(EU) Monday Morning Papers Summary

LA REPUBBLICA - -The extreme air temperatures experienced in Europe recently could reduce Italy's economic output by as much as €126B, according to estimates examining the impact of heat on labor productivity, agriculture, tourism and infrastructure.

Economists warn that climate-related disruptions are becoming a structural drag on growth rather than isolated weather events, increasing pressure for greater investment in adaptation measures. - -In an interview, former French Defense Minister and senior European official Sylvie Goulard argues that Europe's postwar welfare model is becoming increasingly unsustainable as demographic aging, weaker productivity and rising defense spending reshape public finances.

She contends that governments must reconsider working lives, retirement expectations and labor-market participation if Europe hopes to preserve its social model while remaining economically competitive. - - New missiles, drones, and radio links are being employed by the Pasdaran to repair damage inflicted by US bombings.

While the Iranian regime works on these advancements, the United States is adapting its strategy by establishing underground bases to enhance its defense capabilities against potential attacks. - -League Party General Roberto Vannacci signaled he remains open to a future alliance with Prime Minister Giorgia Meloni's coalition, despite insisting that every political force should first pursue its own electoral path.

His remarks fuel speculation about possible realignments within Italy's conservative bloc ahead of future elections as right-wing parties seek to maximize their influence without fragmenting the governing majority. - - FRANKFURTER ALLGEMEINE ZEITUNG - - The AfD claims to be the principal victim of politically motivated violence in Germany, but a detailed review of official statistics suggests the picture is more nuanced.

While attacks against AfD politicians and activists have increased, many reported incidents remain disputed or difficult to classify, and representatives of other political parties also continue to face significant levels of politically motivated violence.

The debate has intensified ahead of regional elections as all parties accuse their opponents of contributing to an increasingly polarized political climate. - -A new Insa poll suggests the AfD now has a potential electoral ceiling of 35%, placing it ahead of the CDU/CSU for the first time.

The analysis argues that while dissatisfaction with the governing coalition continues to expand the party's appeal, converting that potential into actual votes remains uncertain, particularly if conservative voters return to the CDU during an election campaign. - -Germany's planned abolition of the "retirement at 63" policy would mark one of the country's biggest pension reforms in more than a decade.

Nearly 3M workers have taken advantage of early retirement since 2014, including many public-sector employees who were not engaged in physically demanding occupations.

Economists argue that phasing out the program has become essential to easing labor shortages and improving the long-term sustainability of Germany's pension system. - -Ukraine's repeated drone attacks on Russian fuel infrastructure have created a strategic turning point, according to the FAZ's analysis of Venezuela's reconstruction and Russia's economic resilience.

President Vladimir Putin has now publicly acknowledged fuel shortages inside Russia, illustrating the cumulative impact of strikes on refineries and logistics while highlighting the growing economic costs of the war. - - - HANDELSBLATT - -Germany's industrial base is facing an accelerating structural crisis, yet Berlin continues to focus on secondary political debates instead of addressing the country's long-term competitiveness.

With companies such as Volkswagen, Mercedes-Benz and Bosch restructuring or cutting jobs, the article argues that policymakers have underestimated the scale of the transformation required to restore industrial growth. - -A growing number of German manufacturers are planning to relocate production, investment and jobs abroad, according to a new survey.

Up to 100,000 industrial jobs could disappear as companies shift operations to North America, Asia and other regions offering lower costs, cheaper energy and more predictable regulation, raising fresh concerns about Germany's position as Europe's manufacturing powerhouse. - - Volkswagen is reportedly ending its autonomous-driving partnership with Bosch after concluding that the technology developed by the joint venture was no longer competitive.

The companies are believed to have invested roughly €1.5B in the project, highlighting the enormous financial risks facing automakers as competition intensifies in autonomous driving and artificial intelligence. - -China is constructing what is expected to become the world's largest hydroelectric power station on the Yarlung Tsangpo River in Tibet, surpassing the scale of the Three Gorges Dam.

Satellite imagery suggests an enormous strategic infrastructure project that will dramatically expand China's renewable electricity generation while raising geopolitical and environmental concerns among downstream neighbors. - -Rare-earths trader Andreas Kroll warns that American and Japanese buyers are aggressively purchasing global supplies of critical minerals amid growing fears of future shortages.

He argues that the scramble reflects mounting concern over China's dominant position in rare-earth processing and the increasing strategic importance of these materials for defense, electric vehicles and advanced manufacturing. - - IL SOLE 24 ORE - - Italy has become the first EU member state to approve an initial legislative package implementing the European AI Act, giving businesses and public institutions an operational framework well before the regulation becomes fully applicable across the Union.

The measures designate the Agenzia per l'Italia Digitale as the national notific