Berlin Faces a Spy Scandal and a Coalition Test Over the Sugar Tax

Two political storylines are unfolding in Berlin at the same time: an intelligence scandal and tensions inside the governing coalition.

Suspicions over data transfer

August Hanning, a former head of Germany's foreign intelligence service, the BND, is suspected of having passed highly sensitive government data to Azerbaijan. The affair stands out because the current BND chief, Martin Jäger, warned of security risks earlier in the week, while his own agency now risks becoming a danger itself. Politico's Hans von der Burchard assesses how the affair could damage international trust in Germany.

Coalition committee at the Chancellery

At the Chancellery, members of the coalition committee gathered. The conservative Union and the Social Democrats (SPD) are once again looking for compromise on issues where each side has its limits. These include a fuel discount, the approach toward China and the contested sugar tax. Journalist Rasmus Buchsteiner analyses whether this crisis meeting will break the long-running deadlock or lead the partners into a complete dead end.

The sugar tax

The sugar tax has become an especially sharp point of contention, since the Chancellery has stopped it for the time being. In an interview, Wiebke Esdar, deputy leader of the SPD parliamentary group, explains why she believes the levy must still be introduced.

These topics are discussed in Politico's Berlin Playbook podcast, which is released every morning from 5 a.m.