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Merz buys a strike force from the ally now charging 20 percent at Hormuz

Germany bought a US long-range strike force on 9 July, days before Washington reimposed its Hormuz blockade with a 20 percent levy on all transiting cargo. Up to 400 Tomahawk Block Vb rounds will sit on German soil by 2029 and Helsing raised $1.8bn at an $18bn valuation. At home parliament cut €18.8bn from health and offered its cities €1bn a year against a €30bn deficit, as the AfD hit 41 percent in Saxony-Anhalt.

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German Ruhr Valley municipalities face financial collapse amid rising debt and social costs

Cities in Germany's Ruhr Valley, particularly Oberhausen, are on the brink of financial collapse due to declining tax revenues and rising social spending. The structural economic decline since the end of the coal and steel industries has left municipalities with high debt and no reserves. The crisis is fueling support for the far-right AfD party, prompting federal promises to reform municipal financing.

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Cities in Germany's Ruhr Valley, particularly Oberhausen, are on the brink of financial collapse due to declining tax revenues and rising social spending. The structural economic decline since the end of the coal and steel industries has left municipalities with high debt and no reserves. The crisis is fueling support for the far-right AfD party, prompting federal promises to reform municipal financing.

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Left-wing group claims responsibility for railway sabotage in western Germany

The 'Angry Birds Commando' group claimed responsibility for placing incendiary devices on a railway line between Cologne and Düsseldorf, causing a fire and disrupting train operations. The group cited environmental motives against industrial technology. German police have launched an investigation, and security sources consider the claim genuine. The group had previously claimed similar sabotage in 2025.

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The 'Angry Birds Commando' group claimed responsibility for placing incendiary devices on a railway line between Cologne and Düsseldorf, causing a fire and disrupting train operations. The group cited environmental motives against industrial technology. German police have launched an investigation, and security sources consider the claim genuine. The group had previously claimed similar sabotage in 2025.

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Merz Calls for Dialogue with China on Currency Float

German Chancellor Friedrich Merz has previously signaled openness to EU trade measures against China over unfair practices and industrial overcapacity. On July 13, 2026, during a speech at the Adenauer School of Government in Cologne, he escalated his stance by explicitly calling for a dialogue with China to persuade Beijing to allow its currency to float freely, arguing that the EU cannot compete against a competitor that artificially manipulates its currency. This marks a shift from general trade criticism to a specific monetary policy demand.

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German Chancellor Friedrich Merz has previously signaled openness to EU trade measures against China over unfair practices and industrial overcapacity. On July 13, 2026, during a speech at the Adenauer School of Government in Cologne, he escalated his stance by explicitly calling for a dialogue with China to persuade Beijing to allow its currency to float freely, arguing that the EU cannot compete against a competitor that artificially manipulates its currency. This marks a shift from general trade criticism to a specific monetary policy demand.

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Germany, France and seven other nations launch missile defense coalition with Ukraine

Germany, France, Denmark, Italy, the Netherlands, Norway, Spain, Sweden, and the United Kingdom have formed a new coalition with Ukraine to develop missile defense capabilities, including Ukraine's Freyja system. The initiative aims to build a joint European defensive capacity against ballistic missiles through industrial cooperation, research, and operational experience sharing. The announcement was made by French President Emmanuel Macron during a meeting of the 'coalition of the willing' in Paris, where Ukrainian President Volodymyr Zelenskyy also promoted investments in the missile defense program.

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Germany, France, Denmark, Italy, the Netherlands, Norway, Spain, Sweden, and the United Kingdom have formed a new coalition with Ukraine to develop missile defense capabilities, including Ukraine's Freyja system. The initiative aims to build a joint European defensive capacity against ballistic missiles through industrial cooperation, research, and operational experience sharing. The announcement was made by French President Emmanuel Macron during a meeting of the 'coalition of the willing' in Paris, where Ukrainian President Volodymyr Zelenskyy also promoted investments in the missile defense program.

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European defense AI startup Helsing raises $1.8 billion, valuation reaches $18 billion

Helsing, a Munich-based defense AI company, announced a $1.8 billion funding round, one of the largest ever for a European startup, valuing the company at $18 billion. Investors include Lightspeed Venture Partners, General Catalyst, Goldman Sachs, and J.P. Morgan, though the company remains majority European-controlled. The fundraising underscores surging investor interest in defense technology since Russia's invasion of Ukraine, and will accelerate development of AI platforms for partner nations. Helsing works with Rheinmetall, Kongsberg, and Saab, and offers products like the HX-2 strike drone and Altra AI software.

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Helsing, a Munich-based defense AI company, announced a $1.8 billion funding round, one of the largest ever for a European startup, valuing the company at $18 billion. Investors include Lightspeed Venture Partners, General Catalyst, Goldman Sachs, and J.P. Morgan, though the company remains majority European-controlled. The fundraising underscores surging investor interest in defense technology since Russia's invasion of Ukraine, and will accelerate development of AI platforms for partner nations. Helsing works with Rheinmetall, Kongsberg, and Saab, and offers products like the HX-2 strike drone and Altra AI software.

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German court convicts Iraqi couple of enslaving Yazidi girls for Islamic State

A German court convicted Iraqi nationals Twana H.S. and Asia R.A. of enslaving two Yazidi girls in Iraq, membership in the Islamic State group, and crimes including genocide, war crimes, crimes against humanity, and forced religious conversion. The Munich Higher Regional Court sentenced Twana H.S. to life imprisonment and Asia R.A. to nine and a half years in juvenile detention for genocide, war crimes, and crimes against humanity. The couple, members of the Islamic State (IS), purchased and enslaved two Yazidi girls (aged 5 and 12) in Iraq, subjecting them to sexual abuse and forced labor. The case was tried under universal jurisdiction, marking Germany's first conviction for forced religious conversion, and the verdict underscores Germany's application of universal jurisdiction for international crimes committed by IS against the Yazidi minority.

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A German court convicted Iraqi nationals Twana H.S. and Asia R.A. of enslaving two Yazidi girls in Iraq, membership in the Islamic State group, and crimes including genocide, war crimes, crimes against humanity, and forced religious conversion. The Munich Higher Regional Court sentenced Twana H.S. to life imprisonment and Asia R.A. to nine and a half years in juvenile detention for genocide, war crimes, and crimes against humanity. The couple, members of the Islamic State (IS), purchased and enslaved two Yazidi girls (aged 5 and 12) in Iraq, subjecting them to sexual abuse and forced labor. The case was tried under universal jurisdiction, marking Germany's first conviction for forced religious conversion, and the verdict underscores Germany's application of universal jurisdiction for international crimes committed by IS against the Yazidi minority.

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Thuringia interior minister backs partial ban of AfD state branch; CDU and Saxony warn against it

Thuringia's SPD Interior Minister Georg Maier supports a proposal from Bavaria's CSU to seek a partial ban of the Thuringia state branch of the far-right AfD, led by Björn Höcke, citing high chances of success. However, Thuringia's CDU faction leader Andreas Bühl opposes the idea, arguing it would strengthen the AfD's victim narrative. Saxony's CDU Interior Minister Armin Schuster warns that such a move would be legally risky and politically damaging, as it could appear partisan. The debate highlights deep divisions within German conservative parties over how to counter the AfD.

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Thuringia's SPD Interior Minister Georg Maier supports a proposal from Bavaria's CSU to seek a partial ban of the Thuringia state branch of the far-right AfD, led by Björn Höcke, citing high chances of success. However, Thuringia's CDU faction leader Andreas Bühl opposes the idea, arguing it would strengthen the AfD's victim narrative. Saxony's CDU Interior Minister Armin Schuster warns that such a move would be legally risky and politically damaging, as it could appear partisan. The debate highlights deep divisions within German conservative parties over how to counter the AfD.

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Germany's fish stick lobbying undermines its credibility on Russia sanctions

Germany's push to maintain the EU oil price cap on Russia is contradicted by its own successful effort to block a ban on Russian fish imports, fearing a shortage of pollock for fish sticks. This defense of narrow national interests weakens Berlin's moral authority to criticize other member states, such as Greece, for protecting their shipping industries' profits from Russian oil transport.

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Germany's push to maintain the EU oil price cap on Russia is contradicted by its own successful effort to block a ban on Russian fish imports, fearing a shortage of pollock for fish sticks. This defense of narrow national interests weakens Berlin's moral authority to criticize other member states, such as Greece, for protecting their shipping industries' profits from Russian oil transport.

Frequently Asked

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What missile deal did Germany agree to in July 2026?
Germany agreed to buy ground-launched Tomahawk Block Vb rounds and Typhon launchers, worth over $1 billion, to be deployed on German soil by 2029.
What toll did the US impose on Hormuz shipping?
On 12 July 2026, Donald Trump reimposed a naval blockade of Iran and demanded a 20% reimbursement on all cargo shipped through the Strait of Hormuz.
How is Germany's economy affected by the Hormuz toll?
Germany's 2026 growth forecast was cut to 0.6%, inflation raised to 2.8%, and petrol rose above €2 per litre, with no offsetting petrodollar orders expected.
What is the political risk for Merz's government?
The AfD leads at 28% nationally and 41% in Saxony-Anhalt, while Merz's CDU/CSU polls at 22%, amid municipal deficits and health spending cuts.
When will the Tomahawks be deployed?
The deployment target is 2029, with US export approval expected in August 2026.