Austrian banks have successfully navigated the challenges posed by the COVID-19 pandemic, maintaining a strong common equity Tier 1 ratio and supporting clients through public support measures. Despite a drop in profits in 2020, the sector has started 2021 with moderate risk costs and a low ratio of non-performing loans. The banking system's exposure to Central and Eastern Europe is seen as a net positive for profit generation and risk diversification. Austria's economy, heavily reliant on tourism, was significantly impacted by the pandemic but is now experiencing a strong recovery, particularly in sectors like restaurants, hotels, and close-contact services.

Croatia has been approved to join the eurozone, with formal approval given on July 12 and membership commencing on January 1, 2023. This makes Croatia the first country to join the eurozone since Lithuania in 2015, following its EU accession in 2013.

The startup ecosystem in central and eastern Europe is experiencing significant growth, with tech companies now valued at over €186bn, a substantial increase from 2010. In 2021, startups from the region have raised over €4bn in venture capital funding, potentially doubling the amount from 2019. High-profile companies like UiPath, InPost, and GitLab, along with unicorns such as Wise, Skype, Bolt, and Vinted, have contributed to the region's recognition as a startup hub. The report by Google for Startups, Atomico, and Dealroom highlights the resilience of positive trends despite the pandemic, with a large pool of skilled developers and emerging founder role models. While some countries like Romania have seen significant value from single companies, the overall trend shows a rise in mega-rounds of funding and a strong entrepreneurial foundation. Estonia leads Europe in VC investment per capita and startup creation, but the region still relies heavily on international investors and sees a trend of startups relocating their headquarters to cities like New York and London.

Austria is advancing its green enterprise credentials, aiming for carbon neutrality by 2040. Despite political instability and the pandemic, the country has made progress, with over two-thirds of start-ups focusing on ecological goals. The green tech sector generated significant sales and employment in 2019. Austria's recovery plan allocates 59% of funds to climate objectives, including a carbon tax and affordable public transport to reduce emissions. The Green Tech Cluster in Styria exemplifies the focus on sustainability. Political shifts may further enable green policy advancements, with ambitions like 100% renewable electricity by 2030.

Romania's center-left government, led by the Social Democrats, was ousted from power following a no-confidence vote by the opposition. This marks the fourth time since the 1989 revolution that the country has seen its leadership changed through such a vote. The Social Democrats, in power since December 2016, have been embroiled in controversy over corruption and perceived attacks on the rule of law, sparking large-scale protests. Notably, an emergency decree in February 2017 that sought to decriminalize low-level corruption led to half a million people protesting. The party also faced backlash for undermining the judiciary, including the dismissal of the head of the anticorruption agency. The party's leader, Liviu Dragnea, was jailed for abuse of office after a defeat in the European parliamentary elections in May.

Romania's national police chief and two county officials have been dismissed following a delayed response to the emergency calls of a kidnapped 15-year-old girl. The girl, who is now missing and feared dead, had called the European emergency services three times, stating she had been kidnapped. The last words heard from her during the call were 'He's coming, he's coming,' as reported by the Police Chief Ioan Buda. The incident has sparked widespread anger across the nation, leading to protests and calls from the president and prime minister for a thorough investigation and accountability.

Pope Francis, on his first trip to Romania, apologized to the Roma people for the suffering they have endured due to discrimination, segregation, and mistreatment, particularly acknowledging the role of Christians, including Catholics, in such injustices. He made this apology during a visit to a church in Blaj, a city in Transylvania. The pope's visit aimed to improve relations between the Roman Catholic and Eastern Orthodox churches, support Romanian emigrants, encourage the local Catholic community, and offer a stance against the rising tide of nationalism globally.

Liviu Dragnea, Romania's most influential politician, has been ordered by the Romanian Supreme Court to start serving a prison sentence for abuse of power. This decision, which follows a lower court's ruling from June 2018, cannot be appealed. Dragnea's party, the Social Democrats, suffered a significant loss in the European Parliament elections, securing only 23% of the vote compared to 46% in the 2016 national parliamentary elections. Additionally, a nonbinding referendum showed that over 80% of voters were against the government's efforts to amend corruption laws and potentially grant amnesty to officials convicted of abuse of power.

In Bucharest, Romania, antigovernment protests escalated into violence as police used tear gas and water cannons against the demonstrators. The protests saw over 240 individuals injured, including security personnel. An estimated 100,000 people gathered in Piata Victoriei in Bucharest, with additional tens of thousands in other cities, to protest against legislative changes perceived to undermine the rule of law. The protests aimed to mobilize the Romanian diaspora, with individuals like Moise Maracine, a Romanian business owner residing in Britain, joining in to demand democratic governance and citizen-protective laws.

The childhood home of Elie Wiesel, a Nobel laureate and Holocaust survivor, was vandalized with anti-Semitic graffiti in Sighetu Marmatiei, Romania. The graffiti included hateful messages and was discovered late Friday evening. The home is a protected historical monument and now serves as a museum. The incident has drawn condemnation from Israel and has been highlighted as a potential test for Romania's new anti-Semitism law.

The European Court of Justice has ruled that all European Union countries must recognize same-sex marriages in the context of immigration cases where one partner is an EU citizen. This ruling is a significant win for LGBT rights advocates who have been pushing for the equal treatment of same-sex spouses within the EU. The decision underscores the divide between the EU's core institutions and some of its more conservative member states, particularly those that joined the union in the 21st century and have not yet legalized same-sex marriage or civil unions. Despite the ruling, the court stated that member states are not required to legalize same-sex marriage.

Romania has been experiencing large-scale protests against an emergency ordinance that would have decriminalized certain acts of official misconduct, potentially undermining the country's anti-corruption efforts. Despite the government's repeal of the ordinance, citizens continue to demonstrate, demanding more substantial anti-corruption measures. The protests have been fueled by the Social Democratic Party's (PSD) victory in recent elections and concerns over their leader, Liviu Dragnea, who is facing charges of abuse of power. The European Commission has commented on the need to continue the fight against corruption. The National Anti-Corruption Directorate (DNA), led by Laura Codruta Kovesi, has been a focal point of support among protesters. The future of the government is uncertain, with speculation about potential resignations, including that of Prime Minister Sorin Grindeanu.

Romanian citizens have taken to the streets in a massive anticorruption protest, with up to half a million people participating nationwide. The protests were sparked by a government decree that decriminalized certain corruption offenses, which the government retracted in response to the public outcry. Despite this, protesters, including a translator named Ana Puiu and an IT engineer named Mihai Georgescu, remain skeptical of the government's intentions and are demanding further assurances that corruption laws will not be weakened in the future. The protests are particularly concentrated in Bucharest, where an estimated 250,000 people have gathered.

Romania's largest political party, the Social Democratic Party, has nominated Sevil Shhaideh, a woman from the Tatar minority, to be the country's next prime minister. This nomination is historic as she would become the first Muslim and the first woman to hold the position if approved by the president and Parliament. The Social Democrats won a decisive victory in the recent general election and, together with their ally, the Alliance of Liberals and Democrats, hold a parliamentary majority. The party's leader, Liviu Dragnea, was ineligible due to a conviction for electoral fraud, prompting the choice of Shhaideh, who previously served as minister of regional development.

In recent runoff elections, pro-Russia candidates have emerged victorious in both Bulgaria and Moldova, signaling a shift towards nationalism and a potential weakening of European Union unity. The Bulgarian election saw a former air force commander with no political background win the presidency, leading to the resignation of the prime minister and the possibility of early elections. In Moldova, a pro-Russia socialist is set to become president for the first time since 2009. These developments are seen as a boost for Russian President Vladimir Putin, who seeks to weaken EU ties and sanctions against Moscow. The rise in nationalism is partly attributed to a rejection of Western liberal values and the ongoing refugee crisis.

Following a deadly nightclub fire in Bucharest, Romania, which resulted in 45 deaths and nearly 200 injuries, massive protests erupted demanding the resignation of Prime Minister Victor Ponta. The protests, one of the largest since the fall of communism in 1989, highlighted the public's frustration with government corruption and ineptitude. Victor Ponta, facing corruption allegations, resigned in response to the public outcry. The fire has become emblematic of the systemic corruption in Romania, an issue that has persisted since the communist era and continues to deter foreign investment. Despite joining the EU in 2007 and establishing the National Anti-Corruption Directorate (DNA), Romania struggles with deep-rooted corruption. The segment includes insights from Kit Gillet, a Balkans correspondent, Laura Stefan of the Expert Forum, and Dennis Deletant from Georgetown University.

In Romania, a significant public demonstration with an estimated 20,000 participants in Bucharest called for political reform, leading to the resignation of Prime Minister Victor Ponta amid widespread anger. Despite the resignation, protests continued with demands for accountability and the establishment of a new technocratic government. The protests were sparked by a deadly nightclub fire that killed 32 people, highlighting issues of corruption and poor enforcement of safety regulations. The public's grief transformed into a broader movement against perceived governmental corruption and incompetence.

Romanian Prime Minister Victor Ponta resigned amid street protests and a corruption scandal. The anti-corruption drive in Romania, led by the National Anticorruption Directorate (DNA) and its chief prosecutor Laura Codruţa Kövesi, has been unprecedented in Eastern Europe. DNA has successfully prosecuted numerous high-profile figures, including mayors, MPs, and judges, with a conviction rate above 90%. Despite criticism and media attacks, Kövesi maintains that all DNA's actions, including wiretaps, are legally authorized. The DNA's work has increased public trust in the institution, contrasting with the low trust in parliament. Romania still faces challenges with corruption, as indicated by its ranking on Transparency International's index, but there is a sense of progress in changing the mentality towards bribery and rights.

A tragic fire occurred at the Colectiv Club in Bucharest, Romania, leaving at least 27 people dead and 180 injured. The blaze was reportedly sparked by stage pyrotechnics during a nightclub event attended by 300 to 400 people. Witnesses described the rapid spread of the fire, leading to a stampede and chaos as people tried to escape. Victims were treated at various hospitals, with many suffering from burns and smoke inhalation. Romanian officials, including the health minister and the president, responded to the emergency, and an investigation into the club's fire safety measures is underway. This incident is one of several major nightclub fires in recent history attributed to pyrotechnics and flammable soundproofing materials.