Current Affairs - International

Bulgaria has replaced its national currency, the lev, with the euro, marking its formal entry as the 21st member of the eurozone. This transition reflects decades of economic reforms and alignment with EU standards, despite political instability and public debate over potential price increases and national identity concerns. The adoption facilitates easier trade and investment with other eurozone countries, reduces currency exchange costs, and strengthens financial integration. Preparations included dual pricing in lev and euro, gradual distribution of coins and notes, and a transition period to allow citizens and businesses to adapt to the new currency system.

China has withdrawn a long-standing tax exemption on condoms and contraceptive medicines by imposing a 13% value-added tax starting January 1. This policy shift is part of a broader strategy to address the country’s ongoing demographic challenges, as China recorded population decline for the third consecutive year in 2024. Alongside this measure, the government is introducing fertility-supportive initiatives such as tax-free childcare subsidies and public campaigns encouraging marriage. These combined efforts reflect China’s attempt to reverse declining birth rates and mitigate long-term socio-economic impacts of population contraction.

PathGennie is an open-source software developed to enhance drug discovery by accurately predicting how drugs unbind from protein targets, a critical factor in determining drug effectiveness and safety. Developed by India through the Ministry of Science and Technology, the tool avoids artificial distortions commonly used in simulations, resulting in more realistic and reliable outcomes. By reducing time and cost in early-stage drug research, PathGennie strengthens capabilities in computational biology, biotechnology, and pharmaceutical innovation. The initiative also supports India’s broader ambition of emerging as a global hub for affordable and high-quality drug development.

Poland has unveiled an ambitious $2.2 billion initiative to construct a multi-layered anti-drone defensive system along its 700-kilometre border with Belarus and Ukraine. The project aims to counter emerging aerial threats by integrating advanced electronic warfare measures, such as drone jamming, with kinetic defence systems including cannons, machine guns, and missiles. The construction will take place in phases, with initial operational capability expected within six months and full completion targeted within two years. This move reflects Poland’s growing focus on strengthening border security amid evolving regional security challenges in Eastern Europe.

China conducted large-scale live-fire military exercises around Taiwan under the code name “Justice Mission 2025” on December 29, 2025. The drills involved the deployment of 89 aircraft and 28 naval vessels, demonstrating significant military coordination and capability. These exercises were designed to simulate a blockade of Taiwan’s ports, highlighting China’s strategic intent in the region. Beijing characterised the operation as a stern warning in response to U.S. arms sales to Taiwan and support from Japan. The drills underscore heightened geopolitical tensions in the Taiwan Strait and China’s assertive posture in regional security affairs.