Articles

By a narrow vote, the European Parliament has effectively blocked the entry into force of the partnership agreement with Mercosur. This is yet another failure by the EU to improve its prospects for prosperity and economic transformation. The agreement that was signed is a step in the right direction, but delaying it means accumulating lost benefits—at a time when growth in the core of the euro area is dangerously close to zero.

After recent years filled with tragic events, conflicts, and global pandemics, many of us are, above all, hoping for a breakthrough in the form of an ending. An end to populism, an end to war, or an end to the right-wing offensive launched by Trump in 2024; an offensive that has swept across Europe, both Americas, and is steadily pushing us toward an open war with Putin’s Russia.

The daring attack by U.S. forces on the Venezuelan regime and the arrest of dictator Nicolás Maduro sparked a wave of controversy around the world. In Poland, reactions were fairly predictable: from enthusiastic praise of Donald Trump by circles associated with the Law and Justice party (PiS), to reflexive, often complete criticism of the U.S. president’s actions from many left-liberal groups.

2025 became another year of war, resilience, and adaptation for Ukraine. Russia\'s full-scale war against Ukraine continued and resulted in territorial losses, destruction of energy facilities, and other critical infrastructure, including railways and seaports. Therefore, according to IER estimates, real GDP grew by approximately 2%.

Ukraine\'s European integration process is often discussed in terms of legislative directives and macroeconomic indicators. However, at the heart of this process lies the most vital and sensitive resource – people. For many years, labor migration from Ukraine to Poland was quite high, but often temporary in nature.

The use of participatory budgeting (PB) has appeared in more and more democratically governed municipalities in recent years. According to the 2021 book “World Atlas of Participatory Budgeting,” this method is widespread primarily in Europe and secondarily in South America, in which the residents of the city can propose the use of a certain amount from the municipality’s budget.”

One of our authors, Martin Vlachynsky, participated in an episode of In Conversation With, where he spoke with Adam Bartha, Director of Epicenter Network.

Next year, participants in Lithuania’s second-pillar funded pension system will face a personal financial referendum: to stay and save, to withdraw and leave, to transfer savings to the third pillar of the pension system, or to invest independently. Estonia tried the same approach in 2021, and economists at its central bank assessed the consequences. Estonia’s experience is highly relevant for Lithuania – similar outcomes are plausible here as well. 

“When I was a child, the monarch of Liechtenstein told me: our duty is to protect people from power. If you have power, your first task is to limit the powers of the government, not to expand them.” Prince Michael of Liechtenstein said these words during a short visit to Lithuania. The guest, who was invited as a guest speaker to the 35th anniversary of the Lithuanian Free Market Institute, came as a surprise to many.

On December 18, 2025, the Lithuanian Free Market Institute (LFMI) invited Lithuania’s education community to discuss why ethical judgment matters in a fast-changing, digital world—and why ethics and civic responsibility are essential. The conversation took place during the awards ceremony for Lithuania’s national ethics competition for 7th–8th graders, “Beside Me: Another Person”, hosted by Vytautas Magnus University (VDU).