As the dust settles on the battered economies of Central Europe, winners and losers have clearly emerged on this the one-year anniversary of the global financial crisis.

Poland, along with the Czech Republic and Slovakia, stand ahead of the pack due to prudent economic policies, manageable current account deficits and lower macroeconomic imbalances (including lower levels of indebtedness).

Romania's and Bulgaria's growth prospects, which face stiff competition from healthier CEE economies, will continue to be burdened by deep political and economic deficiencies. Unless major initiatives, both at the local and EU level, address chronic corruption and structural asymmetries, the two countries are headed for stagnation.

Finally, the Baltic States and Hungary, saddled with debt and strict austerity programs, have the toughest road ahead and the least amount of flexibility in their recovery programs.

Despite their various predicaments, Central Europe has the opportunity to emerge stronger and more economically viable. The key is to learn from previous mistakes (domestic, US and wider EU), resist reform fatigue and continue to converge with the EU-15. That responsibility must not rest solely on Central Europe.

The EU, particularly its wealthier members, must ensure that Central Europe continues to be deeply anchored in market principles and EU institutions. Most importantly, they must convince the region that they are critical players in Europe’s overall recovery and prosperity.

For Poland, the best path forward includes keeping public spending low, taking advantage of EU funds for major reforms (healthcare, education, infrastructure and business climate) and setting a date for euro entry that is most favorable to its economic development.

Most importantly, Poland must refrain from excessive expansionary fiscal policies. Not only will Poland be unable to afford the extremely high interest rates required to cover the cost of borrowing, it will further delay euro entry.

Instead, Poland should accelerate critical structural market reforms to gain a competitive edge, before the window of opportunity closes.