training. France described the international participation as a symbol of Europe’s growing commitment to collective security.

The display came as European allies announced a new air defence coalition to help Ukraine counter intensified Russian attacks and ammunition shortages. The Kremlin criticised the Paris gathering, calling the coalition “hostile.” Speaking ahead of the parade, Macron said Europe faces its most serious security challenges in decades and must be prepared to defend its values, freedom, and security if necessary.

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Schools in Germany’s eastern state of Saxony-Anhalt have become a major political flashpoint ahead of the September 6 regional election, where the far-right Alternative for Germany (AfD) is leading opinion polls. The debate intensified after teacher Max Heckel received a formal warning for telling a student he had not voted for the AfD, citing its classification as extremist by security authorities. Heckel says the incident has led to online abuse, threats, and vandalism, while raising concerns about freedom of discussion in classrooms.

The AfD argues that teachers must remain politically neutral and has pledged sweeping education reforms if it wins power in the state. Party leaders say schools should focus on traditional values, German history, and academic standards while removing what they describe as political influence and ideological teaching. The party also proposes reducing social support and integration programmes in schools as part of a broader overhaul of the education system.

Mainstream political parties and critics warn that the AfD’s plans could weaken democratic safeguards that have shaped Germany’s education system since World War II. They argue that limiting classroom discussions about extremism and the country’s history could undermine students’ understanding of democratic values. With the AfD polling close to 40% in Saxony-Anhalt, the election is expected to be a significant test of the party’s growing political influence in Germany.

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