| Orban's Turn | Hungary takes over the EU's presidency today in a test of Viktor Orban's ability to act as an honest broker. His 'Make Europe Great Again' presidency motto has raised eyebrows, but Orban has recently shown a more constructive attitude, quietly lifting his veto on several key issues, including Ukraine accession talks and sanctions on Belarus. Hot Retreat | The ECB's annual retreat in Portugal this week risks being overshadowed by French elections. The ideal program would include elevated economic discussions, cheering June inflation figures or discussing future rate cuts. Instead, concern is emerging over France's fiscal trajectory and possible ECB action to calm investors. Nationalist Alliance | Orban announced the formation of a political group with nationalist forces in Austria and the Czech Republic, seeking to break out of his isolation within the EU and lure right-wing groups looking to build on rising support from voters, both on the European and national level. Shifting Eastward | Kaja Kallas's nomination as the EU's top diplomat illustrates the bloc's changing priorities as the war shifts the center of political gravity eastward. Her main task will be shaping the EU response to Russia's full-scale invasion of Ukraine, a topic she's singularly well-versed in. Among the first and fiercest voices warning of Moscow's tactics, her international profile has skyrocketed since the Russian invasion. | 
