Orbán-AfD-Like Bloc Rises in Czech Elections Showdown

František Matějka might be Andrej Babiš’s kingmaker in the upcoming parliamentary election in the Czech Republic. He is the leader of the Motorists for Themselves (AUTO), a Eurosceptic, right-wing, libertarian party which continues to hover just above the 5% threshold to enter power in current opinion polls.

Click the banner to register for the events

If electoral arithmetic allows, this will lead to a ruling majority whose agenda has already been set by Viktor Orbán – after Babiš betrayed EU liberals and co-founded the Patriots for Europe grouping. AUTO also belong to this grouping, but in their messaging, they appear closer to the far-right AfD in Germany.

EU leaders gather in Copenhagen for informal defence summit; Pressure grows on Fico and Orbán to ditch Russian energy

GLOBAL/REGIONAL

• The OECD has downgraded its global economic growth projection for 2026 to 2.9%, from an earlier estimate of 3%, attributed primarily to escalating trade barriers and the repercussions of President Donald Trump’s geoeconomic policies.
• In Central and Eastern Europe (CEE), these trade measures are anticipated to exert a relatively muted drag on growth compared to other regions, with EU members in the area still projected to expand by 2.8% in 2026 – more than double the eurozone’s forecasted rate – bolstered by robust domestic wage gains and private consumption.

• On Monday, ministers in the EU Competitiveness Council will have a policy debate on the European Competitiveness Fund (ECF), one of the main elements of the 2028-2034 long-term EU budget. On Tuesday, EU Commissioners will gather in Brussels to unveil the Savings and Investment Union package.

• Then on Wednesday, economic and hard security will be the focus in Copenhagen, as EU heads of state meet for an informal summit on defence and Ukraine, the same day reports on eurozone inflation rates will be published.
• The meeting will be followed by the European Political Community summit on Thursday – assuming there won’t be a repeat of drone incursions in Danish airspace.
• This closed Copenhagen airport for several hours, and could well be the latest in a string of Russian hybrid attacks on Europe (more on this in the Baltic section).

• In this context, the EU has agreed to move forward with plans for a drone wall at the heart of its eastern defences, after a meeting with ministers from 10 mostly central and eastern European member states plus Ukraine.
• Speaking at an emergency session of the UN Security Council in New York, Polish Deputy PM Radosław Sikorski also made clear that Poland will shoot down enemy aircraft if they violate its territory, warning Vladimir Putin that if a Russian jet is shot down over NATO airspace: ‘don’t come here to whine about it.”

• Trump reportedly pressed Hungarian PM Viktor Orbán to curb Russian oil imports during a phone call on the sidelines of the UN General Assembly, further increasing pressure on Budapest – to which FM Péter Szijjártó repeated that Hungary will continue to buy Russian gas no matter what.
• At the same time, the EU is considering trade measures to target imports of Russian oil via the Druzhba pipeline that feeds Hungary and Slovakia. By using trade actions, which only need a qualified majority to pass, Brussels is hoping to circumvent any Hungarian veto which has stymied successive efforts to hit Russia.

• Meanwhile, EU industry chief Stéphane Séjourné has launched another call for increased production of critical raw materials in Europe, as the bloc maintains a heavier reliance on Chinese supply compared with the US.
• China’s exports of rare-earth magnets to the EU reportedly surged by 21% from July to August – reaching 2,582 tons – taking year-to-date volumes to more than three times those of the US. In contrast, exports to the US fell 5% on-month to 590 tons.

• The EC has also suggested using frozen Russian assets to fund a new €140 billion loan for Ukraine – likely another key topic in Copenhagen.
• Kyiv would only pay back the loan once Russia ends the war and pays post-war reparations. Should that happen, the EU would repay Euroclear, the Belgium-based financial firm that holds the assets, according to the note.
• The plan would also include changing the sanctions renewal rules from unanimity to a qualified majority to reduce the risk of Hungary blocking the process and handing back the assets to Russia.

• The European Central Bank targets 2029 for launching a digital euro – a central bank-backed online payment wallet – with EU bodies possibly finalising their positions by May 2026, followed by 2.5 to 3 years for implementation.
• Views on the euro vary among non-euro members in CEE. While 56% support EU expansion, Poland and Hungary show hesitancy over sovereignty and economic issues. Bulgaria is set to join in 2026 whereas Romania shows clear intention.

Trump suggests Ukraine can win back territory from Russia; Hungary-Ukraine tensions rise again after spy drone incident

UKRAINE