The opening up of eastern Europe at 20-jobs, skills, and ‘reverse maquiladoras’ in Austria and Germany
by Dalia Marin on 12 July 2010
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Category: WORKING PAPERS
Topics: Labour, migration and ageing, New Member States, Enlargement and Neighbourhood
Many people in the European Union fear that eastern enlargement has led to major job losses in 'old' member states, particularly in Austria and Germany, as the two most important neighbours of the countries that joined the EU in 2004 and 2007. Are these fears justified?
To address these questions, this paper makes use of new survey data of 660 German and Austrian firms with 2,200 investment projects in eastern Europe during the period 1990-2001. The new survey data represent 100 percent of Austrian and 80 percent of German direct investment in eastern Europe.
Assessing the potential for knowledge-based development in transition countries
by Reinhilde Veugelers on 31 May 2010
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Category: WORKING PAPERS
Topics: Emerging economies and development, Research, innovation and growth, New Member States, Enlargement and Neighbourhood
This Working Paper by Bruegel Senior Fellow Reinhilde Veugelers examines the potential for a knowledge-based growth path in transition countries of central and eastern Europe, the Caucasus and Central Asia. The paper looks closely at how total-factor productivity, a residual growth factor commonly interpreted as reflecting technological progress, drives growth rates in these economies which exhibit a much lower GDP per capita compared to the EU15 or the United States. By analysing the prerequisites for knowledge-based growth, the author explains why transition countries are at a systemic disadvantage relative to the EU15, US and Japan and have limited potential for knowledge-based growth.
Lessons From the Euro Area
by Zsolt Darvas on 21 January 2010
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Category: OPINION PIECES AND COLUMNS
Topics: Budgetary and monetary policies, New Member States, Enlargement and Neighbourhood
Writing in leading Hungarian business daily Világgazdaság, Resident Fellow Zsolt Darvas examines what the financial crisis has taught us about various euro-area economies and what lessons that holds for Hungary's possible accession into the euro zone. Despite the difficulties of Greece, Ireland and others, he argues, adopting the euro is still the best option for Hungary, while the Czech Republic and Poland would benefit from staying outside the euro area for a longer period.
The EU’s Role in Supporting Crisis-Hit Countries in Central and Eastern Europe
by Zsolt Darvas on 31 December 2009
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Category: POLICY CONTRIBUTIONS
Topics: New Member States, Enlargement and Neighbourhood
The crisis has hit central and eastern European countries harder than other regions of the world. In this policy contribution Resident Scholar Zsolt Darvas looks at the role of the EU and its institutions in supporting crisis-hit CEE countries; the stabilising effects of the EU’s coordinated multilateral financial assistance; and the commitment shown by Western European banks to the region. However Darvas argues that there were certain actions, or failures to act, on the part of EU institutions and governments, that have amplified the effects on CEE countries of the crisis. The European Central Bank has given little direct support to non-euro-area countries, and the EU has done little for EU neighbourhood countries. Meanwhile, euro-area membership has shielded from the crisis some countries with worse fundamentals than certain CEE countries.
The Baltic Misery Needs a Solution
by Zsolt Darvas on 10 December 2009
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Category: OPINION PIECES AND COLUMNS
Topics: New Member States, Enlargement and Neighbourhood
Writing for the European policy website Euractiv.com, Resident Fellow Zsolt Darvas proposes a solution for the Baltic states, based off his Policy Contribution The Baltic Challenge and Euro-Area Entry. Darvas argues that the economic rationale surrounding certain aspects of the criteria for entry into the Euro area are unsound and should be reformed, allowing for immediate Euro-area entry for the Baltic states. The piece was also published in the leading Lithuanian business daily Verslo Zinios.