Europe Weekly - Wrap-Up Week 46

Across the European Union and the wider continent, a recurring theme is the rise of far-right and populist parties, which is fragmenting traditional political systems in countries like the Netherlands, Portugal, Croatia, Czechia, and Austria, leading to coalition instability and governance crises. Economically, many states are struggling with significant budget deficits and the need for fiscal austerity, exemplified by Belgium's €10 billion budget cut goal and Romania's mounting deficit, often resulting in social unrest and legislative deadlock. Geopolitically, the text highlights the intensification of security concerns due to the war in Ukraine, driving increased defense spending in countries like Lithuania and Finland, while also revealing internal divisions over EU and NATO alignment, most notably in Slovakia and Hungary. Finally, the sources document several significant domestic policy shifts, such as Italy’s move to formalise its influence in the Western Balkans and landmark legal reforms on sexual violence, alongside Germany's new coalition prioritising industrial competitiveness and military readiness.