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AfD Leads in Eastern Germany Ahead of Elections Despite Economic Concerns

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Germany’s far-right Alternative for Germany (AfD) is leading polls in two eastern states ahead of September elections, despite economists warning that some of the party’s policies could hurt the regions’ already fragile economies. The AfD is polling at around 41% in Saxony-Anhalt and 36% in Mecklenburg-Vorpommern, where shrinking populations, labour shortages and lower incomes remain major challenges.

Experts say economic frustration and a lingering sense of being left behind since German reunification are important drivers of AfD support in the east. Both states have lost large numbers of young people, while ageing populations have contributed to severe skilled-worker shortages. Mecklenburg-Vorpommern’s GDP per capita is around 76% of Germany’s national average, while Saxony-Anhalt has the country’s highest proportion of pension-age residents.

Economists argue that AfD proposals, including reducing immigration, cutting state spending and potentially leaving the euro and European Union, could further weaken the region. A DIW Berlin study estimates Saxony-Anhalt could lose around €1,600 in annual income per person and 10,000 jobs under such policies. At the same time, local initiatives such as internationalising university programmes and attracting young talent are showing alternative ways for eastern Germany to address its labour and economic challenges.

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Bus Driver Knocks Explosive Drone Away at German Airport

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A bus driver at Leipzig/Halle Airport in Germany reportedly kicked an explosive-laden drone out of the air after spotting it flying at low altitude, potentially preventing a major attack, a senior German lawmaker said. The drone crashed nearby and was later found to have been equipped with professional explosives and a detonator. Authorities have launched a counterterrorism investigation into the incident.

Leipzig/Halle is an important cargo and military logistics hub, serving as the main operational base for NATO’s Strategic Airlift International Solution and handling operations for companies including DHL. German media reported that the drone was found close to Ukrainian Antonov An-124 cargo aircraft. Authorities have not identified the drone’s origin or explained how it entered the airport’s restricted area.

Officials praised the driver’s bravery but warned that his actions were extremely dangerous and should not be repeated. Saxony’s Interior Minister Armin Schuster said alerting authorities would have been sufficient. Chancellor Friedrich Merz has also discussed the incident with senior government officials as investigators examine whether the drone was part of a planned attack.

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Germany Investigates Suspected Drone Attack at Airport

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German federal prosecutors have launched an investigation into a suspected drone attack at Leipzig/Halle Airport, describing it as a potential threat to national security. Authorities said a drone carrying professional explosives and a detonator was found near the runway, while another suspected drone reportedly collided with a cargo aircraft, which later landed safely with minor damage.

The incident temporarily disrupted operations at the airport, a major cargo hub used by DHL, Lufthansa Cargo, Amazon, and NATO’s Strategic Airlift programme. German Interior Minister Alexander Dobrindt described the event as a hybrid attack, and investigators are examining whether it was an attempt to target critical transport infrastructure.

No suspects have been identified, and officials have not confirmed who was behind the incident. However, authorities have not ruled out the involvement of foreign actors, and the investigation remains ongoing as Germany assesses the security implications of the attack.

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Germany Warns of Russian Disinformation Ahead of State Elections

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German security sources say Russia has intensified disinformation campaigns ahead of next month’s state elections, with online content reportedly targeting political rivals of the far-right Alternative for Germany (AfD) party. Authorities believe the campaign aims to deepen political divisions and undermine Germany’s governing parties, including the CDU, SPD, Greens, and FDP.

German officials said the operation, known as the “Matryoshka” campaign, spreads fabricated videos on social media using the branding of well-known news organisations to make false allegations against politicians. While the Interior Ministry says the campaign has not gained significant online traction, it continues to monitor the situation closely, calling it a serious threat.

Russia’s embassy in Berlin rejected the accusations, describing them as “anti-Russian hysteria” and denying any interference in Germany’s internal affairs. German security officials, however, maintain that the campaign is centrally coordinated from Russia, adding that the country remains alert to foreign influence attempts ahead of the elections.

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Germany’s Services Sector Nears Recovery in July

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Germany’s services sector showed signs of stabilising in July as business activity contracted at a much slower pace and demand began to recover. The HCOB Germany Services Purchasing Managers’ Index (PMI) rose to 49.8 from 48.6 in June, its highest reading in recent months and just below the 50-point mark that separates contraction from growth.

The survey showed new business increased for the first time in five months, signalling improving demand, while employment declined at the slowest pace since job cuts began earlier this year. Export orders continued to fall but at the weakest rate in five months, suggesting external demand is also stabilising.

Despite the improvement, rising input costs and higher prices charged by businesses highlighted persistent inflationary pressures. Analysts warned that uncertainty surrounding the Iran war, volatile energy prices, and supply chain disruptions continue to pose risks, although Germany’s broader economy returned to growth in July as stronger manufacturing activity lifted the composite output index above the expansion threshold.

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Lufthansa Warns of Lower Profit Amid Fuel Price Volatility

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Lufthansa has warned that its operating profit could decline in 2026 as volatile fuel prices continue to weigh on earnings. The German airline said higher fuel costs linked to geopolitical tensions, including the U.S.-Iran conflict, caused its second-quarter operating profit to more than halve, prompting a weaker full-year outlook.

The airline now expects adjusted EBIT between €1.7 billion and €2.2 billion, compared with its earlier forecast of exceeding last year’s €1.96 billion. Quarterly adjusted EBIT fell to €383 million from €870 million a year ago, while investors reacted negatively, sending Lufthansa’s shares down more than 10%.

To improve efficiency, Lufthansa plans to retire older, fuel-intensive aircraft and temporarily ground some planes to reduce fuel consumption. Despite the short-term challenges, the airline maintained its long-term profitability targets and said it expects fuel supplies to remain stable while continuing to monitor market uncertainty.

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Rhine Hits Record Low as Europe’s Drought Deepens

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The River Rhine has fallen to record low levels in parts of Germany and the Netherlands as prolonged heatwaves and drought continue to grip Europe. Other major rivers, including the Danube and Italy’s Po, have also recorded historically low water levels, raising concerns over transportation, agriculture, and industrial operations across the continent.

The Rhine, one of Europe’s busiest commercial waterways, is facing severe navigation challenges as low water levels restrict cargo shipping. Authorities have warned that lighter vessel loads, higher transport costs, and potential supply chain disruptions could impact businesses, while the Danube’s shrinking water levels have also affected power generation in countries such as Serbia, Romania, and Hungary.

Experts say persistent high temperatures driven by climate change are increasing evaporation and making droughts more severe. The worsening conditions are threatening freshwater supplies, farming, ecosystems, and energy production, highlighting the growing economic and environmental impact of extreme weather across Europe.

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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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