The World Bank forecasts regional growth of 3.1% in 2025, and finance ministries say cushioning the tariff shock will be essential to meeting that target. However, regional industry groups are warning of mounting pressure on Balkan economies.
Brussels‑based think tank Bruegel estimates that the average US tariff on EU goods will rise to 15.2%. Although that average masks significant differences - it underscores the new baseline confronting Baltic exporters.
Polish Prime Minister Donald Tusk warned that the duties could cost Poland more than USD 2bn and hurt agriculture and manufacturing, although he called the compromise deal a “lesser evil” to a threatened 30% tariff.
Latvia lags its Baltic peers on investment intensity and credit availability, according to the Organisation for Economic Co-operation and Development (OECD).
“I carried out my duties in good faith, but I cannot allow this situation to paralyse the work of the government,” Paluckas told members of the press after tendering his resignation in Vilnius, south-east Lithuania.
The discovery is among the most significant conventional oil finds in Central and Eastern Europe in the last decade, analysts said. Enerdata noted the resource scale could elevate Poland’s upstream profile within the EU, while World Oil called it a “strategic breakthrough in the Baltic basin”.
European Commission (EC) President Ursula von der Leyen agreed a new trade deal with US President Donald Trump at Turnberry, south-west Scotland, on 27 July, setting a ceiling of 15% on tariffs for EU goods and averting a wider transatlantic escalation.
Romania’s 2024 presidential elections marked the first instance of a national vote annulled due to foreign interference within the EU, the European Commission noted. The episode has triggered renewed calls in the EU and NATO for enhanced cybersecurity capacity and democratic resilience across CEE.
Finland and Sweden abandoned their long-standing neutrality and joined NATO in 2023 and 2024 respectively, citing heightened security threats from Russia. Austria, bordered by NATO members Czechia, Slovakia, Hungary and Slovenia, is increasingly the odd one out in Central Europe’s defence landscape.
The model reflects past moves in Hungary and Romania to centralise economic power, often justified as way to improve implementation. Poland’s approach, however, appears more technocratic, with few political figures outside the prime minister and foreign minister elevated.
South Korean President Yoon Suk-yeol welcomed the agreement as a “milestone in regional partnership”, and said it reflected growing bilateral cooperation in strategic infrastructure sectors.
The EC is expected to present the proposal formally as part of its mid-term budget review later this year. The plan must be approved unanimously by all 27 member states and endorsed by the European Parliament. Opposition is expected from net contributor countries and regions facing cuts.
CEE contributions include cross-border logistics, public-private coordination platforms, and green recovery initiatives. Regional forums such as the Three Seas Initiative are also expected to play a larger role in financing and implementation.
The European Commission (EC) published long-term budget allocation plans on 17 July, showing Poland set to receive the highest national allocation under the 2028-34 Multiannual Financial Framework (MFF), totalling EUR 123.3bn.
The Slovenian referendum cancellations should stabilise Golob’s coalition, ahead of national elections in 2026. However, the episode reflects wider unease across CEE, as rising military costs challenge domestic politics and expose diverging visions of NATO’s future.
Key deliverables included the Strategic Technologies for Europe Platform (STEP), East Shield funding eligibility, three rounds of Russia sanctions and progress on Montenegro's EU accession.
For Brussels, the expansion marks a rare moment of momentum in a largely bottlenecked EU enlargement agenda. French broadcaster RTL called the confirmation a “small but clear victory” for Europe in the battle for influence in the Balkans, noting Bulgaria’s long-standing historic ties with Moscow.
The plan will build a new facility and upgrade two existing ones, investing around EUR 565mn. The project will ramp up Poland's annual production of NATO-standard 155 mm artillery shells from 30,000 to 180,000, and also increase manufacturing capacity for 120mm tank rounds and propellant components.
The Irish low-cost carrier will invest approximately EUR 340mn, its largest-ever commitment in Poland. Annual traffic at Modlin is expected to increase from 1.5mn to over 5mn by 2030.
Government supporters have established a counter-camp "Caciland" in Belgrade’s Pionirski Park, drawing participation from nationalist groups and rural unions. The Serbian government said the camp demonstrates “popular support for stability”.
EC President Ursula von der Leyen said: "Russia has repeatedly attempted to blackmail us by weaponising its energy supplies. We have taken clear steps to turn off the tap and end the era of Russian fossil fuels in Europe for good."
The signatories, including Poland, Romania, Hungary, Bulgaria, Slovakia, Estonia, Latvia and Lithuania, said the policy’s “visibility and predictability” would be compromised if merged into a broader single investment fund.
Albania is expected to have opened all the EU accession negotiation clusters by September, EU Enlargement Commissioner Marta Kos said on 1 July at a Western Balkans leaders’ meeting in Skopje, North Macedonia.
Global Peace Index (GPI) founder Steve Killelea spoke to the Central European Times on the day of the release of the GPI's 18th annual report. Despite the steep rise in militarisation in CEE, investment-led ambitions are currently limited by fragmentation, Killelea tells CET.
Demonstrations intensified over the weekend as student-led groups erected makeshift barricades at key intersections in central Belgrade. Police estimated turnout at 36,000, while independent observers cited figures as high as 140,000.
Producers in Poland, Czechia and Moldova are rebranding locally and pursuing new strategies to stay afloat after the collapse of major foreign markets, in the wake of Russia’s invasion of Ukraine and Western sanctions on premium alcohol.
The Czech Security Information Service said individuals linked to China’s embassy followed Hsiao’s convoy and considered a “demonstrative kinetic action” intended to unsettle, but not harm, her. Hsiao had been on her first foreign trip as veep, with Taiwanese President Lai Ching‑te.
Under the Hague Investment Plan adopted on 25 June, NATO members committed to raise annual defence-related spending to 5% of GDP by 2035. The 5% comprises 3.5% on conventional military capability and 1.5% on infrastructure, cyber-defence and civil preparedness; including support for Ukraine. cet
Uznanski is now Poland’s first astronaut in space since 1978, when Miroslaw Hermaszewski flew under the Soviet Intercosmos programme. Kapu is Hungary’s first since Bertalan Farkas's 1980 mission aboard Soyuz 36 under the same programme.
The withdrawal will take legal effect on 2 June 2026, making Hungary the first EU member state to exit the Rome Statute, which underpins the ICC’s jurisdiction to prosecute war crimes, crimes against humanity, and genocide.