By SAŠA ĐORĐEVIĆ

Over the past decade, thousands of euros in profit (both legal and illegal) have flowed into and been generated within the Western Balkans to fund violent extremism. While violent religious and far-right extremism share similarities, their financing methods differ in complexity. Cash remains the primary means of moving funds on both sides, aided by the region’s informal economy. Religious extremist groups tend to rely on simpler financial methods and are less dependent on illicit profits. In contrast, violent far-right groups use a mix of legal and illegal funding sources, employing more sophisticated financial strategies. This policy brief examines the financial foundations of violent extremism in the Western Balkans with the aim of strengthening institutional efforts to combat it.

Geneva, SWIT: Global Initiative Against Transnational Organized Crime , 2025. 32p.

By Daniel Byman and Riley McCabe

In the wake of Israel’s blistering military response against Hezbollah, the group is facing a cash shortfall at a time when it has lost key leaders, fighters, weapons, stockpiles of cash and gold, communication systems, and infrastructure. On top of that, it has to contend with a new Lebanese government that is beginning to do its part to implement the November 2024 ceasefire. As Hezbollah seeks to recover, it is certain to look to criminal enterprises—including laundering drug money—to fill the gap, as it has in the past after less severe financial crises. Nor is the risk limited to terrorist financing alone.

CSIS: Center for Strategic and International Studies, 2025. 17p.

By Piotr Bąkowski

Faced with a persistent terrorist threat, the European Union (EU) is playing an increasingly ambitious role in counter-terrorism. While primary responsibility for combating crime and ensuring security lies with the Member States, the EU provides cooperation, coordination and (to some extent) harmonisation, as well as financial support, to address this borderless phenomenon. Moreover, awareness of the connection between development and stability, as well as between internal and external security, has come to shape EU action beyond Union borders. EU spending on counter-terrorism has increased over the years, to allow for better cooperation between national law enforcement authorities and enhanced support by the EU bodies in charge of security and justice, such as Europol, eu-LISA and Eurojust. The many new rules and instruments that have been adopted in recent years focus, among other things, on harmonising definitions of terrorist offences and sanctions, sharing information and data, protecting borders, countering terrorist financing and regulating firearms. However, implementing and evaluating the various measures is a challenging task. The European Parliament has played an active role not only in shaping legislation, but also in evaluating existing tools and gaps through the work accomplished by its Special Committee on Terrorism (TERR) in 2018. In line with the Parliament's recommendations, as well as the priorities set by the European Commission and its counter-terrorism agenda presented in December 2020, EU counter-terrorism action has focused on doing more to anticipate threats, counter radicalisation, and reduce vulnerabilities by making critical infrastructures more resilient and improving the protection of public spaces. The EU will also continue to address the online dimension of various forms of extremism, in line with the regulations on dissemination of terrorist content online and on the provision of digital services in the EU. This briefing updates an earlier one, entitled Understanding EU counter-terrorism policy, published in 2023.

Brussels: EPRS | European Parliamentary Research Service, 2025. 12p.