"This is a very difficult day for Germany," Chancellor Angela Merkel said in a press conference after 12 people were killed and at least 49 people were injured in an alleged attack.
Prosecutors in Berlin said that the suspects are believed to have staked out locations for a future "Islamist-motivated" attack. Evidence gathered so far does not indicate that there were any concrete attack plans.
The German foreign minister flew to Benghazi on short notice to persuade Libya's rival leaders to join a peace summit in Berlin. "It's a good message that he is willing to keep to the cease-fire," said Chancellor Merkel.
Thursday marked the third anniversary of the deadly Berlin Christmas market terrorist attack. Mourners gathered to remember those lost and injured.
Police say two terror-related incidents were prevented last month alone. Germany has been on heightened alert for fresh atrocities following the death of "Islamic State" (IS) leader Abu Bakr al-Baghdadi in October.
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