How we cee it. – September 2025 Digest
This is the monthly recap.The real action happens weekly — subscribe to How we cee it. Week 36 The EU Wants to Control Your Chats. Public Uproar May…
This is the monthly recap.
The real action happens weekly — subscribe to How we cee it.
Week 36
The EU Wants to Control Your Chats. Public Uproar May Stop It
The European Commission has been trying for years to introduce a regulation that would require internet services—such as messaging apps, and essentially any platform with a chat box—to scan users’ content for signs of criminal activity and forward suspicious material to authorities.
This would essentially mean total surveillance and the breaking of end-to-end encryption, which is currently used by most messaging providers—like WhatsApp, Messenger, Signal, and others.
All of this is being justified under the banner of protecting children from sexual predators.
EU member states have so far been unable to agree on a common position, but since Denmark assumed the EU Council Presidency in July, it has been spearheading the effort to push the legislation through.
While Hungary, Slovakia, Croatia, and other CEE countries like Latvia and Lithuania supported the text, the recent wave of public and activist criticism is prompting some of them to reconsider.
Slovakia, for example, initially had no issue with the latest version of the proposal, which includes provisions for breaking encryption. Leaked documents from the EU ministers’ July meeting confirm this.
However, over the summer, the ruling Smer party began publicly criticizing the draft as an unreasonable invasion of privacy, framing it as an EU overreach. Now, even the Interior Ministry, which will represent Slovakia during the next council vote on Chat control in mid-September, is talking about the need for clear privacy safeguards. Though it still doesn’t say whether it would back a version of the law that includes breaking encryption.
The Czech Republic also stated it will seek partners in the European Union to prevent the approval of a proposal to monitor online communications.
While protecting children is undoubtedly important, it’s also important not to go overboard with the measures. According to experts we spoke to, chat Control could create a backdoor for governments to surveil not just criminals, but also journalists or activists, or introduce a cybersecurity vulnerability exploitable by hackers.
Fico to Putin: Russia Could Join Westinghouse in Nuclear Plant Project
Robert Fico met with Russian President Vladimir Putin for the third time in nine months—this time during World War II commemorations in China. Fico was the only EU leader to attend the event in Beijing.
During their meeting, Fico told Putin about his planned Friday meeting with Ukrainian President Volodymyr Zelenskyy in Uzhhorod, where he intends to criticize Ukraine over attacks on the Druzhba oil pipeline.
In response, Putin suggested that Slovakia should curb its reverse gas and electricity flows to Ukraine—arguing this would deter Kyiv from targeting energy infrastructure linked to the West.
Fico also discussed Slovakia’s plan to build new nuclear reactors at Jaslovské Bohunice. While the Slovak government has chosen U.S.-based Westinghouse for the multi-billion-euro project, Fico said he would welcome Russian involvement, given their long-standing role in supplying nuclear technology to Slovakia.
Russia is already building a nuclear power plant in Hungary’s Paks.
Kyivstar Rings in a Historic Nasdaq Milestone
Ukraine’s largest mobile operator, Kyivstar, marked a historic milestone on August 29 by becoming the first Ukrainian company to ring the Nasdaq opening bell, with the ceremony livestreamed from New York to Kyiv. Trading under the ticker KYIV since mid-August after a SPAC merger with Cohen Circle, Kyivstar’s stock quickly surged, lifting its valuation to around $2.8 billion. For the region, the moment is both symbolic and practical, showcasing Ukraine’s resilience and growing appeal to global investors even in the face of war.
How we cee it. Joins Engaged Investments 2025 as Media Partner
This October, Prague’s Prague’s National House Vinohrady will once again become the crossroads of Europe’s venture scene. Engaged Investments 2025 (22–23 October) will gather hundreds of investors, founders, and innovation leaders to discuss deep tech, defence, AI, and the strategic infrastructure shaping the future. On day two, 50 of the most promising CEE startups will pitch to investors ranging from angels to Series A.
We’re happy to share How we cee it. is a media partner of the conference. We will bring you coverage of the most interesting voices from the event, which will host names like Jack Wang (Project A), Luis Frach (Left Lane Capital), Martin Olczyk (Techstars), or Andreas Sempengel (Mastercard).
Engaged Investments is part of Czech Startup Week, which will bring a series of tech-focused events to Prague in the second-to-last week of October.
Week 37
Slovak Startup Scene Faces a Bleak Outlook, First-Ever Ecosystem Survey Finds
A new report—the first of its kind in Slovakia—offers a comprehensive look into the country’s startup and innovation ecosystem.
Commissioned by Startup Awards Slovakia and Slovenská sporiteľňa, the survey asked 183 Slovak startups and 41 investors about their current situation. The picture that emerged is far from optimistic.
Slovakia has a minuscule startup population. The country counts just 97 startups per million inhabitants. For comparison, Estonia boasts 1,048 per million—more than ten times as many.
And the brain drain may soon accelerate: “Another issue is certainly the fact that a quarter of the small number of startups we have here are planning to move abroad,” says Matej Ftacnik, co-founder of Vacuumlabs, and one of the main faces of the Slovak startup ecosystem.
The most commonly cited reasons to leave include limited access to capital, underdeveloped startup infrastructure, proximity to customers, and more favorable regulatory environments elsewhere.
A good example of an ever hostile business environment are the new consolidation measures introduced by the government on Wednesday, which will increase the tax burden on freelancers, and higher paid employees.
Unlike countries such as Estonia or Ukraine, Slovakia does not offer a special tax regime tailored for startups—a critical tool in attracting and retaining founders.
Most Slovak startups are active in IT and B2B solutions. Healthcare and education come next.
One consistent theme from interviews we’ve published at How We CEE It is that Central and Eastern European founders often struggle with storytelling and sales. The Slovak data supports this: The most frequently cited challenge among startups is selling. Access to capital—a universal startup hurdle—comes in second.
Slovak startups tend to bootstrap their businesses: 58% remain 100% owned by the original founders, while another 34% have founders retaining majority ownership.
For those that do raise external capital, it mostly comes from angel investors, local grants, venture capital firms, or family networks.
On the investor side, activity is concentrated in the pre-seed and seed stages, likely reflecting the lower capital intensity of those rounds.
But investors aren’t exactly bullish on the near-term outlook. Nine out of ten surveyed cited Slovakia’s political situation as the biggest risk for 2025. Over 60% also pointed to a lack of high-quality startups as a major concern.
India’s Aurobindo Eyes One of Czechia’s Biggest Deals
Indian pharma giant Aurobindo Pharma is reportedly closing in on acquiring Czech-based Zentiva in what could become the largest Indian investment outside of India, and one of the biggest Czech M&A deals in a decade, potentially valued at €5 billion. The current owner, US investment firm Advent International, bought Zentiva in 2018 for around €2 billion.
The acquisition, if finalized, would place Zentiva, maker of generic drugs with operations in over 30 countries, under a strategic industrial buyer aiming to localize production in Europe. Sources say Japan’s Mitsubishi UFJ may finance up to €4 billion of the transaction, with Goldman Sachs also offering substantial backing. Aurobindo already has a CEE footprint through its 2018 purchase of Apotex, which manufactures generics in Czechia and Poland, making this deal both a vertical expansion and a geopolitical hedge amid ongoing global supply chain reshuffling.
Poland Heads to G20 – A Seat at the Economic Power Table
Poland has been invited to the 2026 G20 summit by U.S. President Donald Trump, according to Polish President Karol Nawrocki, marking a symbolic and strategic milestone for the country. The invitation comes just weeks after Poland was recognized by the IMF as having joined the world’s top 20 economies by nominal GDP, effectively entering the so-called “trillionaires’ club.” The Polish government views this as confirmation of the country’s growing global relevance, especially in light of its strong post-COVID recovery and recent political shift toward EU-aligned, market-friendly policies.
From a CEE perspective, Poland’s new seat at the table elevates the region’s visibility in global economic discussions. With 3.8% GDP growth in Q1 2025 and an investment-friendly stance under the Tusk administration, Poland is positioning itself not just as a regional leader but as a bridge between Western institutions and Eastern ambitions—economically, politically, and diplomatically.
Week 38
Czech Telecoms Enter the Unbreakable Quantum Encryption Era
Czech telecommunications and data network operator CETIN has launched the country’s first commercial quantum network, Lupa reports. The system uses Quantum Key Distribution (QKD) technology, which enables the exchange of virtually unbreakable encryption keys. O2 will be the first operator to deploy it, initially exploring its use in the core of its 5G network.
QKD is seen as a safeguard against a future in which quantum computers—still in development—could break today’s encryption standards.
Unlike traditional cryptography, which relies on complex mathematical problems such as factoring large numbers, QKD uses the principles of quantum physics to securely transmit encryption keys.
It works by generating random keys between two parties, encoding them into the quantum states of photons (particles of light) transmitted through a quantum channel. The uncertainty principle applies here, making eavesdropping detectable and preventing the duplication of unknown quantum states. Any attempt to intercept the transmission—such as tapping into individual photons—inevitably leaves a trace, since observing a quantum particle alters its properties. This allows the communicating parties to detect whether the transmission has been compromised.
Europe Turns to Ukrainian Tech for Eastern ‘Drone Wall’
The EU is moving quickly to invest billions in a “drone wall” along its eastern border, using technology that has already been tested in Ukraine’s war with the Russian aggressor. The push comes in response to recent Russian incursions into NATO airspace.
Drone violations over Poland and Romania last week revealed a troubling asymmetry: NATO relies on high-cost systems to counter low-cost Russian drones — a weakness the Kremlin is likely to exploit further. To address this, Brussels is encouraging member states to pool EU funds and jointly acquire equipment that has proven effective in Ukraine.
In parallel, the EU plans to launch a “drone alliance” with Ukraine, supported by €6 billion in funding, aimed at turning “Ukrainian ingenuity into battlefield advantage and into joint industrialisation,” according to Commission President Ursula von der Leyen.
Fico Pitches U.S.–Russia Partnership on €15B Nuclear Plant, U.S. Says No
During a meeting with Vladimir Putin in China two weeks ago, Slovak Prime Minister Robert Fico (Smer) said he would welcome U.S.–Russian cooperation in building a new nuclear power plant in Slovakia. Estimated at €13–15 billion, it would be the largest investment in the country’s history.
Fico said he would encourage Russian companies to contact U.S.-based Westinghouse, which he selected as the plant’s supplier without a public tender, and join in on the project.
Sources from both the Ministry of Economy and U.S. diplomatic circles confirmed that the United States did not receive Fico’s statement enthusiastically. From their perspective, cooperation with Russia is off the table, Denník E reports.
Fico’s words could complicate the signing of the biggest deal in Slovak history, according to the sources, and it is even unclear if it will be Fico who will travel to sign the contract himself.
Week 39
Ukraine Launches e-Residency Program to Attract Foreign Entrepreneurs Amid Ongoing War
Ukraine launched its e-residency program last week, enabling foreigners from select countries to remotely establish businesses, open bank accounts, and pay taxes at favorable rates.
The program, called uResidency, is inspired by Estonia’s successful model, which brought in €64.3 million in tax revenue last year. Ukraine aims to raise $1 million in its first year, targeting 1,000 e-residents.
Foreigners don’t need to travel to Ukraine — a difficult and dangerous task due to the war — but can verify documents at their local Ukrainian consulate.
Currently, only citizens of India, Pakistan, Thailand, and Slovenia are eligible.
The program targets small businesses in IT, gaming, digital tech, and online services like marketing, sales, web design, and media.
E-residents can open bank accounts via smartphone, with the only in-person step being consular verification. The program is free for now, with no hidden or accounting fees — just taxes and a small bank service charge.
E-residents pay a 5% tax on income up to €180,000, rising to 15% above that threshold.
Success remains to be seen, but it’s remarkable that amid full-scale war, Ukraine continues to push ahead with economic modernization.
Wirecard Fraudster Resurfaces in Russia as FSB Agent
Europe’s most wanted fraudster, Jan Marsalek — former COO of Wirecard — has eluded international warrants since 2020 when Wirecard collapsed amid a €2 billion fraud scandal. But now, he resurfaced in Russia not just as a fugitive, but as an active intelligence asset.
A joint investigation by Spiegel, Der Standard, The Insider, and others reveals Marsalek is living openly in Moscow under the alias “Aleksandr Nelidov,” after undergoing plastic surgery and acquiring Russian citizenship.
He is closely tied to Russian intelligence, allegedly recruited by the GRU over a decade ago, and now reportedly linked to military operations against Ukraine as an FSB agent. Investigators tracked his movements using mobile data and surveillance, placing him near the front lines of Ukraine and showing him in combat gear with the Russian military’s “Z” insignia.
Nvidia Invests in Poland’s Most Notable Startup
In a major win for the Polish tech scene, Nvidia has partnered with ElevenLabs, one of Poland’s most valuable startups, to accelerate breakthroughs in generative AI. The deal, confirmed by both parties, will see the two companies collaborate on new solutions combining ElevenLabs’ advanced voice synthesis capabilities with Nvidia’s cutting-edge hardware and AI models. ElevenLabs, known for its hyper-realistic voice cloning and audio AI tools, has quickly become a global name in synthetic speech technology and recently reached unicorn status.
This is the monthly recap.
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