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Grayling CEE Outlook 2026

As every year, we have prepared Grayling’s CEE Outlook report, outlining the key political, economic and regulatory developments businesses should be aware of in the year ahead. In this edition, our Public Affairs teams highlight the policy, regulatory and geopolitical shifts most likely to shape the operating environment in 2026 in Central and Eastern Europe. The region continues to adjust to a shifting geopolitical and economic landscape. Governments across CEE are balancing fiscal consolidation with rising defence spending, while navigating ongoing uncertainty shaped by Russia’s continued war against Ukraine, a more transactional United States, and visible strains within the European Union. Together, these factors point to a period of gradual strategic recalibration. If you would like a more in-depth discussion tailored to specific industries or markets, please do not hesitate…Read More →

The Second Reform Package: Public Administration Overhaul & More

The Ministry of Development, Public Works, and Administration (MDLPA) has released the Second Reform Package — focused on public administration — for public debate. Initially announced on July 21 and slated for adoption by the end of the month, the process was delayed due to disagreements within the ruling coalition. The main points of contention were the proposed cuts to the “Anghel Saligny” local infrastructure program and the potential elimination of up to 20% of jobs in local government. Following the adoption of the First Reform Package (Law 141/2025) on July 4, the Government held multiple rounds of consultations with business leaders and local government representatives. Tensions emerged within the coalition, particularly from PSD, which called for adjustments to the perceived inequities in the First Package’s tax measures and advocated…Read More →

CEE ON THE FRONTLINE A REGIONAL DEFENCE OVERVIEW JUNE 2025

The recently held 2025 NATO Summit marked a pivotal moment for the Alliance, with leaders agreeing to a historic increase in defence spending - raising the target from 2% to 5% of GDP by 2035. Prompted by renewed U.S. pressure and escalating global security threats, the summit emphasized the urgent need to scale up defence production, foster innovation, and deepen transatlantic defence industrial cooperation. These efforts aim to deliver a strategic leap forward in NATO’s collective defence capabilities. In sum, the CEE region is rapidly evolving into a cornerstone of European defence. While political divergences persist - particularly regarding the war in Ukraine- the overarching trajectory is one of increased investment, modernisation, and alignment with NATO and EU security objectives. The region’s ability to sustain this momentum will depend on…Read More →

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