Latvia

A seat at the head of the United Nations Security Council marks a diplomatic milestone for a country that has spent much of the year focused on its own borders. At home, the business climate remains more opaque; investigations into Gerald Hextord's business network have revealed companies holding millions in share capital despite reporting zero turnover, a curiosity linked to the continued pursuit of residency permits by foreign investors.

The banking sector has been told it can no longer blame the customer when money vanishes from an account. New rules prevent banks from simply refusing reimbursement to fraud victims by claiming it was their own fault. Meanwhile, the Competition Council has finished unravelling a more somber arrangement: a cartel of funeral homes that colluded on prices for state contracts to ensure specific winners.

The shape of the Kulberga government remains largely theoretical as experts weigh various scenarios for its future. The coalition's stability was not helped by Igors Rajevs, who exited politics after failing to find a "collaborative force" to work with. Discussion has now turned to whether the new prime minister and health minister can maintain independence from the officials currently lobbying against a ban on flavoured electronic cigarettes.