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Germany seeks powers for spies to hack and disrupt attackers

Published by Global Banking & Finance Review

Posted on July 2, 2026

3 min read

· Last updated: July 2, 2026

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Germany Pushes for Increased Cyber Powers for Spy Agencies Amid Rising Threats

Germany's Intelligence Reform: Expanding Cyber Capabilities

By Markus Wacket

Background: Post-War Intelligence Limits

BERLIN, July 2 (Reuters) - Germany plans to give its spy agencies powers to hack, disrupt and deceive foreign attackers in a major overhaul of post-war intelligence limits, aiming to harden its response to growing cyber and hybrid threats, according to a draft law seen by Reuters.

German spy agencies are more tightly regulated than many foreign services and have mostly been limited to watching and reporting. After World War Two, lawmakers wanted to stop any security body from becoming too powerful inside the state.

Motivation for Reform

The reform is a response to what Berlin sees as increased risks linked to Russia, with the services seeking the ability to act as well as observe. 

Legal and Operational Changes

The proposed overhaul would rewrite the legal basis for the domestic security agency and foreign intelligence service and create a single framework for covert operations, especially online.

New Threat Categories and Powers

The interior ministry plan introduces new threat categories that unlock graduated powers, from basic monitoring to "particularly serious" surveillance.

For the first time, the services would be able to interfere with attackers' infrastructure or deliberately spread targeted false information. 

Expanded Cyber Operations

In cyberspace, the services could, under strict thresholds, break into attackers' IT systems, copy or delete data, and disable tools used in campaigns by foreign states, including during specific threat situations such as large-scale cyber operations.

The draft also sets new rules for the use of state spyware for online searches and so-called source telecommunications surveillance.

Impact on Private Sector and Oversight

Obligations for Companies

Telecoms, digital platforms, transport operators and financial intermediaries would face binding, secret disclosure orders, backed by fines of up to €1 million and on-site inspections, the draft says.

Informant Rules and Age Exceptions

Rules on the use of confidential informants are spelled out in more detail, with exceptions that could allow the deployment of people as young as 16 to help uncover the gravest threats.

Creation of an Independent Control Council

A new top-level watchdog, the Independent Control Council, would replace the current fragmented oversight bodies. It would combine wiretap approval and data-protection control, and must pre-clear the most intrusive measures, including long-term undercover deployments and home surveillance. 

(Reporting by Markus Wacket, writing by Kirsti Knolle, Editing by William Maclean)

Key Takeaways

  • Germany intends to grant its spy and security agencies powers to hack into attackers’ IT systems, delete or alter data, and disrupt infrastructure—even abroad, stepping beyond traditional surveillance (onvista.de).
  • The draft law consolidates domestic and foreign intelligence mandates under a unified regime, introduces graduated ‘threat’ categories, and enables tools such as state spyware, targeted disinformation, and source surveillance (scworld.com).
  • A central Independent Control Council would streamline oversight, pre‑approve intrusive operations, and replace fragmented existing review bodies—while companies face secret disclosure orders backed by fines up to €20 million and expanded personnel funding (onvista.de).

References

Frequently Asked Questions

What new powers are proposed for German spy agencies?
German spy agencies may be authorized to hack, disrupt, and deceive foreign attackers, including breaking into IT systems and spreading targeted false information.
Why is Germany reforming its intelligence laws?
The overhaul aims to strengthen Germany's response to increasing cyber and hybrid threats, particularly amid concerns about risks linked to Russia.
How will the new law impact financial intermediaries?
Financial intermediaries could face secret disclosure orders, fines up to €1 million, and on-site inspections if they fail to comply with new requirements.
What oversight mechanisms are included in the proposed reform?
A new Independent Control Council will oversee intrusive measures, combining data-protection monitoring and wiretap approval for accountability.
What are the potential penalties for non-compliance under the new law?
Non-compliance by companies such as telecoms or financial intermediaries could result in fines of up to €1 million and inspections.

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