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Welcome to the weekend issue of Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union. Join us on Saturdays for deeper dives from our bureaus across Europe.

Prime Minister Viktor Orban is confronting a new political reality – assuming the role of underdog ahead of next year’s Hungarian election.

Until recently, Orban, who led his Fidesz party to four landslide wins since 2010, has dispensed advice about electoral success to fellow right-wing leaders in Europe and the United States.

No longer. Polls show that the recently-formed Tisza party is ahead by double-digits. Its leader, Peter Magyar, is an Orban supporter-turned critic who is currently a member of the European Parliament. He is also the ex-husband of the former high-profile justice minister and Orban loyalist Judit Varga.

In an interview with a pro-government daily this week, Orban attributed the rise of Magyar to his social media skills, deriding Tisza as a “digital movement.”

Magyar is currently on an 80-day tour of the nation — including by canoe through the country's famous Tokaj wine region — sounding out locals about their problems. In May, he trekked from Budapest to Romania with a backpack and a Hungarian flag. Magyar, 44, has vowed to continue his campaign until next year’s elections that are likely to take place in April.

 

Peter Magyar, leader of the Tisza Party, in Szekesfehervar, Hungary, in November 2024. Photographer: Petar Santini/Bloomberg

With Magyar’s events across the country often dwarfing Orban’s gatherings, there’s a growing sense that the nationalist leader is not just losing on social media. Attempts at suppressing dissent are also failing. Orban banned the annual Pride parade, but Hungarians poured out by the hundreds of thousands in defiance earlier this month.

To some extent, Hungary has seen this playbook before. Similar optimism flourished among Orban opponents around Péter Márki-Zay, who ran in the 2022 election at the helm of a loose opposition alliance but failed to dislodge Fidesz.

Magyar, whose Tisza party came second in last year’s European elections, appears to be a bigger threat. This week Orban addressed the question of succession — a taboo within Fidesz, which the nationalist leader has dominated since the late 1980s. In the interview this week, he called it a “myth” that only he could be the party’s leader. Few expect him to step aside before the next election but he may have no other choice if Fidesz loses.

 — Zoltan Simon

Weekend Reads

France Proposes Axing Two Public Holidays to Tackle Deficit

French Prime Minister Francois Bayrou has proposed scrapping two national holidays, part of a drastic effort to repair public finances that’s set to unleash a parliamentary backlash in the fall.  Easter Monday, which often lands in April, and the May 8th holiday, which marks the victory of the allies over Nazi Germany, are on the chopping block. 
 

Francois Bayrou, France's prime minister, speaking at the National Assembly in Paris earlier this year. Photographer: Nathan Laine/Bloomberg

Italy Cracks Down on Sweatshops Supplying Armani and Dior

Italy is cracking down on a business model linked to some of the country’s biggest names in fashion — like Armani and Valentino. The investigation has revealed hidden, underground labor force, employed by third parties, who craft luxury clothing for Italy’s most renowned fashion houses. 
 

A display of cashmere pullovers in a Loro Piana store in Milan. Photographer: Alessia Pierdomenico/Bloomberg

Barcelona to Limit Cruise Ship Visits by Reducing Port Capacity

Barcelona is set to reduce the number of port terminals for cruise ships in the city’s latest attempt to limit the number of tourist visits. Spain’s third-largest port will cut the number of terminals used by cruises to five from seven, with the aim of making the arrival of the ships “more controlled and sustainable,” Barcelona’s city council said.

Europe’s Cocoa Slowdown Highlights Global Chocolate Struggle

The slowdown at Europe’s cocoa factories is deepening, highlighting how historically high prices are curbing demand in the top chocolate consuming region. Cocoa futures have more than doubled in the past two years on the back of poor harvests, hitting chocolate companies from Barry Callebaut AG to Nestle SA. Among the fallout — higher prices for consumers. 

Historically high cocoa prices means higher chocolate prices for consumers. Photographer: Cyril Marcilhacy/Bloomberg

This Week in Europe

  • Wednesday: EU-Japan summit in Tokyo
  • Thursday: EU-China summit in Beijing
  • Thursday: ECB rate setting meeting in Frankfurt

Note: Brussels Edition will not publish on Monday July 21st due to the Belgian national holiday. We’ll be back in your inbox on Tuesday morning.

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