Regional Summary
The Emergency Opportunists Across central and eastern Europe this week, leaders used the war next door to settle scores at home. Stray drones, fuel shocks and coalition fractures are not separate crises but signs of one: the governments that built democratic systems over decades now see them tested less by Moscow’s attacks than by their own leaders’ eagerness to exploit the emergency. Poland’s constitutional fight is the clearest case. Karol Nawrocki, the president, has refused to swear in six judges elected by parliament, turning routine into a veto over judicial appointments. Donald Tusk, the prime minister, insists the judges will take their oath regardless, while the parliamentary speaker has cut off contact with the Presidential Palace. The fight is supposedly about restoring the Constitutional Tribunal after years of capture under Law and Justice, but it risks swapping one takeover for another — a government that bypasses the head of state when he gets in the way. Mr Nawrocki’s response was to fly to Budapest and pose with Viktor Orbán, prompting Mr Tusk to claim this pleases Putin, an escalation that turns a domestic fight into a test of wartime loyalty. Both sides are exploiting the emergency rather than resolving it. Ukraine’s own systems betray similar strain. Volodymyr Zelensky accused the Trump administration of linking security guarantees to a withdrawal from Donbas; Marco Rubio, the secretary of state, called it “a lie.” The exchange marks the worst break between Kyiv and Washington since the full-scale invasion began, and neither side gains from airing it. At home, Mr Zelensky’s ruling party held an emergency meeting to reorganise while members of parliament boycott votes on legislation the International Monetary Fund requires. A country fighting for survival is simultaneously gutting the parliamentary processes that underpin Western aid — a contradiction its allies will not ignore forever. The war itself now reaches countries that thought distance still protected them. Ukrainian drones crashed in Latvia, Estonia and near Lithuania’s border with Belarus in one week, the first hits on allied soil. Estonia’s Auvere power plant was hit; Latvia’s president protested to Moscow. But neither country cut its support for Ukraine — Latvia’s defence minister travelled to Kyiv with more drones the same week. The real test was at home: Estonia’s rushed emergency alerts overloaded phone lines and caused confusion, showing gaps between the will to stand firm and the ability to manage consequences. Finland’s finance minister admitted the country lacks Sweden’s financial cushion should the Middle East conflict deepen, even as Helsinki pushed to lift Cold War restrictions on NATO nuclear deterrence. Readiness, it turns out, is easier to promise than to pay for. Coalition politics shows the same tension between security needs and party advantage. Lithuania’s Social Democrats threatened to wreck their governing alliance over a military training ground, demanding loyalty on defence while their leader quietly locked up his party’s internal nomination. Romania’s Social Democratic Party called a membership vote on whether to quit government, even as the central bank’s deputy governor warned of an “unprecedented budget crisis.” In the Czech Republic, arsonists torched a drone factory supplying Ukraine — police suspect Russian sabotage — while Andrej Babiš raged at his coalition partner for going solo on broadcasting policy and the opposition staged petrol-station stunts. In each case, leaders treat the emergency as background noise to amplify or ignore depending on what voters want to hear. War, energy shocks and shifts in global power have not broken these countries’ democratic systems. What they have done is show how thin the line is between resilience and exploitation. Leaders are learning the same lesson: an emergency big enough to justify extraordinary measures is also big enough to hide ordinary power grabs. The question is no longer whether these countries can withstand outside pressure, but whether their politicians will let them.Country Summaries
Poland
The Sejm elected six Constitutional Tribunal judges this week, but Karol Nawrocki, the president, refused to swear them in, triggering the worst constitutional crisis since the government took power.
Mr Nawrocki delayed the swearing-in, and Donald Tusk, the prime minister, called it an unprecedented standoff. Mr Tusk insisted the judges will take their oath “with or without the president’s participation,” saying Mr Nawrocki has no choice. Włodzimierz Czarzasty, the parliamentary speaker, cut off correspondence with the Presidential Palace.
The confrontation will test whether Poland’s government can restore the tribunal’s legitimacy after years of political control. The dispute centres on whether the president’s oath ceremony is purely ceremonial or gives him blocking power over judicial appointments.
The government also moved on fuel prices. Mr Tusk announced emergency legislation to cut prices by 1.2 złoty per litre before Easter, slashing VAT from 23% to 8% and cutting excise tax. The “Lower Fuel Prices” package responds to price surges from Middle East conflict.
The president’s resistance spills into foreign policy. Mr Nawrocki met Viktor Orbán in Budapest this week, and Mr Tusk claimed “Putin is happy,” linking the visit to Hungary’s decision to cut gas supplies to Ukraine. Mr Nawrocki hit back by posting an old photo of Mr Tusk shaking hands with Vladimir Putin. Jarosław Kaczyński, leader of Law and Justice (PiS), told Hungarian media that Mr Orbán’s victory would be “important for Europe” and could help bring his party back to power.
The president’s confrontational style emerged elsewhere. Mr Nawrocki confronted a TVN24 reporter who asked about Mr Orbán’s ties to Mr Putin, shouting at the journalist to “get his act together.” Mr Tusk asked the president not to shout at journalists.
Adam Glapiński, the central bank governor, faced criticism for backing Mr Nawrocki’s defence funding programme. The government is considering formal charges for politicising the central bank. The dispute over defence financing drags on as Poland receives Apache helicopters from the US and expects F-35 fighter jets in May.
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- Government launches CPN fuel price reduction package amid energy crisis — Mr Tusk announces ‘CPN’ (Ceny Paliw Niżej - Fuel Prices Lower) package reducing VAT from 23% to 8% and cutting excise tax on fuel. Emergency legislation passed as fuel prices surge due to Middle East conflict. Orlen responds with price adjustments. (businessinsider.com.pl)
- Nawrocki addresses CPAC conference during US visit to Texas — Mr Nawrocki addressed the Conservative Political Action Conference in Dallas, praising Trump and Polish-American relations. The visit included meetings with Polish Americans, visits to Lockheed Martin facilities and Palm Sunday Mass. (wiadomosci.onet.pl)
- KO pedophilia scandal in Kłodzko draws political attacks — Former Civic Coalition activist sentenced to 6.5 years in prison for failing to protect child from sexual abuse by husband. Opposition politicians use case to attack the Civic Coalition, demanding investigation. The party is distancing itself from the convicted member while government dismisses political exploitation attempts. (wiadomosci.wp.pl)
- Poland strengthens military with Apache helicopters and F-35 deliveries — Poland receives Apache helicopters from US with offset agreements for maintenance capabilities. F-35 fighter jets expected to arrive in May. Military recruitment drive targets 84,000 new personnel across 16 cities. Defence spending reaches record 4.3% of GDP according to NATO. (businessinsider.com.pl)
- Political tensions over Middle East conflict and potential Polish involvement — Mr Tusk suggests Mr Nawrocki and Mr Kaczyński want Poland involved in Middle East war, drawing denials. Government announces possible deployment of 82nd Airborne Division elements to region. Polls show 65% of Poles oppose sending Polish troops to Middle East even at US request. (wiadomosci.wp.pl)
- Trust polling shows close race between Nawrocki and Tusk — New polling shows Mr Nawrocki leads Mr Tusk in public trust by a narrow margin — 41.5% vs 37.1%. Support breaks along party lines with government supporters favouring Mr Tusk and opposition backing Mr Nawrocki. Results reflect ongoing political polarisation in Poland. (wydarzenia.interia.pl)
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Latvia
A Ukrainian combat drone crashed and exploded in Latvia this week, the first military incident on Latvian soil since Russia invaded Ukraine two years ago. The drone had been targeting Russian targets but veered off course, flying below 500 metres altitude from Russian airspace before detonating near Dobročinas village in Kraslava region. Rinkēvičs, the president, issued a diplomatic protest to Russia and warned such incidents could happen again while the war continues.
Latvia did not temper its support for Ukraine despite the spillover. Sprūds, the defence minister, travelled to Kyiv to deliver more Latvian-made Natrix drones and armoured vehicles, signing agreements for joint drone production. More provocatively, Siliņa, the prime minister, picked a public fight with Viktor Orbán, Hungary’s prime minister, on social media, accusing Hungary of using “blackmail” to block EU aid to Ukraine while protecting its access to cheap Russian oil through the Druzhba pipeline. Mr Orbán shot back, questioning why Latvia sided with Ukraine over a NATO ally.
At home, Latvia’s institutions moved to hold officials accountable. The European Prosecutor’s Office launched a criminal investigation into suspected fraud in IT procurement contracts worth 1.5m euros, arresting former VDAA director Jorens Liopa and 20 others in what the prosecutor general called a “well-organised criminal scheme.” The scandal touches election systems, prompting Mr Rinkēvičs to order that votes in October’s parliamentary elections be counted manually rather than electronically. The president said Latvians must receive “unequivocal assurance” of fair elections.
The government cut diesel excise tax by 15% for three months to offset fuel price increases from the Middle East conflict. Ms Siliņa urged the public to use public transport more while officials consider additional measures if prices keep rising.
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- Major IT procurement corruption scandal emerges with arrests and European Prosecutor involvement — European Prosecutor’s Office launched criminal investigation into suspected fraud in 1.5 million euro IT procurement contracts. Former VDAA director Jorens Liopa arrested. Investigation affects election systems and raises concerns about democratic processes. (lsm.lv)
- Saeima passes stricter immigration controls for third-country nationals — Parliament approved in final reading significant amendments to Immigration Law imposing stricter conditions on foreign nationals living in Latvia. Changes include restrictions on food delivery platform cooperation with third-country couriers and enhanced monitoring of compliance. (tvnet.lv)
- President Rinkēvičs publishes annual asset declaration showing significant savings increase — President Rinkēvičs’ annual declaration shows his cash savings increased by 72,779 euros to 251,924 euros in 2025. He earned 105,109 euros in presidential salary and made several bond investments totalling 200,000 euros. (tvnet.lv)
Notes
Notes
PM Siliņa and Hungarian PM Orbán engage in public social media dispute over Ukraine support
March 26–27, 2026
Major IT procurement corruption scandal emerges with arrests and European Prosecutor involvement
March 24–29, 2026
Defense Minister Sprūds visits Ukraine, delivers weapons and discusses drone cooperation
March 25, 2026
President Rinkēvičs publishes annual asset declaration showing significant savings increase
March 25–26, 2026
Other
Ukraine
Volodymyr Zelensky and Marco Rubio, the American secretary of state, traded public accusations of dishonesty this week in the most serious diplomatic rift between Ukraine and its main ally since the war began.
The confrontation erupted when Mr Zelensky told Reuters that the Trump administration was tying security guarantees to Ukraine’s withdrawal from Donbas. “The Americans are prepared to finalize these guarantees once Ukraine is ready to withdraw from Donbas,” he said. Mr Rubio shot back, calling the claim “a lie” and “unfortunate.” He insisted that Washington had only passed along Russian demands without endorsing them.
Even as relations with America soured, Ukraine built new partnerships elsewhere. Mr Zelensky made unannounced visits to the United Arab Emirates, Qatar and Saudi Arabia, signing agreements to share anti-drone expertise with Gulf states facing Iranian attacks. Ukraine will provide technology and know-how in exchange for air defense equipment and potential billion-dollar contracts. Mr Zelensky noted that Saudi Arabia faces the same ballistic missile and drone threats from Iran that Ukraine faces from Russia.
The diplomatic turbulence did not slow military operations. General Oleksandr Syrskyi, the commander-in-chief, reported that Ukrainian forces regained 470 square kilometers in southern regions and killed more than 11,000 Russian troops. Russia launched 619 assaults over four days but suffered more than 6,000 casualties in return, showing Ukraine’s continued offensive stance despite intensified Russian spring operations.
Economic cooperation with America continued. Ukraine confirmed that Sine Engineering, a defense technology startup, received the first investment from the joint US-Ukraine reconstruction fund. The company’s satellite-independent navigation software is used by more than 150 Ukrainian drone manufacturers, beating out more than 200 other applicants.
At home, Ukraine’s ruling party held an emergency congress to restructure its leadership while parliament isn’t working. Reports suggest that members of parliament have been boycotting votes on legislation required by the International Monetary Fund. The party created a new governing body called a Presidium and allocated 120 million hryvnias from state funding to defense.
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- Zelensky claims US conditioning security guarantees on Donbas withdrawal; Rubio denies allegations — President Zelensky stated that the Trump administration is pressuring Ukraine to surrender the Donbas region in exchange for security guarantees, sparking a diplomatic dispute as Secretary of State Rubio categorically denied the claims and called them ‘false.’ (nytimes.com)
- Ukraine strikes defense cooperation deals with Gulf states amid Iranian drone threats — President Zelensky concluded unannounced visits to UAE, Qatar, and Saudi Arabia, signing agreements for Ukraine to share anti-drone expertise and technology with Gulf countries facing Iranian attacks, in exchange for air defense equipment and potential billion-dollar contracts. (nytimes.com)
- Russian spring offensive launches with heavy casualties as Ukrainian forces regain territory in south — Commander-in-Chief Syrskyi reported Russia launched 619 assaults over four days with over 6,000 casualties, while Ukrainian forces regained control of 470 square kilometers in southern regions and neutralized over 11,000 Russian troops. (nbcnews.com)
- Russia launches massive drone attack with 948 drones targeting Ukrainian cities — Russia fired nearly 1,000 drones at Ukraine in a rare daytime assault, killing at least six people and damaging UNESCO World Heritage sites in Lviv. Ukraine shot down 906 drones in the 24-hour period. (aljazeera.com)
- Ukraine’s SBU strikes Russian oil terminals in Baltic Sea with long-range drones — Ukraine’s Security Service conducted successful drone strikes on Ust-Luga and Primorsk oil terminals in Russia’s Leningrad region, marking the second attack on Ust-Luga within a week and causing significant damage to Russia’s energy export infrastructure. (unn.ua)
- Defense Minister Fedorov announces military appointments and mobilization reforms — Defense Minister Mykhailo Fedorov appointed new deputy minister and inspector general while announcing upcoming changes to mobilization processes and special forces compensation, following consultations with frontline troops from 13 units. (kyivindependent.com)
- Presidential Office head Budanov announces initiatives including prisoner exchange and Africa strategy — Head of President’s Office Kyrylo Budanov expressed hope for a major prisoner exchange at Easter, announced Ukraine’s first comprehensive Africa strategy, and claimed World War III has already begun in Ukraine during various public appearances. (pravda.com.ua)
- Ukraine’s SBU conducts counterintelligence operations and receives personnel changes — Ukraine’s Security Service eliminated Russian intelligence operatives, exposed Hungarian spy networks, and underwent leadership changes as President Zelensky appointed new heads for counterintelligence departments while the service marked its annual day. (united24media.com)
Notes
Notes
Zelensky claims US conditioning security guarantees on Donbas withdrawal; Rubio denies allegations
March 26–27, 2026
Ukraine strikes defense cooperation deals with Gulf states amid Iranian drone threats
March 27–29, 2026
Russian spring offensive launches with heavy casualties as Ukrainian forces regain territory in south
March 24–28, 2026
Ukrainian parliament faces crisis as Servant of the People party holds emergency congress
March 24–27, 2026
Foreign Minister Sybiha attends G7 meetings, secures weapons procurement assurances
March 27–29, 2026
Presidential Office head Budanov announces initiatives including prisoner exchange and Africa strategy
March 25–27, 2026
Ukraine's SBU conducts counterintelligence operations and receives personnel changes
March 23–25, 2026
Other
Finland
Finland prepared for an economic crisis it admits it cannot afford. Petteri Orpo, the prime minister, ordered the finance ministry to study crisis measures if Middle East conflict deepens, while Riikka Purra, the finance minister, said Finland lacks the fiscal buffers of neighbours like Sweden. The central bank cut growth forecasts to 0.6% for 2026.
Ms Purra’s admission came as Finland faced pressure from several fronts. Two Ukrainian drones crashed near Kouvola in the south-east, causing an investigation and tighter surveillance, though officials said there was no military threat. Alexander Stubb, the president, hosted Nordic and Baltic leaders at a Joint Expeditionary Force summit, warning that war with Iran could cause a recession worse than covid’s.
Domestic tensions added to the pressure. Finland’s Supreme Court convicted Päivi Räsänen, a Christian Democrat MP, for calling homosexuality a developmental disorder in a 2004 pamphlet. The ruling sparked debate, with Finns Party ministers criticising the court and calling for law changes. The split over free speech added to tensions between the courts and politicians, worsening coalition strains.
Despite these pressures, the government pressed ahead on nuclear weapons policy. Mr Orpo held parliamentary discussions seeking to remove Cold War restrictions on NATO nuclear deterrent, despite opposition resistance led by the Social Democratic Party.
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- Parliamentary nuclear weapons policy discussions reveal divisions — Mr Orpo held parliamentary discussions on nuclear weapons restrictions with party leaders, seeking to remove Cold War-era limits on NATO nuclear deterrent. Opposition parties, led by the Social Democratic Party (SDP), resisted changes and called for the legislative process to be frozen until broader parliamentary consensus could be reached. (yle.fi)
- Defence minister blocks foreign real estate purchases for security reasons — Antti Häkkänen, the defence minister, rejected six real estate purchase applications from non-EU buyers over national security concerns. The blocked deals involved Russian and Chinese citizens and companies across several Finnish regions including Eastern Finland, Päijät-Häme, Western Uusimaa and Lapland. (is.fi)
- Defence Forces enhances surveillance amid Ukrainian drone strikes on Russia — Finland’s Defence Forces increased surveillance and security measures in response to Ukrainian drone attacks on Russian oil facilities near Finland. Enhanced activity included fighter jets and patrol vessels operating in south-eastern Finland and eastern Gulf of Finland areas. (is.fi)
- Coalition party announces candidates for leadership positions — The National Coalition Party announced several candidates for vice-chairperson positions ahead of its June party conference. Pia Kauma confirmed her candidacy for vice-chair, while several regional candidates emerged including Sari Rautio from Hämeenlinna with EU expertise focus. (yle.fi)
- Defence Forces considers allowing longer hair for male conscripts — The Defence Forces announced plans to let male conscripts have longer hair, equalising hair length rules between genders. The change addresses equality concerns raised by the Ombudsman for Equality and modernises military appearance standards while keeping safety requirements. (is.fi)
- Orpo meets with Ireland’s PM and hosts technology growth conference — Mr Orpo met Irish Prime Minister Micheál Martin in Helsinki to discuss EU presidency preparations and hosted an Economic Council conference on making Finland a world-class growth platform for technology companies, emphasising AI and digitalisation as national priorities. (valtioneuvosto.fi)
- Various banking and financial sector developments reported — Several banking sector stories emerged including cyber attacks on OP Bank, new economic forecasts from various Finnish banks on Iran war impacts, regulatory decisions on deposit guarantees, and updates on bank lending practices amid rising interest rates. (is.fi)
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Estonia
A Ukrainian drone struck an Estonian power plant at 3:43am Friday, marking the first spillover from the war to reach Estonian territory. The stray drone hit the Auvere power plant chimney during Ukrainian attacks on Russian facilities. Multiple drones violated Estonian airspace, prompting Baltic air policing response — Italian jets scrambled and authorities imposed a no-fly zone over eastern Estonia. Officials confirmed the drone posed no threat to Estonia, but the incident shows the country now lies within range of the war.
The strike tested Estonia’s emergency response systems. The Estonian Defence Forces activated their EE-ALARM emergency notification system, but hastily composed messages created confusion and overloaded emergency lines. The system worked, but officials are updating procedures. Meanwhile, Baltic air policing and no-fly zone protocols worked effectively.
Hanno Pevkur, the defence minister, signed agreements with Poland for Mark I missile system production and reached a deal with foreign investors for a 155mm artillery shell factory worth at least €300 million.
Domestic political pressure intensified this week as the opposition Estonian Conservative People’s Party conducted a nationwide speaking tour called ‘Wake Up, Estonia!’ Martin and Mart Helme, the party leaders, introduced legislation to stop Rail Baltica construction, eliminate CO2 quotas, and provide compensation for war-related property damage. The tour keeps the opposition visible ahead of 2027 elections. Parliament dismissed Piia Schults, an advisor with 32 years of service, after her error in gambling law cost the state €3 million. The decision sparked debate about civil servant accountability and speech rights.
Parliament re-elected Lauri Hussar as Speaker with the same deputy team, as the coalition commanded 52 votes and the opposition failed to mount a unified challenge. Economic indicators were mixed: household deposits exceeded 14 billion euros, growing 6% year-over-year, while electric scooter company Tuul Mobility filed for bankruptcy, citing aggressive competition and rising interest rates. Martti Randveer was confirmed as the new Deputy Governor of the Bank of Estonia.
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- Estonian Defense Minister signs agreements with Poland and discusses potential support for US operations against Iran — Defence Minister Hanno Pevkur signed agreements with Poland for Mark I missile system production and discussed Estonia’s potential participation in US-led operations against Iran. Estonia reached an agreement on a 155mm artillery shell factory with foreign investors worth at least €300 million. (odessa-journal.com)
- Riigikogu re-elects same leadership with Lauri Hussar as Speaker — Estonian Parliament re-elected the same leadership team with Lauri Hussar (Estonia 200) continuing as Speaker and Toomas Kivimägi (Reform) and Arvo Aller (EKRE) as Deputy Speakers. The opposition failed to mount a unified challenge despite nominating Riina Sikkut (SDE) as alternative. (postimees.ee)
- Kaitseliit receives new tracking dogs and conducts training activities — The Estonian Defence League (Kaitseliit) graduated four tracking dog teams after an 18-month training course. The volunteer defence organisation also commemorated former commander Johan Unt’s 150th birthday and conducted various training activities. (kaitseliit.ee)
- Death of rapper Gameboy Tetris sparks tributes from Estonian music community — Estonian rapper Pavel Botšarov, known as Gameboy Tetris, died at age 40 on March 24. His death prompted widespread tributes from the Estonian music community, particularly from collaborator Nublu and other artists who worked with him. (kultuur.err.ee)
Notes
Notes
Ukrainian drone strikes Auvere power plant chimney during attack on Russian targets
March 25–26, 2026
Estonian Defense Minister signs agreements with Poland and discusses potential support for US operations against Iran
March 19–27, 2026
President Alar Karis opens Estonian art exhibition in London and attends White House meeting
March 24–29, 2026
Estonian government dismisses veteran parliament official over hasartmängu law error
March 24–26, 2026
Other
Lithuania
Lithuania’s governing coalition cracked this week when the Social Democrats threatened “political actions” against their partners over defence spending. Mindaugas Sinkevičius, the acting party leader, called a coalition council meeting and warned that support for the Kapčiamiesčio project would be a “litmus test” for coalition survival when his party council meets on April 16.
The crisis erupted after Dawn of Nemunas, a coalition partner, voted against the training ground project, which would provide facilities for Lithuania’s expanding armed forces and allied troops. Parliament still approved the first reading with 102 votes, but Mr Sinkevičius’s threat signals friction within the coalition over key policies.
Even as he increased pressure on his allies, Mr Sinkevičius consolidated his grip on the Social Democrats. Fifty-two of the party’s 60 branches have nominated him for chairman in May’s leadership election, with most other potential candidates declining to challenge him. Internal unity and external pressure suggest the party feels confident enough to be more demanding of its partners.
Meanwhile, a Ukrainian military drone crashed near Lithuania’s border with Belarus. Ingrida Ruginienė, the prime minister, confirmed the drone was intended for a Russian oil facility but was blown off course. The incident prompted a National Security Commission meeting and revealed gaps in Lithuania’s air defences and radar detection systems.
The prime minister also created tension with Gitanas Nausėda, the president, by instructing the foreign minister to arrange a meeting with Donald Trump and expressing interest in representing Lithuania at European Council meetings — traditionally the president’s role. Ms Ruginienė separately set three conditions for restarting talks with Belarus after a US envoy proposed deputy-ministerial talks: stopping contraband balloons, releasing detained trucks, and preventing illegal border crossings.
Elsewhere, parliament reappointed Gediminas Šimkus as central bank chairman until 2031, while the bank warned that prolonged fuel price rises could drive inflation to 6-7% in the worst case. State energy company Ignitis Group approved the sale of a 49% stake in its Vilnius power plant for at least 110 million euros.
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- Coalition crisis over military training ground as LSDP threatens partners — Social Democrats threatened coalition partners after Dawn of Nemunas members voted against the Kapčiamiesčio military training ground project. LSDP leader Sinkevičius called a coalition council meeting and warned of ‘political actions’ if partners don’t support defence projects. (delfi.lt)
- Former FM reveals Hungary excluded from sensitive EU/NATO meetings over Russia leak fears — Gabrielius Landsbergis, the former foreign minister, disclosed that Hungary has been excluded from sensitive EU and NATO discussions since 2023 due to concerns about information reaching Russia, including during the 2023 Vilnius NATO summit preparations. (delfi.lt)
- President proposes zero income tax for parents of multiple children — Mr Nausėda announced plans to propose zero income tax for parents of second and subsequent children, potentially saving families 4-5 thousand euros annually. He also addressed demographics as a ‘ticking bomb’ requiring urgent government attention. (tv3.lt)
- Lithuania commemorates 22 years of NATO membership — Lithuania marked 22 years of NATO membership with ceremonies and a traditional ‘Runway Run’ at Šiauliai air base, where thousands ran alongside NATO fighter jets on active runways. Officials emphasised NATO’s continued importance amid current security challenges. (lrt.lt)
- PM’s son debuts for Žalgiris football team — Augustinas Ruginienė, the prime minister’s son, made his debut for Vilnius Žalgiris football team in a friendly match, with the PM watching from the stands. The young goalkeeper came on as a substitute in the team’s 2-1 victory over Latvia’s Ogre United. (delfi.lt)
Notes
Notes
PM Ruginienė seeks Trump meeting, tensions with President over foreign policy role
March 22–25, 2026
Former FM reveals Hungary excluded from sensitive EU/NATO meetings over Russia leak fears
March 23–24, 2026
Parliament advances Kapčiamiesčio military training ground despite coalition splits
March 24–26, 2026
Other
Czech Republic
Andrej Babiš raged at his coalition partner this week as Czech police arrested four people for burning down a drone factory that supplies Ukraine.
Attackers torched LPP Holding’s facility in Pardubice, which makes drones for Ukrainian forces. Police arrested four suspects, including Czech and American citizens. They collected technical documents before burning the warehouse. Investigators suspect Russian involvement disguised as a pro-Palestinian protest — the intelligence gathering and destruction suggest state-directed sabotage rather than activism.
Tomio Okamura, leader of the Freedom and Direct Democracy party (SPD) and speaker of parliament, triggered the row by announcing plans to scrap public broadcasting fees without consulting his coalition partner. Mr Babiš, the prime minister, screamed at the breach of their agreement. Mr Okamura has made a habit of announcing policies unilaterally to appeal to his base, undermining coordination. The opposition added pressure with a stunt at a petrol station connected to Mr Babiš’s business empire, where Petr Fiala, the former prime minister, filmed himself complaining about fuel prices and calling them “Babiš’s expensive prices.”
The Czechs met NATO’s 2% spending target for 2025, but Mark Rutte, the secretary general, called for “credible paths toward 5%” at July’s Ankara summit. The Czechs currently budget 1.7% for 2026, claiming they hit 2.07% if infrastructure projects are included.
The Czech National Bank tightened mortgage rules for investment properties in April, cutting the maximum loan-to-value ratio from 80% to 70% and the debt-to-income ratio from nine times to seven times annual income. The move aims to cool the investment property market while keeping lending open for home buyers.
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- Okamura sparks coalition crisis over premature media fee announcement — SPD leader and parliament speaker Tomio Okamura broke coalition agreements by announcing plans to partially abolish public media fees before reaching consensus with ANO. PM Babiš publicly criticized Okamura for not keeping agreements, highlighting tensions within the governing coalition. (forum24.cz)
- Czech police arrest dozens in football match-fixing scandal — Czech police detained dozens of people in a major football match-fixing investigation, with 47 disciplinary proceedings initiated against players, officials and referees. The scandal emerged days before the Czech Republic’s World Cup playoff against Ireland. (nytimes.com)
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Other
Romania
Romania’s governing coalition moved to the brink of collapse this week when the Social Democratic Party (PSD) scheduled an internal referendum for April 20 to decide whether to remain in government with Ilie Bolojan, the prime minister.
The party’s National Political Bureau will ask 5,000 members whether to stay or go, with Sorin Grindeanu, the party leader, promising to ‘act immediately according to what PSD members want.’ The party has ruled out supporting a minority government or working with the opposition Alliance for Union of Romanians (AUR), meaning a vote to leave would likely trigger fresh elections within weeks.
Romania’s economic troubles deepened the coalition crisis. Leonardo Badea, deputy governor of the central bank, warned that the country faces an ‘unprecedented fiscal crisis’ and lacks a ‘fiscal umbrella for the incoming storm.’ He noted that Romania is the first EU country to run debt above 60% of GDP while holding a BBB- credit rating. The government declared a six-month emergency in fuel markets, imposing price caps and export restrictions as Middle East conflicts disrupted oil supplies.
Despite the political turmoil, Romanian institutions continued to function. The Constitutional Court rejected an opposition challenge to the 2026 state budget, clearing the way for the president to sign it into law. The country also hosted NATO’s Sea Shield 2026 naval exercise with over 2,500 personnel from 12 countries, and met the alliance’s target by spending 2.21% of GDP on defence. Nicușor Dan, the president, announced that Dacian Cioloș, a former European commissioner, would be Romania’s candidate for secretary general of the International Organisation of Francophonie.
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- Klaus Iohannis makes rare public appearance at Palm Sunday service in Sibiu — Former president Klaus Iohannis attended Palm Sunday mass at Catholic church in Sibiu, marking his first public appearance since leaving office. Accompanied by wife Carmen and SPP protection, he briefly addressed journalists wishing them happy Easter holidays. (antena3.ro)
- Dramatic contrast in presidential travel costs: Nicușor Dan spends in one year what Iohannis spent on single trip — Current president Nicușor Dan’s entire 2025 foreign travel budget (936,000 lei) roughly equals the cost of a single luxury flight by former president Klaus Iohannis. The contrast highlights a shift from luxury to modest spending. (adevarul.ro)
- AUR denies coalition alliances while maintaining polling lead amid political speculation — AUR denies speculation about alliances with PSD or PNL, calling such reports ‘pure inventions.’ The party leads in CURS polling with 33% support, while rejecting claims of cooperation with governing parties despite some parliamentary vote alignments. (ziare.com)
- PSD financing scandal reveals unexpected donors including PNL leaders — Investigation reveals 2025 PSD financing included loans from PNL leaders Alin Tișe and Valeriu Iftime (500,000 lei each), plus business partner of former PM Ciolacu’s nephew. Total party funding reached millions from various business figures with government contract connections. (g4media.ro)
- EU-Australia finalize comprehensive trade agreement after eight years of negotiations — European Union and Australia complete negotiations on free trade agreement and security partnership after eight-year process. Deal eliminates tariffs on most European products while Australian farmers express disappointment over export quotas on agricultural products. (hotnews.ro)
- Shipyard crisis as Damen rejects reorganisation plan for Naval Mangalia — Mangalia Naval Shipyard faces closure after Dutch company Damen rejects reorganisation plan, with state preparing takeover. Crisis linked to 2024 government decision to cancel multifunctional corvette programme that had provided strategic foundation for partnership. (bursa.ro)
- Constitutional Court rejects AUR challenge to 2026 state budget — Romania’s Constitutional Court dismisses AUR’s constitutional challenges to 2026 state budget and social security budget laws, allowing legislation to proceed to presidential promulgation. Court published reasoning for rejection of opposition party’s complaints. (tvrinfo.ro)
Notes
Notes
Coalition government crisis deepens as PSD schedules internal referendum on staying in power
March 23–24, 2026
Dramatic contrast in presidential travel costs: Nicușor Dan spends in one year what Iohannis spent on single trip
March 25–26, 2026
BNR officials issue stark warnings about Romania's economic vulnerabilities and fiscal crisis
March 25–27, 2026
Government declares fuel market crisis and implements price controls amid Middle East conflict
March 23–30, 2026
AUR denies coalition alliances while maintaining polling lead amid political speculation
March 25–28, 2026
NATO exercises and defense spending developments involve Romania amid alliance tensions
March 24–27, 2026
EU-Australia finalize comprehensive trade agreement after eight years of negotiations
March 25–26, 2026
Dacian Cioloș announced as Romania's candidate for International Organization of Francophonie secretary general
March 25, 2026
Other