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Germany Says New Debt Needed to Strengthen Defence

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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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Berlin Substation Fire Raises Grid Security Concerns

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Police in Berlin are investigating a fire at a transformer substation in the Moabit district, raising fresh concerns about possible attacks on Germany’s power infrastructure. Authorities are examining whether the fire at a nearby construction site and the substation was accidental or deliberately started. The incident has not disrupted the local power supply.

The investigation comes amid a series of suspected sabotage incidents targeting Germany’s electricity grid. Separately, police in the western city of Wesel launched an assessment after discovering that a security fence around another transformer substation had been cut open, according to Bild newspaper.

German authorities are also searching for a man who allegedly claimed responsibility for several recent grid sabotage attacks. Police said they previously found what appeared to be explosives at his home. The incidents have heightened concerns over the security of critical energy infrastructure across Germany.

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German Space Startup Isar Aerospace Reaches Orbit in Europe Commercial Launch First

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German startup Isar Aerospace successfully sent its Spectrum rocket into orbit from Norway’s Arctic Andøya Spaceport, marking the first time a commercial rocket has reached orbit from continental Europe. The milestone is a major boost for Europe’s efforts to develop independent access to space and compete in the rapidly growing satellite-launch market.

Spectrum carried five small satellites and an in-flight technology experiment and is designed to serve small and medium-sized payloads. The successful mission came 18 months after Isar’s first launch ended in failure when its rocket crashed into the sea shortly after takeoff. The company says it now has five more rockets in production and aims to eventually conduct around 40 launches a year.

Isar plans to expand its launch operations as demand for satellite deployment grows. The company is also developing a second launch site in Nova Scotia, Canada, which could begin operations in 2028. With Europe seeking greater space autonomy amid growing global security concerns, the successful launch represents a significant step for the region’s commercial space industry.

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Five European Nations Plan Migrant Return Hubs Outside EU

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Germany, Austria, Greece, Denmark and the Netherlands have agreed on steps toward deals with non-EU countries to establish facilities for migrants who no longer have legal residency in the European Union. The five nations aim to reach agreements with host countries by the end of this year.

The countries, known as the Group of Five, have been working together on measures to reduce irregular immigration. Germany’s Interior Minister Alexander Dobrindt said the group wants to establish return hubs outside the EU, although no potential host countries have been named. Denmark expects to begin sending migrants to such a facility by the end of 2027.

The plan has drawn criticism from human rights organisations, which warn that offshore return centres could create serious risks for migrants and asylum seekers. The Council of Europe has also raised concerns, while the Danish Refugee Council said the focus should instead be on implementing the EU’s existing migration and asylum framework.

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Germany’s Far-Right AfD Seeks Historic State Power

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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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Denmark Plans First Migrant Transfers to EU-External Hub in 2027

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Denmark expects to begin sending migrants without legal residency to a return hub outside the European Union by the end of 2027, Immigration and Integration Minister Morten Bodskov said on Friday. Denmark is working with Germany, Austria, the Netherlands and Greece to develop the bloc’s first partnership arrangement of this kind with a non-EU country.

The five countries are preparing concrete plans for the proposed return-centre system, although Denmark has not disclosed which country or countries could host the facilities. Bodskov said negotiations had moved closer to establishing the arrangement, which is intended to facilitate the return of migrants who do not have legal grounds to remain in the EU.

The European Parliament approved changes to EU migration rules in June aimed at speeding up deportations and allowing member states to establish detention centres abroad. Critics have warned that such arrangements could weaken protections for asylum seekers, while the Council of Europe has raised concerns over potential human rights violations, including ill-treatment and arbitrary detention.

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Germany Probes Suspected Arson at Defence Firm

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German authorities are investigating a suspected arson attack at a construction site outside the Munich headquarters of defence technology company Rohde & Schwarz. Police arrested a 28-year-old woman and a 38-year-old man, both Bulgarian, who are suspected of throwing incendiary devices. The fire caused no significant damage and no injuries were reported.

The incident comes amid growing concerns across Europe over possible sabotage targeting critical infrastructure. Germany has faced two suspected attempts to disrupt its electricity grid in recent days, while authorities are also investigating a drone incident at Leipzig/Halle airport that Germany and its allies have linked to Russia. Moscow has denied involvement.

Security concerns are spreading beyond Germany, with Denmark’s intelligence service saying Russia has attempted to recruit Danish citizens online to gather information on defence companies and infrastructure. German investigators are also examining possible international links to the Leipzig drone incident as European governments increase vigilance over potential foreign-backed sabotage.

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EU’s Kallas Calls Leipzig Attack State-Sponsored Terrorism

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European Union foreign policy chief Kaja Kallas has described the attempted attack at Leipzig/Halle Airport in Germany as bearing the hallmarks of state-sponsored terrorism. Speaking ahead of an informal meeting of EU foreign ministers in Ireland, Kallas said Europe must coordinate its response as Russia’s attacks and alleged hybrid activities continue to escalate.

Germany has said Russia was responsible for the attempted drone attack last month. EU foreign ministers arriving for the talks called for stronger pressure on Moscow, with discussions focusing on additional sanctions targeting Russia’s military industry and individuals. German Foreign Minister Johann Wadephul said the EU would work on imposing further sanctions in the coming weeks.

The meeting also highlighted concerns over Ukraine’s air defence needs. Ukrainian Foreign Minister Andrii Sybiha urged European countries to provide additional interceptors to help protect Ukrainian airspace. Meanwhile, several EU nations renewed calls to reconsider the use of frozen Russian assets, with around €210 billion immobilised across the bloc following Russia’s invasion of Ukraine.

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German Police Investigate Unexploded Incendiary Device at Power Substation

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German police are investigating an incident involving an unexploded incendiary device found Tuesday at a power substation in Brandenburg, eastern Germany. Police said officers were deployed to the facility in Turnow-Preilack after receiving information about the incident at around 8 a.m. local time.

Grid operator 50Hertz said unidentified perpetrators are believed to have caused damage to several power lines in its transmission network. The company did not specify how the damage occurred, while the incendiary device remained unexploded.

There was a brief power outage, but all affected lines have since returned to operation and Germany’s wider electricity supply was not disrupted. Police said there was no danger to the public, while Brandenburg’s state criminal police office has taken over the investigation.

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Germany May Blame Russia for Airport Drone Attack

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Germany is expected to blame Russia for an attempted drone attack targeting a Ukrainian cargo plane at Leipzig/Halle Airport in August, according to two sources. The government may also consider imposing new sanctions against Moscow in coordination with its allies.

Airport workers reportedly discovered a drone carrying explosives and a detonator at the airport, which serves as an important civilian freight and NATO logistics hub. Germany had previously described the incident as part of a wider hybrid war against Europe without directly accusing Russia.

Foreign Minister Johann Wadephul indicated that Germany was considering further measures against Russia, saying the country would respond when attacked. Russia has previously rejected accusations of involvement, calling them a fabricated provocation.

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