Struggling with an Opportunity: The first 10 years with the EU for Central Europe and the Baltics - A few lessons. CEPS Essay No. 12, 2 May 2014

In 2004, ten new members joined the European Union, radically reshaping its geography and governance characteristics. Earlier expectations predicted a more gradual process of accession – like a more gradual earlier evolution had been expected for the new European currency that had been adopted in 1999 by no less than 11 members. But these were the times of euro-enthusiasm. In their new CEPS Essay, Kálmán Mizsei and Ádám Kullmann offer some interesting and instructive insights from the experience in the newest member states following their accession 10 years ago for improving the effectiveness with which the EU structural and cohesion funds are spent.

Social Citizenship and Institution Building: EU-Enlargement and the Restructuring of Welfare States in East Central Europe. CES Germany & Europe Working Paper, No. 01.2, April 2001

With the EU-enlargement process well underway, this paper focuses on social citizenship as a conceptual frame for analyzing the restructuring of social institutions in applicant countries in East Central Europe. So far, comparative welfare state analysis has concentrated mainly on the developed economies of the OECD-countries; there is little systematic analytical work on the transitions in post-communist Europe. Theoretically, this paper builds on comparative welfare state analysis as well as on new institutionalism. The initial hypothesis is built on the assumption that emerging patterns of social support and social security diverge from the typology described in the comparative welfare state literature inasmuch as the transformation of postcommunist societies is distinctly different from the building of welfare states in Europe. The paper argues that institutionbuilding is shaped by and embedded in the process of European integration and part of governance in the EU. Anticipating full membership in the European Union, the applicant countries have to adapt to the rules and regulations of the EU, including the "social acquis." Therefore, framing becomes an important feature of institutional changes. The paper seeks to identify distinct patterns and problems of the institutionalization of social citizenship.

Paradoxes of stabilisation. Bosnia and Herzegovina from the perspective of Central Europe. OSW Report, March 2016

On 15 February 2016 Bosnia and Herzegovina applied for membership of the European Union. This was the result of the new policy strategy which the EU introduced in 2014, aimed at unblocking BiH’s integration process and encouraging local elites to accelerate the reform process. Despite a formal application to the EU, the main internal problems of BiH remain the same - local politicians focus more on the power struggle and enhancing ethnic division than on reform and this is hampering the economic development of one of the poorest countries in Europe. For these reasons this report is devoted to analysing the internal challenges to the stability, coherence and unity of the country. Special attention was also placed on examining the interest and strategies of the various international actors since they can hinder or support the reform process.

The role of Central Europe in the German economy. The political consequences. OSW Report June 2016

Recent publications allow us to conclude that the economic relations between Germany and Central Europe have come to the ‘end of history’, and nothing new will happen. However, a deeper analysis of these relationships reveals interesting new trends. Since joining the European Union the states of Central Europe have not settled for maintaining the average level of economic development, but have continued to narrow the distance between them and Western Europe, something which the global financial crisis did not prevent. Their improved economic situation also affected their relations with Germany. The latest results from the Visegrád Group states show them to be Germany’s most important trading partner, and their balance of trade in goods is in a state of equilibrium, while many euro area countries have recorded high trade deficits with Germany. The aim of this report is to display the trends in trade and investment between Germany and Central Europe, based on the example of the Visegrád Group. The author will also attempt to answer the question of whether the advancing economic cooperation between Germany and the V4 countries will lead to the further modernisation of those countries’ economies, or whether it will run the risk of leaving them in the ‘middle income trap’.

Central Europe,

Bibliography: p. 328-345.

Informality and the second economy in East-Central Europe /

"September 1992."

Spatial and temporal characteristics of summer precipitation over Central Europe in a suite of high-resolution climate models

High-impact, localized intense rainfall episodes represent a major socio-economic problem for societies worldwide, and at the same time these events are notoriously difficult to simulate properly in climate models. Here, the authors investigate how horizontal resolution and model formulation influence this issue by applying the HARMONIE regional climate model (HCLIM) with three different setups; two using convection parameterization at 15 and 6.25 km horizontal resolution (the latter within the “grey-zone” scale), with lateral boundary conditions provided by ERA-Interim reanalysis and integrated over a pan-European domain, and one with explicit convection at 2 km resolution (HCLIM2) over the Alpine region driven by the 15 km model. Seven summer seasons were sampled and validated against two high-resolution observational data sets. All HCLIM versions underestimate the number of dry days and hours by 20-40%, and overestimate precipitation over the Alpine ridge. Also, only modest added value were found of “grey-zone” resolution. However, the single most important outcome is the substantial added value in HCLIM2 compared to the coarser model versions at sub-daily time scales. It better captures the local-to-regional spatial patterns of precipitation reflecting a more realistic representation of the local and meso-scale dynamics. Further, the duration and spatial frequency of precipitation events, as well as extremes, are closer to observations. These characteristics are key ingredients in heavy rainfall events and associated flash floods, and the outstanding results using HCLIM in convection-permitting setting are convincing and encourage further use of the model to study changes in such events in changing climates.

Market orientation in the service sector of the transition economies of central Europe

The Narver and Slater market orientation scale is tested in the context of service firms in the transition economies of central Europe and found to be both valid and reliable. The survey examined levels of market orientation in 205 business to business services companies and 141 consumer services companies in Hungary, Poland and Slovenia. As predicted by the predominantly western marketing literature, those service firms with higher levels of market orientation; were more often found in turbulent, rapidly changing markets; were more likely to pursue longer term market building goals rather than short term efficiency objectives; more likely to pursue differentiated positioning through offering superior levels of service compared to competitors; and also performed better on both financial and market based criteria. A number of different business approaches, however, are evident in the transition economies suggesting that other business orientations may co-exist with a market orientation creating a richer and more complex set of organizational drivers.

Privatisation and sustainable competitive advantage in the emerging economies of Central Europe

Extant research on the impact of privatization in the Central Europe (CE) region has focused on improvements in efficiency and the nature of cost-based advantages. This study argues that the development of a vibrant privatized sector requires attention to the broader resource configurations of domestic enterprises. Empirical research was conducted on a large sample of firms in Poland, Hungary and Slovenia. Foreign investment was found to significantly impact on resource accumulation with implications for the development of strategic capabilities and competitive advantage. Foreign direct investment is an effective vehicle for the transfer of financial resources, reputation and new brands but not organizational capabilities. In terms of practice, this study demonstrates the important role of outside investment in the development of a firm's resource base (Frydman et al. 1999). Companies can gain a competitive advantage in their domestic markets through gaining access to the resources of foreign investors.

Economic transition in Central Europe and the Commonwealth of Independent States

Fifteen years ago, twenty-seven countries in Europe and Central Asia embarked on their economic transition paths. For some, the outcome was a considerable success. Several others are still struggling to shed the inheritance of the past and to correct more recent policy mistakes. Why were post-Communist recessions so long in some countries and growth disappointing? Why was fiscal performance so different? Was democracy a factor, which facilitated reforms or rather slowed them down? This book discusses these questions in the context of new empirical evidence, including a critical examination of the main themes in the economics of transition.

Foreign direct investment and employment in Central Europe

This article investigates the effects of foreign direct investment on employment generation in Central Europe. Foreign affiliates operate as a buffer to reductions in overall employment and show significant cross-country differences. A model analyzing the contribution of foreign direct investment to restructuring is developed. This model helps interpret the empirical evidence on the link between foreign direct investment and employment in Central Europe. Increasing differentiation in employment between manufacturing industries dominated by foreign affiliates suggests the importance of diversified sources of foreign direct investment for employment generation and preservation. A disaggregate analysis indeed reveals a much more complex and differentiated role of foreign direct investment in employment preservation, employment generation and structural change than the aggregate picture would suggest. This diversity has important policy implications for attracting and upgrading foreign direct investment.

Alternative Monetary Strategies before EMU Membership in Central Europe

As more and more transition coutries join the eurozone it is becoming reasonable to investigate what monetary policy might be most successful for countries prior to the introduction of the euro. One possible alternative is inflation targeting, which has found application in numerous economies in the last two decades, including the Visegrád Countries. In this paper I am introducing some important aspects and an empirical examination of the monetary policy of the Visegrád Countries. I am providing an overview of previous empirical findings and trying to make some comparisons of new EU and recommendations for pre-accession countries, such as Croatia.

Regional climate change impacts on wild animals' living territory in Central Europe

In this paper the projected future impact of climate change has been analyzed for the quality of living conditions of the European terrestrial vertebrates (amphibians, reptiles, birds, mammals) in the Carpathian Basin. According to the climate scenarios, warmer and drier climatic conditions are likely to occur in the Carpathian Basin by end of this century. Simultaneous analysis of climate parameters, climate simulations and animal range datasets enables us to evaluate the vulnerability of different European species to regional warming and climate change. The spatial climate analogy technique is used to analyze the estimated rapid change of the wild animals’ habitats and their northward migration. For the reference climate data of Debrecen is considered, and three spatial analogue regions are compared. The results suggest that generally a significant decline in habitats is very likely for most of the analyzed animal groups by the end of the 21st century. The largest rate of decline is estimated for birds. However, living conditions for reptiles may improve in the future due to the warmer and drier climatic conditions, which are favourable for these species.