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Regional Summary

The Democratic Liability Central and eastern European governments are spending more time and energy fighting each other—and themselves—than preparing for external threats. Domestic battles consume energy that should go to defence, slowing military preparations and undermining credibility. The democratic chaos that worked in peacetime is becoming a strategic liability during live conflict. Poland offers the starkest case. Karol Nawrocki, the president, vetoed the €43.7 billion SAFE defence loan—Poland’s largest allocation under the EU’s €150 billion programme. Mr Nawrocki justified the veto on sovereignty grounds, but it denies the Polish military modernisation funds while Russia wages war next door. He then threatened to block six new Constitutional Tribunal judges, turning an institutional dispute into a second front against the Tusk government. The central bank governor then proposed financing defence from unrealised gold profits—a suggestion officials rightly dismissed as fantasy. Poland is not short of enemies; it should not create new ones at this pace. Ukraine, which needs all the allies it can get, antagonised two of them this week. Volodymyr Zelensky, the president, rebuked American sanctions policy over a 30-day waiver on Russian oil, while his foreign minister accused Hungary of “state terrorism” after Hungarian authorities seized millions in cash and gold from Ukrainian bank couriers. The timing—amid a parliamentary revolt in which some 40 ruling-party deputies are trying to resign—suggests a government reaching for external fights to distract from domestic fragility. That Ukraine also sent drone specialists to Gulf states shows it retains diplomatic initiative; whether it can sustain that initiative while bleeding legislative cohesion is another matter. Finland’s decision to lift restrictions on nuclear weapons from its territory was the week’s biggest policy shift, but even here, allies are clashing. The move completes Finland’s transformation from Nordic neutral to frontline NATO state, but Petteri Orpo, the prime minister, faces coalition troubles over tax policy, with the Finns Party blocking inheritance-tax cuts. In Lithuania, Ingrida Šimonytė, the prime minister, stumbled into an ethics scandal over an €8,000 family trip to the Vatican just as her party slid to fourth in polls, while her army commander offered bases for American strikes on Iran—a suggestion she had to disavow in evident surprise. Ingrida Šimonytė, Latvia’s prime minister, faced criticism from her own coalition partners for poor coordination. The substance of defence policy is advancing—German troops deploying, missiles arriving, NATO facilities being built—while the political superstructure wobbles. The Czech Republic and Romania complete the pattern. Prague drew sharp American criticism for budgeting only 1.7% of GDP on defence in 2026, even as Czech-American trade hit $12.6 billion and Czech troops tested new fighting vehicles alongside allies. Romania approved American use of its airbases for Middle East operations but its governing coalition is fracturing over social spending, with the Social Democrats forming tactical alliances with far-right parties to block appointments. In both countries the gap between military ambition and political discipline is widening. Eastern Europe’s democracies are rearming at historic speed, yet their domestic politics still play by peacetime rules—vetoes deployed for partisan advantage, coalition agreements treated as optional, scandals allowed to consume energy that should go to strategy. Adversaries in Moscow and Tehran face no such political constraints. Until the region’s leaders treat political cohesion as itself a defence asset, the weapons they are buying will arrive faster than the consensus needed to use them.

Country Summaries


Ukraine flag Ukraine

Ukraine picked fights with its biggest allies this week, with Zelensky criticizing US sanctions policy while his foreign minister accused Hungary of “state terrorism.” The confrontations come as the ruling party faces its worst parliamentary crisis since the war began. Ukraine is clashing with its biggest allies. Zelensky condemned the US Treasury’s 30-day waiver on Russian oil sanctions as “not the right decision,” warning it could give Moscow $10 billion for its war effort. Andrii Sybiha, the foreign minister, went further, accusing Hungary of “state terrorism.” Hungarian authorities had seized €35 million in cash, $40 million and 9kg of gold from Ukrainian bank couriers, leaving one courier hospitalized after interrogation. Even as Ukraine clashes with allies, it is building new ones. The country sent drone specialists to Jordan, Qatar and other Gulf states to help counter Iranian Shahed drones. Zelensky said Ukraine has “the greatest experience in the world” countering attack drones and wants technology transfers and funding in return. Six countries have requested help, with Ukrainian teams already deployed to three. At home, the ruling party faces its worst crisis since the war began. About 40 Servant of the People deputies want to resign after the party failed to pass key legislation, including tax reforms required by the IMF. Andriy Motovylovets, the party’s first deputy head, said the applications would not be supported because parliament must continue working. General Oleksandr Syrskyi, the commander-in-chief, said Ukrainian forces are advancing in the southern zone while strikes hit Russian missile facilities in Bryansk region.
Ukraine provides drone defense expertise to Middle East allies against Iranian threats
February 15 – March 15, 2026
Zelensky visits Paris for talks with Macron on maintaining Ukraine support amid Iran crisis
February 15 – March 15, 2026
Ukrainian forces advance in southern counteroffensive as Syrskyi reports territorial gains
March 9–15, 2026
Hungary seizes Ukrainian bank assets, NBU accuses Budapest of blackmail
March 6–15, 2026
Ukrainian parliament faces crisis as Servant of the People deputies seek early resignation
March 10–15, 2026

Poland flag Poland

Poland’s president crossed from obstruction to open warfare this week, vetoing Poland’s €43.7 billion defence loan and threatening to block the appointment of six new Constitutional Tribunal judges. Karol Nawrocki, the president, vetoed the SAFE defence mechanism on March 12, cutting off Poland’s access to the largest allocation under the EU’s €150 billion defence programme. Mr Nawrocki argued the loans would “strike at sovereignty” and saddle Poland with 180 billion złoty in interest costs over decades. Donald Tusk, the prime minister, immediately announced “Plan B” to access the funds by other means, saying the veto “will not stop us” from modernizing Poland’s military. The next day, the Sejm elected six judges to the Constitutional Tribunal: Magdalena Bentkowska, Marcin Dziurda, Anna Korwin-Piotrowska, Krystian Markiewicz, Dariusz Szostek, and Maciej Taborowski. But the judges cannot take office without a presidential oath, and Mr Nawrocki may refuse to swear some of them in. The opposition Law and Justice (PiS) party immediately asked the tribunal to suspend the election before a March 17 hearing on whether the selection rules are constitutional. The government is considering Plan B, including having judges take their oath before the parliament speaker instead. Even as it feuds with the president, the government is pursuing nuclear talks with France. Mr Tusk declared on March 3 that Poland will “strive to prepare for the most autonomous actions possible” on nuclear security, confirming talks with Emmanuel Macron after his offer to deploy nuclear assets. The next talks are on March 10 in Paris. Mr Nawrocki endorsed Poland joining a “nuclear project” but said he prefers working with the United States over the EU. The feuding produced one attempt at compromise that went nowhere. Adam Glapiński, the central bank governor, and Mr Nawrocki jointly proposed “SAFE 0%” — defence financing using unrealized profits on the bank’s gold and currency reserves. Andrzej Domański, the finance minister, dismissed the plan as “fairy tales” that “finances nothing,” noting the central bank has been losing money for years.

Finland flag Finland

Finland’s government announced plans to lift restrictions on nuclear weapons from Finnish territory, the biggest shift in the country’s nuclear policy since it joined NATO. The proposal would end Finland’s nuclear-free status and allow allied nuclear weapons on Finnish soil for deterrence. Petteri Orpo, the prime minister, and Alexander Stubb, the president, called the change necessary for full NATO membership while promising no nuclear weapons in peacetime. The opposition attacked the government for keeping the plans secret, but Mr Orpo said the policy would appear in the upcoming foreign and security policy report. The nuclear decision shows Finland is integrating deeper into NATO. Antti Häkkänen, the defence minister, announced that the alliance will establish a communications facility in Riihimäki in early 2027, with 60 Finnish personnel providing communication services for NATO forces in Finland and across the alliance. The facility marks another step in Finland’s build-up of permanent NATO infrastructure. The government faces tensions at home. Mr Orpo’s four-party coalition passed 1000 days this week, but cracks have appeared over tax policy. The National Coalition Party wants to eliminate inheritance tax in spring budget talks, but Riikka Purra, the finance minister from the Finns Party, firmly rejected the proposal. The disagreement shows the ongoing tensions between the coalition’s liberal and populist parties. External pressures are mounting too. The conflict in Iran pushed oil prices above $100 per barrel, with analysts predicting they could hit $130. Ms Purra said the government was studying how to respond to rising fuel costs and inflation from the extended conflict. Meanwhile, Mr Orpo attended Nordic-Canada talks in Oslo on Arctic security, and Mr Stubb gave a lecture at the London School of Economics on rebalancing world order.
Government proposes lifting nuclear weapons restrictions amid parliamentary opposition
February 19 – March 02, 2026

Estonia flag Estonia

Hanno Pevkur, Estonia’s defence minister, brushed off a scandal that looked worse than it was. Polling found 83.4% of Estonians saying his Dubai trip during the Middle East crisis “doesn’t matter — he doesn’t control anything here or there.” Mr Pevkur confirmed that South Korea’s Hanwha Aerospace will invest up to €100m in an ammunition factory to produce 40mm rounds for combat vehicles. The government backed requirements for military conscripts to pass B1-level Estonian language tests starting in 2027. Margus Tsahkna, the foreign minister, travelled to Australia to build support for a Nuremberg-style tribunal against Putin. He warned that 1m Russian war veterans could be deployed for sabotage operations across Europe and urged stricter restrictions on Russian oil. The opposition is already eyeing 2027 elections. The Conservative People’s Party of Estonia (EKRE) adopted a platform promising economic growth and “radical migration policy changes.” Martin Helme acknowledged poor poll numbers but noted that other parties, including Reform, are copying the party’s positions. Coop Bank posted €28.7m profit despite an 11% drop from falling interest rates, while growing its loan portfolio 19% to €2.11bn.
Government supports Estonian language requirements for military conscripts
March 12, 2026

Lithuania flag Lithuania

Inga Ruginienė, Lithuania’s prime minister, faced an ethics investigation this week after taking her family on an official Vatican trip at taxpayers’ expense, a scandal that has increased pressure on a governing coalition sliding in the polls. The €8,000 Vatican visit drew opposition complaints and an ethics commission investigation. Ms Ruginienė defended the practice as standard diplomatic protocol, but the controversy dominated Lithuanian media. The timing is awkward for her Social Democratic Party, which has dropped to fourth place in polling with just 7.1% support, down from 7.3% in January. The opposition Conservatives hold the lead at 13.6%. Even as Ms Ruginienė’s government faces this domestic crisis, Lithuania’s defence cooperation with allies continued. About 1,700 German troops from the 45th Armoured Brigade are serving in the country, with numbers expected to exceed 2,000. Lithuanian forces also received additional AMRAAM air defence missiles and Spike anti-tank missiles worth €5.7 million, while plans advance to assemble German Leopard tanks domestically. But the government had coordination problems. Raimundas Vaikšnoras, Lithuania’s army commander, said the country could provide territory for US bombers and fighters in operations against Iran. Ms Ruginienė responded with surprise, saying no requests had been made by Washington. The mix-up suggested poor communication between civilians and the military on cooperation with America. Elsewhere, the government responded to rising fuel prices caused by Middle East conflicts. Ms Ruginienė discussed measures including price caps and using strategic oil reserves, working with EU partners who have approved member states’ use of reserves. The central bank imposed a €30,000 fine on ValorPay for monitoring violations, continuing its oversight of fintech firms.
PM Ruginienė faces ethics investigation over Vatican family trip funded by state
February 12 – March 07, 2026

Latvia flag Latvia

Evika Siliņa, Latvia’s prime minister, faced criticism from both opposition and coalition partners when she presented her annual government report this week. The Progressives, part of her own coalition, admitted the government has coordination problems and criticised her failure to defend Latvia’s membership in the Istanbul Convention. Multiple no-confidence votes have failed only because the opposition remains fragmented. Even as domestic politics remained fractious, Latvia’s foreign policy and defence preparations went smoothly. Edgars Rinkēvičs, the president, hosted Petr Pavel, the Czech president, for the first Czech state visit in 28 years, discussing pressure on Russia and Czech participation in NATO’s brigade in Latvia. The Defence Ministry signed an agreement with Patria for armoured vehicle maintenance, expanding maintenance facilities. Meanwhile, Ms Siliņa ordered investigations into Rail Baltica procurement after concerns that officials excluded a bid €270 million lower than the winner on procedural grounds, showing that accountability still works despite political tensions.
Siliņa confirms readiness to be New Unity's PM candidate for next elections
March 15, 2026
KNAB launches corruption investigation against former municipal official
March 12, 2026
Latvia expands defense cooperation with Patria for armoured vehicle maintenance
March 13, 2026

Czech Republic flag Czech Republic

The United States criticized the Czech Republic this week after Czech lawmakers approved a 2026 defense budget spending just 1.7% of GDP on the military, placing Prague among NATO’s lowest contributors. The US embassy posted sharp criticism on X, while the American ambassador to NATO said allies must “pull their weight.” Andrej Babiš, the prime minister, defended the cuts, citing domestic priorities. Even as Washington pressed Prague on spending, military cooperation continued. Czech forces tested new CV90 fighting vehicles in Sweden and joined multinational cyber defense exercises with American troops. Petr Pavel, the president, completed state visits to Lithuania and Latvia, holding business forums and parliamentary meetings. Economic ties with the US are strengthening. The Czech Republic and Texas signed their first cooperation declaration while bilateral trade reached $12.6 billion in 2025. Czech investment in America has quadrupled since 2020. More details emerged about pressure on Czech public broadcasting. Václav Moravec, a television journalist, revealed that Czech Television management expected him to skip a controversial broadcast and had prepared backup plans. Mr Moravec described the past two years as “training but also torment” following leadership changes at the broadcaster.

Romania flag Romania

Romania approved American use of its airbases for Middle East operations this week, deepening its role in US military operations beyond routine NATO duties. Parliament and the Supreme Defence Council voted to let Washington deploy refuelling aircraft, surveillance equipment and communications gear at Romanian bases. Nicușor Dan, the president, said the equipment has a defensive role and includes refuelling planes. The decision came as Volodymyr Zelensky visited Bucharest to sign defence cooperation deals, including joint drone production in Romania and stronger energy ties. The moves show Romania is willing to support American operations in unstable regions despite political costs at home. The Alliance for the Unity of Romanians (AUR), the far-right opposition party, abstained from the parliamentary vote, drawing criticism from other politicians who questioned George Simion’s pro-Trump credentials. The governing coalition is in crisis. The Social Democratic Party (PSD) is threatening to submit budget amendments in Parliament for a social spending package, breaking coalition rules. The National Liberal Party warned this could trigger a political crisis, citing Article 19 of their governance agreement, which requires coalition approval first. The clash extends beyond budgets — the PSD also blocked parliamentary votes on new Ombudsman and anti-discrimination council members, forming a tactical alliance with AUR to delay Save Romania Union appointments. Marcel Ciolacu, the former prime minister and PSD leader, has stepped up personal attacks on Ilie Bolojan, the current prime minister, calling him economically incompetent because Romania lacks a 2026 budget by March. Mr Ciolacu accused Mr Bolojan of wanting to redistribute local revenues and compared him to “political dinosaurs.” The crisis has moved from internal coalition talks to open political warfare that threatens government stability. Meanwhile, the central bank warned that escalating conflict in the Middle East and rising oil prices could force Romania to revise inflation targets. Bank officials stressed the need to use EU funds faster to support growth amid the fiscal crisis. The military continued its modernisation programme with a third batch of 860 Iveco tactical trucks, part of a 2019 deal for 2,900 vehicles total.
Romania expands military truck fleet with 860 Iveco vehicles
March 12, 2026
Romanian AI company provides drone technology to US Army counter-drone systems
March 11, 2026