Last week, police searched the home of August Hanning, the former head of Germany's foreign intelligence service, in Nordwalde, western Germany, near the Dutch border. Hanning was detained on suspicion of espionage amounting to treason.

The allegations concern a period after Hanning had stepped down as head of the foreign intelligence service and begun providing consulting services. It emerged that he had enlisted the help of his former chief of staff, Manfred Dankesreiter, who was still working for the foreign intelligence service.

"Specifically, it is alleged that Mr. Hanning received nearly 2,000 documents from Manfred D. up until June 2022, some of which were confidential, meaning they were intended exclusively for use by the leadership of the foreign intelligence service. In one case, Mr. Hanning is suspected of using classified information to prepare an analysis for an employee of a foreign intelligence service. In another case, he is alleged to have passed information to an employee of another intelligence service following an extensive exchange of information," said German prosecutor's office spokesperson Ines Peterson.

Prosecutors have not specified which two countries' intelligence services were involved. German media have speculated about China and Azerbaijan, while Hanning's previous ties to Russia have also been highlighted. The leaked materials reportedly included primarily security assessments and documents concerning matters such as Iran's nuclear program and an analysis of the Russian armed forces.

"I think the extent of the damage is impossible to comprehend at this stage. The fragments that have appeared in the media do not allow us to properly assess its scale, partly because it is unclear which country Hanning was working for. Russia, China and Azerbaijan have all been mentioned. The timing is also important — whether he was recruited while he was still in office or after he left. When all this could have happened is extremely significant," said Arnold Sinisalu, former director general of the Estonian Internal Security Service (ISS/KAPO).

The precise extent of the damage remains to be determined. Germany's foreign intelligence service is a large organization, but its powers have so far been relatively limited. It is therefore possible that the information leaked was not particularly sensitive. However, other countries' secrets are also at stake and the overall reputational damage is enormous.

"The damage to the foreign intelligence service, the BND, is enormous. That is simply because a betrayal of this kind causes long-term damage to the BND's credibility, particularly among the intelligence partners on which it relies," said ARD journalist Michael Götschenberg.

"The other aspect is the purely symbolic damage that has been done. This affects not only Germany's intelligence service but German state institutions more broadly. How can these institutions be trusted if the head of an intelligence service has engaged in secret cooperation? At the same time, it must be emphasized that the very fact that something like this was uncovered is extremely positive," Sinisalu said.

"The Germans used to be very self-assured and believed they understood how Russia and China operated far better than we did and so on. History has made its own corrections. Perhaps this is partly a consequence of overconfidence and a sense of infallibility. I hope the substance of the case is not too serious. We will see. At present, too little is known," said Eerik-Niiles Kross, member of the Riigikogu Foreign Affairs Committee.

Hanning headed Germany's foreign intelligence service from 1998 to 2005, more than 20 years ago when Gerhard Schröder was German chancellor. Prosecutors say his alleged espionage activities took place between 2010 and 2022. How far has today's Germany moved on from that era?

"Germany is undergoing enormous change, with different forces pulling it in different directions. We are all concerned that the AfD, a far-right party that is at times openly pro-Putin, is the most popular political force. It has won some local elections. Whether that means a major shift at the next German Bundestag elections is too early to say, but the political atmosphere there is somewhat turbulent. The major established parties are doing rather poorly. At the same time, Germany is trying to move away from its highly restrained post-World War II approach. On the military front, the Germans have spent decades trying to prove to the world that they have learned from their mistakes. They have, of course, started making different kinds of mistakes, as tends to happen. Where Germany is headed is now one of the key questions for Europe's future," Kross said.

Germany is currently debating whether to grant its foreign intelligence service greater powers. Footage from last week also illustrates the contrast between the present and the past. In one clip, the current head of Germany's foreign intelligence service warns of the threats facing the country.

"Germany is at risk of being drawn into a violent conflict by Russia. The attempted attack in Leipzig is one example of this. No other country currently poses such a direct, extensive and concrete threat to Germany," said Martin Jäger, head of Germany's foreign intelligence service.

Meanwhile, former Chancellor Gerhard Schröder celebrates Russian President Vladimir Putin's birthday and visits a store belonging to a Russian retail chain on whose supervisory board he now serves.

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