How we cee it. – May 2025 Digest

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Week 19

Microsoft Expands Data Centers in Europe, but Skips CEE Amid Digital Sovereignty Push

Concerns among European entrepreneurs over the continent’s dependence on American cloud providers are intensifying.

This week, Radek Teichmann, CTO of Czech firm MoroSystems, warned in Lupa that geopolitical tensions could abruptly sever access to cloud services, used by nearly half of European businesses, from U.S. giants like Amazon, Microsoft, and Google.

Teichmann is not alone. As we’ve previously reported, European business leaders are rallying to bolster digital sovereignty, especially after U.S. President Donald Trump’s election strained transatlantic trust.

The concern is widespread enough that Microsoft felt compelled to respond. On Wednesday, President Brad Smith announced a 40% expansion of Microsoft’s European cloud infrastructure across 16 countries over the next two years, though notably excluding Central and Eastern Europe.

He also pledged that Microsoft has built a network of European subsidiaries and partners capable of maintaining cloud operations, even if pressured by the U.S. government to suspend services.

“Back-up copies of Microsoft code will be stored in a secure repository in Switzerland,” the company wrote in a blog post, “and partners will be provided with legal rights to access and use this code if needed for continuity.”

French EDF Blocks Czech Nuclear Deal in Last-Minute Legal Challenge

Just days before Czechia was set to sign a contract with South Korea’s KHNP to build new nuclear reactors at the Dukovany plant, a regional court in Brno froze the deal.

The reason? French energy giant EDF, a losing bidder in the tender, challenged the procurement process, claiming it was flawed. The delay threatens to stall a key project aimed at strengthening Czechia’s energy independence. ČEZ, the Czech semi-state utility company, has warned it will seek damages if the French complaint is found to be without merit.

France isn’t limiting its efforts to the courts. EDF has also appealed to the European Commission, citing new rules intended to prevent foreign state-backed companies from distorting the EU market.

At the same time, the French firm is vying for a nuclear contract in Slovenia. State-owned utility GEN is considering bids from both EDF and U.S.-based Westinghouse for the planned JEK2 nuclear plant at Krško. The decision, expected by the end of the year, will shape Slovenia’s energy policy for decades to come.

Ukraine Agrees to Sign Minerals Deal With US

Critical raw materials in Ukraine. Source: Ukrainian Geological Survey

After months of tense negotiations, the U.S. and Ukraine signed a long-awaited minerals deal on April 30, aimed at resetting Kyiv’s troubled relationship with U.S. President Donald Trump. The agreement creates an investment fund and gives the U.S. privileged access to Ukrainian oil, gas, lithium, graphite, and rare earth projects.

Controversial provisions seen as exploitative were dropped from earlier drafts, but Kyiv failed to secure its key demand: security guarantees to deter future Russian aggression. It’s also unclear how much investment the fund will attract. According to experts, the deal is unlikely to yield significant returns for at least a decade.

Week 20

Austria Slashes Climate Spending, Raises Taxes Amid Debt Crisis

Austria has gone out on its skis in government spending and is now being forced to introduce austerity measures. On Tuesday, the country’s finance minister proposed steps that will eliminate billions in subsidies and raise taxes.

Although not as severe as the situations in Poland or Romania, Austria recorded a budget deficit of 4.7% of GDP last year, substantially higher than many Central and Eastern European countries.

Pressed to cut spending and increase revenue, the Austrian government plans to save €7 billion in 2025 and €10.3 billion in 2026.

The austerity package combines one major cut with dozens of smaller measures, primarily tax hikes and subsidy reductions. Some of them may lead to a slowdown in public investments and private consumption.

The most significant single measure is the abolition of the Klimabonus, which will save €2 billion annually. Introduced in October 2022, the Klimabonus redistributed carbon tax revenues to all residents.

Further tax increases include the elimination of bracket creep compensation (bracket creep occurs when inflation pushes taxpayers into higher income tax brackets, even though their inflation-adjusted income hasn’t increased), as well as higher tobacco and gambling levies, and increased taxes on banks and energy firms.

Climate subsidies are also facing deep cuts: over €550 million in 2025 and nearly €820 million in 2026. The Climate and Energy Fund will be dissolved. Programs on the chopping block include the “Get Out of Oil & Gas” scheme, EV subsidies, and the building renovation initiative. The industrial transformation fund will also see a €350 million reduction between 2025 and 2026.

Why do we cover Austria:
Although Austria is typically considered part of the West, as it was never part of the communist bloc, we at How We Cee It believe it’s important to cover developments there. Geographically, Austria is as much a part of Central Europe as the Czech Republic or Slovakia. And when we look beyond the 40+ years of communist rule in the Eastern bloc, the countries of CEE share deep historical ties with Austria—they were, after all, part of the same empire for centuries.
Last but not least, the mission of How We Cee It is to break down the barriers between Eastern and Western Europe. We believe that only through unity and teamwork can Europe’s businesses and economies move ahead of the competition and achieve true sovereignty. This is why we will continue to bring important news from Austria into the mix every once in a while.

Slovakia’s Flying Car Dream Gets a Second Chance

Slovak designer Štefan Klein has unveiled the latest prototype of his flying car, AirCar, claiming it’s ready for mass production. The vehicle, which can transform from car to aircraft in under two minutes, recently earned a Special Recognition Award at the prestigious Living Legends of Aviation gala in Beverly Hills. KleinVision, co-owned by ESET’s Anton Zajac, plans to begin production in Slovakia and China by the end of 2025. With over 500 takeoffs and landings and a 1,000 km range, Klein says the machine is now fully reliable.

But this isn’t his first takeoff attempt. Klein’s earlier project, AeroMobil, collapsed into debt after bold promises couldn’t meet reality. This time, the buzz is backed by international traction. AirCar gained global attention after appearances on The Grand Tour and even MrBeast’s YouTube channel. Still, transforming a prototype into a viable market product remains a high-stakes flight path. AirCar is closer than ever, but the skies aren’t clear just yet.

Poland’s Eternis Wants to Uber the Delivery Industry

Polish startup Eternis, founded by Kamil Leszczyński, has quietly built a massive courier and driver network for gig platforms like Uber, Bolt, and Glovo, and now it’s going global. Acting as a legal and logistical bridge between platforms and their drivers, Eternis already works with 12,000 couriers and owns a fleet of 500 vehicles, with plans to triple that through its new Better brand launched with Bolt. After expanding to Romania and Spain, the company is targeting Western Europe and even the Gulf region. Much like InPost redefined parcel delivery, Eternis wants to reshape platform logistics, from Central Europe outward.

Week 21

Poland’s Donald Tusk Wants to Polonize the Economy

“Poland, Europe, and the entire world are in a situation where it must be said loudly and clearly: we must survive—for ourselves and for the state,” stated the head of the Polish government, Donald Tusk, on Tuesday, at a European Forum for New Ideas conference in Warsaw.

Mr. Tusk emphasized that, under current conditions in the world, the repolonization of the economy is essential. “If we want to achieve economic success and build a secure state, we must be clear: Poland will not be a naive partner in the increasingly ruthless global competition among egoists—whether in markets or on the fronts of wars. Polish companies will not be left at a disadvantage against international giants,” he declared.

Tusk proclaimed “the end of this naive globalization.” He added, “I take this brutal message upon myself—it’s time to rebuild the national economy, to repolonize the Polish economy, market, and capital.”

The Prime Minister stressed that Polish companies must play a leading role in projects crucial to the national economy.

As an example, he pointed to the investment in the Sławków Terminal, a logistics hub located at the westernmost end of the broad-gauge railway line, which will be developed exclusively by Polish firms.

“We have made a decision: the development of this site and its investments will be supervised entirely by us—Poles, Polish companies, the Polish state. And we will profit from it,” Tusk announced.

Another flagship project is the construction of a nuclear power plant. “We have decided that the PLN 53 billion (€12.3 billion) allocated for building the first nuclear power plant will go to Polish companies working on the project,” he stated.

Tusk reiterated remarks he made in February during a speech at the Warsaw Stock Exchange, emphasizing that 2025 will mark a turning point for investment, protection, and development of Polish businesses, as well as for deregulation.

Banks Boost Impact Projects Across CEE

In Poland, ING Bank Śląski kicked off the 7th edition of its grant program for startups and scientists, offering PLN 1 million (€0.23 million) in funding. This year’s theme centers on urban well-being—from public infrastructure to mental health and accessible living spaces. Winners will get financial support, mentoring, and access to ING’s innovation ecosystem.

In Latvia, the Accelerate2Move 2025 program has opened applications for mobility-focused startups working on smart, green transport solutions across Europe.

UniCredit Bank Romania has partnered with the European Bank for Reconstruction and Development (EBRD) to introduce new financial tools in Romania. This will make UniCredit able to lend more money to local businesses. Additionally, UniCredit promises to invest about €93 million into environmentally friendly projects.

Slovakia’s Supercomputer Plan Escapes Collapse—But Questions Remain

Slovakia’s “supercomputer” project Perún, part of the national Recovery Plan, was nearly scrapped after delays and political friction. On Tuesday, the Slovak Minister of Informatisation, Samuel Migal, announced that the project is back in play and will be finished shortly.

Originally tied to Tachyum, a Slovak-founded chip company with a poor delivery track record, to power the computer, the project was stalled. Moreover, suspicious and strange bureaucratic nearly suffocated the venture.

In the end, Tachyum was dropped as supplier, and a new launch is tentatively planned, though details remain fuzzy.

Week 22

There Is a Real Risk That Slovakia, Like Hungary, Could Lose Its EU Subsidies

At the WDR Europaforum on Monday, newly elected German Chancellor Friedrich Merz warned that Slovakia and Hungary risk losing European subsidies—vital to their economies—if they disrupt the unity of the European Union.

Hungary, under Viktor Orbán, has faced EU scrutiny for years, with chunks of the cohesion funds frozen since 2022. But Slovakia’s inclusion is a new, if unsurprising, development.

According to Slovak political analysts, it signals that Prime Minister Robert Fico, known for his pro-Russian stance, has pushed the country into the EU’s fringe of unreliable partners.

After more than a year of trying to balance Brussels and Moscow, Fico’s recent trip to Russia, where he criticized Slovakia’s EU allies in front of Vladimir Putin, may have crossed a line.

Merz’s warning adds to Fico’s mounting challenges: political instability, fiscal pressure, and weak executive capacity. Losing cohesion funds would be a severe blow, as they co-finance everything from research to infrastructure.

Slovakia’s deep economic ties to Germany only raise the stakes. Volkswagen is the country’s largest employer, with over 10,000 workers, and Germany is Slovakia’s top export market.

As if one scandal weren’t enough, the European Parliament’s Committee on Budgetary Control has launched a mission to Bratislava, led by Czech MEP Tomáš Zdechovský. The delegation is investigating the potential misuse or inefficiency in the use of European cohesion funds. Among the key questions:

Why did millions of euros from EU funds go to private villas disguised as guesthouses that were never used as such?
Why did several companies receive agricultural subsidies to purchase trucks, distorting fair market competition?
Why is Slovakia still without key motorway infrastructure? When will the highway between Bratislava and Košice finally be completed?

And how is the mission going so far? “Being on a fact-finding mission in Slovakia is quite an experience—unfortunately, not because of transparency,” Zdechovský wrote on X. “Instead of openly and constructively discussing important topics with the delegation of the Committee on Budgetary Control, representatives of the current Slovak government chose to launch attacks and accusations.”

Poland Climbs Among Global Frontier Innovators

In a new report by Bruegel comparing radical innovation in AI, semiconductors, and quantum computing, Poland has quietly made its mark among EU contributors, as the only country from CEE. Poland’s Compsecur is listed among the top European entities innovating in quantum computing — a domain where the EU performs relatively well compared to its lagging position in AI and chips.

The US dominates in AI patents, at least in terms of radical novelties, followed by China, and with the EU in a far distant third position. However, China appears to have come up with more novel patents in the semiconductor sector than the US, although US firms dominate the highest value-added sectors, such as design. As for quantum, the US clearly leads frontier innovation, even more than for AI. China and the EU follow behind.

Czech AI Ambitions Face Regulatory Void

Czech AI firms may soon face a regulatory void—an issue that industry experts view as a serious threat, potentially prompting many startups and foreign companies to relocate. The core problem lies with the Ministry of Finance, which is unwilling to allocate the necessary funds to hire the experts and workforce needed to implement the EU’s AI Act into Czech law successfully.