German Finance Minister Lars Klingbeil told reporters before flying to Paris on Monday that the Iran war and a potential closure of the Strait of Hormuz are a "ernsthafte Bedrohung für die Weltwirtschaft," as G7 finance ministers — Germany, France, the UK, Italy, Japan, Canada and the US — began two days of talks under France's 2026 presidency. The Paris agenda also covers global-trade imbalances, supply of critical raw materials, financing for developing countries, terrorism and organised-crime financing, and Ukraine support; finance ministers from Brazil, India, South Korea and Kenya joined the table. Chancellor Friedrich Merz separately condemned Iran's drone attack on the Baraka nuclear plant in the UAE and demanded Tehran open Hormuz 'ohne Einschränkungen.'

Germany's interior minister Alexander Dobrindt (CSU) announced a €10 billion civil defense package to be approved by cabinet on Wednesday, including 1,000 special vehicles and 110,000 field beds by 2029. The plan aims to address long-standing gaps in bunkers, sirens, and medical supplies. DRK president Hermann Gröhe called for an immediate "Kraftakt" (major effort), warning that neglecting civil protection while boosting the military is inconsistent.

German prosecutors have uncovered a large sanctions-evasion network that allegedly supplied Russia's military industry with European dual-use technology via Turkey and shell companies. Police arrested a 39-year-old businessman identified as Nikita S. during raids linked to a four-year investigation. Prosecutors believe the network handled around 16,000 shipments worth more than €30 million ($35 million).

Revenue at German chemical firms fell to €220 billion in 2025, a drop of about 22% since 2022, according to the German chemical industry association VCI. The trade group said there is no sign of a turnaround this year, with stagnation or further declines in production likely. High energy prices, regulatory burdens, and weak European demand are driving companies to cut jobs and expand production abroad.

Background: CDU and SPD security politicians previously warned that a potential AfD-led state government in Saxony-Anhalt could undermine Germany's security architecture due to the party's far-right ties and pro-Russia stance. Now, multiple German state interior ministers, including Thuringia's Georg Maier (SPD), are publicly warning about the security risks and calling for coordinated strategies to counter the threat ahead of state elections.

Germany's Expert Council for Climate Issues has released its annual review, projecting that the country will miss its 2030 climate targets and subsequent goals, including greenhouse gas neutrality by 2045. The council criticizes the government's climate protection program as inadequate and warns that the new building modernization law may increase emissions by allowing continued installation of gas and oil heating systems. The report highlights rising emissions in the energy and building sectors and warns of a growing gap between projections and targets after 2030, with potential EU fines looming.

Background: EU High Representative Kaja Kallas previously stated that EU member states have not agreed on a common position for potential peace negotiations with Russia on Ukraine. Today, former German Chancellor Angela Merkel criticized the EU for failing to use its diplomatic potential to help end Russia's war in Ukraine, arguing that military support alone is insufficient and that Europe should engage diplomatically with Moscow as the U.S. does. She noted that the U.S. under President Trump maintains contact with Russia while Europe does not. Merkel revealed she proposed an EU-Russia diplomatic format in October 2021 but it failed due to internal EU divisions. She also stated she has not been officially approached to serve as an EU peace envoy, though her name has been floated.

The German government announced a temporary deployment of a Patriot air defense unit to Turkey to support NATO's southeastern flank, replacing a US unit. Interior Minister Alexander Dobrindt plans to invest €10 billion by 2029 to expand civil defense capabilities, including 1,000 special vehicles and 110,000 field beds, to counter hybrid threats. Former Chancellor Angela Merkel urged Europe to increase diplomatic efforts with Russia, arguing it is insufficient for only the US to maintain contact. These developments reflect Germany's growing role in NATO and domestic security preparedness.