Economic Cooperation and Integration in Central and Eastern Europe

Prospects for reconciliation through economic integration vary a great deal in Central and Eastern Europe. The conditions and the characteristics of economic integration are different between the already EU member Central European countries and those in the post-Soviet area. An additional perspective relates to the economic relations between Russia and the “new” EU member states. Many countries openly express their fears of Russian influence in trade or through capital relations, regarding both direct investment and business loans. In the post-Soviet region, Russia’s intention is to achieve economic reintegration. This policy is not without success as seen in the creation of the Eurasian Economic integration and the (temporary?) failure of the Eastern Partnership policy of the European Union. The post-Soviet region, except for the Baltic States is increasingly bound to Russia. In this integration, the key factor is the power with which Russia can assert its interests, while its allies remain corrupt, autocratic local leaders. The problem in Central Europe is that the slow economic convergence of several countries in the region and the sluggish income growth has led to an overall dissatisfaction with the applied economic and political models and with the economic integration in the European Union. Although the EU created a uniform regulation and a single market for each of its new members, this has not been able to eradicate all the suspicions and problems within the accessed countries. Problems are appearing from time to time in different relations and are mostly related to ethnic minorities, economic interests, or national political interests serving economic objectives. (Click on the picture!)