Defence Industrial Base: Germany agreed a deal with the US to buy Tomahawk cruise missiles and Typhon launchers for stationing on German soil, a move Merz frames as a stopgap while Europe develops its own systems. Auto Demand Shock: Major German carmakers are taking a hit in China, with Q2 sales down sharply and Volkswagen even weighing drastic model cuts—pressure that’s spilling into Europe and raising the stakes for restructuring. Industrial Resilience in Defence: Slovakia’s arms exports surged to €2.54bn in 2025, up from €437m in 2022, with large-calibre ammo and military vehicles driving growth. EU Security Costs: A look at Europe’s FCAS aftermath argues the breakup has left multiple programs and higher costs, weakening Europe’s position in air-superiority planning. Supply Chain Compliance: Textile due diligence is shifting from reporting to an operating system as EU forced-labour and due-diligence rules tighten expectations for deeper control across tiers. Textiles Tech Partnership: Italy is deepening ties with Bangladesh’s textile sector, pushing advanced machinery, product diversification and more sustainable manufacturing. Regional Manufacturing Stress: Germany’s Ruhr Valley is described as nearing financial collapse, with the shift from steel to lower-paid service work leaving incomes among the lowest in the country. Energy Infrastructure Reality Check (Malta): Gozo’s electric bus rollout is boosting ridership and cutting emissions on paper, but residents report unreliable electricity supply and frequent power cuts undermining the transition. AI Investment Signal: Bank of America flags South Korea as the top non-US/non-China AI beneficiary, pointing to its semiconductor manufacturing base and productivity gains from AI adoption.