German industry expects Russian sabotage against the country’s companies to persist and take more forms, the deputy head of the Federation of German Industries (BDI) told Handelsblatt. His warning follows alarms from Germany’s intelligence services, which describe the country as a main target of Russia’s covert campaign in Europe.

Russia keeps striking Ukrainian cities and power plants every day while trying to weaken the European support that keeps Ukraine fighting. Germany is home to arms makers producing with and for Ukraine, so pressure on its companies targets the supply behind Ukraine’s defense.

Industry expects attacks to last and change form

The warning came from Holger Lösch, the BDI’s deputy managing director.

“German industry is preparing for the threat to persist and for attack methods to become more varied,” he told Handelsblatt. “Companies don’t end up in the crosshairs by chance,” he added.

Russian influence and sabotage operations are no longer an abstract scenario, and companies, critical infrastructure, and defense supply chains are already among their targets, Lösch said. Companies now receive more threat warnings, and their cooperation with the authorities has improved significantly, he noted. “What is still missing are joint procedures to quickly derive concrete measures from warnings,” Lösch said, calling the protection of the economy a cornerstone of national security.

German intelligence describes a Russian shadow war

The warning comes a week after a public hearing of the intelligence oversight panel of the Bundestag, Germany’s parliament, on 5 October. There, Martin Jäger, head of Germany’s Federal Intelligence Service (BND), said Russia was waging a shadow war against Germany. “Germany has become a main obstacle to Russian hegemonic power projection in Europe and thus a target of Russian action,” Jäger said. “The danger of attacks against targets in Germany remains real and present,” he warned.

Sinan Selen, head of the Federal Office for the Protection of the Constitution (BfV), Germany’s domestic intelligence agency, told the same hearing that Russia was showing a readiness for sabotage and killings.

German Chancellor Friedrich Merz said on 1 October that Germany was preparing for further hybrid attacks, “including serious ones,” and would respond “quickly and very clearly,” as it did after the drone attack at Leipzig airport.

Drone bombs, arson, and paid saboteurs on German soil

In August, a drone carrying Semtex explosives hit the wing of a Ukrainian An-124 cargo plane at Leipzig/Halle Airport but did not explode. Germany blamed Russia on 1 September, and German Foreign Minister Johann Wadephul said Germany was not at war with Russia but was a “target of war.”

German authorities suspect Russian intelligence of commissioning an arson attack near two Munich defense firms, and a confidential Federal Criminal Police Office (BKA) assessment counted more than 165 suspected sabotage cases in Germany between January and August. The same assessment recorded 747 suspicious drone incidents involving 1,068 drones over critical infrastructure, military sites, and defense companies.

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Germany’s Military Counterintelligence Service (MAD) warns that the threat from low-level agents, locals paid small sums for one-off jobs such as arson or photographing military sites, has increased significantly. European intelligence agencies also report that Russia is increasingly targeting defense company executives, including at smaller drone makers, and the BfV has advised some German firms to hire close protection.

As long as Germany keeps backing Ukraine, Russian pressure on its companies is unlikely to ease, and the gap between warnings and action that industry flagged leaves smaller firms, with fewer resources for security, the most exposed.

European Union leaders will meet in Brussels on 15–16 October under pressure to address surging energy costs, Russian hybrid attacks, continued support for Ukraine and the bloc’s next long-term budget. The summit comes as economic pressures expose growing differences between national governments.

European Union leaders are preparing for a two-day summit in Brussels dominated by the economic consequences of the Middle East conflict, Russia’s continuing war against Ukraine and mounting pressure on governments to reconcile defence commitments with deteriorating public finances.

The European Council meeting on 15–16 October will bring together the leaders of the 27 member states to consider immediate measures addressing high energy prices alongside longer-term decisions on competitiveness, enlargement, migration and the EU’s budget for 2028–2034.

European Council President António Costa has placed economic competitiveness and energy costs at the centre of the discussions, reflecting concerns that the disruption of global oil and gas markets is threatening the bloc’s industrial recovery.

The meeting also takes place against the background of renewed disputes over national spending limits, with Italy and Greece seeking greater freedom to finance energy relief and France facing increasing pressure over the credibility of its budget.

Energy crisis puts fiscal rules under pressure

The Middle East conflict has created a renewed energy shock for European economies, raising transport and industrial costs while pushing inflation higher.

The disruption of shipping through the Strait of Hormuz has also affected global oil supplies, exposing Europe’s continuing dependence on internationally traded fossil fuels despite efforts to diversify imports following Russia’s invasion of Ukraine.

European leaders are expected to consider targeted and temporary support measures for households and businesses, as well as longer-term policies intended to reduce energy dependence.

The political disagreement concerns how those measures should be financed.

The European Commission has resisted requests from Italy and Greece for further exemptions from the EU’s fiscal framework. Both governments argue that extraordinary energy costs require additional budgetary flexibility.

Brussels maintains that existing provisions already permit exceptional expenditure within defined limits.

The disagreement is particularly difficult for indebted governments that must simultaneously finance military expansion, maintain public services and protect their economies from energy inflation.

France’s position has added urgency to the debate. Its borrowing costs have increased sharply as investors question whether the government can adopt a credible budget ahead of the 2027 presidential election.

A summit agreement on emergency energy assistance would therefore have to accommodate substantially different national fiscal circumstances.

Ukraine and the changing transatlantic relationship

Support for Ukraine remains a central item on the summit agenda as Russia continues attacks against Ukrainian cities, energy infrastructure and industrial facilities.

EU leaders are expected to review military and financial assistance, the implementation of sanctions against Moscow and the resilience of Ukraine’s economy.

The discussions take place amid renewed uncertainty surrounding American weapons deliveries.

Washington’s reported threats to suspend supplies under the NATO-backed PURL procurement arrangement have raised further questions about Europe’s dependence on the United States for advanced military equipment.

European governments have increased defence expenditure and committed additional support to Ukraine, but replacing American capabilities remains difficult, particularly in air defence, precision-guided weapons and certain intelligence systems.

The summit is unlikely to resolve those industrial limitations, but the broader question of Europe’s ability to sustain Ukrainian defence over several years will influence discussions.

Member states must also consider how increased defence expenditure will be financed alongside other demands on national budgets.

Russian hybrid operations move higher on the agenda

The EU’s published summit agenda includes Russian-linked hybrid attacks within Europe.

The issue has gained prominence as European governments investigate sabotage, cyber operations, information interference and threats against infrastructure and defence-related industries.

Recent warnings concerning possible Russian assassination operations targeting European defence executives and employees of companies supplying Ukraine illustrate the changing nature of the security threat.

Such activities place additional demands on national intelligence services, police forces and European institutions responsible for cross-border cooperation.

The EU has strengthened its sanctions instruments against hybrid activities, but enforcement remains dependent on coordination between national authorities.

Any further measures would need to address intelligence sharing, protection of critical infrastructure and the relationship between internal security and the Union’s wider Russia policy.

A larger EU with a contested budget

Enlargement will form another important part of the discussions following the Commission’s proposals for preparing a wider Union.

Brussels has outlined possible institutional safeguards intended to prevent future members from undermining democratic standards or blocking common decisions.

Montenegro and Albania are advancing through their accession negotiations, while Ukraine and Moldova remain central to the EU’s geopolitical enlargement strategy.

The financial implications will become increasingly important as governments negotiate the next multiannual financial framework covering 2028–2034.

Existing members are already divided over how much the EU should spend, which programmes should receive priority and whether additional common resources should be raised.

Agricultural expenditure, cohesion funding, defence investment and support for Ukraine will compete for resources within the same budget negotiations.

The Commission argues that enlargement can be accommodated through targeted reforms, but securing agreement among member states will require decisions on future expenditure and the distribution of financial benefits.

Competitiveness and the single market

Leaders will also examine progress on the One Europe, One Market agenda, which aims to reduce barriers to economic activity within the EU and improve conditions for European businesses.

The initiative is intended to address structural weaknesses affecting investment, industrial development and the ability of European companies to compete internationally.

High energy prices have made those concerns more immediate, particularly for industries competing against producers in economies where electricity and fuel are cheaper.

The European Council will be asked to provide direction on measures planned for 2026 and 2027, but implementation will depend on subsequent legislation and decisions by member states.

The October meeting brings several unresolved European policy questions into the same negotiation: how to protect economic competitiveness, maintain fiscal credibility, finance defence, sustain Ukraine and prepare for enlargement.

The immediate test will be whether leaders can agree on a credible response to energy prices without reopening broader disputes over national budgets.

More difficult decisions concerning defence financing, institutional reform and the EU’s long-term expenditure commitments will extend well beyond the two-day summit.

Prime Minister Andy Burnham has acknowledged that Russia interfered in Britain’s 2016 referendum on European Union membership, ending a decade in which successive governments avoided making a definitive public assessment of Moscow’s involvement.

British Prime Minister Andy Burnham has confirmed that Russia interfered in the 2016 Brexit referendum, marking a significant change in the government’s position on foreign involvement in one of the country’s most consequential political decisions. The acknowledgement comes more than ten years after Britain voted to leave the European Union and six years after a parliamentary intelligence investigation criticised the failure to examine Russian activities surrounding the vote.

Speaking on The Rest Is Politics podcast, Burnham said he had requested an assessment of Russian interference after becoming prime minister in July. He subsequently received confirmation that Moscow had attempted to influence the referendum, although he declined to disclose the intelligence underpinning that conclusion or explain the methods employed.

The statement establishes an important distinction between Russian interference and the referendum’s outcome. The former is now publicly acknowledged by the British government; the latter remains a separate question. No evidence has been presented demonstrating that Russian activities determined the result, which saw 51.9 per cent vote to leave the EU.

The investigation that never took place

The controversy dates back to the Intelligence and Security Committee’s 2020 report on Russia, which identified serious weaknesses in Britain’s response to hostile foreign influence.

The committee examined Russian activities targeting British political institutions, including attempts to exploit social divisions through state-controlled information channels and online networks. It found that the British government had failed to conduct a comprehensive assessment of potential Russian interference in the Brexit referendum.

That failure was particularly striking when compared with the United States, where intelligence agencies investigated Russian interference in the 2016 presidential election and published conclusions identifying a coordinated campaign.

In Britain, by contrast, responsibility for examining foreign interference had been divided between departments and intelligence agencies. The parliamentary committee found that no organisation had assumed responsibility for assessing the threat to the referendum comprehensively.

The distinction was politically convenient for successive governments. Without a formal investigation, ministers could maintain that there was insufficient evidence to establish interference while avoiding the question of whether the evidence had ever been properly examined.

Burnham’s acknowledgement changes that position, although it does not resolve every question raised by the original inquiry.

What Russia sought to achieve

Russian information operations have repeatedly targeted political divisions within European societies, particularly disagreements over immigration, national sovereignty, NATO and relations with Brussels.

Research into online activity surrounding the Brexit campaign identified networks of accounts associated with Russian influence operations that circulated divisive political messages. Establishing their precise reach, coordination and effect on individual voters remains considerably more difficult.

Moscow had an identifiable strategic interest in weakening European political cohesion. Britain’s departure from the EU removed one of the bloc’s largest economies, a permanent member of the UN Security Council and an important supporter of sanctions against Russia.

That geopolitical consequence does not establish that Brexit was engineered by Moscow. Britain’s referendum reflected longstanding domestic political divisions, disagreements over European integration and dissatisfaction with successive governments.

Russian interference, however, need not create political divisions to exploit them. Amplifying existing disputes, discrediting institutions and encouraging distrust between political opponents can serve strategic objectives without requiring direct control over a campaign.

Consequences for relations with Europe

The timing of Burnham’s intervention is significant. His government has begun reconsidering Britain’s relationship with the EU, while European governments are confronting increasingly aggressive Russian hybrid operations.

Burnham has also suggested that Britain should be prepared to reconsider EU membership in the future, although such a decision would require a separate political mandate and negotiations with the bloc’s 27 members.

The prime minister’s comments place Russian interference within a broader European security debate. France and Germany are among the countries confronting allegations of foreign information operations, covert political influence and attempts to undermine electoral confidence.

The European Council’s forthcoming October summit will include discussions of Russian-linked hybrid attacks, demonstrating that the problem extends beyond conventional espionage and cyber-security.

For Britain, the outstanding question concerns the intelligence assessment itself. Burnham has not indicated whether further evidence will be published, whether Parliament will receive a classified briefing or whether the government intends to examine failures by previous administrations.

A public acknowledgement without supporting details may establish the government’s position, but it cannot by itself provide a complete historical account.

Ten years after the referendum, Britain is therefore confronting two separate matters: the extent of Russia’s activities during the campaign and the reasons its own institutions took so long to acknowledge them.

The first concerns foreign interference. The second concerns the accountability of the British state.