German officials have condemned an attempted drone attack on Leipzig/Halle airport as 'state terrorism' after the federal government attributed it to Russia. The incident, discovered on August 4, involved an explosive-laden drone that struck a Ukrainian cargo plane but failed to detonate. In response, Germany announced measures including closing Russia's consulate in Bonn, terminating the contract for the Russian House in Berlin, and imposing further sanctions. Politicians from various parties have reacted, with the Greens criticizing the delayed response, while Sahra Wagenknecht warned against escalation with Russia.

A series of package bombings in Leipzig and Vilnius is linked to Russian intelligence services. The attacks involved the transport of packages containing incendiary chemicals, and authorities suspect a coordinated operation. The suspects, including a former Soviet submarine captain, are being prosecuted in Lithuania and Poland.

German defense entrepreneur Stefan Thumann, whose company supplies combat drones to Ukraine, has publicly stated that Russia's sabotage operations against Germany constitute an act of war, rejecting the 'hybrid war' label. He revealed that he lives under round-the-clock protection after authorities uncovered an alleged Russian plot to poison him in 2025. Meanwhile, German Chancellor Friedrich Merz is preparing to blame Moscow for an attempted drone attack in Leipzig and unveil extensive sanctions against Russia, signaling a hardening of Berlin's stance.

Background: The far-right Alternative for Germany (AfD) leads polls in Saxony-Anhalt ahead of the September 6, 2025 state election, with the CDU trailing and smaller parties at risk of falling below the 5% threshold. The state faces structural economic and demographic challenges, and the current Landtag has passed reforms to protect democratic institutions in case of an AfD victory. New analysis with constitutional law expert Janos Richter details the specific powers an AfD-led state government could wield, including restructuring the domestic intelligence agency (Verfassungsschutz), shifting educational curricula focus away from the Nazi era, and potentially using veto power on federal-state agreements requiring unanimous consent, such as university funding. Richter clarifies that dismissing most civil servants would be difficult due to legal protections, with only 16 political officials subject to dismissal without cause. The analysis also highlights the AfD's potential to block legislation requiring a two-thirds majority and its ability to influence administrative details through ministerial decrees rather than public parliamentary processes.

The German cabinet approved Finance Minister Lars Klingbeil's income tax reform draft on Wednesday, despite internal coalition disputes and Klingbeil's absence due to a flight delay in the US. The reform aims to provide annual relief of around €10 billion by 2028, focusing on small and middle incomes and families. Measures include raising the basic tax-free allowance to €12,564 in 2026 and €12,900 by 2028, adjusting the top tax rate threshold to €70,600, introducing a new 47% rate for incomes above €280,000, and increasing child benefits to €267 in 2026 and €272 by 2028. The employee lump sum will rise to €1,430, and the tax-free allowance for Sunday and holiday work will increase to €75. Financing comes partly from higher taxes on top earners, with the 45% rate applying from €250,000. The CDU-led Economics Ministry criticized the plan for not compensating for cold progression, calling it a hidden tax increase, and demanded adjustments. Economists warned that without such compensation, most taxpayers would effectively face higher taxes. The draft now goes to parliament for further debate, with changes possible.

German Foreign Minister Johann Wadephul visited Algeria on September 1, 2026, meeting with Energy Minister Mohamed Arkab and President Abdelmadjid Tebboune to negotiate long-term gas contracts and strengthen energy ties. Amid the Strait of Hormuz crisis and low gas storage levels in Germany (currently only about 50% full), Wadephul emphasized the need to diversify energy sources and described Algeria as a reliable partner. He noted Algeria's potential for green hydrogen and its role in replenishing Germany's gas storage. The visit included an economic delegation and followed a stop in Tunisia. This visit follows Algeria's first LNG delivery to Germany in July and builds on earlier agreements to expand gas supplies and develop a hydrogen corridor.

Wolfgang Kubicki, chair of Germany's Free Democratic Party, proposed using the prospect of supplying Taurus cruise missiles to Ukraine as leverage against further Russian hybrid attacks, following Germany's formal blame of Moscow for the Leipzig airport drone incident. Kubicki suggested summoning Russia's ambassador and threatening missile transfers if hybrid threats continue. The proposal does not change current German policy, as Chancellor Friedrich Merz has ruled out Taurus deliveries, but it reflects growing debate over Germany's response to Russian sabotage.

The German Navy conducted a first-ever test launch of an Israeli Aerospace Industries LORA ballistic missile from the F125 frigate Sachsen-Anhalt in the North Atlantic between Ireland and Iceland. The test, part of the Bundeswehr's OPEX experimentation program, involved two missiles fired from deck-mounted canisters, hitting targets with high precision. Navy Inspector Vice Adm. Jan Christian Kaack hailed it as a historic milestone, signaling a potential new long-range strike capability for Germany's surface fleet and enhancing NATO deterrence. The move follows Germany's recent acquisition of Israeli systems like Arrow 3 and PULS, and aligns with broader European efforts to expand long-range precision fires amid the Russia threat.