Skip to main content

Regional Summary

The Militarisation of Normality Central and eastern Europe’s democracies are retooling for a war that has not yet reached most of their soil. From gold vaults to volunteer drone networks, from Baltic border controls to Romanian motorway budgets, the state machinery is being rebuilt around conflict — and the political costs are starting to show. Ukraine shows this pattern clearly. Kyrylo Budanov, the former intelligence chief, now runs the Presidential Office — security professionals have replaced political operatives at the top of civilian government. The defence ministry has given official advisory roles to two Telegram influencers, one with 156,000 followers, the other responsible for delivering more than 256,000 drones. The result is a state that has stopped pretending the line between civil society and the war effort still exists. These moves come alongside the biggest diplomatic opening yet — talks with Russia described as free of “pseudo-historical lectures” and a security-guarantees document said to be ready for signature. The contradiction is sharp: Ukraine is at once preparing to negotiate peace and building permanent war readiness into its institutions. Poland’s version is fiscal rather than institutional, but just as telling. The National Bank’s purchase of 102 tons of gold in 2025, making it the world’s largest buyer for the second straight year, suggests a country not at ease with the international monetary order. Adam Glapiński, the governor, frames the policy as building “credibility and security,” yet the gold now exceeds the European Central Bank’s own holdings. Meanwhile, the political system that must fund both butter and guns is seizing up: the governing coalition and the presidency have stopped speaking to each other, with opposition parties refusing even to attend meetings called by Karol Nawrocki, the president. When the prime minister must rebuke the president for his response to American remarks about NATO, the system designed to project allied unity instead advertises its dysfunction. Finland and the Baltic states show how security concerns now drive policy well beyond defence budgets. Finland’s State Audit Office found that the government’s claimed €10 billion in savings is €3.5 billion — a gap that matters when the country is trying to meet EU deficit rules and push military spending toward 3% of GDP. Estonia, spending 5% of GDP on defence while producing the world’s highest density of unicorn startups, proposed an EU-wide entry ban on nearly a million Russian veterans, a policy that would have seemed fantastical three years ago. Lithuania created a “military Schengen” with its Baltic neighbours, eliminating peacetime barriers to troop movements. Each step makes sense. Taken together, they describe societies reorganising around a threat assessment that leaves little room for the priorities — welfare, infrastructure, fiscal prudence — that defined European normality before 2022. The strain shows where consensus is thinnest. In the Czech Republic, 90,000 people took to the streets over a foreign minister accused of threatening the president’s adviser. Yet the government confirmed it would resist NATO pressure to move beyond 2% defence spending — a position that clashes with its aspirations to be taken seriously in a three-pole world. Romania, the EU’s second-largest beneficiary of a new €16.6 billion defence fund, plans to reach 5% of GDP in military spending by 2035 while running a 9.3% budget deficit, the worst in the union. Latvia’s security services now assess that Russia views the Baltics much as it viewed Ukraine before the invasion — a sentence that, once written into an official report, changes the calculus of every budget line. What emerges is not ideological militarisation but militarisation as bureaucratic habit: gold reserves swelling, drone operators drawing government salaries, border controls redesigned for armoured columns, and audit offices struggling to balance the books. These democracies are not becoming garrison states. But they are discovering that preparing for the worst, year after year, reshapes institutions in ways that no peace deal can easily reverse.

Country Summaries

UkraineUkraine

Ukraine’s security guarantees from America are ready for signing, and peace talks with Russia have taken a procedural leap forward. President Volodymyr Zelensky announced that the US security guarantees document is completely ready following talks in Abu Dhabi, with Ukraine now waiting for partners to set a signing date before Congressional and parliamentary ratification. The document would provide binding security commitments beyond previous assurance frameworks. Meanwhile, Foreign Minister Andrii Sybiha confirmed that bilateral Ukraine-Russia meetings occurred within the trilateral framework, describing a “qualitative change in Russian delegation composition” with no more “pseudo-historical lectures” and substantive discussions on ceasefire parameters, monitoring procedures, and timeline definitions. Military representatives held separate track negotiations. Even as it negotiates, Ukraine continues expanding its military capabilities through an unusual route: formalising volunteer expertise. Defence Minister Mykhailo Fedorov appointed Serhii ‘Flash’ Beskrestnov as defence technology advisor and Serhii Sternenko as unmanned aerial vehicle (UAV) effectiveness advisor. Both run prominent Telegram channels — Mr Beskrestnov has 156,000 followers and focuses on counter-drone systems and captured equipment analysis, while Mr Sternenko’s foundation has delivered more than 256,000 drones to Ukrainian units. The appointments represent systematic integration of wartime innovation networks into permanent military organisation. Separately, the Security Service of Ukraine (SBU) confirmed that its Alpha unit struck five Russian airbases in 2025, destroying 15 aircraft including Su-30SM, Su-34, MiG-31, Mi-28, and An-26 platforms, with an estimated $1bn in damage including ammunition and fuel storage destruction. The most significant domestic shift is now complete. Kyrylo Budanov, former head of Main Intelligence Directorate, has been officially appointed head of the Presidential Office, replacing his previous role in military intelligence. Mr Zelensky emphasised that Mr Budanov would focus on security issues, defence forces development, and diplomatic negotiations. The appointment establishes security professional rather than political operative leadership of the Presidential Office, representing a structural shift in decision-making architecture toward military-intelligence background.
Ukraine ends diplomatic passivity toward Hungary, Sybiha announces
January 27, 2026
Ukraine prepares sanctions against Lukashenko for war complicity
January 27, 2026
Ukraine offers security cooperation to Moldova over Transnistria
January 27, 2026
Sybiha emphasizes Poland's support for Ukraine's EU membership
January 29, 2026
Budanov appointed Head of Presidential Office
February 01, 2026
Budanov commemorates Battle of Kruty heroes
January 29, 2026
Zelensky cautious on Russian bombing pause during extreme cold
January 30, 2026
National Bank cuts key policy rate to 15 percent
January 29, 2026
Investigation reveals Tymoshenko's alleged plot to undermine Zelensky's parliamentary majority
January 30, 2026

PolandPoland

Poland’s cohabitation crisis has deepened to the point where opposition parties now refuse to meet with the president at all. When President Karol Nawrocki invited all parliamentary clubs to meetings this week, the Civic Coalition and Left declined, with politicians saying the sessions “bring nothing” and accusing Mr Nawrocki of “torpedoing government actions.” Only Law and Justice (PiS) and minor parties participated, highlighting the complete breakdown of institutional cooperation between the executive branches. The dysfunction is spilling into Poland’s alliance management. Prime Minister Donald Tusk sharply criticised Mr Nawrocki and former President Andrzej Duda for their response to controversial Trump remarks about NATO soldiers in Afghanistan, saying their role is not to lobby for other countries but to guard Polish national dignity. The public disagreement reveals cracks in Poland’s dual-track strategy of using the president to manage MAGA relationships while the prime minister coordinates with Europe. Even as the political system strains, Poland is pursuing assertive economic statecraft. The National Bank purchased 102 tons of gold in 2025, making it the world’s largest buyer for the second year running, according to the World Gold Council. Governor Adam Glapiński now controls over 550 tons, ranking Poland 12th globally and exceeding the European Central Bank’s 506 tons. Mr Glapiński defends the policy as building credibility and security despite economist criticism of returns. Meanwhile, Polish Oil and Gas Company (PKN Orlen) demanded immediate repayment of a $28.7 million loan from Grupa Azoty Polyolefins after banks put the company in default, part of continued unwinding of troubled state-owned enterprises from the PiS era. The political complications extend beyond the ruling coalition. Sławomir Mentzen’s New Hope (Nowa Nadzieja) faces potential dissolution over financial irregularities, with reports of communication breakdown between Mr Mentzen and Krzysztof Bosak. Party members are criticising Mr Mentzen’s leadership while Confederation (Konfederacja) risks losing millions in state funding, adding to the fragmentation on the right ahead of 2027 elections.
Tusk criticizes Nawrocki and Duda over response to Trump's NATO comments
January 30 - February 01, 2026

FinlandFinland

Finland’s government faces a fiscal crisis as an official audit revealed its budget savings are less than half what was claimed — 3.5 billion euros rather than the promised 10 billion. The State Audit Office’s findings expose major gaps in the right-wing coalition’s austerity programme, with unfulfilled employment effects, incomplete welfare savings, and tax cuts that reduced the fiscal impact. Finance Minister Riikka Purra’s ministry estimates the actual effect may reach 5 billion euros by 2027, but this still falls well short of targets. The shortfall deepens Finland’s challenge in meeting EU deficit rules while funding its NATO military buildup, which aims to field one of Europe’s largest reserve armies at 2.5% of GDP spending, rising to 3% by 2029. Yet the underlying economy shows recovery signs — GDP grew 0.6% in the fourth quarter of 2025, with employment and working hours rising. Multiple research institutes project 1.0-1.5% growth for 2026 driven by consumption and investment recovery. The fiscal strain comes as Finland’s main opposition party faces an escalating scandal that could reshape electoral dynamics ahead of 2027. Tytti Tuppurainen, the Social Democratic Party parliamentary group chair, faces allegations of inappropriate behaviour toward staff and MPs from multiple sources. MP Pia Hiltunen publicly described inappropriate pressure over voting decisions. Party leader Antti Lindtman defends Ms Tuppurainen, but the Social Democratic Party (SDP) has ordered an external investigation. The timing is damaging: the SDP was leading polls by significant margins before the scandal broke. Multiple parties have launched similar internal investigations into workplace culture. Diplomatically, Finland demonstrated its confidence as a NATO member by directly challenging China on Ukraine while preserving commercial ties. Prime Minister Petteri Orpo met Chinese President Xi Jinping and Premier Li Qiang in Beijing, raising Ukraine concerns and calling on China to work toward lasting peace. Finnish companies signed 11 trade agreements, but Mr Orpo stressed that China’s support for Russia undermines EU-China relations. Meanwhile, President Alexander Stubb and Norwegian Prime Minister Jonas Gahr Støre published a joint op-ed in the Financial Times supporting Greenland’s territorial integrity and warning against US annexation attempts — a rare public challenge to an ally on core principles. The president also demonstrated Finland’s soft power through an unexpected cultural moment. Mr Stubb and First Lady Suzanne Innes-Stubb participated in Yle’s 60-hour Muumi book reading marathon, drawing widespread public praise for their animated performances. Public comments emphasised the uniqueness of having a head of state reading to the nation on television — a gesture of cultural engagement during Finland’s strategic transformation.
Orpo announces parliamentary working group on healthcare reform
January 31 - February 01, 2026

EstoniaEstonia

Estonia is no longer just reacting to Russian threats — it is actively shaping Europe’s response to them. At a Brussels foreign ministers meeting this week, Foreign Minister Margus Tsahkna proposed an EU-wide entry ban for Russian soldiers who fought in Ukraine, arguing that nearly 1m Russian combatants pose security risks to Europe. EU High Representative Kaja Kallas reported that “many member states” supported the Estonian proposal, which would systematically blacklist Russian veterans in post-war scenarios. The initiative marks Estonia’s evolution from stress-tested alliance solidarity to policy entrepreneurship within EU frameworks — using its deep institutional embedding to drive coordinated anti-Russian measures rather than merely adapting to external pressures. The shift reflects a broader pattern of Baltic assertiveness. Defence Minister Hanno Pevkur hosted his Latvian and Lithuanian counterparts in Tallinn to sign a joint military mobility agreement simplifying cross-border movement of forces, alongside discussions on Baltic defence cooperation and Ukraine support. Estonia continues spending 5% of GDP on defence while achieving the world’s highest density of unicorn companies — a combination that gives it both credibility and influence within European institutions. Domestic governance proceeded routinely. The Riigikogu re-passed employment law amendments after President Alar Karis declined to promulgate them in December over constitutional procedural concerns, demonstrating normal democratic checks and balances. Meanwhile, analysis revealed that Estonia’s central bank holds only 256.6kg of gold reserves for historical rather than financial reasons, while neighbouring Finland’s reserves reached a historic high of €6.1 billion. Estonia’s investment assets total €2 billion, equivalent to about 5% of GDP.
Pevkur presents defense development plan to parliament
January 27, 2026
Estonia weighs eastern border closure after Russian crossing
January 31, 2026

LithuaniaLithuania

Lithuania is positioning itself as the driving force behind Ukraine’s EU membership, using its upcoming presidency to cement the enlargement agenda while strengthening Baltic defenses against an uncertain geopolitical future. President Gitanas Nausėda made Ukraine’s EU membership by 2030 a “strategic interest for Lithuania” during President Volodymyr Zelensky’s visit to commemorate the 1863-1864 uprising. Mr Nausėda declared that Lithuania will focus on this goal during its 2027 EU presidency, reinforcing the country’s role as Ukraine’s most vocal advocate within European institutions. The commitment came alongside King Frederik X’s state visit, where Mr Nausėda expressed solidarity with Denmark over Greenland’s territorial integrity amid American pressure, demonstrating Lithuania’s broader alignment with Western sovereignty principles. Lithuania is simultaneously deepening regional defense integration through major procurement and institutional innovation. The country signed a contract with KNDS Deutschland for 12 Leopard 2A8 Leguan armoured vehicle bridges worth €210 million, significantly improving battlefield mobility for Lithuanian forces. More striking was the establishment of a Baltic Military Mobility Area with Estonia and Latvia, removing peacetime bureaucratic barriers for military equipment and personnel transit between the three countries. The agreement creates what defence ministers called a military “Schengen” area, enhancing NATO’s ability to move forces rapidly in response to threats. Domestic politics, however, revealed cultural and coalition tensions that constrain the government’s room for manoeuvre. Prime Minister Inga Ruginienė sparked controversy by remaining seated during portions of a Catholic mass while presidents and other officials stood or knelt, with her office explaining she is not a practising Catholic and was affected by incense. The incident exposed religious-secular divides around expectations for political leaders in ceremonial contexts. More consequentially, Ms Ruginienė said her governing coalition with the controversial Dawn of Nemunas party will continue unless the Social Democrats make a collective decision to end it, despite ongoing questions about the junior partner’s problematic associations. On economic policy, she proposed giving banks authority to temporarily hold client transfers and reverse fraudulent transactions once fraud is confirmed.
Ruginienė proposes banking fraud prevention measures
January 29, 2026
Defense procurement reforms not linked to corruption, PM says
January 28, 2026
Opposition demands detailed presentation of defense Plans B and C
January 26, 2026
President convenes State Defense Council meeting
January 27, 2026
Coalition to continue unless Social Democrats decide otherwise, PM says
January 26, 2026
Belarus balloons continue flying into Lithuania despite past agreements
February 01, 2026

Czech RepublicCzech Republic

Czech democracy is mobilising against governmental overreach, with 90,000 protesters rallying across the country to support President Petr Pavel in his constitutional standoff with the coalition government. The demonstrations, organised by Million Moments for Democracy, targeted what protesters called “vulgarity, arrogance and blackmail” in response to the affair involving Foreign Minister Petr Macinka, who stands accused of threatening the president’s adviser over a blocked ministerial appointment. More than 600,000 people have signed petitions supporting Mr Pavel. Opposition parties have now submitted 81 signatures for a no-confidence vote scheduled for next Tuesday. Though they lack the 101 votes needed to topple the government, opposition leaders argue that democracy cannot remain silent about executive overreach. Even as the constitutional crisis deepens, the government is signalling a more transactional foreign policy approach. Parliamentary Speaker Tomio Okamura criticised the display of a 30-meter Ukrainian flag on Charles Bridge during Unity Day celebrations, calling it an “unnecessary provocation” and confirming government plans for stricter Ukrainian residency conditions. Czech churches condemned Mr Okamura’s statements as “misleading and dangerous.” Meanwhile, Mr Macinka has outlined Prague’s thinking on China policy to US Ambassador Nicholas Merrick, with the government operating on the assumption of a three-pole global order and considering pragmatic engagement with China while remaining anchored in the American camp. The coalition has also confirmed it will resist NATO pressure to increase defence spending. Current levels will remain at approximately 2% of GDP rather than moving toward the alliance’s new 3.5% target. Mr Okamura stated that current spending is “sufficient,” with the government prioritising domestic spending on families and transport over defence increases.
President Pavel accuses Foreign Minister Macinka of extortion over blocked ministerial appointment
January 27, 2026
Czech government reconsiders China engagement amid Trump-Xi dynamics
January 31, 2026

RomaniaRomania

Romania is executing the largest defence transformation in its modern history, with €16.6 billion in European Union funding now backing an unprecedented military modernisation. The Romanian government detailed spending plans this week for its allocation under the EU’s Security Action for Europe programme, making Romania the second-largest beneficiary after Poland. The funding covers major defence procurements including Airbus helicopters, Piranha vehicles, air defence systems, and strategic A7/A8 motorway sections. This comes on top of the existing more than $20 billion procurement pipeline, potentially pushing defence spending toward 5% of GDP by 2035. The United States is reinforcing this commitment by deploying a tank unit equipped with M1A2 Abrams tanks to Romania. The Romanian defence chief confirmed the enhanced military cooperation maintains the same overall troop levels while upgrading capability and lethality. Even as Romania strengthens its military, its anti-corruption institutions showed they retain meaningful bite. The National Anti-corruption Directorate (DNA) arrested lawyer and Liberal Party (PNL) Sector 1 member Adriana Georgescu for receiving €60,000 as part of €500,000 promised to influence judicial cases. Ms Georgescu claimed connections to the directorate’s leadership and the presidency. A man posing as a Romanian Intelligence Service general was also arrested. The party quickly distanced itself from Ms Georgescu. The high-profile arrest suggests the directorate can still function against political figures despite revelations of systemic judicial capture in the December 2025 “Captured Justice” documentary. The political establishment continues to reject pro-Russian or pro-Trump gestures. Alliance for the Union of Romanians leader George Simion faced fierce domestic and international criticism after attending a Trump anniversary event in Washington, where he participated in cutting a Greenland-shaped cake decorated with the US flag. He also presented a report on Romania’s election annulment to Republican congressmen. The backlash reinforced the cross-party consensus supporting Western alignment. Romania’s central bank kept key rates unchanged at 6.5% in January to support economic growth while monitoring inflation trends. Officials expect modest inflation decline in the first half of 2026, maintaining coordination with the government on budget preparation as the country grapples with a 9.3% GDP deficit — the worst in the EU.
Prime Minister Ciolacu criticized for excessive government reserve fund spending
January 27, 2026
Turkish defense company Otokar to acquire Romanian military vehicle partner
January 29, 2026
Multiple PSD leaders resign in Bucharest after electoral defeat
January 29-31, 2026

LatviaLatvia

Latvia’s security services warned this week that Russia now views the Baltics much as it viewed Ukraine before the war. The Constitution Protection Bureau’s annual report assessed that “Russia’s perception of Latvia is becoming increasingly similar to the one Russia had of Ukraine before the war,” warning of continued hybrid warfare including cyber threats to critical infrastructure and information influence operations targeting upcoming elections. The assessment reflects an escalation beyond routine Russian interference to what officials see as pre-conflict intelligence posture. Latvia is responding by deepening Western integration. Defence Minister Sprūds met with Estonian and Lithuanian counterparts in Tallinn to sign a letter of intent establishing a Baltic Military Mobility Zone, standardising border crossing procedures and coordinating military movement for crisis situations. Meanwhile, the government is reviewing a Justice Ministry proposal to allow extradition of Latvian citizens to Britain for criminal prosecution, expanding current arrangements that cover the European Union, United States, Iceland, Norway and Australia. Prime Minister Evika Siliņa conducted foreign visits this week, including to Croatia, and told parliamentary foreign affairs debates that Latvia faces a low level of direct military threat while maintaining strong defence commitments. The government also established an inter-institutional working group to counter foreign interference in October 2026 parliamentary elections, with NATO Strategic Communications Centre of Excellence experts warning of industrialised Russian influence operations using artificial intelligence. Institutional checks continued to function normally. President Rinkēvičs returned two pieces of legislation to parliament (the Saeima) for reconsideration: distance learning restrictions for primary students citing insufficient preparation time, and compensation law changes creating legal uncertainties.
Baltic defense ministers plan joint military mobility zone
January 30, 2026
Justice Ministry proposes allowing extradition of Latvian citizens to UK
January 31, 2026