The arrest of August Hanning, the 80-year-old former president of Germany's Federal Intelligence Service (BND), has sent tremors through Berlin and beyond, raising fresh doubts among allied intelligence agencies about the reliability of their German counterparts. Prosecutors allege Hanning passed highly sensitive classified material—including assessments from foreign partners, papers on Iran's nuclear program, and details on Russia's military—to an unidentified foreign power. The charges of espionage and treason mark an extraordinary fall for a man who led the BND from 1998 to 2005.

Alongside Hanning, authorities also took into custody his former chief of staff, identified only as “Manfred D.” According to prosecutors, Manfred D. remained at the BND for 16 years after Hanning's departure, during which he allegedly handed over some 2,000 classified documents to his old boss in exchange for payment. The scale and duration of the alleged leak—spanning years after Hanning's tenure—suggest a systematic breach rather than a one-off lapse.

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Germany has a long and troubled history with espionage scandals, a fact that will do little to ease allied anxieties. During the Cold War, East Germany's Stasi and the Soviet KGB penetrated West German institutions at the highest levels. Chancellor Willy Brandt, a revered figure for his anti-Nazi past, was forced to resign in 1974 after his aide Günter Guillaume was unmasked as a Stasi agent. In 1990, senior counterintelligence officer Klaus Kuron was convicted of spying for the Stasi. More recently, in 2023, an officer named only as “Carsten L.” was accused of selling secrets to Russia, including intelligence on the Ukraine war and the Wagner Group.

Hanning's own record includes a notorious episode from 2002, when he vouched for a source nicknamed “Curveball,” whose claims about Iraqi chemical and biological weapons were used to justify the invasion of Iraq. The information later proved false, casting a long shadow over Hanning's credibility and the BND's analytical rigor.

Hanning's leadership coincided almost exactly with the chancellorship of Gerhard Schröder (1998–2005), a period marked by Schröder's vocal opposition to the Iraq war and his warm relationship with Vladimir Putin—whom he once called a “flawless democrat.” After leaving office, Schröder took lucrative posts with Russian energy giants Gazprom and Rosneft, and earlier this year Putin even floated him as a potential EU negotiator—a suggestion Brussels quickly rejected. Just last week, Schröder joined the supervisory board of the Russian supermarket chain Hyperglobus, defending the move as a way to keep dialogue open in crisis times.

While there is no evidence linking Schröder to Hanning's alleged betrayal, the overlap raises uncomfortable questions about the political climate in which such leaks could occur. Some analysts speculate that Hanning might have exploited a permissive atmosphere in Schröder's chancellery without the chancellor's knowledge. The target of the leaks remains unknown; speculation has centered on Azerbaijan, which has denied any involvement, but Russia is also a possibility.

The arrest has prompted allied intelligence services, including Britain's, to review what they shared with German partners during Hanning's and Manfred D.'s active years. Such reviews are prudent, but overreacting by severing intelligence cooperation with Germany would be a strategic mistake. The primary beneficiary would be Russia and other adversaries eager to see the West divided.

Instead, Western agencies should adopt a posture of cautious engagement—what Ronald Reagan might have called “trust, but verify.” That means maintaining channels of cooperation while tightening vetting, limiting access to the most sensitive sources, and insisting on rigorous accountability. Germany's intelligence services are vital partners in counterterrorism, cyber defense, and monitoring Russian aggression; freezing them out would only weaken the West's collective security.

The Hanning case is a stark reminder that even long-standing allies can harbor vulnerabilities. But the answer is not isolation; it is vigilance. As the West grapples with a resurgent Russia and other threats, it must balance the need for trust with the imperative of verification—lest the next leak cause even greater damage.