Western Europe Crisis To Hit CEE Region

As Western European countries tighten their belts and announce budget cuts, the move is expected to adversely affect exports from the Central and Eastern European (

) region, as explained by the EBRD (European Bank for Reconstruction and Development). Western Europe is the biggest importer of goods from Central and Eastern Europe. This would prolong the crisis in the CEE region and slow its economic recovery. EBRD, which was set up to help the erstwhile communist countries adapt to open markets, has suggested CEE countries avoid large current accounts deficits and unsustainable credit rates.