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CEE Policy Watch
BY Ewa Błaszczyńska
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A race for recovery
  Posted on 21 Thu, Jan 2010, with tags: eu, us, poland

As we ease into a new year and a new decade, the question on many people's minds is who is in a better positioned to lead the global economic recovery, the EU or the US?

From the perspective of individual citizens, automatic stabilizers in Western Europe, have eased the short-term financial burden through generous unemployment, healthcare and other social welfare benefits.

In Central Europe, the picture is much different.

With many countries - from the Baltics to the Balkans - receiving either international financial assistance (much of it tied to strict austerity measures) or tasked with curbing ballooning budget deficits, public sector expenditures on pensions, healthcare, education and government salaries are all set to decrease.

In the US, despite the fiscal stimulus, a less generous social welfare system, risk averse credit markets and double digit unemployment has thus far restrained both individual consumption and large scale economic recovery.

That said, in the long-term, the US economy could emerge stronger. For one, it is more flexible, adapting more quickly to changes in the market, particularly when it comes to labor. Hiring and firing workers has less restrictions and regulations compared to Europe, especially the euro zone, which is already facing 10 percent (and potentially higher) unemployment figures.

Secondly unlike the EU, which lacks both uniform fiscal and industrial policies, the US recovery plan is more centralized via the federal government. Of course, the extent of the US recession and, therefore, recovery will vary from state to state, but overall once the US economy picks up, it will be felt throughout the majority of the country.

That will certainly not be the case in Europe, as individual EU member states are increasingly vying to protect national economic interests.

Most likely, Europe will see pockets of recovery. Among Central European economies Poland, the Czech Republic and Slovakia continue to have the most to look forward to in 2010.

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Poland takes center stage
  Posted on 3 Tue, Nov 2009, with tags: us, sikorski, biden
From the looks of it, one would think that Polish officials have embarked on a US publicity tour. Fresh on the heels of Vice President Biden’s trip to Poland (one of several Central European stops), the future of US-Polish relations has once again re-emerged onto the Washington policy agenda.  This is happening, amidst the multitude of 20 year post-communist transition commemorations taking place throughout Washington DC’s embassies, think tanks and universities.

In addition to a high-level visit by Foreign Minister Radek Sikorski, Washington is hosting three separate conferences on the EU Eastern Partnership, lessons from post-communist economic transitions and future of US-Central European relations. In all three, from economics to energy and military security, Poland will be a prominent case study and its current and former government officials will be major participants.

These upcoming gatherings of key US, EU and Polish policymakers can set a major tone, affecting the future of US-Polish, US-EU, and international relations for years to come. A gathering of this magnitude at this point in world history is of great consequence, and an opportunity that should not be wasted.
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