Poland Politics: Poland’s main rightwing opposition Law and Justice (PiS) is splitting after Mateusz Morawiecki and allies were pushed out over internal policy disputes, with Kaczyński saying “around 30-something” MPs refused a loyalty pledge and could be expelled—raising pressure on PiS’s election prospects. EU Budget & Governance: EU governments are pushing back on the bloc’s “cash-for-reforms” model, arguing it risks reforms without local buy-in and could slow or reshape regional funding flows. Poland Economy: Poland’s unemployment fell to 5.8% in June, though it remains higher than a year earlier, while the country’s debt has climbed above €500bn amid record borrowing. Energy & Infrastructure: Poland expands Świnoujście LNG capacity, while R.Power moves more battery storage projects into construction, signaling continued investment in CEE grid flexibility. Defense & Security: Ukraine’s PM Serhiy Koretsky met Donald Tusk to discuss joint infrastructure and energy projects and thanked Poland for supporting the latest EU sanctions; separately, US forces used the Merops drone interceptor in combat, underscoring growing demand for low-cost air defense. EU Sanctions: The EU approved a 21st Russia sanctions package, but with watered-down elements after member-state opt-outs and disputes.