Hungary Retail & Industry Pulse: Hungary’s economy “takes a summer breather” as June retail sales rise again (+4.0% y/y) but industrial output disappoints (industry -1.4% m/m; +4.1% y/y), suggesting demand holds up while production stays choppy. Heatwave, Energy Strain: Record heat keeps hitting Europe hard, with Hungary reporting 41.8°C and thousands of heat-related deaths in Germany; in Hungary, the Danube drought is still forcing power curbs and raising shutdown risk for nuclear cooling. Danube Drought Fallout: The extreme low water levels are disrupting shipping and tourism and even exposing WWII wrecks along the river, while cruise operators scramble to change routes. Energy Policy Shift: The government adopted a new energy development plan, including expanded storage, grid upgrades, and wind power calls for proposals starting Aug 31. MOL–JANAF Pipeline Deal: MOL and JANAF quietly agreed a 2026 crude transport deal (2.05m tonnes) under take-or-pay, ending uncertainty after earlier disputes. Budapest–Belgrade Rail Timing: Passenger services on the upgraded Budapest–Belgrade line could start this autumn after final Hungarian safety tests and ETCS work. AI Governance for Hungary: A new Hungarian AI website (mihivatal.gov.hu) explains AI rules and lets users report deepfake and other AI rights violations. Budapest Security Alert: Szabadság Bridge and parts of the Danube embankment will close early Friday for removal of WWII-era explosives. Business & Compliance: Hungary’s Competition Authority fined Lidl for misleading customers, while a separate report highlights the hidden costs and risks of non-digital accounting for firms.