2026 Perspectives for the Public Sector

Fueling Defense: The Financial Front A NewWorld Order: Global Deterioration of Peace T he global landscape in 2025 is characterized by conflict and mistrust; there has been a profound deterioration of peace. The Russia-Ukraine war remains a deepening crisis, with Russia rejecting ceasefire proposals and escalating its offensive into eastern Ukraine, seizing key logistical hubs and undermining Europe’s security framework. Ukraine, battered by years of conflict, is turning to tech partnerships with Gulf states while the Trump administration’s protectionist policies, most notably steep tariffs, are straining U.S.-E.U. relations, pushing Europe toward greater military autonomy and changing transatlantic priorities. These shifts are reshaping alliances, creating a power vacuum that regional and global players are rushing to fill. The instability in Europe is mirrored by turmoil in the Middle East. Israel’s strikes on Iran have eroded Tehran’s regional influence, contributing to the collapse of Syria’s Assad regime and empowering Sunni factions, while Russia’s influence weakens. Terrorist organizations, including ISIS affiliates, are exploiting unrest in Africa and the Middle East, amplifying global threats. Josefina Rochette Public Sector, EMEA Georgi Yordanov Lead on Defense, Public Sector Andrew Park Public Sector, EMEA Michael Paulus Head of Public Sector, Asia Ana Holzbacher Trius Public Sector, EMEA Natalie Tsui Public Sector, Asia Tobias Cheung Public Sector, Asia Citi Perspectives for the Public Sector 7