Germany Budget Shake-Up: Germany’s federal cabinet has approved a 2027 draft budget with €118.7B in core net new borrowing, pushing total borrowing above €203B once infrastructure and a €30B defence fund are included—an escalation that signals a lasting shift away from strict austerity. Auto Restructuring: Continental is selling its ContiTech division to Lone Star Funds for €4B (plus up to €250M), using proceeds to cut debt and pay shareholders as the supplier reshapes around tyres amid weak demand and EV pressure. Defence & NATO Posture: Chancellor Merz is stepping up Germany’s eastern flank role with a high-level meeting of Baltic leaders, reinforcing deterrence messaging ahead of the Ankara summit. Work Rules Tightened: Germany is moving to tighten sick-leave rules, requiring a doctor’s note from day one and banning phone-in sick notes—aimed at curbing “extraordinarily high” absence. Stuttgart Fire Disruption: Firefighters are still battling embers after a massive weekend blaze at Stuttgart’s wholesale market, with damage estimated in the hundreds of millions and causes under investigation. Crypto via Mainstream Banking: Germany’s local banks (Sparkassen and cooperatives) are rolling out crypto trading access for millions through everyday banking apps, bringing digital assets further into the retail mainstream.