Germany looks to give spy services more cloak-and-dagger powers

On Wednesday, Germany plans to unveil a significant overhaul of its intelligence agencies, granting them expanded powers to engage in covert operations and defend against foreign threats. This reform, discussed for months, seeks to loosen restrictions that have historically limited Germany's secret services to intelligence gathering and report dissemination.

Chancellor Friedrich Merz's coalition argues that more robust intelligence agencies are crucial to counter threats from hostile foreign powers, terrorist groups, and cybercriminals. German officials accuse Russia of waging a "hybrid" campaign of sabotage, espionage, and disinformation against the country, which is a major military supporter of Ukraine in its war with Russia.

Marc Henrichmann, chairman of the parliament's intelligence oversight committee, stated that Germany's cautious approach has left it behind the curve and unable to effectively contribute to European security. He cited recent incidents, such as an explosive drone found at Leipzig airport, to underscore the necessity of these changes.

Henrichmann emphasized that adversaries operate without rules, disregarding law and order to pressure the West, the EU, and Germany. For decades, Germany has imposed strict limits on its BND foreign intelligence agency and BfV domestic spy service, drawing from the horrors of Nazi and communist East Germany abuses, and a strong German privacy culture.

These services were primarily information collection agencies, with limited powers to utilize the gathered information.

Peter Neumann, a security studies professor at King's College London, noted that Germany's intelligence services have primarily focused on information collection and provided policymakers with a better understanding of the situation, but they were heavily restricted in how they could use this information. The proposed legislation would allow the spy agencies to carry out cyberattacks, such as disabling foreign IT systems or blocking payment flows, and expand data collection and analysis capabilities, including the use of artificial intelligence to scan vast datasets and retain certain data for longer periods.

The 700-page legislative package also regulates controversial measures, such as online surveillance and tracking, with the BND potentially granted permission to carry out foreign sabotage missions in rare situations, while assassinations and lethal operations remain prohibited under German law. Interior Minister Alexander Dobrindt hailed the reform as a response to the hybrid threat landscape and attempts at destabilization through sabotage, espionage, cyberattacks, and covert actions by foreign powers, aiming to put Germany on equal footing with allied intelligence agencies worldwide.

Neumann highlighted that Germany's tight limits on covert action have made cooperation with allied intelligence agencies difficult, with joint operations being rare.