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Moscow Court Orders Arrest of Boris Nemtsov’s Daughter

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A Moscow court has ordered the arrest in absentia of Zhanna Nemtsova, the daughter of slain Russian opposition leader Boris Nemtsov, over her involvement with an organisation that Russia has designated as “undesirable.” Nemtsova, who has lived outside Russia since 2015, co-founded the Germany-based Boris Nemtsov Foundation for Freedom, which was banned in Russia in 2024.

Responding to the ruling, Nemtsova dismissed the court’s decision in a social media post, noting that the foundation operates legally from Germany. Under Russian law, participation in or support for organisations labelled “undesirable” can result in prison sentences.

Boris Nemtsov, a prominent critic of President Vladimir Putin, was assassinated near the Kremlin in 2015. Although five men were convicted for carrying out the killing in 2017, his supporters have long argued that those who planned and ordered the murder have never been brought to justice.

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German Inflation Rises in Key States Ahead of National Data

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Inflation increased across four major German states in July, according to preliminary figures, signalling that the country’s national inflation rate is also likely to rise. Bavaria, North Rhine-Westphalia, Baden-Wuerttemberg and Lower Saxony all reported higher inflation compared with June, reflecting continued price pressures.

The German government expects inflation to average 2.7% this year and 2.8% in 2027, citing higher energy and raw material costs linked to the conflict involving Iran. Economists surveyed by Reuters also expect Germany’s harmonised national inflation rate to climb to 2.8% in July, up from 2.4% the previous month.

The latest figures come ahead of the euro zone’s inflation data, which is also expected to show a slight increase. The European Central Bank recently kept interest rates unchanged but indicated that further monetary tightening remains possible if inflationary pressures, particularly from rising energy prices, continue.

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Thousands of Audi Workers Protest Over Possible Neckarsulm Plant Closure

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Thousands of Audi employees gathered in Neckarsulm, Germany, to protest against the possible closure of the automaker’s manufacturing plant as parent company Volkswagen continues a major restructuring programme. According to the works council, around 6,000 workers took part in the demonstration, expressing concerns over job security and the future of the facility.

Volkswagen has warned that the Neckarsulm plant could face closure after 2030 if no long-term solution is found. The site employs around 15,000 people and manufactures several Audi models, including the A5, A6, A8 and the all-electric e-tron GT. Company officials are exploring alternatives, including new production opportunities, but no final decision has been made.

The protest comes as Germany’s automotive industry faces mounting pressure from rising production costs, growing competition from Chinese manufacturers and U.S. tariffs. Local leaders warned that shutting the Neckarsulm plant would have serious economic consequences for the region, while upcoming negotiations between Volkswagen management and labour representatives are expected to play a key role in determining the factory’s future.

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Pressure Grows on German Chancellor Merz After Cabinet Reshuffle

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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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German Economy Shows Resilience in Second Quarter

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Germany’s economy likely recorded modest growth in the second quarter of 2026 despite challenges from the Middle East conflict, according to the Bundesbank. The central bank said strong industrial activity, steady exports, and resilient consumer spending helped offset the impact of higher energy and commodity prices.

The Bundesbank noted that Germany’s industrial sector benefited from robust foreign demand, while consumers continued spending despite rising energy costs and reduced purchasing power. Temporary factors, including supply shortages affecting some Asian competitors and early purchasing by customers anticipating future disruptions, also supported economic activity.

Looking ahead, the Bundesbank said economic pressures could ease if the conflict in the Middle East does not escalate further, though it warned that the war will likely continue to weigh on growth and inflation. The bank currently forecasts Germany’s economy to expand by 0.5% in 2026, with growth expected to improve to 0.8% next year.

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Germany’s Sick Leave Debate Highlights Workplace Stress

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Germany’s proposed crackdown on sick leave rules is facing criticism from researchers, who argue that rising absenteeism is driven more by worsening workplace conditions than by misuse of the system. The government plans to tighten sick-note requirements to improve productivity, but experts say mental health challenges, staff shortages, and demanding work environments are the real causes behind increasing sick leave.

Healthcare, education, and social services have recorded the highest levels of absenteeism, with researchers pointing to chronic understaffing, low pay, emotional strain, and burnout. Mental health-related sick leave has risen significantly over the past decade, even though such cases account for a relatively small share of total illnesses.

Studies have found little evidence that generous sick-pay policies or telephone sick notes are being widely abused. Instead, experts say improved electronic reporting and waves of respiratory illnesses largely explain the rise in recorded absences. Critics argue that improving working conditions, rather than imposing stricter sick-leave rules, is the key to reducing long-term absenteeism.

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Berlin Pride Attack Suspect Killed

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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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Volkswagen Plans Deeper Cuts Amid Rising Chinese Competition

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Volkswagen has announced plans to deepen cost-cutting measures as Chinese automakers continue expanding into the European market. CEO Oliver Blume said the company faces growing competitive pressure from more than 150 Chinese brands, alongside challenges from tariffs and weakening demand in China. The automaker is seeking major restructuring to remain competitive.

The company has proposed increasing planned job cuts to 100,000 and warned that up to four German plants could face closure after 2030. While Volkswagen’s second-quarter operating profit fell 9.5% to €3.5 billion, analysts noted signs of business stabilisation, supported by stronger-than-expected revenue and healthy cash flow. However, negotiations with labor unions over the restructuring remain unresolved.

Volkswagen has retained its full-year profit margin forecast but has dropped expectations for revenue growth, now projecting sales could decline by up to 3% in 2026. Meanwhile, Chinese manufacturers such as BYD and Geely are strengthening their European presence by establishing local production facilities, intensifying competition in the region’s electric vehicle market.

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German Investor Confidence Jumps in July

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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 Deepen Defence Ties to Boost Europe’s Security

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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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