The revelation that the US National Security Agency listened in on Chancellor Angela Merkel's phone caused outrage and disappointment in Germany. Now politicians are asking what the consequences should be.
Vienna has demanded an explanation from Berlin over reports that Germany's BND agency spied on nearly 2,000 targets in Austria between 1999 and 2006. Austrian media said embassies were among the targets.
Amid deeply strained ties between Washington and Berlin, Emily Haber, Germany's new US ambassador, has her work cut out for herself. But former US officials who know her say she is exactly the right woman for the job.
The Bundestag has heard evidence from the German chancellor about spying on allies by both American and German intelligence services. Despite hours of questioning, no evidence of serious wrongdoing emerged.
Hundreds of millions of euros have been earmarked for Germany's Federal Intelligence Service (BND) to get its own presence in space. The chancellor's office is pushing the project, but critics are skeptical.
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