Germany has sealed a deal to buy US Tomahawk missiles, Chancellor Friedrich Merz announced, citing the need to close a strategic defense gap. The purchase proceeds despite the European Union's push to reduce reliance on American weapon systems, following setbacks in European defense cooperation such as the stalled listing of a Franco-German tank maker and the collapse of a flagship European fighter jet project, raising questions about the feasibility of European strategic autonomy. The US struck a strategic railway bridge in northern Iran linking Iran to China and Russia, according to Iran's Fars News Agency. The Kremlin stated that President Putin is open to dialogue with US President Donald Trump. These developments, along with other international incidents, mark a significant escalation in geopolitical tensions.

The German Bundestag passed the Beitragsstabilisierungsgesetz (Contribution Stabilization Act), linking future healthcare remuneration increases to the basic wage rate (Grundlohnrate) and capping them one percentage point below that rate from 2027 to 2029. Midwives, doctors, psychotherapists, and hospitals warn the law will reduce services, lengthen waiting times, worsen working conditions, and accelerate closures of obstetrics and pediatric units, threatening regional care. The German Midwives Association called the law 'scandalous,' noting that some midwives have already left the profession due to income losses from the 2023 Hebammenhilfevertrag. Hospitals face financial gaps; the Diakonissen-Stiftungs-Krankenhaus in Speyer expects a €5 million shortfall in 2025 alone, with €1 million affecting obstetrics and pediatrics. The reform aims to stabilize health insurance contributions but has drawn sharp criticism from healthcare professionals and providers.

The German Bundestag passed a new Federal Police Act granting the 55,000-strong force expanded powers, including real-time facial recognition in danger situations, AI-based movement pattern analysis, warrantless checks in weapon-free zones, easier telecommunications surveillance, authority to request deportation detention, and drone use for surveillance and counter-drone measures. The law passed with CDU/CSU and SPD votes; Greens and Left Party opposed, AfD abstained. It now requires Bundesrat approval.

The German Bundestag voted on a healthcare reform package (GKV-Sparpaket) before the summer break, with the Constitutional Court rejecting emergency motions against the fast-track process. Separately, the government announced the purchase of US Tomahawk cruise missiles for deterrence against Russia, with a deployment target of 2029. The reform has sparked political debate, with opposition figures criticizing the rushed procedure and calls for additional hospital funding.

Berlin's governing mayor Kai Wegner (CDU) announced on July 4, 2025, that he will not seek reelection in the September 20 state election, remaining in office until then. The decision follows months of controversy over his handling of a January arson attack on the city's power grid that left up to 100,000 residents without electricity and heating during freezing temperatures. Wegner initially claimed he worked from home coordinating the crisis, but later admitted to playing tennis for an hour that day, a scandal dubbed 'tennis-gate'. Subsequent revelations showed he made no official calls about the blackout before 12:45 PM, contradicting his earlier statement of starting at 8:08 AM. The CDU's poll ratings in Berlin have plummeted from 28.2% in 2023 to 17%, placing it fourth behind The Left, Greens, and AfD. Wegner acknowledged communication failures and said the controversy overshadowed his ability to convey his political message. He will also step down as CDU state chairman, with Finance Senator Stefan Evers seen as the likely replacement as top candidate.

The German Bundesrat has approved a non-binding resolution calling for the introduction of the 'only yes means yes' standard in sexual criminal law, replacing the current 'no means no' model. The resolution, initiated by Hamburg, argues that victims may freeze and be unable to resist, and notes that many EU countries already use the affirmative consent model. Additionally, the Bundesrat passed an infrastructure acceleration law to speed up planning and approval for major transport projects, and a right-to-repair law requiring manufacturers to offer repairs for certain products at reasonable prices for several years, with a warranty extension for repaired items.

The German Bundestag had previously agreed to suspend the automatic pay raise for MPs. In the same session, it passed a reform of the Federal Police Act, granting new powers including real-time facial recognition at transport hubs, expanded telecommunications surveillance, and the ability to apply for pre-deportation detention. The reform still requires Bundesrat approval in the autumn.

German defense technology company Quantum Systems has signed a multi-million-euro contract to deliver 10 autonomous Zetros AI trucks and 10 MANDRILL unmanned ground vehicles to Ukraine. The systems will be deployed with the National Guard of Ukraine for real-world testing under combat conditions, aiming to validate autonomous logistics and multi-domain operations. The contract includes Daimler Truck as a development partner. This marks a significant step in integrating autonomous ground systems into frontline military operations.