EU Budget Fight: EU leaders are set to clash over the next 7-year budget (2028–2034), with net contributors and beneficiaries sharply split on both spending priorities and new revenue sources, as Ireland is tasked to propose options by October. Russia Outreach Row: A major rift has opened over whether the EU should open a back-channel with Moscow; European Council President António Costa’s Kremlin contacts sparked backlash from Macron and Merz, with some Baltic states backing a tougher line. Estonia Digital Governance: Estonia plans “AI ID codes” so AI agents can act with defined rights and accountability, alongside a €7m upgrade to the Health Management Dashboard to reduce fragmentation for healthcare workers. Education Language Tension: Estonia’s Education Minister Kristina Kallas used Russian in a graduation thank-you, drawing criticism from a fully Estonian-language school. Security & Defence: Estonia’s preparations for a possible Russian attack stay in focus as NATO’s Ramstein Flag ramps up readiness, and the EU Parliament condemns Russian drone incursions. Local Politics/Justice: Estonia’s Supreme Court upheld prison terms for former Saaremaa Shipping Company executives. Public Services: Tallinn is moving ahead with new tram links and route changes, while Estonia’s data watchdog orders a sex-offender website to remove personal details.