German lawmakers and anti-Kremlin activists accuse Russia of running a disinformation campaign, linked to the 'Matryoshka' influence operation, to boost the far-right Alternative for Germany (AfD) ahead of regional elections in Saxony-Anhalt and Mecklenburg-Western Pomerania. The campaign involves fake media outlets and smears against mainstream parties, while sparing the AfD and the pro-Russian BSW party. The Russian embassy denies the allegations.

German Chancellor Friedrich Merz held his second summer press conference, defending his coalition's performance despite low approval ratings. He highlighted healthcare financing reform and bureaucracy reduction as achievements, but acknowledged insufficient economic growth due to US tariff policy. Merz ruled out any cooperation with the far-right AfD ahead of September state elections in Saxony-Anhalt, Mecklenburg-Western Pomerania, and Berlin, where the AfD leads in polls. He warned against US interference in German elections, citing reports of a State Department grant program for MAGA-aligned European groups. Merz also justified record-high defense spending, citing Russian hybrid warfare, and defended his controversial proposal for Ukraine's EU associate membership. He admitted that breaking his campaign promise on the debt brake has damaged his personal credibility.

Germany has launched NIWIS, a national low-water information system, as severe drought conditions persist. The platform aggregates data from hundreds of monitoring stations on river, groundwater, and soil moisture levels. The Environment Ministry reports Germany has lost 60 billion cubic meters of water in 25 years, equivalent to the volume of five major lakes. Economic damages from low water could reach €625 billion by 2050. A proposed law to protect natural infrastructure (NATIF) remains stalled in inter-ministerial coordination.

German Family Minister Karin Prien (CDU) is advancing a reform to limit the state child maintenance advance to children up to age 16, affecting about 80,000 children and saving 245 million euros at the federal level. The draft law, part of broader budget consolidation agreed between federal and state governments, is set to enter cabinet coordination in July. Prien defends the plan as a unanimous decision of all state premiers. Criticism persists from the SPD coalition partner and state leaders, including former family minister and Mecklenburg-Vorpommern Minister President Manuela Schwesig, who opposed the cut. Additionally, Kanzleramtsminister Thorsten Frei proposed a gross income cap of 4,500–5,000 euros for eligibility.

The German cabinet approved the financial plan for the Climate and Transformation Fund (KTF), a special fund financing climate and energy transition measures. The government plans to cut micro-projects and introduce social scaling in subsidies for e-cars and heat pumps. A controversial element is the diversion of 2.7 billion euros in 2027 (13 billion by 2030) from emissions trading revenues from the KTF to the general budget to plug fiscal gaps, drawing criticism from Greens and environmental groups who accuse the coalition of undermining climate action.

Germany's second 'Relief Cabinet' session approved a package of measures to cut bureaucracy by €600 million per year. The package includes lifting truck driving bans on non-uniform public holidays across federal states, abolishing environmental badges for electric cars, reducing mandatory equipment inspections to only risk-potential cases, digitizing medical referrals (with electronic prescriptions by September 2029), enabling video conferences with job centers, and allowing binding agreements via email with the Federal Employment Agency. The government aims to reduce bureaucratic costs by 25% (€16 billion) by the end of the legislative term and is analyzing 25,000 citizen suggestions from the 'Einfach machen' portal. Business associations welcomed the steps but urged more ambitious 'game-changers', particularly systematic reduction of reporting and documentation obligations.

Germany's head of armaments, Carsten Stawitzki, criticized the EU's push for a single European defense market, arguing it stifles technological competition. He advocated for funding multiple competing prototypes, citing Ukraine's wartime procurement model. Germany is opening a BAAINBw office in Brussels to influence EU regulations, while prioritizing rapid national procurement to deter a potential Russian attack by 2029.

Prosecutors in Saxony-Anhalt have launched an investigation into cabaret artist Uwe Steimle for remarks made at an AfD campaign event featuring party leader Tino Chrupalla. Steimle sang the East German national anthem and made a controversial reference to Claus Schenk Graf von Stauffenberg, asking where Stauffenberg is when needed, in connection with Friedrich Merz. The investigation is for potential disturbance of public peace through the threat of crimes. The event has sparked widespread criticism from politicians and memorial foundations, and the singing of the DDR anthem drew particular criticism, which Chrupalla defended as a call for unity.