Democracy Digest: Czech Culture Ministry Cuts Funding for Velvet Revolution Anniversary

The former head of the Communist Party of Bohemia and Moravia (KSCM) and current MEP Katerina Konecna has joined the Patriots for Europe grouping in the European Parliament, she announced on Facebook on Wednesday. Describing the move as “the result of a long-term evaluation” of various options, Konecna said that careful investigation showed that the Patriots for Europe – now the third-largest political force in the EU Parliament – had the greatest degree of overlap with her own political stance. Formed a couple of years at the initiative of then-Hungarian PM Viktor Orban and now-Czech PM Andrej Babis, the radical-right Patriots for Europe also includes France’s National Rally, Austria’s FPO, Denmark’s Freedom Party and Spain’s Vox, among others. “We at Patriots do not deal with ideology but with common sense, and we are happy for every MEP who wants to apply common sense in this difficult fight,” welcomed Klara Dostalova of Babis’s ruling ANO movement. Although nominally communist and one of Czechia’s foremost far-left politicians, Konecna has long cultivated political views that put her closer to the far right than the traditional, social-democratic left – including on the EU, immigration, climate change or Russia. Recalling her long-held opposition to providing aid to Ukraine and repeated pro-Russian statements, many opposition politicians slammed Babis for joining forces with Konecna in the halls of the EU Parliament. “The fact that someone who has long opposed the interests of the Czech Republic and Europe is accepted by the Patriots, including the ANO movement, speaks volumes about them,” criticised Jan Farsky, deputy-chairman of the opposition STAN movement.

Former Hungarian central bank chief detained; govt tries to solve budget dilemma

Hungary’s former central bank governor, Gyorgy Matolcsy, was detained on Wednesday on suspicion of economic fraud causing substantial financial losses and the use of forged documents. Under Matolcsy, the Hungarian National Bank spent lavishly on refurbishment projects and established several foundations that channelled money into dubious foreign investments and projects that seemed to benefit family and friends. Several hundred billion forints are alleged to have been diverted from the central bank during his tenure or lost through investments. Media estimates put the total losses at 400-500 billion forints (1.0-1.4 billion euros). The current governor, Mihaly Varga, a former finance minister, and his team had submitted more than 30,000 pages of documents to the special investigative committee on central bank affairs by the end of September. Matolcsy’s detention signals the new government and prosecutors are getting serious about making key figures in the previous administration accountable for financial losses incurred during their 16 years in power. Matolcsy, once former PM Viktor Orban’s cherished economy guru, became governor of the central bank in 2013 after serving as economy minister in 2010-2014. Matolcsy’s term ended in 2025. His son and people in his business circle were reportedly among the main beneficiaries of lavish renovations to the central bank building.

Hungary’s new government tabled its first draft budget for 2027, causing disappointment in various quarters. The finance minister warned that budget discipline is necessary to prepare the country for joining the euro, planned for 2030-2032. The government has pledged to cut the deficit from the current 7.0 per cent of GDP to 4.9 per cent by the end of next year and to 2.9 per cent for the end of its term in office in 2030. Inflation is forecast at 3 per cent and GDP growth at 2.4 per cent. Both Finance Minister Andras Karman and PM Peter Magyar acknowledged that there is a need for further wage increases in several sectors, but those could only happen “step by step”. As for immediate measures, the government fulfilled its electoral promise of doubling childcare to 24,000 forints (66 euros) a month per child and raising the minimum pension from January 2027. The draft budget would increase corporate taxes for multinationals, aligning with the global minimum tax regulations, from the current 9 per cent to 11.25 per cent.  The government is introducing a special wealth tax for assets over 1 billion forints, and will further tax energy companies and banks. Major investments are pledged for health care, transport and energy, mostly funded by the unblocking of frozen EU funds. Magyar argued in his two-hour speech to parliament that cutting the deficit is essential, pointing to France and Romania as examples of governments unable to halt the spiral in spending. “Powerful, major economies – including European economies – are struggling in a debt trap, with the burden of interest payments choking their economies,” he said. Most controversial is the promised 1.5-trillion-forint (4 billion euros) cut in public sector funding. The police said they were disappointed by the 15 per cent wage increase and teachers voiced concerns about the 25 per cent increase pledged by the government from 2027. Workers in the cultural sector staged a small protest against their 10 per cent rise. “There are also sectors where there are no wages increases at all,” Magyar pointed out to those complaining, while asking for more societal solidarity.

Polish abortion reform clears first hurdle but faces veto; Ukraine historical dispute recurs

Poland’s parliament took a long-delayed step towards easing the country’s near-total abortion ban on Tuesday, passing two bills that would restore access to abortion in cases of severe foetal abnormalities and partially decriminalise assistance in obtaining one. The narrowest vote, 217 to 213, concerned criminal penalties, while the second bill, restoring a legal ground for abortion removed by a controversial 2020 Constitutional Tribunal ruling, passed by 233 to 203. The legislation now heads to the Senate before reaching President Karol Nawrocki, who can sign or veto it. His decision remains uncertain, although his opposition to abortion liberalisation is well established. Zbigniew Bogucki, head of the president’s office, stressed that Nawrocki had campaigned on protecting life “from conception to natural death”, adding that his position “has not changed and will not change”. PM Donald Tusk’s coalition came to power in 2023 promising to loosen abortion restrictions, but internal divisions have repeatedly stalled reform. Instead, the government has relied on administrative measures to expand access under existing exceptions, leaving doctors and hospitals considerable discretion over women’s care. With elections approaching, the issue has acquired fresh political urgency. The government’s approval ratings remain poor: a September poll found just 29 per cent assessed its performance positively. Abortion rights activists were far from impressed. Justyna Wydrzynska of the NGO Abortion Dream Team accused the government of pushing through last-minute changes ahead of the election, despite knowing the president was unlikely to sign them. “The clock is ticking and time is running out,” she told Onet, warning that women who voted for change in 2023 might simply stay home next time. The reproductive rights organisation FEDERA called the changes insufficient and demanded immediate measures to improve abortion access, regardless of the legislation’s fate.

On Tuesday, the Lviv Regional Council declared 2027 a year commemorating the Ukrainian Insurgent Army (UPA), its commander Roman Shukhevych and nationalist activist Oleh Olzhych. The decision touched a raw nerve in Poland, where the UPA is remembered for massacring tens of thousands of Polish civilians in Volhynia and Eastern Galicia in 1943-45, atrocities Warsaw considers genocide. The backlash was immediate. Defence Minister Wladyslaw Kosiniak-Kamysz condemned the decision, Tusk warned that it served Ukraine’s enemies, and Foreign Minister Radoslaw Sikorski announced a five-year Schengen entry ban against Svyatoslav Sheremeta, the regional councillor behind the initiative. But the fallout may have gone beyond diplomatic protests. According to Polish media, Warsaw suspended discussions over a possible loan to Ukraine, while Ukrainian outlet European Pravda reported that a military assistance package had also been put on hold, citing an unnamed government source. Poland’s Defence Ministry denied the latter claim. Kyiv scrambled to defuse the row. Ukraine’s Foreign Ministry criticised the regional decision as counterproductive, and Polish officials said President Volodymyr Zelensky’s office had assured them it would not be implemented. It is the latest chapter in a longstanding dispute over historical memory that has repeatedly strained relations between the neighbours, despite their close cooperation since Russia’s full-scale invasion. The timing is particularly striking: with Ukraine’s future and Western security guarantees under discussion internationally, a dispute rooted in World War II is once again threatening to complicate a partnership central to both countries’ security.

Slovak president blocks environment minister nominee; top court rejects testimony limits

Slovak President Peter Pellegrini asked PM Robert Fico this week to nominate someone else as environment minister after learning of a criminal investigation that could involve Filip Kuffa, the candidate put forward by the Slovak National Party (SNS), a junior partner in the governing coalition. Pellegrini said on Wednesday that he had asked the intelligence service to find out whether police were investigating reports of wrongdoing at an organisation under the Environment Ministry. Police confirmed an investigation into suspected procurement fraud, mismanagement of property, money laundering and abuse of public office. Pellegrini said Kuffa could eventually face charges, although police have not confirmed that he is under investigation. The decision comes amid questions over logging contracts in Slovakia’s national parks. According to newspaper SME, two companies, TER-wood and MSGW, secured contracts worth millions of euros in Muranska planina and Velka Fatra national parks. The opposition Democrats party has questioned the contracts and alleged links between the companies and Kuffa’s associates. Pellegrini has not confirmed whether the police investigation concerns these deals. Kuffa, currently a state secretary (deputy minister) at the ministry, was nominated to replace Tomas Taraba, who was ousted in September after falling out with SNS leader Andrej Danko. Kuffa has rejected what he calls attempts to criminalise him. Danko refuses to withdraw the nomination, arguing that the president must appoint the PM’s chosen candidate. Constitutional lawyers say presidents can refuse appointments in exceptional circumstances. Fico said he would meet Danko to discuss the nomination. Kuffa and his father Stefan, also a state secretary, were elected to parliament but currently have substitutes occupying their seats. If they returned and stopped supporting the coalition, Fico could lose his narrow parliamentary majority.

Slovakia’s Constitutional Court ruled against changes to criminal procedures pushed through by Fico’s coalition last December, which would have restricted the use of testimony from defendants cooperating with prosecutors. The changes would have barred courts from using evidence from cooperating defendants who had received leniency and were found to have lied or withheld important information in criminal proceedings. Such witnesses have played a key role in investigations into organised crime and corruption in Slovakia, often testifying against former associates in exchange for reduced sentences or other benefits. The opposition accused the coalition of trying to help former police chief Tibor Gaspar, a deputy parliamentary speaker from Fico’s Smer party who is on trial alongside businessman Norbert Bodor in the high-profile Purgatory case, concerning alleged abuses of police powers. The government maintained that the system was open to abuse and that courts had relied on unreliable testimony. More than 150 prosecutors opposed the changes, warning that they could hamper investigations into serious crime. The Constitutional Court suspended the provision in February before ruling it unconstitutional on Wednesday. Its detailed reasoning has yet to be published. The coalition is already pursuing another proposal, drafted by Justice Minister Boris Susko of Smer, which would require independent evidence to support testimony from cooperating defendants before it could be used to secure a conviction. The proposal would also give cooperating defendants 180 days to disclose relevant criminal activity and tighten the conditions for receiving leniency. Opposition parties have said they will challenge the new legislation in the Constitutional Court if it passes. Parliament is expected to return to the proposal in about two weeks.