CSE and CIS
Bulgaria’s admission into the EU was somewhat conditional – Bulgaria had not met all the requirements, but the Union’s officials hoped that the admission to the community will provide an impulse to quickly fix the situation. Today, Bulgaria fares better economically than before 2007, but the biggest issues remain unresolved.
Bosnia and Hercegovina will not repeat the economic success of Kosovo. The omnipresent corruption, fostered by the bureaucracy and the legal environment of companies, effectively discourage foreign investors from investing in this unstable country.
Public-private partnership investment projects are still few and far between in Poland, and most tenders called for projects to be launched under this formula end up in a fiasco. Without incentive from the government and without some fairly uncomplicated changes to legislation, things are going to stay this way.
Until recently Poland, the Czech Republic and Slovakia were seen as the countries with the best governing standards, the most solid banking systems, the most open to foreign investors and with generally predictable politics. There used to be a pretty easy split between the good and bad halves of central Europe but today it is becoming increasingly difficult to tell them apart.
Despite very high global oil prices, Russia has entered a period of considerable economic slowdown. The possibility of continuing economic growth relying on natural resource-based export, with increasing involvement of the state, has worn out. Yet, Russia is unprepared for the new situation, it has no ideas for necessary changes and steering its economy out of the woods.
The Ukrainian parliament voted the law granting the Cabinet the right to pay its expenses to businesses with Treasury bills up to unlimited value. This practically breaks the central bank’s monopoly on the monetary policy.
"Poland is in a very difficult situation in terms of its relations with neighbors, but all the disagreements between the country and its neighbors should not affect their economic relations. With only one exception: Russia. Money that comes from Russia has to be controlled and not every Russian investment should be allowed", Edward Lucas, a longtime correspondent from Central and Eastern Europe for The Economist, says.