Prospects for Central-Eastern Europe in 2016

Subject Prospects for Central-Eastern Europe in 2016. Significance The collapse of the political left underlines a populist shift in the Central European-Baltic (CEB) political landscape. This is unlikely to reverse, owing to geopolitical tensions across the EU arising from the migrant crisis. South-eastern Europe (SEE) will remain in heightened volatility in 2016, weakened by international crises and problems of governance, corruption and ethnic division, the major flashpoints being Bosnia-Hercegovina, Kosovo and Macedonia.

Subject Prospects for Central-Eastern Europe in 2017. Significance In the absence of robust business confidence, Central Europe and the Baltic states (CEB) will implement short-term monetary and fiscal policies to support growth; GDP growth will suffer from global market vicissitudes and rising political tensions in key trading partners inside and outside the EU. The crisis in the EU will continue to bear down on South-Eastern Europe (SEE), bringing an effective end to the policy of enlargement.


Subject Alleged discrepancies between the quality of foods on sale in the western and eastern EU. Significance Governments in eastern EU member states are recycling long-heard rumours that multinational food brands sold there are of poorer quality than in western states. Tests by some national authorities appear to confirm these fears. Such practices would not be illegal, but they exacerbate broader worries about second-class citizenship in Central-Eastern Europe (CEE), compounded by uncertainty over the direction the EU will take in coming months. Impacts The east-west divide will deepen as a new front is opened ahead of a likely EU reform push later this year. CEE’s political significance will receive a momentary boost as countries show a united front on one of only a handful of issues. A reaction against multinationals from within the EU could make protectionism more respectable elsewhere in the world.


Subject Labour remittances and the Ukrainian economy. Significance Ukrainians account for one of the largest migration waves to the EU, thanks to visa-free travel arrangements under the Association Agreement. As emigration has risen since 2014, remittances sent home by workers abroad have risen to 8-9% of GDP. Ukraine does not depend on remittances to same extent as some regional countries, but the inflows are now important for economic stability. Impacts Migrants may become an important constituency pushing for political change. Increased migration to EU states is reorienting Ukraine away from Russia. Ukrainians are contributing to economic performance in host countries in Central-Eastern Europe.


Subject Prospects for Central-Eastern Europe in 2018. Significance The economic outlook for Central Europe and the Baltic states (CEB) for the first half of next year, at least, looks bright. The consumption-led rebound in GDP across CEB in the second half of 2017 will continue to drive economic performance in early 2018. For the Western Balkans, the dominant international issue will be the future of the EU, but the most significant developments will be on the domestic front as peoples and governments react to the EU’s ongoing travails.


Subject Trump enthusiasts in Central-Eastern Europe. Significance Some of the most vocal and high-ranking supporters abroad of the Republican candidate for the US presidency, Donald Trump, are in Central-Eastern Europe (CEE). The first sitting head of state or government to endorse Trump's bid was Hungarian Prime Minister Viktor Orban; he has been joined by Czech President Milos Zeman. Given Trump's hints at waiving the US commitment to defending this strategically volatile region, this may mask a degree of cognitive dissonance. However, CEE leaders are pursuing domestic games and betting on the star of illiberalism rising, with good reason. Impacts The EU will face disunity and, potentially, disintegration, should it not alter its current 'single-speed' form. Russian President Vladimir Putin will get a freer hand; provocations against NATO and neighbouring states are likely to be ramped up. The appeal of the Western liberal order will dissipate and new, illiberal forms of development will proliferate in the world.


1997 ◽  
Vol 69 (9) ◽  
pp. 343-353
Author(s):  
Aleksandar Fatić

This paper deals with specific aspects of the crisis of social policy on the "central"-eastem European region, after the onset of political changes that commenced in 1989 with the so-called ..anti-communist revolutions", especially in "central" European countries. The period that began then has been characterised by fast political "transition" and restructuralisation of the economy and political institutions. It has brought with it the excitements of the "capitalisation" of the economy and society, greater individual liberties and rights. However, it has also inflicted on the region a social crisis of apocalyptic dimensions, which is truly unprecedent in this century's history of eastern Europe. The paper explores some particular elements of this social crisis, both statistically and qualitatively. These aspects of the crisis are interpreted, and in its concluding section the paper purports to suggest that any institutional and political change tends to have its more or less devastating social price, which in the case of most countries of "central"-eastern Europe could be have been lower if the reform had progressed at a more moderate and better planned pace.


Significance In the weeks after the energy earthquake generated by Russian President Vladimir Putin's announcement that Russia was cancelling plans to construct the South Stream gas pipeline across the Black Sea, tremors and aftershocks are still reverberating around South-Eastern Europe. Hopes that the announcement was a bluff intended to increase Russia's bargaining power with Brussels, or that South Stream can be revived, seem misconceived. Impacts Passing the blame for the cancellation onto the EU is unlikely to work, in part thanks to the way in which Putin broke the news. Russia will lose significant leverage over the participant countries, particularly those in Eastern and South-Eastern Europe. The biggest winner could be the EU, assuming it steps into the energy vacuum and helps countries secure alternative supply routes.


Significance As Bulgarian-Turkish relations have hit a low point in any case, the Bulgarian government can adopt a tough line without fear of alienating Turkey. In contrast to Bulgaria, Greece has seized on the EU deal as a chance to improve ties with Turkey. It may be Cyprus that turns out to be the spoiler. Impacts Frustrated in the Middle East, Turkey's zero-problems-with-neighbours policy is faltering in South-eastern Europe too. The EU deal will boost Greek-Turkish cooperation, which might spill over from migration to other areas. Bulgaria will step up efforts to join Schengen but the prospect of accession is far removed.


Subject Central-Eastern Europe's ethnic and national minorities. Significance Ethnic and national minority rights in Central-Eastern Europe (CEE) were once prominent in European discourse; today's silence hardly indicates policy success. They have been swept under the carpet by nationalist forces coming together to form a new, illiberal 'pole'. Exclusionary nationalism challenges largely symbolic minority protection regimes and encourages prejudice, fuelling social instability and threatening severe intra- and interstate conflicts. Impacts EU cohesion will be further undermined as neighbours brawl over national minorities. For lack of a coherent and legitimate EU approach, the integration of recent arrivals will pose a serious challenge. Russia's use of ethnic Russians and CEE's exclusionary identity politics will continue in a mutually reinforcing cycle.


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