Central Europe / News

Estonia’s Reform Party, Isamaa and Social Democrats reach deal on new coalition

Linas Jegelevicius in Vilnius July 11, 2022

Coalition reaches compromise on contentious issues of family support and reform of the electricity market.

Hungarian central bank scrambles to prop up sinking forint

Robert Anderson in Prague July 8, 2022

MNB hikes its one-week deposit rate by 200 bps to 9.75%, and strongly hints it would raise the base rate at its next meeting on July 12.

Poland’s central bank delivers a surprisingly low interest hike amid recession fears

Wojciech Kosc in Warsaw July 8, 2022

The National Bank of Poland increased its reference rate by 50bp to 6.5%, below market expectations for a hike of 75bp at least.

Slovak coalition teeters on the brink again

Robert Anderson in Prague July 7, 2022

Slovakia’s Freedom and Solidarity party has threatened to pull out of the ruling four-party coalition government unless Finance Minister Igor Matovic resigns.

Latvia plans return of compulsory national service

bne IntelliNews July 7, 2022

National military service will be reintroduced for males from 2023, first on a voluntary basis and then in compulsory form after five years.

Hungarian central bank steps in to halt forint slide

bne IntelliNews July 7, 2022

Hungarian National Bank's verbal announcement halts forint rout but worries remain over external vulnerability.

Poland buys 32 helicopters from Italian producer Leonardo

bne IntelliNews July 4, 2022

The €1.76bn deal is part of a raft of purchases from Western arms companies by countries on Nato's Eastern Flank.

CJEU finds Lithuania’s migrant policies violate EU law

Linas Jegelevicius in Vilnius July 1, 2022

Laws that prevent irregular migrants from applying for asylum and put them in automatic detention are contrary to European directives, rules European Court of Justice.

Volvo to build €1.2bn new assembly plant for electric cars in Slovakia

bne IntelliNews July 1, 2022

Slovakia – already the world's largest car manufacturer per capita – wins a fifth big car plant.

Poland’s tweaks to judiciary reforms do not yet meet EU criteria, says Jourova

Wojciech Kosc in Warsaw July 1, 2022

Poland has not yet met the milestones set by the Commission in order to receive €36bn in grants and loans from the EU’s pandemic recovery fund, says Commission vice-president.

Slovak government approves €1.6bn purchase of armoured vehicles from Sweden

bne IntelliNews July 1, 2022

The need for modern infantry fighting vehicles has become even more pressing since Russia's invasion of Ukraine.

PPF group confirms plans to sell Chinese operations

bne IntelliNews June 30, 2022

Czech investment group also says it is looking at acquisition opportunities in telecommunications, probably involving a merger with another financial or investment partner.

Nato agrees 'fundamental shift' to counter Russia

Robert Anderson in Prague June 29, 2022

Security alliance’s leaders agree a big increase in troop deployments on its Eastern Flank, more help for Ukraine in its defence against Russian aggression, and a new Strategic Concept.

Czech energy company CEZ switches away from Russian nuclear fuel

bne IntelliNews June 29, 2022

CEZ signs contract with US nuclear power technology company Westinghouse and French Framatome.

Hungary’s forint jumps after central bank’s aggressive 185bp rate hike

bne IntelliNews June 29, 2022

The forint has been of the weakest currencies in Europe, with widening budget and current account deficits making it exposed to external market movements.

Amnesty International issues damning report on Lithuania’s migration centres

Linas Jegelevicius in Vilnius June 28, 2022

NGO documents allegations of racism and violent pushbacks of asylum seekers.

Last meeting of old Czech central bank board hikes base rate to 7%

bne IntelliNews June 23, 2022

Outgoing Governor Jiri Rusnok steers through 1.25pp hike to curb inflation, which reached 16% in May.

Prague council corruption case rocks Czech political scene

bne IntelliNews June 22, 2022

Heads roll and opposition parties demand ejection of STAN party from the government after kickbacks scandal.

Russia demands end to Kaliningrad transit restrictions

Linas Jegelevicius in Vilnius June 21, 2022

Lithuania says restrictions are due to EU sanctions and talk of blockade is 'plucked out of thin air'.

South Korea’s W-Scope to build €720mn battery separator film plant in Hungary

bne IntelliNews June 21, 2022

The €720 million project creating 1,200 jobs is the largest investment so far announced this year in the country.