Background: One year into Merz's chancellorship, Franco-German relations had failed to revive due to accumulated disagreements on European sovereignty and coordination. Today: Macron and Merz met at Schloss Bensberg and Nörvenich airbase for their final joint ministerial council, pledging deeper cooperation on European security, defense, AI, energy transition, and EU budget priorities. Discussions included potential German participation in French nuclear deterrence exercises, as agreed in March, and efforts to salvage elements of the failed FCAS fighter jet project, such as data links and combat cloud software. The meeting is Macron's last such ministerial council before the 2027 French presidential election, with far-right leader Marine Le Pen's strong poll numbers adding urgency to finalize the EU's next seven-year budget by end of 2026. Both leaders emphasized a 'strategic awakening' of Europe and a 'real Franco-German rapprochement' on the European agenda. During a joint press conference in Brühl, Macron cautioned against opinion polls predicting a Le Pen victory, urging trust in the French people and noting that political predictions often prove wrong. Merz pledged to cooperate with any elected French leader. The two leaders also discussed advancing European defense cooperation, including an 'associated' nuclear deterrence, amid concerns over a potential far-right win in France and pressures from Russia and US disengagement.

Germany granted Ukraine approximately EUR 2.5 billion in arms export licenses in the first half of 2026, making Ukraine the top recipient globally. The licenses support Ukraine's self-defense against Russia's invasion. Other major recipients include the US, Netherlands, Czech Republic, and Lithuania. Total German arms export licenses reached EUR 13.87 billion, with simplified procedures introduced for Ukraine's air and maritime defense.

An analysis argues that for Germany to replace the US as the military backbone of NATO in Europe, the Bundeswehr must first become a fully capable national force. It criticizes current multinational corps structures as ill-suited for high-intensity war with Russia, describing them as paper tigers lacking permanent artillery, air defense, and intelligence assets. The analysis advocates for German-owned corps-level assets, command authority, and peacetime integration to ensure wartime effectiveness, calling for a shift from peacetime alliance management to wartime readiness. The piece highlights Germany's withdrawal from a Franco-German-Spanish fighter jet program and a Dutch-led frigate contract, redirecting contracts to German industry.

Germany's Bundesrat has approved a bill, initiated by the state of Hesse, that would make it a criminal offense to publicly deny Israel's right to exist or call for its destruction, where such conduct could encourage antisemitic violence. The proposal now moves to the Bundestag for consideration. Supporters cite Germany's historical responsibility and rising antisemitism since October 7, 2023, while critics argue the law is unconstitutional and infringes on freedom of expression. The debate is expected to continue for months, potentially reaching the Federal Constitutional Court.

Uber has announced a public takeover of Berlin-based Delivery Hero at €41.50 per share, valuing the company at €12.7 billion. The deal, under negotiation since May, expands Uber's platform to 99 countries. Uber will acquire Delivery Hero's operations in 50 markets, while SSW Partners will acquire operations in 14 other markets, including Turkey, for around €1.4 billion. Uber has committed to investing €2 billion in Germany for local staff, autonomous vehicles, and automotive partnerships. The transaction is expected to close in the second half of 2027 and will face complex regulatory scrutiny.

German Finance Minister Lars Klingbeil and Justice Minister Stefanie Hubig presented a 26-point action plan against tax and financial crime. Key measures include ending automatic penalty exemption for voluntary self-disclosure, reclassifying tax evasion as a felony, creating a joint center for tax investigation, extending document retention to 15 years, and introducing mandatory electronic cash registers in cash-intensive sectors. The plan also includes 1,500 new posts for the Joint Center Against Tax and Financial Crime, AI-powered data analysis, stricter penalties up to 15 years for organized tax fraud, asset seizure powers for customs authorities (e.g., Porsches, Rolexes) for 180 days, new cryptocurrency regulations including blockchain analyses, and mandatory cash registers for businesses with annual sales over €100,000 starting in 2028. The government projects €1 billion in additional revenue for 2027.

German Foreign Minister Johann Wadephul visited Finland to assess NATO's northern flank security. He toured the closed Finnish-Russian border, which Helsinki shut in 2023 after Russia weaponized migration, and a border patrol vessel. Wadephul expressed understanding for Finland's withdrawal from the Ottawa Convention on anti-personnel mines, citing the threat from Russia. He praised Finland's comprehensive civil defense preparations, including underground shelters for 4.8 million people, and acknowledged Germany's neglect of civil defense since the Cold War. The visit underscored close German-Finnish cooperation on Baltic Sea security and hybrid threats from Russia.

The far-right Alternative for Germany (AfD) re-elected co-leaders Alice Weidel and Tino Chrupalla at its federal congress in Erfurt in July 2026, strengthening its hardline wing. Now, the federal leadership, led by Weidel and Chrupalla, has demanded that the North Rhine-Westphalia (NRW) state board cancel and restart the entire candidate selection process for the 2027 state election, citing chaos, threats, and pressure on delegates during a meeting in Marl. The move aims to prevent a legal challenge to the party's state list and to defuse a power struggle between factions supporting Weidel and Chrupalla. The NRW state leadership, led by Martin Vincentz, has signaled it will defy the demand, with the convention set to resume on Friday.