Volkswagen Restructuring: Volkswagen reported weak Q2 sales (down 8.6%), with China down more than a third, and says it will cut its model lineup by nearly half as it tries to simplify and cut overcapacity—while labor representatives and IG Metall protests push back on reported job and plant cuts. Supervisory Board Clash: Reuters reports VW’s supervisory board blocked a sweeping restructuring plan, after a vote split between labor and management, keeping the pressure on for a July 9 review. Consumer Repair Rights: Germany’s Bundesrat approved the EU right-to-repair rules, giving consumers a repair demand from late July and extending warranty incentives if they choose repair over replacement. Defense Modernization: The Bundestag backed a €9.5bn package for defense upgrades, including a responsive space launch demo and a high-energy laser counter-drone capability, plus work on uncrewed combat aircraft. Germany-US Missile Deal: Chancellor Merz says the US agreed to sell RTX Tomahawk cruise missiles to Germany, closing a “strategic gap” as Germany also develops European systems. Ukraine Drone Production: DEUTZ and ARX Robotics begin serial production of Gereon ground drones in Ulm for delivery to Ukraine by late summer. Klarna Financing Boost: Klarna secured a €900m Germany facility to scale consumer “Fair Financing,” selling loan portfolios and newly originated receivables via a forward-flow structure. Air Safety Incident: A Ryanair Boeing 737 made an emergency landing in Greece after a window was dislodged inflight, with reports of a passenger partially sucked out and later medical assistance. EU Budget Standoff: Wealthy EU states warn of a possible “no-deal scenario” on the next budget if the bloc can’t cut the draft size, despite defense and Ukraine funding goals.