Public Finance: Germany’s draft 2027 budget would lift borrowing to over €203bn, with total spending rising to €555bn and investment up to €117.5bn, as Berlin tries to cushion the economy from war-related energy shocks and years of underinvestment. Transport & Infrastructure: The government also plans higher 2027 rail spending (new build and expansion up to about €2.2bn) while cutting money for the existing network and rail digitalisation, drawing criticism from rail advocates. Semiconductors & Industry: Infineon has opened its €5bn Smart Power Fab in Dresden ahead of schedule, doubling capacity and creating about 1,000 jobs, positioning Germany for AI data-centre and clean-energy demand. Auto Sector: Thousands of Mercedes workers protested cost-cutting plans led by IG Metall, warning labour sacrifices could undermine the industry’s future amid weak demand and China pressure. Labour Policy: Chancellor Merz’s sick-leave crackdown would require a doctor’s note from day one and end phone-in sick notes, aiming to curb absenteeism. Energy & Trade: BASF says it is well placed for Hormuz-related uncertainty thanks to flexible raw-material sourcing, but warns longer disruption could hit demand. Tech & Society: Activists against a Swiss AI data centre have moved their protest base across the border into Germany. Markets: Continental agreed to sell its ContiTech plastics and rubber unit to Lone Star for €4bn, with plans to refocus on tyres. Politics: The far-right AfD held its Erfurt convention amid mass protests and heavy police presence, as it eyes regional elections. Safety: A major Stuttgart wholesale market fire remains out of control, with firefighters unable to enter parts of the burning warehouses due to collapse risk.