Regional Summary
When the Front Line Is Everywhere Across central and eastern Europe this week, countries are taking on military commitments that outrun their political capacity to deliver them. States that once saw defence as a NATO obligation confined to their borders are now hosting American tankers for strikes on Iran, offering troops to the Gulf, and building ties with defence contractors — all while their governments collapse into feuds, corruption scandals, and paralysis. External ambition and internal dysfunction are rising together, and the contradiction threatens to become unsustainable. Romania shows the problem most clearly. Its Supreme Council of National Defence approved American use of airbases for operations against Iran, a commitment that goes beyond hosting NATO’s missile defences at Deveselu. KC-135 refuelling aircraft are arriving at Mihail Kogălniceanu; Tehran has issued warnings. Yet as Romania takes on global military risk, its government is tearing itself apart. Marcel Ciolacu, the former prime minister, has launched personal attacks on his successor, Ilie Bolojan, calling him “an executioner” and “a satrap with a scythe.” The Social Democrats plan to collapse the coalition through mass ministerial resignations. The country’s main intelligence service has lacked a permanent civilian head for nearly two years. A state willing to host American bombers cannot find a spymaster. Poland shows the same split in sharper form. Karol Nawrocki, the president, visited Budapest in support of Viktor Orbán, aligning himself with Marine Le Pen and Matteo Salvini just as the Washington Post reported that Hungary’s foreign minister regularly briefs his Russian counterpart on EU Council discussions. Mr Nawrocki’s veto still blocks €132bn in EU defence funding — the bloc’s largest allocation to any single country — and his refusal to swear in new constitutional court judges prolongs a standoff that makes governance impossible. Football fans across the country booed him; Donald Tusk, the prime minister, called the Budapest trip a “fatal mistake.” Poland is at once Europe’s most hawkish state on Ukraine and one of its most politically paralysed. Estonia and Finland show that even functional northern governments are overreaching. Tallinn offered to send troops to the Strait of Hormuz if Washington asked — a leap for a country of 1.3m people whose primary concern is a 294-kilometre border with Russia, highlighted by another Russian Su-30 incursion into its airspace. Petteri Orpo, the prime minister, pushed ahead with legislation enabling NATO nuclear planning on Finnish soil, overriding opposition calls for delay, while his coalition fractured over inheritance tax and an €800 bottle of champagne accepted by Riikka Purra, the finance minister. Both countries are building deeper ties with American defence contractors — Lockheed Martin is opening maintenance facilities across the Baltics — but their domestic coalitions are fragile foundations for such commitments. Ukraine, the country all these efforts are meant to support, shows the contradiction most painfully. It deployed 201 military experts to Gulf states to help counter Iranian drones, a desperate attempt to make itself indispensable to partners beyond Europe. Yet Donald Trump dismissed the offer, calling Volodymyr Zelensky “the last person we need help from,” even as Ukrainian anti-corruption prosecutors charged 41 sitting MPs and arrested senior security-service officials taking six-figure bribes. A state fighting for survival on the battlefield and seeking relevance on the global stage is simultaneously hollowed out by the corruption of its own officials. Lithuania’s governing Social Democrats, meanwhile, are in revolt against their own prime minister over her use of military aircraft for personal trips, leading a former foreign minister to lament that allies now see the country as “a state without a message.” The problem is not just that war in Ukraine and conflict in the Middle East have raised the stakes. The political systems asked to bear these stakes — coalition governments, divided executives, weak oversight institutions — are cracking under the load. Defence budgets rise, American contractors arrive, airbases open, troops are offered to distant theatres; yet at home, presidents sabotage prime ministers, ethics commissions investigate champagne gifts, and intelligence agencies lack permanent heads. Europe’s eastern flank is arming for a world of permanent confrontation while governing as though peace were still the default. That gap is the real vulnerability.Country Summaries
Czech Republic
Authorities are investigating a fire at a Czech weapons facility that makes drones for Ukraine as terrorism after a group calling itself the Earthquake Faction claimed responsibility. Andrej Babiš, the prime minister, cancelled his trip to Budapest and convened an emergency Security Council meeting. The attack on LPP Holding’s warehouse in Pardubice is the first terrorist attack on Czech defence industry supporting Ukraine. The attackers claimed the facility had Israeli ties.
Petr Pavel, the president, signed the 2026 budget but criticised the government’s defence spending as inadequate for NATO commitments and security threats. Yet even as the government cuts spending, Western defence integration deepens. Lockheed Martin completed all 11 industrial cooperation agreements for the Czech F-35 program, with production of 24 aircraft expected to begin in 2027.
Tens of thousands of protesters filled Prague’s Letná Park to demonstrate against Mr Babiš’s government. They accused his coalition of threatening democracy and steering the country toward authoritarianism. The protests followed criticism of proposed legislation that would require NGOs receiving foreign funding to register in a database, with fines up to 15 million koruna for non-compliance. Opposition parties and NGOs have called it Russia-style foreign agent legislation.
Mr Babiš continues deepening Western economic ties. His meeting with Friedrich Merz, the German chancellor, in Berlin produced an agreement to create a Czech-German working group on energy “highways,” part of discussions on making European industry more competitive. The Czech Republic also joined other EU countries supporting stricter visa rules for Russian military personnel seeking to enter the Schengen area.
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- Tens of thousands protest in Prague against Babiš government over democracy concerns — Tens of thousands demonstrated in Prague’s Letná Park against the government, with protesters expressing concerns that Andrej Babiš and his coalition represent a threat to democracy and are steering the country toward authoritarianism and away from supporting Ukraine. (mercurynews.com)
- Babiš cancels CPAC Budapest trip after Pardubice facility fire — Andrej Babiš turned back from his flight to Budapest’s CPAC Hungary conference after being informed about the fire at the Pardubice facility, convening an emergency Security Council meeting instead. (24.hu)
- Pavel conducts regional visits across Central Bohemia — Petr Pavel undertook a multi-day tour of Central Bohemian region, visiting Mladá Boleslav, Nymburk and other locations, meeting with mayors, citizens, and visiting local businesses including Škoda Auto. (nymbursky.denik.cz)
- Pavel criticises government defence spending despite signing budget — Petr Pavel signed the 2026 state budget but criticised the reduced defence spending as unjustifiable given growing security threats and NATO commitments, adding to international criticism including from the US. (reuters.com)
Notes
Notes
Fire at Czech drone facility investigated as terrorism after anti-Israel group claims responsibility
March 20–21, 2026
Tens of thousands protest in Prague against Babiš government over democracy concerns
March 21–22, 2026
Lockheed Martin finalizes F-35 industrial cooperation agreements with Czech Republic
March 18–19, 2026
Other
Ukraine
Ukraine deployed 201 military experts to Gulf states to help counter Iranian drones this week, even as Donald Trump rejected Ukrainian assistance and called Volodymyr Zelensky an obstacle to peace.
The deployment to the UAE, Qatar, Saudi Arabia and Kuwait builds on Ukraine’s experience defending against Russian Shahed attacks. Mr Zelensky said Ukraine can produce 2,000 interceptors daily and that the US and 11 countries had requested Ukrainian help. But Mr Trump told NBC News that “the last person we need help from is Zelensky” and claimed Vladimir Putin was easier to deal with than the Ukrainian president. Mr Zelensky hit back during visits to London and Madrid, warning that a Middle East war could create missile shortages for Ukraine and criticising Mr Trump as not being “on any side” in the conflict.
The diplomatic tensions came as Ukraine’s governance crisis spread from parliament to the security services. Colonel Ihor Briku, deputy head of the Security Service of Ukraine (SBU) in Rivne region, was arrested taking a $620,000 bribe for permits for amber mining. Authorities also detained the deputy head in Kyiv region. Separately, a court sentenced Lyudmila Marchenko, a former lawmaker from Mr Zelensky’s Servant of the People party, to two years in prison for taking an $11,300 bribe to help draft-eligible men leave the country. Anti-corruption prosecutors have now charged 41 current MPs.
On the battlefield, Ukraine stayed on the offensive despite intensified Russian attacks. General Oleksandr Syrskyi reported more than 200 daily clashes across multiple fronts and said Ukrainian forces had killed 4,840 Russian soldiers in three days. The government also outlined energy plans requiring 278 billion hryvnias for the next heating season, with EU loans covering part of the cost.
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- Ukraine deploys drone warfare experts to Middle East to counter Iranian attacks — Ukraine has sent over 200 military experts to the Middle East to help Gulf countries defend against Iranian drones, using experience gained from years of Russian Shahed drone attacks. The US and 11 countries have requested Ukrainian assistance in countering drone threats. (nytimes.com)
- Foreign Minister Sybiha calls for stronger sanctions amid Middle East escalation — Foreign Minister Andrii Sybiha urged increased pressure on Russia following Middle East escalation, warning that soaring energy prices could increase risks of Russian aggression in Europe. He opposed linking EU loans to the Druzhba pipeline operation. (ukrinform.net)
- SBU conducts operations against corruption and Russian agents — Ukraine’s Security Service detained deputy heads in Rivne and Kyiv regions for bribery over amber extraction, exposed Russian disinformation operations against Hungarian community in Zakarpattia, and suffered a drone attack on its Lviv facility. (kyivpost.com)
- Armed Forces conduct strikes against Russian targets and defend multiple fronts — Ukrainian Armed Forces struck Russian command centres in Mariupol and military facilities across occupied territories, while defending against intense Russian attacks. Daily combat clashes exceeded 200 as Russian forces increased pressure across multiple front sections. (militarnyi.com)
- Political tensions emerge within Servant of the People party amid corruption cases — Ukraine’s ruling Servant of the People party is split as several MPs face corruption charges. Former party member Lyudmyla Marchenko was sentenced to two years for bribery, while MP Mariana Bezuhla faces treason charges in a court-ordered investigation. (euromaidanpress.com)
- Defence Minister Fedorov signals shift toward data-driven war management — New Defence Minister Mykhailo Fedorov, previously digital transformation minister, is making changes to reduce bureaucratic oversight and stress management based on data and Ukraine’s expertise in countering Iranian drones. (washingtontimes.com)
Notes
Notes
Ukraine and US hold peace talks in Florida with delegation including Servant of the People leaders
March 1–22, 2026
Commander-in-Chief Syrskyi warns Russia plans to recruit 409,000 more troops in 2026
March 1–8, 2026
Other
Poland
Karol Nawrocki, Poland’s president, broke with his own government this week to support Viktor Orban, splitting the country’s foreign policy just as Hungary faces accusations of sharing EU secrets with Russia.
Mr Nawrocki announced he will visit Budapest on March 23 to back Orban ahead of Hungary’s April 12 elections, despite opposition from Donald Tusk, the prime minister. This puts him alongside Marine Le Pen and Matteo Salvini at a Patriots for Europe gathering. Mr Tusk called the visit a “fatal mistake” that strengthens Putin. The president’s office said Mr Nawrocki would only attend bilateral meetings, but it was too late — Poland’s presidency now backs Europe’s nationalist parties while the government keeps its Atlantic ties.
The split came just as The Washington Post reported that Peter Szijjarto, Hungary’s foreign minister, regularly calls his Russian counterpart to brief him on EU Council meetings. Mr Tusk said Poland had “long suspected” this and now limits sensitive discussions when Hungary is present. The revelations make Mr Nawrocki’s visit look even worse for a president facing opposition at home.
That opposition spilled into football stadiums across Poland this week. Fans in Zabrze, Gliwice and Lublin booed Mr Nawrocki and hung vulgar banners attacking his vetoes of government legislation. The protests started over his blocking of criminal justice reforms but spread to football matches — a sign that the president’s authority is cracking beyond parliament and government.
Mr Tusk’s government, meanwhile, notched a small win in Brussels by securing concessions on the EU’s emissions trading system, including financial aid and extended free allowances for energy-intensive industry. Poland built alliances with Italy and other countries to push for reforms that account for national differences.
On the right, Jarosław Kaczyński announced that Przemysław Czarnek will be Law and Justice’s (PiS) candidate for prime minister in 2027. The choice of the hardline former education minister signals that the party plans to move right to compete against Confederation rather than moving toward the centre. Early reactions suggest the choice has not unified the party as Mr Kaczyński intended.
The core problems remain. Mr Nawrocki’s veto still blocks €131.9 billion in EU defence funding — the bloc’s largest allocation to any member state — forcing the government to find other funding. The constitutional court standoff continues. The Sejm has elected new judges but the president will likely refuse to swear them in.
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- Reports emerge of Hungarian officials sharing EU meeting details with Russia — The Washington Post reported that Peter Szijjarto, Hungary’s foreign minister, regularly called his Russian counterpart to brief him on EU Council meetings. Mr Tusk responded that Poland had ‘long suspected’ such information sharing, while Mr Szijjarto accused him of spreading lies. (wydarzenia.interia.pl)
- Nawrocki vetoes SAFE defense funding program, sparks political crisis — Karol Nawrocki, the president, announced his veto of legislation implementing the EU’s SAFE defence funding mechanism, calling it a 45-year loan that would burden future generations. The decision triggered criticism from the government and a heated exchange during an emergency cabinet meeting. (businessinsider.com.pl)
- Tusk claims success in EU negotiations on emissions trading reform — Donald Tusk, the prime minister, announced that Poland secured concessions on the EU’s emissions trading system (ETS) during the Brussels summit, including access to financial aid and extended free emission allowances. He formed alliances with Italy and other countries to push for reforms. (wiadomosci.wp.pl)
- Nawrocki plans US trip for CPAC conservative conference — Karol Nawrocki, the president, will travel to Dallas, Texas on March 27 for the Conservative Political Action Conference (CPAC), where he is invited as a special guest. The trip includes planned meetings with American officials, though a meeting with Donald Trump has not been confirmed. (oko.press)
- Football fans across Poland boo and protest against President Nawrocki — Karol Nawrocki, the president, faced widespread booing and hostile banners from football fans at multiple stadiums across Poland, including matches in Zabrze, Gliwice, and Lublin. The protests were sparked by his veto of criminal procedure reforms, with fans displaying vulgar messages criticising his decisions. (przegladsportowy.onet.pl)
- Constitutional Tribunal crisis over new judge appointments — The Sejm elected six new Constitutional Tribunal judges, but Karol Nawrocki, the president, may refuse to swear them in. Adam Żurek, the justice minister, warned of a ‘Plan B’ if the president blocks the appointments, while legal disputes continue over the proper procedure for judge selection. (wiadomosci.wp.pl)
- Tusk warns of potential ‘Polexit’ if opposition wins 2027 elections — Donald Tusk, the prime minister, warned that if anti-European forces win the 2027 elections, they will lead Poland out of the EU. He argued that no law could prevent this political decision and emphasised that EU membership is crucial for Poland’s independence and security. (wiadomosci.wp.pl)
- PKN Orlen’s market value exceeds Russian Gazprom’s — Donald Tusk, the prime minister, celebrated that Polish oil company Orlen’s market capitalisation surpassed that of Russian energy giant Gazprom. He attributed this milestone to the change of government and departure of PiS from power, writing ‘two years without PiS and it’s enough not to steal.’ (bankier.pl)
- Government reconstruction rumors denied by Tusk — Donald Tusk, the prime minister, dismissed media reports about planned government reconstruction, saying he doesn’t know where such rumours came from and has no such plans. Earlier reports suggested potential changes to ministers of culture, education, and health before summer. (wiadomosci.gazeta.pl)
- Tusk announces massive energy investment program — Donald Tusk, the prime minister, announced that Poland will invest one trillion zloty in energy infrastructure over the next decade. He emphasised that energy security is crucial for national security, citing the wars in Ukraine and the Middle East as examples of why secure energy supplies matter. (rmf24.pl)
- Protests follow Civic Coalition internal elections — Several protest complaints were filed after Civic Coalition’s (KO) internal elections on March 8, particularly regarding results in Lower Silesia and Podkarpacie regions. The complaints alleged procedural violations, with most protests subsequently rejected by the party’s electoral commission. (wiadomosci.gazeta.pl)
- Tusk dismisses porodówka closure controversy in Lesko — During a TVN24 interview, Donald Tusk, the prime minister, claimed that the maternity ward in Lesko was not closed, but was quickly contradicted by facts showing the facility had indeed been shut down under his government. Opposition politicians and activists criticised him for the factual error. (wpolityce.pl)
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Other
Finland
Riikka Purra, the finance minister, forced Petteri Orpo, the prime minister, to abandon plans to scrap inheritance tax this week, calling his approach “senseless” and declaring that coalition fiscal decisions were no longer up for debate. The public split between the liberal National Coalition Party leader and his populist Finns Party partner exposed the ideological tensions within Finland’s four-party government.
Mr Orpo had suggested removing the tax during spring budget talks, but Ms Purra swiftly rejected the idea, saying it would only benefit wealthy families. The prime minister backed down within days. The disagreement showed the divide between the coalition’s liberal and populist wings over fiscal policy, with Ms Purra saying her party would no longer compromise on economic policy.
Reports that Ms Purra had accepted a nearly €800 bottle of champagne damaged the finance minister’s authority, as government guidelines prohibit ministers from taking gifts worth more than €200. Ms Purra recorded the gift as worth €400 and justified keeping it by saying the bottle was opened. The ethics violation hurt a government polling badly.
Despite coalition tensions, the government pressed ahead with its nuclear weapons policy changes. Mr Orpo rejected opposition calls for a parliamentary working group to review the changes, saying the government would not stop or reverse the legislation. The Social Democratic Party (SDP) had sought to delay the policy, which removes legal restrictions on nuclear weapons and enables NATO nuclear planning on Finnish soil, but Mr Orpo said the changes were essential for joining the alliance.
Finland remained active on European security. Mr Orpo called Viktor Orban’s blocking of €90 billion in Ukraine aid “intolerable” and accused the Hungarian leader of exploiting Ukraine’s crisis for domestic electoral purposes. President Alexander Stubb, during a working visit to London, warned of growing divisions between the EU and an “unpredictable” United States, while proposing that Europe help America with Iran if Washington continued supporting Ukraine.
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- Orpo condemns Hungarian leader Orban for blocking Ukraine aid — Orpo criticized Hungarian leader Viktor Orban at an EU summit for blocking a €90 billion aid package to Ukraine. Orpo called Orban’s actions ‘intolerable’ and accused him of betraying previous agreements to exploit Ukraine’s crisis for domestic electoral purposes. (mtvuutiset.fi)
- President Stubb’s London visit focuses on EU-US relations and Brexit — President Stubb conducted a two-day working visit to London, meeting King Charles and Keir Starmer, the prime minister. Stubb warned of growing EU-US divisions, called Brexit ‘a colossal mistake,’ and suggested Europe could help the US in Iran if America supports Ukraine. (is.fi)
- Government removes nuclear weapons restrictions despite opposition — The government removed legal restrictions on nuclear weapons despite Social Democratic Party (SDP) opposition. Orpo rejected calls for a parliamentary working group and said the change involves NATO nuclear planning. Opposition criticized the lack of consultation. (iltalehti.fi)
- Finland considers Strait of Hormuz security participation — Finnish leaders discussed potential participation in securing the Strait of Hormuz after Trump’s requests for European help. Orpo said Finland should consider involvement while Antti Häkkänen, the defence minister, expressed scepticism about Finland’s capabilities for such operations. (is.fi)
- AI-generated deepfake pornography targets Finnish female politicians — A website published nearly 1,500 AI-generated explicit images of prominent Finnish women, including Riikka Purra, the finance minister, and other politicians. Ms Purra said it was only a matter of time before such deepfake abuse reached Finland. (yle.fi)
- Coalition Party leadership race intensifies as vice-chairperson steps down — National Coalition Party vice-chairperson Anna-Kaisa Ikonen announced she would step down, triggering competition for the position. Multiple candidates including Antti Häkkänen, the defence minister, Sari Multala, and others declared their candidacy for the party congress in June. (sss.fi)
- President Stubb visits Raseborg and discusses Åland defence — President Stubb visited Raseborg, inspecting the Nyland Brigade and meeting students. During his visit, he discussed the defence of Åland archipelago with brigade leadership and said he was confident in the Defence Forces’ capabilities. (presidentti.fi)
- Orpo reveals sleep apnoea treatment and health improvements — Orpo disclosed his 2020 sleep apnoea diagnosis and treatment with a CPAP device. He spoke publicly about the health benefits to encourage others with similar issues to seek treatment, saying he wished he had got help earlier. (iltalehti.fi)
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Other
Estonia
Estonia offered to send troops to help secure the Strait of Hormuz if Washington asked, marking a shift from regional defence to global operations with American forces.
Hanno Pevkur, the defence minister, and Margus Tsahkna, the foreign minister, said Estonia was ready to discuss sending forces to the strait. Mr Pevkur said Estonia could offer demining expertise, though he stressed any deployment would require ceasefire conditions. The offer extends Estonia’s military commitment beyond the Baltic region to Middle Eastern conflicts where it sees common interests with allies.
Mr Tsahkna backed this global approach with a visit to Israel, where he met Gideon Sa’ar, his Israeli counterpart, to express support during the war with Iran. Mr Tsahkna said the Iran conflict affects Estonia too and backed Israel’s right to defend itself against Iranian threats.
Estonia also deepened its defence ties with America. Lockheed Martin will build a $10 million facility to maintain HIMARS missile systems for all three Baltic states. The agreement, reached during Mr Pevkur’s Washington visit, is the latest American contractor investment in Estonian defence infrastructure.
A Russian Su-30 fighter spent about a minute in Estonian airspace near Vaindloo island on March 18, the first such violation this year. Mr Tsahkna noted “the season has begun” and said Italy’s air force unit at Ämari responded properly. The European Council agreed to consider Estonia’s proposal to restrict visas for Russian fighters who fought in Ukraine, with 25 EU leaders backing the measure and Hungary and Slovakia opting out.
The opposition Estonian Conservative People’s Party (EKRE) continued its public campaign, backing farm policy and criticising government policies. Party chair Martin Helme attended conservative conferences in Hungary while other members pushed for agricultural funding ahead of 2027 elections.
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- Explosion at Russian military base near Estonian border — A large explosion occurred at a Russian military base in Pskov, 32 kilometres from Estonia. Mr Pevkur stated it was likely a fuel depot that was hit, possibly by Ukrainian forces, though details remained unclear pending further verification. (err.ee)
- EKRE domestic political activities and policy positions — Various stories covering the party’s activities including agricultural policy support, local government coalitions, criticism of government policies, and participation in international conservative conferences. The party continues to position itself as the main opposition voice on economic and social issues. (uueduudised.ee)
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Other
Lithuania
Lithuania’s governing party is turning against its prime minister, with MPs calling for Inga Ruginienė to be replaced as ethics investigators examine her use of government aircraft for family trips.
The revolt within the Social Democratic Party intensified this week when Martynas Katelynas, an MP, said the party leader should consider replacing Ms Ruginienė if he wins re-election in May. The criticism comes as the state ethics commission investigates whether she used government resources for personal trips to Milan and the Vatican, examining her use of military aircraft and Vatican protocols.
The crisis threatens the coalition’s stability but has not shaken Lithuania’s Western alignment. The country continues building defense ties with America — Lockheed Martin opened a Lithuanian branch this week as more US defense companies expand into Lithuania. But Gitanas Nausėda, the president, criticized meetings with John Coale, the US special envoy to Belarus, saying some sessions were poorly prepared and warning against manipulation by Alexander Lukashenko.
Gabrielius Landsbergis, the former foreign minister, went further, saying allies now view Lithuania as a “state without a message” on Middle East issues. He argued the government has failed to take a clear position on support for US operations.
Even within the coalition, defense spending priorities are causing tension. Ms Ruginienė urged lawmakers not to oppose both air defense and the Kapčiamiestis training ground, calling both priorities. But Remigijus Žemaitaitis, leader of coalition partner Dawn of Nemunas, suggested choosing air defense over the training ground. Poland rejected Lithuania’s proposal for a joint training facility.
On economic policy, Mr Nausėda nominated Gediminas Šimkus for a second five-year term as central bank governor, praising his role in modernizing the bank and financing defense projects. Ms Ruginienė announced Lithuania would release oil reserves to fight rising fuel prices from the Middle East conflict. Mr Nausėda urged Brussels to quickly adopt a 20th sanctions package against Russia and begin considering a 21st package targeting Rosatom and Lukoil.
The crisis has shifted from external ethics scandals to internal party revolt, threatening Ms Ruginienė’s authority while leaving Lithuania’s security commitments intact.
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- PM Ruginienė and officials meet with US special envoy to Belarus John Coale — Prime Minister Inga Ruginienė met with US Special Envoy to Belarus John Coale during his visit to Vilnius. Multiple Lithuanian officials including MPs Vėgėlė, Jankūnas and MEP Gražulis also held separate meetings. Discussions focused on Belarus sanctions, security situation, and hybrid attacks including contraband balloons. (delfi.lt)
- Bank of Lithuania issues licenses and regulatory decisions — Bank of Lithuania granted payment institution license to Robinhood Europe for electronic money token operations. Court ruled the bank was justified in revoking Foxpay’s electronic money license. Bank also approved various financial sector acquisitions and licensing decisions. (tv3.lt)
- Ignitis Group sells stake in Vilnius cogeneration plant — State-owned Ignitis Group agreed to sell 49% of Vilnius cogeneration plant shares to Swiss fund Quaero Capital for 120 million euros. The sale fulfills EU conditions for receiving 138 million euros in construction funding. Some criticized the sale price as too low. (lrt.lt)
- Bank robbery at Artea branch in Vilnius — A masked man attacked an Artea bank branch in Vilnius, spraying tear gas at an employee and stealing documents before fleeing. Police launched a major manhunt. The bank expressed shock over the incident. (lrytas.lt)
- President Nausėda criticizes nationalist slogan as inappropriate — President Gitanas Nausėda denounced the slogan “Lithuania for Lithuanians” as inappropriate and reminiscent of Nazi Germany ideologies from the 1930s. This followed authorities opening an investigation into the slogan’s use at a March 11th commemoration. (lrt.lt)
- President Nausėda addresses demographic crisis — President Gitanas Nausėda warned that low birth rates represent “self-destruction” for Lithuania and emphasized the urgent need to address demographic challenges to prevent the nation from disappearing within decades. (delfi.lt)
- Former Foreign Minister Landsbergis criticizes government messaging on Middle East — Former Foreign Minister Gabrielius Landsbergis said Lithuania is viewed by allies as a “state without a message” regarding the Middle East situation, arguing the government lacks a clear position on potential support for US operations. (latvia.news-pravda.com)
- Constitutional Court judges sworn in — Three new Constitutional Court judges were sworn in, including nominees from the Supreme Court, President, and Parliament Speaker. President Nausėda will decide on the next Constitutional Court president. (delfi.lt)
- Hybrid attacks: contraband balloons disrupt Vilnius airport — PM Ruginienė confirmed that Belarus continues hybrid attacks using contraband balloons that disrupted Vilnius airport operations. A tobacco company donated drones to help combat contraband smuggling along the border. (lrt.lt)
Notes
Notes
President Nausėda proposes Gediminas Šimkus for second term as Bank of Lithuania governor
March 1–17, 2026
Other
Latvia
Latvia arrested 21 people this week in a corruption investigation over €1.5 million in IT contracts, including the former director of the Digital Development Agency. The European Prosecutor’s Office led the operation, which threatens electoral system security.
The government also faced economic pressure. Evika Siliņa, the prime minister, announced a windfall tax on fuel traders to counter rising prices from Middle East conflicts. The government plans to cap retail fuel prices at €1.80 per litre by April.
Security services are countering Russian interference. Prosecutors charged a former hockey player and accomplice with arson attacks on railway infrastructure last August, working for Russia. The suspects filmed their attacks for propaganda and were recruited while traveling to Russia. Separately, Edgars Rinkēvičs, the president, met mayors to press for bigger local contributions to national defence.
Ms Siliņa also joined European Council leaders pressing Hungary’s Viktor Orbán to approve €90 billion in Ukraine aid. She criticised Mr Orbán’s blocking tactics and pointed to Latvia’s successful break from Russian energy. Ms Siliņa and Mr Rinkēvičs said Latvia would consider any NATO request for Hormuz Strait operations, though NATO has made none.
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- Government delivers annual performance report amid opposition criticism — Ms Siliņa presented the government’s annual report to parliament highlighting achievements but faced criticism about bureaucracy reduction plans and policy clarity. The opposition questioned the government’s effectiveness amid various challenges. (lsm.lv)
- President Rinkēvičs honors Olympic athletes and promotes AI development — Mr Rinkēvičs hosted a reception for the 2026 Winter Olympic team at Riga Castle and took part in a Future of Work AI forum. The events focused on Latvia’s digital development and international competitiveness in technology. (tv3.lv)
- EU decision to restore Druzhba pipeline draws mixed reactions from Latvian officials — The European Commission announced support to restore Russian Druzhba oil pipeline operations. Mr Rinkēvičs expressed understanding but not approval of the decision, viewing it as necessary for Ukraine funding despite concerns about helping Russian infrastructure. (tvnet.lv)
- Banking sector reports declined profits amid economic pressures — The Latvian banking sector’s profits fell 33.3% to €379.6 million in 2025. Central bank officials discussed inflation risks from Middle East conflict while the government considers transferring non-bank lender supervision to the Bank of Latvia. (lsm.lv)
- STEAM education center expansion opened in Sigulda — Ms Siliņa attended the opening of an expanded STEAM education and technology centre in Sigulda featuring an inclusive education technology space. The event was attended by about 100 education and technology representatives from Latvia and abroad. (kursors.lv)
- Former high-ranking official’s phone surveillance in Kariņš flight case revealed — A former top civil servant had his phones wiretapped for two months in a case related to former prime minister Kariņš’s flights. The court ruled that Ms Siliņa’s orders for suspension and disciplinary action were unlawful, but the dismissed official still faces pressure. (tv3.lv)
- Finance Minister proposes radical budget preparation reform — Arvils Ašeradens, the finance minister, suggested that next year’s state budget should be prepared exclusively by the Finance Ministry, an unusual departure from the traditional inter-ministerial budget process. (jauns.lv)
Notes
Notes
Major IT procurement corruption investigation nets 21 arrests including former VDAA director
March 18–22, 2026
Other
Romania
Romania approved American use of its airbases for military operations against Iran, a deeper commitment to Washington’s Middle East policy than the country has made before. The first three KC-135 refueling planes arrived Sunday and will deploy to Mihail Kogălniceanu airbase for 90 days, with more to follow. Iran has warned Romania of consequences.
The decision by Romania’s Supreme Council of National Defence moves the country from European defence to global operations. Romania is no longer just hosting NATO defensive kit — it is now providing logistics for active American campaigns against Iran. This goes well beyond the Deveselu missile defence site or normal NATO work.
Yet while Romania aligns more closely with America abroad, its government faces crisis at home. Marcel Ciolacu, the former prime minister, has launched personal attacks on Ilie Bolojan, his successor, calling him “an executioner” and “a satrap with a scythe.” Mr Ciolacu declared that “the Bolojan era is approaching its end” and hoped his birthday would be “the first and last as premier.”
The crisis has moved beyond political confrontation. Mr Ciolacu’s Social Democrats plan to collapse the government through ministers quitting en masse, with claims of the president’s quiet approval for a change of prime minister. The Liberal Party is preparing to quit the coalition.
Despite this turmoil, Romania’s institutions keep working. Parliament passed the 2026 budget after intense debates, though the far-right Alliance for the Union of Romanians (AUR) announced a Constitutional Court challenge that could complicate implementation. The budget included social measures negotiated between the feuding coalition partners — proof that deals can still be struck while the government may fall.
Romania’s main intelligence service has operated without a permanent civilian head since Eduard Hellvig, the former director, resigned in July 2023. Security experts warn this vacancy undermines intelligence partnerships and operations, but no appointment is expected as political attention focuses on the coalition crisis.
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- AUR leads in polls but shows signs of decline amid political positioning — Polling data shows the Alliance for the Union of Romanians (AUR) maintaining its lead in voter intentions at 35% but declining from previous highs of 38-41%. The party continues to be the preferred choice for parliamentary elections despite internal challenges and repositioning over potential coalitions with other parties. (hotnews.ro)
Notes
Notes
Former PM Ciolacu launches sustained attacks on Bolojan government over budget and economic policies
February 27 – March 19, 2026
Coalition crisis threatens Bolojan government as PSD-PNL tensions escalate over budget
February 27 – March 18, 2026
Parliament adopts 2026 budget amid tensions with AUR threatening Constitutional Court challenge
March 18–22, 2026
Other