Munich police kill man who opened fire near Israeli consulate

‘Antisemitism and Islamism have no place here,’ Scholz says after incident also close to Nazi documentation centre

There is “no place” in Germany for antisemitism or Islamist extremism, the German chancellor has said after police in Munich shot dead a man carrying a “long-barrelled gun” following an exchange of fire near the Israeli consulate.

In a joint statement, the Bavarian state police and prosecutors said they believed the man had been planning a terrorist attack “involving the consulate general of the state of Israel”.

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VW slams production into reverse as industry faces battles on all sides

Plan to cut German factories is politically fraught but makes sense economically

When Bernd Pischetsrieder attempted to cut jobs at Volkswagen in the early 2000s, he was forced out. When Herbert Diess tried the same, he got the same result, leaving in 2022. Yet now Volkswagen appears to be deliberately grasping the nettle.

“This time it’s different,” says Matthias Schmidt, a Berlin-based automotive analyst. Chief executive Oliver Blume is “VW through and through”, and his actions likely reflect the desires of the controlling Porsche and Piëch dynasties, Schmidt said. The course is set for a historic clash over the future for Germany’s largest carmaker.

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Volkswagen has ‘a year, maybe two to turn around’, financial chief warns

Carmaker defends plan to close German plants as Volvo ditches target to sell only electric cars by 2030

Volkswagen says it has “a year, maybe two” to adapt to a slump in European car sales, as it seeks to justify proposals to close factories in Germany for the first time in its history.

Separately, the Swedish automaker Volvo said it had ditched a target to sell only electric cars by 2030, opting instead to continue selling some petrol vehicles alongside battery models.

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Tuesday briefing: Why the far right’s success in German state elections can’t be written off as a local phenomenon any more

In today’s newsletter: Alternative für Deutschland have deployed Nazi rhetoric throughout their rise – and they are pulling the mainstream further to the right

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Good morning. For the first time since the second world war, a far-right party has won a regional election in Germany. As well as finishing first in Thuringia, where it won nearly 33% of the vote, Alternative für Deutschland (AfD) finished second in Saxony, with 31% – and it did so with none of the normalisation strategy that similar parties have deployed in France or Italy. Instead, the AfD uses Nazi slogans and calls the Berlin Holocaust memorial a “monument of shame”.

While the AfD demanded to be included in coalition negotiations in both states yesterday, a “firewall” designed to keep the party out of government is likely to hold for the foreseeable future. Even so, its success is undoubtedly a seismic moment in German politics. For today’s newsletter, I spoke to the Guardian’s Berlin correspondent Deborah Cole about how the AFD did it, and whether this is a regional phenomenon or a signpost to something larger. Here are the headlines.

Israel-Gaza war | The UK has broken with the Biden administration by announcing it is suspending some arms export licences to Israel because of a “clear risk” the materiel may be used in violation of international humanitarian law. It came as Benjamin Netanyahu defied protests at home and criticism from Biden by vowing that Israel would not relinquish control over the strategic Philadelphi corridor along the Gaza-Egyptian border.

Grenfell inquiry | Companies found at fault over the Grenfell tower fire are facing calls to be banned from public contracts. Ahead of the final public inquiry report’s publication tomorrow, it emerged that about £250m in deals have been made in the past five years with firms involved in the high-rise’s refurbishment.

Politics | Jeremy Corbyn is to form an official parliamentary alliance with four independent MPs who were elected on pro-Gaza platforms, and has issued a call for more MPs to join. The group will have the same number of MPs as Reform UK and the Democratic Unionist party, who each have five MPs, and more than the Green party and Plaid Cymru, who each have four.

France | A husband who allegedly drugged his wife and invited more than 80 strangers to rape her at their home for almost a decade will go on trial on Monday in a case that has shocked France. Fifty men accused of taking part in the abuse of the woman are also on trial at the court in Avignon.

Society | Pride in Britain’s history has fallen sharply over the past decade as the country has become more reflective about its place in the modern world, according to a leading barometer of the British public mood. The proportion of people saying they were proud of Britain’s history fell from 86% to 64%.

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AfD’s success in German elections piles pressure on a fragmented EU

The centre ‘may be holding’ but if the far right continues to win elections, the European project faces a rocky few years

Alternative für Deutschland’s stunning success in Germany’s regional elections was described as “bitter” and “worrying” by chancellor Olaf Scholz. It is also concerning for the EU, which is grappling with existential problems, from Russia’s grinding war on Ukraine to the climate crisis, while at the beginning of a new five-year cycle after the European elections earlier this summer.

“A dark day for Germany is a dark day for Europe,” said French centrist MEP leader Valérie Heyer. While the results in the eastern states of Thuringia and Saxony were not a surprise after the AfD’s strong showing in June’s European parliamentary vote, they confirm the steady rise of parties once considered beyond the pale.

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Anti-immigration leftists have potential to upend German political scene

State election results for Sahra Wagenknecht Allianz mean Russia-leaning populists could play decisive role

It was, Sahra Wagenknecht declared on the social media platform X on Sunday, “a historic result” achieved from almost a standing start. Within eight months, her leftwing-conservative Sahra Wagenknecht Alliance (BSW) has gone from an upstart party of breakaway populists to a decisive player with the potential to upend the German political scene.

The BSW party’s third place position in state elections in the eastern states of Thuringia (16%) and Saxony (12%), behind the centre-right Christian Democrats (CDU) and far-right Alternative für Deutschland (AfD), now puts it in the position of kingmaker.

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Volkswagen considers German plant closures to save billions in costs

Plans underline European carmakers’ problems in switching from petrol and diesel vehicles to electric models

Volkswagen is considering shutting two German factories, in what would be the carmaker’s first closures ever in its home country, as it struggles with the transition away from fossil fuels.

The Wolfsburg-based manufacturer on Monday informed its works council, which represents employees, that it was looking at closing “at least one larger vehicle manufacturing plant and one component factory in Germany” in order to find cost savings worth billions of euros.

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‘A dark day for Germany is a dark day for Europe’: liberals react to far right success in German state election – as it happened

Election results in Germany causes consternation across Europe as German chancellor says preliminary results in Thuringia are ‘bitter’

Here’s the updated seat distribution in Saxony.

The state election commission corrected the preliminary results.

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German far-right party AfD poised for state election victory in east

Alternative für Deutschland leader speaks of ‘historic success’ of top place in Thuringia and second in Saxony

A far-right party became the biggest force in a German state parliament for the first time since the second world war, preliminary results showed on Sunday, while a new populist force on the left established a firm foothold in the country’s political landscape.

Voters in two closely watched elections in the former communist east made their dissatisfaction with Germany’s mainstream political parties clear, putting the Alternative für Deutschland (AfD) party in the top spot in Thuringia, with 32.8% of the vote, and second place in Saxony, with 30.6%, according to preliminary results.

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Success of far-right AfD shows east and west Germany are drifting further apart

Likely win in Thuringia and second place in Saxony highlight how eastern voters are asserting their own political identity

After the Berlin Wall fell in November 1989, the former West German chancellor Willy Brandt predicted that reunification would finally allow “what belongs together to grow together”.

How optimistic that image of organic healing sounds 35 years on. Tonight’s historic election results from Thuringia and Saxony paint a picture of a Germany whose eastern and western regions are, if anything, drifting further and further apart.

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German state elections: Far right leads in Thuringia exit poll, centre-right ahead in Saxony – as it happened

Exit polls show strong performance for far-right Alternative für Deutschland in both German state elections

The centre-right Christian Democratic Union (CDU) has taken a narrow lead in Saxony, with the far right Alternative für Deutschland following closely in second place, according to the first exit polls.

Saxony ZDF exit poll

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Woman arrested after six hurt in knife attack on bus in Germany

Bus was heading to festival in Siegen near Cologne when incident took place on Friday evening

A 32-year-old woman has been arrested after six people were hurt in a knife attack on a bus headed to a festival in western Germany. Authorities said there was no evidence of a political or religious motive.

Three of those attacked are in life-threatening condition, police said on Friday evening.

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Europe blog: high-profile politician sprayed with liquid as Germany gears up for key state elections – as it happened

Sahra Wagenknecht, whose alliance opposes Nato and military aid for Ukraine, said she was ‘scared but fine’ after incident in Erfurt

My colleague Deborah Cole has written a preview of this weekend’s elections in Saxony and Thuringia, looking at how the far-right AfD and the alliance founded by Sahra Wagenknecht – the politician who was attacked with liquid on Thursday – could spell an upheaval of the political landscape in Germany. You can read the full piece here:

The DPA news agency reports that German security authorities have warned of “unconventional incendiary devices” sent via freight service providers.

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Funeral of refugee activist Viraj Mendis to draw mourners from all over Europe

Mendis, who stayed in Manchester church for two years in 1980s to fight deportation, has died aged 68 in Germany

Refugees and human rights activists are making their way to Bremen in north-west Germany for the funeral of a man who fought for freedom and safety for asylum seekers.

Viraj Mendis came to prominence after seeking sanctuary in a Manchester church where he spent two years in the 1980s. He died aged 68 on 16 August in Bremen, which offered him sanctuary after he was deported from the UK.

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Man sprays paint at German party leader during campaign event

Sahra Wagenknecht attacked while about to speak on stage in run-up to Thuringia and Saxony state elections

The leader of a breakaway populist leftwing party in Germany, Sahra Wagenknecht, has been sprayed with pink paint while campaigning in elections in the eastern state of Thuringia.

Wagenknecht, a former high-profile member of the far-left party Die Linke, who this year founded the Sahra Wagenknecht Alliance (BSW), was attacked on stage on Thursday as she prepared to address crowds in Erfurt. She ducked as a man approached the stage and spattered paint in her direction, which hit her dress and face.

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Clogs’ popularity helps Birkenstock to highest ever quarterly sales

‘Ugly’ footwear trend boosts German company’s results but shares fall on bigger-than-expected drop in margins

Strong sales of clogs – which have been adopted by the American models Gigi Hadid and Kendall Jenner as part of this summer’s trend for “ugly” shoes – have helped Birkenstock to the highest quarterly sales in its history.

The German shoemaker, which listed on the US stock market in October last year valued at $7.5bn, said sales of “closed-toe silhouettes”, which include its clunky clogs, rose by more than twice the average for its products.

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‘A test case for German democracy’: populists ride high before state elections

Political landscape faces upheaval as far-right AfD and left-conservative BSW expected to perform strongly

The far-right Alternative für Deutschland (AfD) party has plastered the city centre of Erfurt with eye-catching posters of a jet soaring through a clear blue sky, conjuring up many Germans’ dream of a tropical holiday. Only the tagline reveals a darker message: “Summer, Sun, Remigration.”

As it campaigns for votes in its east German heartland, the AfD has long since embraced the slogan that last winter sent hundreds of thousands of Germans on to the streets in protest against revelations of a rightwing “master plan” to deport unwanted foreigners and citizens alike.

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Starmer promises ‘project of hope’ in UK amid concern about rise of far right

Prime minister says ‘progressives have to provide the better answer’ during visit to Germany

Keir Starmer has expressed concern that the UK could face a rise in mass far-right populism as seen in Germany and France, as he said it was his mission to “inject some hope” into the country.

Speaking to reporters in Germany, where the far-right Alternative für Deutschland (AfD) could come top in three state elections next month, Starmer said the increase in support for such groups was “something that occupies my time”, especially after UK riots partly inspired by far-right misinformation.

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Starmer hails ‘once in a generation’ treaty with Germany – as it happened

Prime minister says agreement will be a ‘boost to our trading relations’. This live blog is closed

Keir Starmer is due to hold a press conference with Olaf Scholz soon. You can watch via the live stream at the top of the page. You may need to refresh the page for it to come up.

Chancellor Rachel Reeves has refused to rule out a rise in inheritance tax or capital gains tax, reports the PA news agency.

I’m not going to write a budget two months ahead of delivering it. We’re going to have to make difficult decisions in a range of areas.”

The UK economy is just emerging from the recession that we entered into last year, and two quarters of positive economic growth is not going to reverse more than a decade of economic stagnation.

Much work is needed to rebuild the foundations of our economy so we can rebuild Britain and make working people better off, and that is why growing our economy is absolutely essential.”

Unless we grow the economy, we’re going to continue to be in a situation where taxes are at too high a level and public spending is not sustainable.

We’ve got to break out of this doom loop, which is why growing the economy is the number one priority of this new government.”

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Starmer appears to leave door open for potential EU youth exchange scheme

PM does not rule out setting up system in future after meeting with Olaf Scholz, who stressed desire for closer ties

Keir Starmer has held the door open for some form of youth mobility exchange with EU countries after talks in Germany with Olaf Scholz, who stressed to the British prime minister his wish for closer such ties.

While Starmer said at a press conference with the German chancellor that the UK did not have plans to join the EU’s youth mobility scheme – with No 10 having previously ruled out such a move – speaking to reporters later, he pointedly did not rule out setting up some sort of system for other link-ups, for example student exchanges.

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