China-CEE Institute

#Lithuania is gaining recognition for its vibrant and fast-growing startup ecosystem. Despite its small population of 2.8 million, Lithuania boasts over 1,000 active startups and 18,900 employees. Ranked 16th globally by StartupBlink, Lithuania’s startup ecosystem significantly contributes to job creation and economic growth. This article provides an in-depth analysis of Lithuania’s startup landscape, comparing it with other countries, and highlights key industries and unicorns within the ecosystem. It also showcases various initiatives by Lithuania-based agencies and the favorable regulatory environment that make the country an attractive destination for startups. Lithuania’s startup ecosystem and the combined enterprise value of its startups showcase remarkable growth. With an increasing number of home-grown and brought-in unicorns, Lithuania is on track to become a leading startup powerhouse. Read more ↓↓↓ https://lnkd.in/dMsc_qmw ✎ Author: Justas Karčiauskas #research #China's #ThinkTank in #Budapest #Hungary from CASS #Beijing ... #news #politics #economy #geopolitics #society

The very turbulent political year in #Slovenia ended in an unprecedented scandal regarding the competencies and work of the special unit for protection within the police, which has been accused of serious mistakes and misconduct, corruption and negligence. The scandal broke out when the special prosecutor working on a case against one of the best organised criminal organizations in the Balkans raised serious questions about the work of the special unit for protection, which has been also protecting her. From here onwards, the scandal just intensified with other information regarding the problematic behaviour of policemen working in that unit, while it also quickly expanded to more general questions about the political monitoring of the police. Moreover, the specific conflicts that have been present within the liberal political block regarding the control over the police intensified. Crucially, this last scandal was truly only the last puzzle in the longer process of destabilisation of the work of the police. Namely, the problems in the relationship between politics, the government and the police began emerging already at the beginning of the term of the incumbent government in the summer of 2022, intensified with the conflict between the minister of interior and the prime minister in late 2022, which has led to several indictments and investigations against the alleged misconduct of the prime minister, Robert Golob. Due to still many unresolved questions, different accusations and all allegations, one still has to be careful before final conclusions can be made. Read more ↓↓↓ https://lnkd.in/dz8fwdvk ✎ Author: Marko Hočevar #research #China's #ThinkTank in #Budapest #Hungary from CASS #Beijing ... #news #politics #economy #geopolitics #society

With no official elections or major events scheduled for #Slovakia this year, barring a possible collapse of the government and early elections, all eyes will be on the populist Prime Minister #RobertFico, his Smer-SD party and his evermore unpredictable coalition members. Actually, Prime Minister Robert Fico is of the longest-serving prime minister in the #EuropeanUnion. His party, Smer-SD, has been in power since 2006, with only a brief interruption and Fico continues to excel in mastering the art of gaining and maintaining power. Despite his main selling points to the electorate being “stability”, “security” and his long-time political experience, Robert Fico’s latest stint as Prime Minister has instead provided internal chaos, unpredictable foreign policy, declines in the rule of law and freedoms, a worsening economic outlook, and a strong turn towards far-right extremism. In 2025, Slovakia will test the strength of its democratic institutions against rising attempts to put the country on an authoritarian path, which would take the country further from the European Union and closer to #Russia. Despite raising taxes and income, the state is also significantly increasing its spending, leaving Slovakia with the lowest GDP growth (1.7%) and highest inflation (4.3%) among the #VisegradGroup of countries this year. Fico’s government intends to spend hundreds of millions of euros on a 13th pension payment, as well as more energy subsidies for Slovak households, while ministers have also significantly increased their own salaries and doubled the budget of the president’s office. Although support for governing parties has faltered in recent months, research shows that Slovak society remains deeply polarized between the nationalist/far-right front and the liberal/democratic one. Although the opposition Progressive Slovakia has pulled ahead of Smer-SD in the polls, its ability to build a stable governing coalition are extremely slim, commentators agree that making any predictions about political developments is a toss-up at this point. Slovakia faces a pivotal year that will determine its political direction. Starting in January, the full effects of strict fiscal consolidation will be felt, likely driving up inflation and potentially eroding support for the ruling parties. By autumn at the latest, parliament will have to vote on a confidence motion for Robert Fico’s government, as the public debt has exceeded the constitutional limit set by the debt brake law. These will be critical risk factors for the survival of the governing coalition. However, even early elections may not guarantee political change. A potential victory for Šimečka’s pro-European Progressive Slovakia party would not automatically mean it could form a stable government due to lack of coalition partners. ↓ https://lnkd.in/gsZCUsTd ✎ Peter Csanyi #research #China #ThinkTank

The new #Romania government began its term burdened by a severe economic legacy, tasked with reducing a massive budget deficit despite limited room for immediate spending cuts. Economic indicators for 2024 paint a bleak picture, falling well below initial expectations. While the Ministry of Finance projected 3.4% GDP growth, the National Commission for Strategy and Prognosis (CNSP) later revised it to just 1%, reflecting a mere 0.8% GDP increase in the first three quarters compared to 2023. External factors influenced the economic landscape, but the outgoing government’s fiscal management largely caused the staggering budget deficit, which exceeded 8% of GDP by the end of 2024. By October, the shortfall had already reached 6.19%, with public expenditures exceeding revenues by 109.41 billion lei. The rapid deficit escalation is attributed to the social-liberal PSD-PNL coalition’s pre-election spending, including unfunded pension and wage increases aimed at securing electoral support. This strategy not only failed politically but also pushed public debt to 916 billion lei by September, 53.1% of GDP—a 4.2 percentage point rise in nine months, unprecedented outside the COVID-19 pandemic. As a result, Romania faces the highest borrowing costs among EU states, reflecting market skepticism toward its economic policies. A key setback in 2024 was failing to secure 3.6 billion euros from the National Recovery and Resilience Plan (PNRR). Instead, Romania received only 288 million euros, with another 37.05 million projected by year’s end. The European Commission suspended part of the third payment due to unmet conditions, including state enterprise depoliticization and microenterprise tax reforms. By December, the Commission fully froze PNRR disbursements after parliamentary amendments weakened pension reforms, undermining EU commitments. In response, Fitch Ratings downgraded Romania’s credit outlook from “stable” to “negative” in December 2024, placing the country one step away from losing its investment-grade rating, which would further increase international borrowing costs. The new government’s primary challenge is consolidating public finances. According to the EU-approved Fiscal-Budgetary Strategy, Romania must reduce its deficit to 7% of GDP by 2025. However, with the 2024 deficit nearing 9%, reducing it by at least 1.5 percentage points will be difficult. Public spending rigidity worsens the challenge, as over 80% of 2024 tax revenues funded public administration and social programs—costs not easily reduced. Read more ↓↓↓ https://lnkd.in/d3CBmNiP ✎ Author: Csongor B. Veress #research #China's #ThinkTank in #Budapest #Hungary from CASS #Beijing ... #news #politics #economy #geopolitics #society

Watch a sneak peek of the new China Watch ⇩ https://lnkd.in/dT-qmpqv An Evaluation of the Driving Logic and Effectiveness of #Germany’s #Hydrogen #Energy Strategy: An Analysis Based on the Global Hydrogen Energy Industry #news #politics #geopolitics #research #china #europe #eu #cee #society #bri #beltandroad

Events in #Poland this year will be dominated by the presidential election which will be held on May 18. President #AndrzejDuda is ending his second and final term. The favorite in the race is currently the mayor of #Warsaw, Rafał Trzaskowski from the ruling Civic Coalition (KO). The elections will be a test of support for the current government coalition after 1.5 years of rule and will show whether Poland will see the consolidation of the power of the current government camp and the possibility of accelerating the implementation of the political program, or the continuation of dual power with a president and government from different political camps. This year is also a test of the cohesion of the current, internally diverse government coalition. The effectiveness of its operation will be largely determined by the results of the presidential elections, which will show the balance of power and may affect changes in the authorities, especially of smaller parties. This year will also be marked by the drawing of the line by the main political forces in the context of the situation in the judiciary, where the previous government of Law and Justice (PiS) has retained significant influence. Of particular importance will be the issue of millions of euros in subsidies for parties from the state budget for PiS, the payment of which is the subject of a dispute between the National Electoral Commission (PKW), the Supreme Court and the Ministry of Finance. Failure to pay these funds may significantly limit the possibilities of the largest opposition party, PiS. Until the presidential elections, the government will continue to settle accounts with the previous ruling camp. In the economic perspective, the current year is assessed by economic analysts as a good one for Poland. The country is to record one of the highest levels of GDP growth in Europe, with low unemployment and relatively low inflation. EU funds from the National Reconstruction Plan and increased exports and investments will play a significant role in the context of growth. Read more ↓↓↓ https://lnkd.in/dNHRAkbg ✎ Author: Konrad Rajca #research #China's #ThinkTank in #Budapest #Hungary from CASS #Beijing ... #news #politics #economy #geopolitics #society

This article analyzes the causes and effects of the recent supermarket boycott in #NorthMacedonia. The #boycott took place on January 31st and was part of a regional wave of protests that began after Croatian consumers boycotted supermarkets on January 24th, 2025, in response to rising food prices. This act of consumer defiance rapidly spread across the Balkans and beyond. The primary cause of the boycott in Macedonia was the high cost of supermarket products. The protest succeeded in halving supermarket revenue on that day and received support from both consumers and public officials. Although its impact was limited, the boycott highlighted significant structural issues within the Macedonian economy. The protest exposed deep-rooted problems, such as rising food prices, monopolization of the food supply chain by large supermarket chains, increased dependence on imported food, and persistent inflation. It also revealed the government’s failure to intervene effectively in controlling and lowering food prices due to the absence of a strategic food system plan. Read more ↓↓↓ https://lnkd.in/dFH8bG-3 ✎ Author: Gjorgjioska Marija Adela #research #China's #ThinkTank in #Budapest #Hungary from CASS #Beijing ... #news #politics #economy #geopolitics #society

#Montenegro is likely to face a multifaceted crisis spanning #politics, #economy, and social stability in 2025. The parliamentary stalemate and opposition protests highlight the potential deep divisions in governance, while unchecked borrowing and fiscal irresponsibility will impose threats for economic security. Student-led protests and civic resistance signal growing dissatisfaction with institutional failures, yet the government’s response remains dismissive, further escalating tensions. Additionally, the influence of external actors and domestic political forces continues to shape the country’s trajectory, exacerbating divisions. Whether Montenegro can navigate these challenges through reform and dialogue or descends into further instability remains uncertain, making this a pivotal year for the nation’s future. Read more ↓↓↓ https://lnkd.in/dHeFhYSC ✎ Author: Vojin Golubovic #research #China's #ThinkTank in #Budapest #Hungary from CASS #Beijing ... #news #politics #economy #geopolitics #society

#AirBaltic seeks to secure approximately 300 million euros via an IPO, aiming to transition from decades of state support to greater private investment. Government infusions in past crises, including the #COVID-19 #pandemic, prevented bankruptcy but led to scrutiny over whether taxpayers’ funds can be recovered. The airline’s decision to reduce its registered capital to 25.179 million euros, converting multiple share classes to a single category priced at ten cents, is intended to simplify accounting and address accumulated deficits. Supporters see this as a practical step to meet market expectations; critics argue it risks undervaluing prior public contributions. Ongoing discussions with a potential strategic investor reflect hopes of bolstering the carrier’s credentials and expanding its #Airbus A220-300 fleet. Meanwhile, flight cancellations linked to engine maintenance shortfalls have prompted concerns about domestic connectivity and route profitability. Ultimately, public officials, investors, and travelers are observing whether the IPO delivers sustainable progress for #Latvia’s flag carrier. The AirBaltic board must now weigh Gauss’s track record against the airline’s broader priorities. Read more ↓↓↓ https://lnkd.in/dmXefADn ✎ Author: Institute of Economics of the Latvian Academy of Sciences LZA Ekonomikas Institūts #research #China's #ThinkTank in #Budapest #Hungary from CASS #Beijing ... #news #politics #economy #geopolitics #society

Global economic trends and decisions by major powers have a significant impact on the maneuvering room of small economies and countries. Interest rate decisions by the Federal Reserve, the #EuropeanCentralBank, and other major central banks, as well as the implementation of economic policies by the #UnitedStates, China, and large European economies, can have a substantial impact on economic activities in small economies. While it is not essential for small countries to conform to global trends, the implementation of effective economic development strategies by their respective governments can contribute to the determination of their economic fate and the development of their economies. In this briefing, we will take a closer look at #Hungary’s #economy strategy for 2025 and evaluate the proposed policy measures. Our starting point is the 21-points action plan approved by the government in December 2024.Before analyzing Hungarian economic trends, we will briefly examine the global and European economic environment, focusing mainly on impulses from the United States and #Germany and we also focus on the most recent changes in global economy. Read more ↓↓↓ https://lnkd.in/dKpwK3zj ✎ Author: Csaba Moldicz #research #China's #ThinkTank in #Budapest #Hungary from CASS #Beijing ... #news #politics #economy #geopolitics #society