It is all very simple. Peace, Mother Teresa said, begins with a smile. With peace, cue the economists, prosperity tends to follow. Peaceful societies enjoy greater income growth, stronger currencies and higher foreign investment—not to mention political stability and a greater sense of happiness among their citizens.

The economic impact of violence on the global economy is quantifiable: in 2024, it accounted for $19.97 trillion in purchasing-power parity (PPP) terms, or 11.56% of total global GDP—that’s $2,446 less economic output for each person on the planet. Military spending alone contributed $9 trillion to this figure, making up 45% of the total economic impact of violence. Meanwhile, expenditure on peacebuilding and peacekeeping efforts totaled just $47.2 billion, or just 0.52% of total military spending.

These are the most significant takeaways from the 2025 Global Peace Index, the world’s leading measure of global peace. Compiled by the international think-tank Institute for Economics and Peace (IEP), it covers 163 independent states and territories home to 99.7% of the world’s population. The ranking, which is based on 23 indicators grouped into three criteria (societal safety and security; extent of ongoing domestic and international conflict; and degree of militarization), shows 66 countries recording improvement and 94 showing deterioration, and one recording no change. Overall, since the Index was first introduced in 2008, 17 of its 23 indicators have worsened.

In total, the level of global peacefulness decreased this year by 0.36% according to the IEP researchers. That might not seem like much, yet it is worth noting that since the index’s inception in 2008, it is the thirteenth time that the average has declined, with the average country score declining by 5.4%. Meanwhile, the number of refugees and internally displaced persons has rocketed to 122 million, with 17 nations with at least 5% of the population being either refugees or internally displaced.

It should be no surprise that political instability and unresolved internal conflicts are major factors undermining global peacefulness. Afghanistan ranked as the world’s least peaceful country for six years in a row but was surpassed last year by South Sudan, Sudan and Yemen. The changes at the lowest rungs of the index are even more striking this year, where we can now find Ukraine followed by Russia, the least peaceful country on earth. Needless to say, the conflict in Gaza also has hurt global peacefulness, with Israel recording the largest deterioration when it comes to military expenditure as a percentage of GDP.

On the whole, last year saw 152,000 deaths due to conflict—Ukraine, Palestine and Russia accounted for over 63% of them. Another worrying trend is that conflicts are becoming more internationalized: 98 countries were at least partially involved in some form of external conflict over the past five years, up from 59 countries in 2008.

Even more concerning, the Institute for Economics and Peace researchers point out, many of the factors that typically precede major conflicts are more pronounced today than they have been since the end of the Second World War. There are currently 59 state-based active conflicts, the most since the late 1940s, and three more than last year.

Regionally, the Middle East and North Africa (MENA) remains the least peaceful region globally, and it is home to four of the ten least peaceful countries in the world. South Asia, which recorded the largest average deterioration of all the regions, due in part to significant declines in peacefulness in Bangladesh and Pakistan, is now the second least peaceful region globally. Sub-Saharan Africa also recorded a deterioration in peacefulness, with its average score falling by 0.17%.

In contrast, South America was the only region in the world to record an improvement, with its average score improving by 0.59%. Eight of the eleven countries in the region improved, with Peru and Argentina recording the largest improvements, while Colombia remains the least peaceful country in South America.

Western and Central Europe remains the most peaceful region in the world, hosting eight of the ten most peaceful countries globally, including Iceland, which retains its position as the most peaceful country globally. Still, the region recorded a deterioration in peacefulness of 0.57% over the past year, primarily due to a deterioration in the militarization domain, as many countries increased defense spending in response to the war in Ukraine. Asia-Pacific remains the second most peaceful region globally, with its overall score deteriorating by 0.21%.

Eastern Europe and Central Asia experienced the second-largest deterioration of any region, with their average deteriorating by 0.77%, due in large part to the conflict between Ukraine and Russia. Meanwhile, Central and North America is the third most peaceful region but saw an overall 0.7% reduction in peacefulness—Canada recorded the region’s largest deterioration, by 5.85%, while Haiti had the largest improvement in the region.

Amid widespread global turmoil, perhaps the more peaceful nations show a way forward. While countries like Iceland and New Zealand may benefit from their geographic isolation—making them more culturally cohesive and less exposed to territorial disputes—several nations in the top positions of the index fought vicious wars at one point in history, but today are integral members of the world’s most peaceful region, Europe. Elsewhere, Singapore and Malaysia illustrate the impact of democratic institutions and economic growth, as well as the ability to draw important lessons from a past marked by struggle and poverty, on bolstering peace.

While the institutions that manage societies—at least in terms of global averages—have generally improved and become more efficient and transparent, conflicts and violent protests stemming from opposing political views have increased across the world over the past decade, they have accelerated during the Covid-19 pandemic, and have continued after. Peaceful societies are not weighed down by the costs and burdens of violence, political instability and corruption, and they are more productive, informed and educated.

Source: Global Peace Index 2025

What does it even mean to be a happy country in a world rattled by war, inequality and political divisions? It is often said that even in the worst of times there is joy to be found, and the World Happiness Report rankings back this adage with plenty of data. Since the ranking was launched in 2013, the researchers of the Sustainable Development Solutions Network, the United Nations nonprofit designed to push for broader measures of global happiness and health, have demonstrated time and time again that the happiest countries have high levels of trust and are more resilient when a crisis hits.

Measuring trust in a society is not an easy task.  In their 260-page study, the happiness experts offer plenty of detailed charts, graphs and historical data. As a quick alternative, we can skip all that and ask ourselves a simple question: how worried would I be if I lost my wallet?  To feel that it would be returned by a police officer, a neighbor or a stranger, tells a lot about how happy you and the people around you are. For example, in an experiment, when wallets were intentionally dropped in the street by researchers, far more were returned than people had expected.

This year’s report has specifically examined how acts of kindness and generosity—both in terms of what recipients gain and what givers gain from these acts—affect personal happiness,  and one of the key findings is that we are often too pessimistic about the benevolence of others. For example,  in an experiment, when wallets were intentionally dropped in the street by researchers, far more than people had expected.

Also, because we often undervalue others’ kindness, learning about their generosity can boost our well-being, and when a society is more benevolent the people who are least happy see the greatest benefit. To prove their point, the researchers note that benevolence increased during COVID-19: “People needed more help and others responded. This ‘benevolence bump’ has been sustained since then.” In fact, despite a fall from their peak, these acts are still about 10% above their pre-pandemic levels.

Nordic countries continue to excel, as they have historically: Finland tops the list, but Denmark, Iceland, Sweden, the Netherlands and Norway make the top 10 too.

What sets them apart from nations with lower scores are support systems that can soften the impact of shocks. Whether through support for mental health and well-being or a strong sense of leaving a positive legacy for future generations through efforts like the Sustainable Development Solutions Network, citizens of happy countries report better life evaluations and more positive assessments of their own lives. What is exactly the right mix of ingredients for happiness? High GDP per capita, social support in times of need, an absence of corruption in government, healthy life expectancy, freedom to make life choices, and generosity or charity towards others—these are the original six key factors that the researchers have used over time in their report on global life satisfaction.

Yet, this edition of the Happiness ranking contains some big surprises too: two countries from Latin America, Costa Rica and Mexico, have entered the top 10 for the first time, jumping 6 and 15 spots respectively. Their GDP per capita is roughly a fifth of that of the richest nations in the world (Luxembourg or Singapore, for example), and roughly a third of that of all the just-mentioned Nordic countries, but money—as the report has repeatedly demonstrated over many years (and as many of us are still stubbornly reluctant to believe)—truly does not buy happiness.

Despite its strength in AI research, however, Canada has been slow to scale the technology commercially.

“This is a positive and important first step,” says Adegboyega Ojo, Canada research chair in Governance and Artificial Intelligence at Carleton University’s School of Public Policy and Administration. “The creation of the Ministry of AI and Digital Innovation signals the new government’s intention to prioritize AI development as part of its broader ambition to build an economy of the future.”

Recent announcements by Canadian telecom giants Telus and Bell of investments in AI infrastructure are also encouraging, Ojo adds, as they should attract private sector investment and strengthen the country’s AI ecosystem.

Still, the challenge ahead could exceed the scope of the current blueprint, Ojo cautions: “The new minister may need to take on a broader coordination role beyond the government’s plans to expand AI infrastructure, invest in training, promote adoption and commercialization, and streamline AI procurement through the AI procurement through the [proposed] Office of Digital Transformation.” That, Ojo argues, will include working closely with counterparts in other ministries and departments as well as across provincial and territorial governments to ensure that AI is deployed strategically in areas where it can generate the greatest economic value, promote social inclusion, and support environmental sustainability. “To address the need for coordination effectively, the government will need to set bold and measurable goals that align AI deployment with national priorities,” he says. “This is what AI-driven transformation is really about.”

The same day, Milei addressed the nation on television: “Today, we are breaking the cycle of disillusionment and disenchantment and beginning to move forward for the first time.”

Since its first rescue package in 1958, Argentina has been the recipient of more IMF programs than any other country: a record 23 deals amounting to $177 billion in loans. However, due to the conditions of the loans themselves, inconsistent policies, chronic inflationary pressures, and a lack of meaningful structural reforms, they did little to boost the economy.

This time things might be different. Milei’s aggressive measures last year led to a rare fiscal surplus, reduced inflation, and bolstered growth and employment. The new loan may help Argentina further kickstart its economy.

Then there is Trump.

Milei’s deference to the US president has often been ridiculed, notes Juan Pablo Ferrero, senior lecturer in the Department of Politics, Languages, and International Studies at the University of Bath in the UK: “He has been a strong supporter of Trump even before the presidential elections. Many were skeptical that he would be reciprocated, especially given their different economic belief systems, but the gamble went his way.”

Milei’s unconditional alignment with the US, Ferrero says, has yielded tremendous benefits: “The deal with the IMF and a recent statement from the US government that the Treasury could grant a loan in the event of an external shock show an extraordinary level of support for Milei.”

All of the above, Ferrero argues, has allowed Milei to lift some capital controls and provide a sense of stabilization to the economy.

A week later, however, UniCredit said its €10 billion unsolicited bid for domestic rival Banco BPM had stalled after the Italian government imposed conditions under its so-called Golden Power rules, which allow the state to block or place restrictions on corporate takeovers in strategic sectors. Citing requirements for credit and liquidity management, asset disposals, and its remaining operations in Russia, the bank stated that it was not in a position to make any decisions at this time. UniCredit is one of the few global banks that chose not to exit Russia following the full-scale invasion of Ukraine in 2022. CEO Andrea Orcel stated he would not harm shareholders by selling assets at an unfair price.

If European banks continue to generate lower returns on investment compared to some of their global peers, and the sector remains somewhat fragmented along national lines, Orcel is certainly not to blame. The bank has recently reported record profits and is actively pursuing a bold strategy of mergers and acquisitions across the continent.

Orcel, who earlier in his career worked at Goldman Sachs and Merrill Lynch, was CEO of UBS Investment Bank for most of the 2010s. Since he became head of UniCredit in 2021, the lender’s stock price has increased sixfold. With UniCredit’s acquisition of Commerzbank’s stake, the largest cross-border banking deal in Europe since the global financial crisis, Orcel strengthened his reputation as a prolific rainmaker. Still, the resistance he met from unions and politicians in Germany and Italy doesn’t bode well for the EU banking sector as a whole, which is facing a pressing need for consolidation and a more integrated, profitable framework.

Today, banks are not merely providing traditional financial services, but have become drivers of innovation, spearheading fintech solutions and contributing to the country’s sustainable development initiatives. These are the leading banks in the Dominican Republic listed alphabetically, each with its own distinctive strengths and history.

Asociacion Popular de Ahorros y Prestamos (APAP)

Also known by its acronym, APAP, the Asociación Popular de Ahorros y Préstamos was established in 1962 with the primary goal of financing the purchase, construction and improvement of homes for lower and middle-income families. While still formally classified as a savings and loan association, today the institution operates much like a bank, offering a wide range of financial services, including checking accounts, loans and credit cards. It also provides financial solutions for small and medium enterprises, as well as for corporate clients.

With assets exceeding $2 billion and its trademark customer-centric approach, APAP is among the top financial institutions in the Dominican Republic and a pillar of its banking system.

Banco BHD

Founded in 1972 as Banco Hipotecario Dominicano by a small group of businessmen, Banco BHD started as a mortgage bank. Since then, Banco BHD has actively contributed to the Dominican Republic’s financial reform process and gradually transformed itself into the country’s first commercial bank. Today, it is the second-largest private lender in the country and third-largest overall.

With assets of around $10 billion, one million customers representing about 20% of the market, more than 4,000 employees and customer service offices nationwide, Banco BHD offers banking solutions to individuals and businesses of all sizes, as well as financial institutions and government entities.  Banco BHD also takes great pride in its commitment to social responsibility, supporting microfinance, environmental projects, youth programs and social initiatives aimed at women’s empowerment.

Banco Popular Dominicano

Born in 1929 in Santiago de los Caballeros, Alejandro Grullón’s family business was tied to the production of lumber and agricultural products—he chose banking instead. Founded by Grullón in 1963, Banco Popular Dominicano was established to serve rural communities and support small businesses. Today, with assets of about $10 billion, it is the largest private bank and the second-largest overall in the Dominican Republic.

Banco Popular Dominicano provides financial solutions to over two million customers in all areas of banking, including personal, business and corporate services. With a particular focus on young customers, the bank has also been at the forefront of digital and mobile banking: currently, about 90% of Banco Popular’s operations are conducted online. Over the years, the institution has also won many Global Finance Awards, including multiple recognitions as the Best Private Bank in the Dominican Republic, as well as in the Sustainable Finance, Foreign Exchange and Consumer Digital Banks categories.

Banco Santa Cruz

Founded in 1999, Banco Santa Cruz specializes in credit, insurance and financial consulting for individuals and small-to-midsize businesses across all sectors. What began as a single branch in Santiago at the turn of the millennium has since grown into a nationwide institution, with 49 business centers and more than 2,200 employees catering to over 600,000 clients.

A leader in digital innovation, the bank has prioritized cutting-edge financial solutions to serve its tech-savvy customers. It was also a pioneer in microfinancing in the Dominican Republic, playing a key role in expanding financial access for underserved communities. Beyond banking, Banco Santa Cruz is committed to social impact, investing in education, entrepreneurship and community development.

BanReservas

One million Dominican pesos in initial funding, six offices in six different cities, and one mission: bringing banking to the masses, promoting economic stability and supporting international trade. This was Banco de Reservas de la República Dominicana in 1941, the year of its foundation. Today, it is simply known as BanReservas, and it accounts for one-third of the country’s banking assets, worth about $20 billion. With over 10,000 employees and 300 branches serving more than 3 million customers in the Dominican Republic, BanReservas offers a wide range of solutions to a broad clientele, from individual consumers to government entities, and businesses of all sizes. In addition, BanReservas backs social programs focused on community initiatives in health, housing and education, and champions cultural and sporting events.

With offices in Madrid, New York and Miami, the International Banking division of BanReservas aims to connect clients in other countries with the Dominican economic and banking system, and to boost investment in the country. BanReservas has won innumerable Global Finance Awards, most notably in the Best Bank in the World, Safest Bank, Best SME Bank and Best Trade Finance Providers categories.

Cibao Savings and Loan Association

Known locally as Asociación Cibao de Ahorros y Préstamos, or ACAP, the Cibao Savings and Loan Association was founded—much like its larger counterpart APAP—to meet the housing and banking demands that emerged after the end of the authoritarian Trujillo regime, and to support the phase of economic growth, social progress and entrepreneurial opportunity that came afterward. 

Established in 1962, from its mortgage-based origins ACAP has since evolved into a full-service financial institution. Over the decades, it has financed countless micro, small and midsize businesses, as well as major residential developments, high-rises and shopping centers across the country.

Today, ACAP operates a network of 55 branches and 60 ATMs nationwide, offering a broad range of financial products, including savings and investment accounts, loans and credit cards, and insurance services.

Scotiabank República Dominicana

In a banking landscape dominated by homegrown institutions, the Canadian Scotiabank has held its own for more than one hundred years. In the Dominican Republic since 1920, today the bank operates 58 branches, 23 agencies and 99 ATMs nationwide. With more than 2,000 employees and a diversified portfolio spanning retail banking to corporate finance, Scotiabank República Dominicana delivers tailored solutions for individuals and businesses of all sizes, including specialized microcredit services.

Not only has Scotiabank been supporting the nation’s economic evolution, but also its communities. The institution prioritizes financial inclusion through innovative products, grassroots partnerships, and various community initiatives in education, health, arts and cultural programs.

Formerly a British colony, Singapore turned to its banks to power its economic growth and transformation after becoming a sovereign country in 1965. Banks provided credit to businesses and entrepreneurs, financed infrastructure projects, and fostered financial inclusion. 

Today, Singapore’s financial system boasts a robust regulatory framework and cutting-edge fintech innovations. The Lion City has also emerged as a leader in sustainable finance, promoting green banking practices and investments that support environmental and social goals.

These are the leading banks in Singapore listed alphabetically, each with its own distinctive strengths and unique history.

Founded in New York in 1812 as City Bank of New York, Citibank’s roots in Singapore trace back to 1915, when it acquired the International Banking Corporation (IBC), which was established at the start of the century to facilitate trade between East Asia and the United States. Over the following decades, Citibank became a force in Singapore’s banking landscape, helping its transformation from a trading center to a global financial powerhouse. A full-service bank, Citibank pioneered products like credit cards and 24-hour ATMs, and catered to consumers, corporations, and institutions with an extensive portfolio of financial offerings.

In recent years, however, the bank’s traditional branch model has undergone a major overhaul. In 2020, the bank opened in Singapore its largest global Wealth Hub in the region, and in 2024 it closed its last regular branch in Jurong East to focus primarily on high-net-worth clients and online financial services.

https://www.citibank.com.sg

Singapore had only just recently declared its independence when, in 1968, a small group of government officials and entrepreneurs created the Development Bank of Singapore (DBS) with the goal of supporting the newborn country’s economic development. In the years and decades that followed, they fulfilled that mission. DBS funded projects spanning all major industries, helped the public listing of some of Singapore’s most iconic brands (Rollei, Singapore Airlines, and Singtel, to name a few), and even financed the construction of what were then the tallest building and the tallest hotel in the nation. Not only that, during the 1980s, the bank introduced a share ownership program that allowed employees to become stakeholders and rolled out a housing loan initiative that made home ownership more accessible. In 1997, ahead of its competitors, it launched the region’s first comprehensive internet banking platform.

Today, DBS is the largest retail and commercial bank in Singapore with assets of about $450 billion, and maintains a presence in 18 markets globally, providing services for individuals, small and medium enterprises, along with corporate, wealth, and investment banking. The Development Bank of Singapore has won numerous Global Finance awards, including in the Best Private Banks and Best Corporate/Institutional Banks categories.

https://www.dbs.com.sg/

Best known by its acronym HSBC, the London-based Hongkong and Shanghai Banking Corporation is one of the largest banks and financial services companies in the world, serving more than 40 million personal, wealth, and corporate customers in about 60 countries and territories. 

In 1877, HSBC opened its first office in Singapore, where it had conducted business through an agency since 1865. In those early stages, the Hongkong and Shanghai Banking Corporation extended loans to Chinese merchants and funded the import, export, and entrepôt trade of spices and raw materials. In the early 20^th century, its focus shifted to primarily financing tin and rubber exports, which at the time constituted 35% of Singapore’s total export trade. HSBC also played an important part in the reconstruction and rehabilitation of Singapore’s economy after the Second World War, handling one-third of Singapore’s foreign and trade exchange business by 1948. 

Ever since, HSBC has continued growing with Singapore and Singapore with HSBC. As a regional leader, HSBC offers comprehensive solutions, including retail, commercial, private, and investment banking, as well as wealth, insurance and capital market services, to its clients in the Lion City and across Asia.

https://www.hsbc.com.sg

As the first bank from Malaysia to operate in the country, Maybank’s entry into Singapore in 1960 played a key role in improving cross-border financial operations between the two neighbors and across the region as a whole. Today, the Maybank Group has an international network of over 2,600 branches in 18 countries including all 10 ASEAN nations, with more than 42,000 employees serving customers worldwide.

Locally incorporated and identified by the Monetary Authority of Singapore (MAS) as one of the systemically important banks operating in the country, Maybank Singapore holds assets of about $60 billion and employs approximately 2,000 people. It offers an extensive range of products and services for individuals, businesses, and corporations, including investment banking, asset management and stock-broking, insurance, and takaful. Its presence across Southeast Asia allows the bank to provide clients with seamless cross-border financing and support their overseas investment ventures.

https://www.maybank2u.com.sg

On October 31, 1932, three banks—the Chinese Commercial Bank, Ho Hong Bank, and the Oversea-Chinese Bank—merged and consolidated their strengths to form Oversea-Chinese Banking Corporation (OCBC). Since then, OCBC Bank has grown into one of Singapore’s leading financial institutions and the second-largest financial services group in Southeast Asia with assets close to $500 billion, catering to millions of customers through its more than 400 branches and representative offices in 19 different countries.

With a special focus on the ASEAN region and the Greater China clientele, OCBC Bank offers a wide range of products and services, including retail banking, wealth management, and insurance.

A leader in online banking and in providing innovative solutions for its customers, in 2024 OCBC Bank also brought digital banking aimed at children aged 7 to 15, who can now have their own bank account and debit card and improve their financial education. The Oversea-Chinese Banking Corporation has won many Global Finance Awards, most recently for Best SME Bank in the Asia-Pacific region and for excellence in the Sustainable Finance category.

https://www.maybank2u.com.sg/

Then known as the Chartered Bank of India, Australia, and China, Standard Chartered opened its first branch in Singapore in 1859, and has since contributed to its development by facilitating trade, supporting local businesses, and driving financial growth. Officially a London-based multinational bank, Standard Chartered does not operate in the United Kingdom and derives almost all of its profits from operations in Asia, Africa, and the Middle East. Furthermore, its largest shareholder is the Singaporean state-owned multinational investment firm Temasek Holdings. 

With an entire range of financial services across personal, business, corporate and private banking, alongside wealth management, investment banking, and treasury services, Standard Chartered has contributed to the transformation of the country into the world-class financial and commercial center that it is today.  

Its contribution, however, goes beyond the business and trade domains. To promote community involvement, Standard Chartered grants its employees three days of annual leave for volunteer work. Additionally, the bank sponsors the Singapore Marathon, also known as the Standard Chartered Marathon, which attracts approximately 60,000 runners from all over the world each year since 1982.

https://www.sc.com/sg

Alongside the Development Bank of Singapore (DBS) and Oversea-Chinese Banking Corporation (OCBC), United Overseas Bank is one of the three big local banks in Singapore. 

UOB offers a broad spectrum of financial services, from personal banking essentials like savings, loans, and credit cards, to insurance services, trade and corporate finance, and wealth management for high-net-worth clients. Over the years, United Overseas Bank has earned many honors from Global Finance, most recently winning the coveted award for Best Bank in Asia-Pacific and in Singapore for 2024.

Since taking office in January, US President Donald Trump has repeatedly accused the country of relinquishing control of the Panama Canal to China. Panamanian President José Raúl Mulino and Beijing officials deny the claims. However, following a diplomatic trip by Secretary of State Marco Rubio, Panama announced that it would renege on its agreement with China.

Tensions remain. While a 1977 treaty signed by the US transferred full authority over the waterway to Panama in 2000, Trump has not shied away from reasserting control over it.

Panama’s departure from the BRI is the first visible result of the Trump administration’s foreign policy, says Evodio Kaltenecker, associate professor of International Business and Strategy at the D’Amore-McKim School of Business of Northeastern University. “The BRI-xit, pun intended, can to be seen through different lenses. First, the geopolitical issue: Western countries have been concerned about China’s decades-long rising influence around the world. Panama and its Canal clearly signal the US plans to counter Beijing and deepen regional economic partnerships. There are no empty spaces in geopolitics. If Chinese influence decreases, Washington-led influence will regain relevance.”

Second, Kaltenecker continues, there is what he likes to call a “geoeconomic effect” that impacts international trade: “The Panama Canal is not only a key component of the U.S. freight transportation system but also a critical route of global trade. For instance, approximately 5% of global trade passes through the Panama Canal each year, highlighting the canal’s importance as a maritime pathway.”

Finally, Kaltenecker argues, there is a “signaling effect.” “Not by chance, Panama’s withdrawal came days after Rubio’s visit to Panama City,” Kaltenecker adds. “US pressure in the Panamanian case will probably set the pattern for further Washington moves.”

On Feb. 9, the Baltic states of Estonia, Latvia and Lithuania officially disconnected from the Russian-controlled Brell power grid. The following day, they successfully connected to the European Union’s electricity network.

The synchronization process with Europe also marked a crucial moment for continental integration. The transition, in the works since 2007, was accelerated by Russia’s full-scale invasion of Ukraine.

“This is truly something that has been a long time coming,” notes Michael Bradshaw, professor of Global Energy at the University of Warwick. “The switch removes the Baltic states from the Soviet-era electricity grid and from exposure to Russian manipulation, giving them a greater degree of energy independence on the one hand, and closer integration into the wider European electricity grid on the other.”

 A relic of the Soviet Union, the Brell—which stands for Belarus, Russia, Estonia, Latvia and Lithuania—is primarily controlled by Moscow. Estonia, Latvia and Lithuania joined the EU and NATO in 2004, and have since invested heavily in infrastructure renovations, including building new mainland and undersea power lines. Still, their energy sectors remained vulnerable and reliant on Russia.

Despite managing to entirely cut energy purchases from Russia, the three countries continued to rely on the Brell grid to control frequencies and maintain a constant power supply, which can be more easily achieved in a large-scale synchronized network than in a smaller one. With a total cost of €1.6 billion ($1.67 billion), including €1.2 billion funded by the EU, Bradshaw says the project also speaks to a growing concern about “electricity security,” a term championed by the International Energy Agency as the electrification push and plans to decarbonize Europe’s energy system gather pace. “Electricity interconnection is important to balancing national grids, but as highlighted by the recent political crisis in Norway, where local electricity prices went up as the country was exporting a growing amount of power, it is also becoming a point of contention,” he argues.          

Now that Stoltenberg is back, the Labour Party is ruling alone for the first time in 25 years and gaining momentum.

The Norwegian political landscape has been turned upside-down, according to Peter Egge Langsæther, a political scientist at the University of Oslo.

“After 3.5 years, the unpopular Labour and rural Centre party government broke down. The Social Democrats continued alone and are now enjoying a massive and sudden boost in popularity,” he says.

This shift, Langsæther adds, is due in no small part to Stoltenberg’s decision to join prime minister Jonas Gahr Støre’s government.

Before entering the international political scene, the 65-year-old Stoltenberg led the Labour party for more than a decade. He also served as finance minister in the 1990s, and twice as prime minister between 2000 and 2001, and again from 2005 to 2013.

As NATO chief, he earned the moniker “Trump whisperer” for convincing the US president not to withdraw from the transatlantic military alliance. He also welcomed Sweden and Finland as its new members following Russia’s full-scale invasion of Ukraine in 2022.

Stoltenberg is considered a returning hero, Langsæther observes. And the Euroskeptics gathered around the Center Party are suddenly in trouble.

“They enjoyed a large lead in the polls for years, and their victory in the upcoming September election seemed certain until recently, but right now their electoral prospects are uncertain,” Langsæther says. Whether the Labour government can retain its popularity remains to be seen. Much like other countries, Norway faces a complex set of domestic and international challenges. As Langsæther puts it: “The government will have to successfully navigate foreign policy challenges, mainly concerning relations with the EU and the new American administration, as well as support for Ukraine, while also handling internal conflicts related to the economy and electricity policies.”