AfD Shock in Saxony-Anhalt: Germany’s far-right AfD surged to 43.8% in the state election, accelerating pressure on Chancellor Friedrich Merz and triggering fresh clashes in parliament over migration and Ukraine policy. US-Linked Political Tension: Merz cancelled a planned phone call with Donald Trump after Trump publicly praised AfD’s election performance, with Berlin stressing it opposes foreign interference in domestic politics. Ukraine and Diplomacy: German Foreign Minister Johann Wadephul said talks with Vladimir Putin could be on the table if Russia is genuinely ready to end the war, including discussion of a Black Sea ceasefire to protect energy infrastructure. EU Defence Push: European Council President António Costa pressed Merz on faster EU defence readiness, continued Ukraine support, and agreement on the 2028–2034 budget, calling for new EU “own resources” and lower energy costs. Energy Infrastructure Security: RWE chief urged stronger protection of Germany’s critical infrastructure after suspected sabotage on the power grid, arguing for earlier detection and more cooperation beyond “peace-time” rules. Markets and Credit: Fitch’s Portugal debt upgrade fed a wider debate as German Bund yields rose to their highest since 2011, with investors rethinking euro-zone risk after AfD’s Saxony-Anhalt win. Food Safety Trade Move: The EU suspended meat imports from Brazil under stricter conditions tied to agreed Mercosur quantities, aiming to match production standards for livestock farmers. Tech and Consumer Watch: Apple’s new iPhone Duo and updated Apple Watch models are rolling out with published Germany pricing, adding to the week’s tech buzz.