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Germany will struggle to meet its defence objectives

Location:

GERMANY

The target will be met through the regular budget and the EUR100bn (USD104bn) special defence fund, which is due to be exhausted by the end of 2027. There is no cabinet consensus…

EU defence ambitions face constraints

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EU

Their objectives are to enhance EU cooperation and self-sufficiency in the areas of arms production and procurement, in order to make the EU more resilient in defence and enhance…

German spending crisis will have key implications

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GERMANY

The ruling means there is a gap of at least EUR17bn (USD18.4bn) in next year’s spending that needs to be addressed. The coalition parties are divided on how to resolve the issue.

German support for Ukraine could be at a crossroads

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GERMANY

This is broadly consistent with the nature of the 2025 budget, which reportedly includes plans to halve support for Ukraine. The news came days after it was widely reported that…

Coalition tensions will persist over German budget

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GERMANY

This follows several weeks of acrimonious internal debates, after a previous budget draft from early July had to be scuppered due to concerns over its legality. The new deal…

A new Polish government must undo PiS state capture

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POLAND

The United Right (ZP) coalition gained most votes, but lacked a government-forming majority. The opposition -- the Civic Coalition (KO), the Third Way (TD) coalition of Szymon…

Estonia’s continuity government faces hurdles

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ESTONIA

Kallas, who expects to take up the post of EU foreign policy chief, leaves behind a struggling economy and an unpopular government. Nonetheless, Michal’s government looks set to…

Czech-Slovak rift may limit Visegrad effectiveness

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CZECH/SLOVAKIA

The unprecedented move is the first rift since the two countries peacefully parted more than three decades ago. It came soon after the Visegrad Four (V4) of Czechia, Hungary…

Eastern Europe's rate policies diverge with Czech cut

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EASTERN EUROPE

The NBP is not cutting interest rates further partly because of tensions with Prime Minister Donald Tusk’s pro-EU government, following the defeat of the nationalist Law and…

Hungarian EU presidency will promote right-wing agenda

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HUNGARY

The Hungarian presidency will begin amid rising support for nationalist forces in the bloc. The power of the EU Council presidency is limited to setting the bloc’s order of…