Germany updates: Merz defiant after court blow – DW – 06/03/2025
June 3, 2025 Germany's Merz defends migration plans after legal setback on asylum
Merz said the ruling may narrow his administration's room for maneuver, but there was still wiggle room Image: Thilo Schmuelgen/POOL/AFP via Getty Images
German Chancellor Friedrich Merz has defended his government's effort to turn away asylum seekers at the country's borders, one day after a court blocked the move.
The emergency decision by the Berlin Administrative Court was a blow for Merz, who has promised he will curb irregular migration.
Speaking in Berlin, the chancellor said the ruling may narrow his administration's room for maneuver, but there was still scope. "We know that we can still carry out [border] rejections."
Merz, who took office last month, said his government would "of course do this within the framework of existing European law."
"We will do so in order to protect public safety and order in our country and to prevent cities and municipalities from being overburdened," he added.
Merz stressed that Germany would have to "maintain controls on the internal" until the situation at the European Union's external borders has improved significantly in his view.
Shortly after taking office last month, Interior Minister Alexander Dobrindt ordered police to beef up border checks and turn away irregular migrants, even if they apply for asylum.
The court ruling on Monday found that three Somalis who were turned back to Poland on May 9 should have been processed under the European Union's Dublin Regulation for asylum cases. The court found that the government's evidence to proclaim a "national emergency" to justify the measure lacked sufficient evidence.
Merz's immigration policies have been repeatedly criticized as violating both German and EU law.
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DW
an hour ago
- DW
Cum-Ex: Why Germany's biggest tax fraud scheme can continue – DW – 07/25/2025
So-called Cum-Cum and Cum-Ex tax schemes are still costing many European countries billions in lost revenue. In Germany, questions are mounting why the state is doing so little to stop them. The scandal regarding so-called Cum-Ex and Cum-Cum tax schemes first broke in 2001, and still to this very day exact figures about financial losses are hard to calculate. However, the sums must be enormous given the magnitude of the fraud and what's already been uncovered by the tax authorities of various countries. According to calculations by University of Mannheim in Germany, between 2000 and 2020 alone Germany lost nearly €29 billion ($34.1 billion) due to Cum-Cum fraud — the "little brother of Cum-Ex" as the university's top financial researcher Christoph Spengel once called it. Globally, the revenue loss is estimated at more than €140 billion. What's striking is that despite these tax fraud schemes being publicly known they seem to what you often hear from the authorities is that they are "not aware of that," says Anne Brorhilker. Brorhilker must know because she once was Germany's most prominent senior public prosecutor who brought numerous Cum-Ex cases to court. Speaking to DW, the tax lawyer by profession said she's still bound by a nondiclosure agreement with her former employee, the Cologne public prosecutor's office, and cannot discuss details of the agency's findings in public. But key whistleblowers, who are still working in the finance industry, had testified in court that these schemes are ongoing, and not only in Germany. Now working for nonprofit activist group Finanzwende (Financial Change), Brorhilker says Cum-Ex practices are relevant in Belgium, France, Italy, Austria, the Netherlands, Spain, and Luxembourg. University of Mannheim professor Christoph Spengel says Cum-Ex and Cum-Cum schemes are only possible because of a legal loophole, and understanding wherein the fraud lies is only possible when prosecutors look closer into how those deals are carried out. When German financial institutions — such as banks or investment funds — hold shares that pay dividends, they are required to pay capital gains tax. However, they can get that tax refunded, since they already pay corporate taxes. As foreign financial institutions holding German shares are not entitled to this refund, they've invented a workaround. Foreign institutions temporarily lend their German shares to a German financial institution shortly before the dividend payout deadline. In return, the foreign bank charges a securities lending fee. The German institution now claims the tax refund, then returns the shares to the foreign owner, and the resulting profit from the refund is split between the foreign and the domestic bank. The key legal loophole, Spengel told DW in an interview, is that these securities lending fees are not taxed in Germany or several other countries. In countries where such fees are taxed, Cum-Cum tax fraud doesn't exist. Spengel already warned about continuing Cum-Cum share deals back in 2016, but little seems to have changed. "A change in the law raised transaction costs, but the real legal loophole — and thus the potential for tax arbitrage — still exists," he said. Spengel has repeatedly called for a straightforward legal amendment to close the loophole, and argues the government could at least try to stop the fraud by reviewing refund claims more thoroughly before issuing payments. Cum-Cum deals are still not being effectively stopped, and past deals are rarely prosecuted, claims Anne Brorhilker. "For banks it's a safe bet, because Cum-Ex and Cum-Cum are part of what's called tech trades," she said, with profits being made "purely from tax effects" that are "completely immune to market fluctuations." "The only real risk is getting caught. And that risk stays low as long as authorities remain poorly equipped," she added, which was the case across Europe. According to Brorhilker, one problem is a lack of specialists who are capable of pursuing economic crimes and tax offenses. "There's a chronic shortage of staff in tax audits," she said, noting that in Germany prosecution is further complicated by a job rotation practice under which staff regularly switch departments or responsibilities. "In areas that require deep expertise, which can't be acquired quickly, this is totally counterproductive," said Brorhilker. Inadequate equippment is another weakness that shouldn't be "underestimated," especially since "the other side is very well equipped." This would include data exchange between authorities, as even "sending emails can be complicated" due to the fact that one agency prohibits encryption, while another mandates it. Video calls between departments, Brohrhilker said, are often impossible because each uses a different conference platform. As the fraudulent tax schemes don't stop at Germany's borders. international cooperation between tax authorities is "crucial" for Brorhilker, but often slow and mired in red tape. "In Europe's financial centers, there are especially strict confidentiality rules for lawyers, tax advisors, and auditors," she said, which were the result of "intense lobbying by the financial industry." The financial industry spends heavily to influence politics on both the level of the EU and national states. According to the Finanzwende nonprofit, it spends nearly €40 million annually on lobbying — more than the combined budgets of the auto and chemical industry groups spend on pushing their goals. Germany's parliament, the Bundestag, has currently registered 442 finance industry lobbyists which breaks down to nearly ten lobbyists for each of the 42 members of parliament's finance committee rersponsible for tax laws, financial market regulation, and banking supervision. Unfortunately, lobbyists are often successful, says Monika Heinold, who also works for Finanzwende. A former finance minister in the regional German state of Schleswig-Holstein, Heinold experienced an "intense time" in office from 2012 to 2024 — the period in which German prosecutors gradually exposed the extent of the Cum-Ex scandal. "I saw how lobbyists try to influence tax laws in their favor and block stricter regulations. Sadly, they're often heard," she recalled in an interview with DW. More recently, Finanzwende activists have started to criticize parliament's finance committee, because some of its lawmakers were found to be earning additional income from local savings banks or cooperative banks. "Several MPs hold seats on the boards of these institutions and receive four- to five-figure sums for doing so," Heinold told DW. And while the dubious, and sometimes openly fraudulant Cum-Cum deals continue to soak German state coffers, some brave prosecutors are at least trying to chase down the worst offenders and recover lost funds. Currently, there are 253 suspected cases under investigation in Germany involving a total of €7.3 billion.
Local Germany
an hour ago
- Local Germany
What to know about talking to the police in Germany
Federal police in the country will soon be issued with tasers , according to media reports this week. Also in Berlin officers recently gained new powers to stop and search people on public transport without grounds for suspicion as the city cracks down on knives and other weapons on its public transportation system. Should you happen to be stopped by police for any reason, it's always wise to maintain a certain degree of respect in your communication with them - and in Germany, knowing at least a few simple phrases in German can help as well. Here are some phrases to know to help you navigate any interactions with Germany's law enforcement agents, and hopefully avoid any possible misunderstandings. Avoid use of the informal 'du' with police officers Strictly speaking, using the informal you ( du ) instead of the formal pronoun ( Sie ) with a police officer isn't illegal. But it's not something that a law-abiding German would ever do, so you shouldn't either. Because it can be considered disrespectful, people who use ' du ' with the police can fall foul of German law (§185 StGB) which covers cases of 'insult'. Insulting a police officer while they are performing their duty can be a punishable offence. Should the officer or their supervisor file a complaint against you for insult, the case could go to the courts where, depending on the circumstances, they may take it quite seriously. Context does matter in these cases. Using the informal ' du ' with a police officer would only be seen as punishable in Germany if it was intended in a derogatory way, i.e. combined with other insults. As a report by T-Online notes, both the police and the courts will generally recognise that non-native speakers may use ' du ' out of ignorance. If you're polite, and it's obvious you mean no disrespect, the police are likely to let it go or simply correct you. But if you use " du " in a way that seems deliberately disrespectful, it could trigger a fine or complaint. Now that you know the rule, you may as well save yourself any possible trouble and make a habit of addressing uniformed officers with only the formal ' Sie '. READ ALSO: The extensive new powers to be given to Berlin police According to legal advice website , fines of up to €600 have been enforced in the past against people who have used ' du ' with the police, and showing them the middle finger has been punished with fines of €4,000. As an aside, this list of insults , and the penalties handed out by the courts, is an excellent resource for anyone looking to improve their German vocabulary in this area. According to the website, yelling " Du Mädchen! " (You girl!) at an officer has previously gotten someone a €200 fine, telling an officer " Leck mich doch! " (Lick me) was slapped with a €300 fine, and saying " Am liebsten würde ich jetzt Arschloch zu Ihnen! " (I would like to call you an asshole right now) was enough to land someone a €1,600 fine. Advertisement Addressing officers respectfully In Germany, it's not usual to address a police officer by name, rank or title, but simply to address them as 'you' ( Sie ) as mentioned above. If this feels awkward, you can also Herr Polizei or Frau Polizei, but bear in mind that native speakers would generally avoid this. If you want to get an officer's attention, you can start with the phrase ' Entschuldigen Sie… ' (Excuse me…) READ ALSO: How Germany wants to boost rights of people with foreign backgrounds Phrases for remaining silent Everyone in Germany has the right to silence. You aren't legally required to answer police questions about an incident beyond providing them with your name, address and date of birth. Legal advice generally maintains that you're more likely to incriminate yourself by speaking than by remaining silent - however much the police might try to convince you otherwise. Reden ist Silber, schweigen ist Gold (talking is silver, silence is golden) , as the German saying goes. If you find yourself in a situation in which you'd rather remain silent, you can use the following phrases: Ich möchte dazu nichts sagen. I do not wish to say anything about that. Advertisement Ich möchte erst mit einem Anwalt sprechen. I would like to speak with a lawyer first. Entschuldigen Sie, aber ich mache von meinem Aussageverweigerungsrecht Gebrauch. Excuse me, but I wish to exercise my right to remain silent. Note that if you haven't been detained ( vorläufig festgenommen ) or arrested ( festgenommen ), you also don't have to go with police officers somewhere, even if they ask. For example, officers may ask you to come as a witness or for questioning, but you have the right to decline (politely). If, however, the police state explicitly that you are being detained or arrested ( Sie sind festgenommen or Sie sind vorläufig festgenommen ), then you have no choice but to comply. Advertisement If you're in doubt, you can ask the following question: Muss ich mitkommen, oder ist das freiwillig? Do I have to go with you, or is this voluntary? READ ALSO: 'Gute Fahrt' - The essential vocab you need for driving in Germany
DW
2 hours ago
- DW
Germany updates: Volkswagen profits down amid Trump tariffs – DW – 07/25/2025
Meanwhile, German automobile giant Volkswagen has seen profits tumble as a result of US tariffs. Meanwhile, the number of deportations from Germany is up slightly compared to the first half of last year. DW has chip manufacturer Intel has abandoned plans to build a factory in the eastern German city of Magdeburg as it battles with heavy losses and job cuts domestically and fresh competition abroad. After announcing a $2.9-billion (€2.5-billion) second-quarter loss on Thursday, the California-based tech giant confirmed that it would "not be pursuing planned projects in Germany and Poland." The initial plans had involved the construction of a €30-billion chip production plant in Magdeburg, to be subsidized by the German government to the tune of around €10 billion. However, the plans were put on ice in November, with no specific reason given. "When you look at the last few months, then Intel's decision isn't that surprising," Sven Schulze (CDU), Economy Minister for the eastern German state of Saxony-Anhalt, told local public broadcaster . Citing Intel's internal problems and US President Donald Trump's "America first" policy, he said: "Both were bad signs for Intel investment in Europe." Germany's biggest trade union, IG Metall, said the U-turn was "without doubt a set-back" for the region and called for "new perspectives." Regional union boss Thorsten Gröger said that Saxony-Anhalt had developed all the infrastructural prerequisites for industrial investments in recent years, "from available spaces to transport connections to qualified personnel." He warned Berlin not to abandon the region's industrial ambitions and ensure that "the political will remains to maintain manufacturing in the country and actively support new investments." Meanwhile, Schulze insisted that the negotiations with Intel had at least given Saxony-Anhalt international recognition which could pay off in future. For the time being, he referred to the decision last week by nearby Dresden chip manufacturer FMC to build a factory in Magdeburg, which he said was an important Plan B. German automobile giant Volkswagen has posted a sharp drop in second-quarter profits, citing US tariffs, rising production costs and an increase in sales of electric vehicles with a smaller profit margin. Volkswagen profits dropped to just under €2.3 billion ($2.7 billion) in the second quarter of 2025, a 36.3% decrease on same period last year. The Wolfsburg-based concern said that its Porsche and Audi subsidiaries had performed particularly poorly and that sales in China were also down, but insisted the drop-off was largely in line with analysts' expectations. Chief executive Oliver Blume insisted that Volkswagen is operating in an "extremely challenging environment," while finance director Arno Antlitz said the results were actually "at the higher end" of the company's expectations. "But, in the end, what matters is the money which actually lands in the till," he said. "We've made tangible improvements in design, technology and quality," added Blume. "The order books are well-stocked." Nevertheless, the firm says it will stick to its restructuring plans which it intends to "implement decisively and accelerate where necessary." Volkswagen is expecting to cut 35,000 jobs by 2030. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video A leading Austrian migration researcher has criticized the German government's deportation policies, calling them a "bluff." "A great deal of effort is achieving very little – all while undermining EU law," claimed Gerald Knaus, chairman of the European Stability Initiative, in the Friday edition of German finance newspaper . Knaus also defended German migration policy under former Chancellor Angela Merkel (CDU) — which has come under severe attack from Merz and his current government. "Germany had irregular migration under control," he claimed. "The core elements of Merkel's policies after 2016 were correct, as shown by the sharp decrease in refugee numbers following the [2016] refugee deal between the European Union and Turkey. Indeed, Knaus warned that the current government's constant criticism of Merkel, who also headed up conservative-led coalitions, only serves to help the far-right. "The CDU is running from its own history and talking down its own success," he opined. "[Now], every time any crime is committed by a migrant, [the far-right AfD] can claim: the CDU is to blame." The number of deportations from Germany rose to more than 11,800 in the first half of this year, according to data released by the Interior Ministry. The figure, provided in response to a parliamentary question from a lawmaker from the far-right Alternative for Germany (AfD) party, represents an increase of over 2,000 on the same period in 2024, during which around 9,500 deportations were carried out. The new conservative-led German government under Chancellor Friedrich Merz (CDU) has promised a tougher approach to illegal migration, tightening border checks, clamping down on "secondary migration" within the European Union and resuming deportation flights to countries such as Afghanistan and Iraq. Earlier this month, Interior Minister Alexander Dobrindt (CSU) joined his counterparts from Austria, Denmark, France, the Czech Republic and Poland in calling for a tougher European migration and asylum policy. "Effective returns are essential for maintaining trust in a balanced European migration policy," the ministers said in a joint statement. Welcome to DW's coverage of developments in Germany on Friday, July 25. As the weekend approaches, we'll keep you up to date on stories including: And remember: you can recap on yesterday's Germany news here.
