COMMENT: It comes as no surprise to learn that Germany’s domestic intelligence service (Verfassungsschutz) has been funding neo-Nazis. (Observers had concluded as much in the wake of the Thuringian neo-Nazi scandal. )
The cozy relationship between German intelligence and Nazi and fascist elements looms large in the reopening of the Munich Oktoberfest bombing of 1980. 
EXCERPT: New revelations on the neo-Nazi serial murders of nine men of non-German origin and a female police officer are incriminating a German domestic intelligence agency. According to media reports, a member of a recently discovered neo-Nazi terror group presumably had contact to the Thuringia Office for the Protection of the Constitution — even after he went underground. The affair could become an “intelligence agency problem,” predicts the domestic policy spokesman of the CDU/CSU parliamentary group, Hans-Peter Uhl. In the 1990s, under the pretext that they are very important informants, the Thuringia Office for the Protection of the Constitution had, in fact, paid amounts of DMs in the six-digits to influential right-wing extremist militants. The militants used this money to set up neo-Nazi structures in Thuringia, including the “Thüringer Heimatschutz” (Thuringia Homeland Protection), an organization of violent neo-Nazis. The members of the terror group, responsible for the murders, are not the only ones who have their origins in this organization. Leading functionaries of today’s extreme right are also coming from that organization, which has been officially disbanded, but is still at work in other structures. Today some of its militants, for example, are organizing neo-Nazi festivals with international participation aimed at networking the extreme right throughout Europe.
Covered by the Intelligence Agency
The aid furnished by the Office for the Protection of the Constitution (Verfassungsschutz — VS) to the neo-Nazi scene, to set up their structures in the federal state of Thuringia, is exemplary for the aid provided throughout the 1990s. As far as has become known, this aid crystallized around two prominent militants, Thomas Dienel and Tino Brandt. Both had been informants for Thuringia’s VS. According to a study on Thuringia’s extreme right, Dienel had been considered one of the most active neo-Nazis in Thuringia, until the mid-1990s. “Explicit threats to use violence against foreigners and people with diverging opinions” were part “of his repertoire.” However, his contribution was particularly vital in the field of setting things up and organizing. He established links to influential neo-Nazis in West Germany, organized many “demonstrations and actions,” with the founding of a party  on April 20, 1992, he created the “first structured gathering place for young neo-Nazis” and he radicalized members of the NPD. “Therefore, he has left a trail behind that can be followed to current structures” in the neo-Nazi scene, writes the author of the study, published in 2001. The media reported that in the 1990s the VS paid Dienel 25,000 DM — officially for his service as an informant. Dienel acknowledged publicly that he had sometimes coordinated his actions with the VS, for which he also had received money. The VS had also helped him in court: “They covered me.” . . . Read more »