At a joint press conference in Berlin with Swiss President Guy Parmelin on May 20, Chancellor Friedrich Merz said Germany does not expect fundamental changes in Russia-China strategic relations but hopes Xi Jinping will use Vladimir Putin's Beijing visit to press for an end to the war in Ukraine. Merz called for serious negotiations involving Ukraine, Russia, the United States and Europeans and reiterated continued German military and humanitarian support for Kyiv. Putin arrived in Beijing on May 19 and signed a declaration with Xi on building a multipolar world order.

German federal prosecutors on Wednesday arrested a married German couple in Munich on suspicion of working for a Chinese intelligence service to obtain high-tech information with military applications. The suspects, identified as Xuejun C. and Hua S., are accused of building contacts with university professors in aerospace, IT and artificial intelligence, and luring some scientists to China under false pretenses. They were taken to the Federal Court of Justice in Karlsruhe, where an investigative judge ordered them held in pretrial detention.

The German government has agreed to acquire a 40% stake in Franco-German defense company KNDS, maker of the Leopard 2 tank, ahead of its planned IPO, sources in government circles told Reuters, dpa and AFP. The stake is expected to decline to 30% within two to three years, with France reducing its holding in parallel. KNDS board chairman Tom Enders welcomed the move but said the goal must be to reduce state holdings over time to below 50% combined.

German Defense Minister Boris Pistorius has announced a new reform of the Bundeswehr's procurement system, aiming to decentralize and flexibilize the process. The procurement agency, currently known as BAAINBw and based in Koblenz, has been restructured multiple times over the past 25 years without resolving chronic delays, high costs, and quality issues. Pistorius plans to dissolve all departments and introduce a corporate matrix structure.

German Defense Minister Boris Pistorius convened defense chiefs from Austria, Switzerland, and Luxembourg to advance plans for a European Space Component Command and a multilateral space training academy. Germany has pledged €35 billion for military space capabilities, including satellite constellations and launch capacity. Austria plans to launch three military satellites next year. The initiative reflects growing European efforts to reduce dependency on US space technology, with neutral Austria and Switzerland deepening defense ties with Germany.

Background: UniCredit CEO Andrea Orcel declared the takeover of Commerzbank 'unstoppable' and launched a voluntary share exchange offer, while Commerzbank management, employees, and the German government oppose the bid. At Commerzbank's annual general meeting in Wiesbaden on May 20, employees and management staged a coordinated show of resistance against UniCredit's hostile takeover attempt. Employees wearing Commerzbank yellow cheered management speeches, and a worker shouted in Italian at Orcel, saying 'We don't want you!' The meeting was carefully orchestrated to show unity. Commerzbank CEO Bettina Orlopp has been leading an 18-month counter-offensive to preserve the bank's independence. UniCredit's voluntary share exchange offer, launched in early May, remains open until early July.

The German federal government, led by Chancellor Friedrich Merz, conducted a crisis response exercise simulating a hijacked aircraft as a potential terror weapon. The exercise involved the Bundeswehr and security agencies, with Eurofighter jets intercepting the aircraft and forcing it to land. The cabinet made a real-time decision via secure communication channels.

Airbus Defence & Space unveiled the first German Tranche 4 Eurofighter at its Manching site. The aircraft features an AESA radar (ECRS Mk 0 initially), advanced avionics, and new weapons integration. Germany has ordered 38 Tranche 4 jets under Project Quadriga to replace early Tranche 1 aircraft, plus 20 Tranche 5 jets. The unveiling underscores the Eurofighter's growing importance for the Luftwaffe amid delays in the FCAS sixth-generation program and Germany's military transformation toward high-readiness territorial defense on NATO's eastern flank.