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AfD party congress proceeds amid mass protests, highlighting political volatility that can affect investor sentiment and policy outlook in Germany

Executive summary: The AfD held its federal party congress in Erfurt as scheduled, despite thousands of protesters assembling outside the venue. The incident reflects deep political divisions that can sway investor confidence and affect policy certainty in Europe's largest economy.

Who is involved: AfD party delegates, tens of thousands of protesters, local law enforcement, and Erfurt city authorities.

Likely next: Continued protests in other German cities, heightened scrutiny of AfD financing, and market participants watching for any policy repercussions from the party's agenda.

Thousands of demonstrators gathered in Erfurt to oppose the AfD federal party congress, yet the gathering did not stop the event from beginning on schedule. The episode underscores the heightened political polarization surrounding the far‑right party in Germany and its potential to influence public discourse and policy debates. While the protest was peaceful, the scale of opposition signals ongoing societal tension that could affect market perceptions of political stability.

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