http://www.zdnet.com/blog/bott/german-government-accused-of-spying-on-citizens-with-state-sponsored-trojan/4044?tag=nl.e539

German government accused of spying on citizens with state-sponsored Trojan
Summary: A well-established group of German hackers has accused the German government of releasing a backdoor Trojan into the wild. Security firm F-Secure has confirmed that the program includes a keylogger and code that can take screenshots and record audio.
A well-established group of German hackers, the Chaos Computer Club, has accused the German government of releasing a backdoor Trojan into the wild. According to Mikko Hypponen of F-Secure, the announcement was made public on the group’s website in the form of a 20-page PDF (in German).
In its own analysis, F-Secure confirmed the workings of the program:
The backdoor includes a keylogger that targets certain applications. These applications include Firefox, Skype, MSN Messenger, ICQ and others.
The backdoor also contains code intended to take screenshots and record audio, including recording Skype calls.
In addition, the backdoor can be remotely updated. Servers that it connects to include 83.236.140.90 and 207.158.22.134.

http://www.esecurityplanet.com/malware/german-government-confirms-use-of-trojan.html

German law enforcement authorities have confirmed that they're using a Trojan to gather intelligence during criminal investigations.

An entry in the Emsisoft blog: 'The Federal Trojan — Background and a statement from Emsisoft '.

Since October 2011, 'The State Trojan' has raised cause for concern. [...] The examined Trojan allows the complete remote control of affected computers, including manipulation of files, keyboard logging, microphone and camera recording. [The Trojan] could theoretically be used by third-parties to gain unauthorized access to infected computers.