Economy

In its third consecutive meeting, the Governing Council of the European Central Bank (ECB) cut all three key interest rates as expected by a quarter of a percentage point. They are now in a range of 3.00%-3.40%. Although before the announcement of the decision, there were some speculations that monetary policymakers might resort to a more rapid easing, the gradual tapering path ultimately prevailed.

The new coalition in Lithuania has made it clear that the aim is to ensure adequate funding for defense and national security. It has promised to reform the second pillar of pension funds as a priority. In addition, it has proposed a tax reform, with a specific component: progressive taxation for higher earners, irrespective of their income.

The concept of a digital euro is rapidly moving from theory to reality, yet its fundamental purpose remains ambiguous. Proponents argue that it could enhance financial security, expand access to banking services, and bolster geopolitical independence. However, the sheer variety of justifications raises a critical question: is any single argument compelling enough to warrant its creation?

While the EU-MERCOSUR agreement is nearing its final stages, some remain opposed, risking a deadlock in the EU’s approval process. The EU must ensure smooth ratification to strengthen its strategic autonomy in these uncertain times. After 25 years of complex negotiations, the European Union and MERCOSUR have finally reached a landmark trade agreement.

Governor of the Czech National Bank (CNB) Aleš Michl recently commented that the Czech National Bank might consider including Bitcoin in its reserves. Is this really a good idea? Should the CNB invest in this digital asset? The CNB\'s main and most important function is to ensure price and financial stability, as required by its constitutional mandate. Unfortunately, however, it has failed to fulfill this mandate in recent years.

On August 9, Andrzej Duda signed the bill introducing the widow\'s pension. The widow\'s pension is intended to be a new way of combining a retirement pension and a survivor\'s pension. Previously, a widowed retiree could receive their own pension or 85% of their deceased spouse’s pension (the survivor\'s pension). The widow\'s pension allows beneficiaries to receive their own pension or survivor\'s pension along with an additional 15% of the other benefit.

Poland will mark twenty years as a member of the European Union in 2024. In recent years, eurosceptic sentiments undermining the benefits of European integration have gained ground in Poland and Europe. However, the facts contradict these claims: membership in the European Union benefits member states. This is also true for Poland, which will continue to benefit from remaining in the Community, even if it eventually becomes a net contributor.

In public debate one can frequently find support for significant state ownership in the economy, citing the need to protect strategic national interests, including public safety and order. Politicians often argue that privatizing companies with State Treasury involvement would lead to their acquisition by entities hostile to Polish interests.

On June 4 and 18, 1989, partially free elections for the Sejm and fully free elections for the reconstituted Senate were held in Poland. As a result of these elections, a democratic political system was established, and decisive economic reforms were initiated between 1989 and 1990, which included stabilization and free-market changes. Poland was the first socialist country to begin departing from the system imposed by force, which was flawed.

Recent economic shocks and the European Union’s focus on competitiveness have directed the spotlight on the dangers of global value chains. With its unique politics of  ‘eastern opening’ and latecomer position to the globalized market economies, Hungary’s strategy in the geopolitical theatre raises many questions. In the following, I will use an interdisciplinary approach to explain the Hungarian manufacturing industries’ global value chain exposures.