economy

For the first time since 1995, investment as a share of the economy is higher in Lithuania than in Estonia. According to Eurostat, gross fixed capital formation in Lithuania amounted to 22.1% of GDP in the first quarter of 2026, while in Estonia it fell to 21.7%. Lithuania remained ahead in the second quarter, with investment reaching 22.4% of GDP, compared with 22.1% in Estonia.

The new agreement of Lithuania’s governing coalition includes a commitment that “people who work must not be worse off than those who do not”. According to experts at the LFMI, this principle is particularly relevant when assessing the unemployment insurance system. Yet in Lithuania, unemployment can still be more financially rewarding than work, especially in lower-skilled and lower-paid jobs.

The Czech government presented its 2027 state budget draft with deficit of CZK 389 billion while highlighting a figure of 2.8% of GDP and comparing it favorably with deficits elsewhere in the EU. Yet, these figures describe different concepts.

The Czech pension system faces significant demographic pressure in the coming decades. The number of people of retirement age will rise, whilst the number of those funding the system will fall. Even following recent reforms, long-term projections therefore do not foresee the pension system achieving a balanced budget.

t the end of 2025, Czech public debt stood at 44.25 % GDP, whilst as a ratio to GNI it reached 46.37 % and, relative to gross national disposable income (GNDI), as high as 46.63 %. The difference is not large enough to fundamentally alter the assessment of Czech public finances, but it does show that the debt-to-GDP ratio alone may not capture all the relevant characteristics of the economy.

Italy’s economic decline was not caused by a single crisis or one disastrous policy decision. Rather, it has been a gradual deterioration spanning decades. This is the picture that emerges from the data: weaker growth, lower productivity, an ageing population, and mounting problems with public finances.

Poland can become one of the best places to live in the world. But it will not get there through a state that constantly regulates more, owns more, and spends more. There are better recipes for development than those presented at the recent political gathering organized around former Prime Minister Mateusz Morawiecki.

Two world-renowned economists, Stiglitz and Piketty, have come out of the closet. They have admitted to the world that they are degrowthers. Writing in The Guardian, they argue that \"economic growth is a doomed strategy.\"

In recent years, Slovakia has been engaged in a debate about being \"stuck in the middle-income trap,\" about having \"exhausted our growth model,\" and about the need to move \"from assembly line to brain gain.\" This debate matters. The trouble is that its vocabulary tempts us into a far too mechanical view of prosperity. Let me explain what I mean.

Bulgaria is about to enter the excessive deficit procedure for the second time in its recent history. At present, all expectations are focused on the government, which must propose a regular budget for 2026 and give a clear signal that it is reversing the trajectory of public finances.