Summary The protracted recession in the euro area will continue to be a drag on the economic growth of most CESEE countries in 2013. By and large, those countries are small open economies held hostage to the excessive fiscal austerity pursued in the euro area and the sluggish progress on the part of its policy-makers in adequately addressing the structural roots of the crisis. At the same time, the private sector demand in the CESEE countries is unlikely to recover substantially in the near term either. Wherever there will be an increase in investments, it will be primarily funded via public...more

Our forecast for Kosovo GDP growth is a stable 3% for 2013 and a reinforced growth of 5% in 2014. The improvement in 2014 will not only be due to improved external factors but also due to parliamentary elections likely to be held in early 2014. Thus, a fiscal stimulus can be expected to boost both consumption and investment. Budget deficit will not necessarily be affected too much altogether as there are substantial inflows of funds expected in the wake of the privatisation of the Post and Telecom of Kosovo (PTK) which is scheduled for mid-2013. The aim is to sell 75% of PTK, corresponding to the two business units Telecom (fixed telephony) and Vala (mobile telephony)....more

(Report based on Background Study for European Competitiveness Report 2012, see http://ec.europa.eu/enterprise/policies/industrial-competitiveness/competitiveness-analysis/european-competitiveness-report/index_en.htm) Summary Countries belonging to the European neighbourhood are highly diverse. Their diversity is multidimensional (geographical, socio-economic, political, cultural, religious, etc.) and the individual dimensions all have important implications for EU policies towards the region(s), for EU institutional relations with individual neighbourhood countries and for these countri...more

Similar to other countries in the European periphery, Kosovo lacks competitiveness, has adopted the euro as its national currency and started an integration process with the EU. The next milestone in this process is the signing of an FTA with the EU. We simulate full trade liberalization vis-à-vis the EU, using the Global Simulation Model. Our results suggest a slight output loss in almost all industries in Kosovo due to a drop in prices. Moreover the government budget is expected to lose about 5% of its revenues due to the tariff cut. A shift towards more direct taxation and measures aimed at improving the investment climate in Kosovo are recommended....more

This paper discusses the transition agenda and provides the key economic characteristics of selected Middle East and North Africa countries (MENA) in comparison with selected Central, East and Southeast European countries (CESEE). We intend to identify some regularities in transition processes and to draw policy lessons for MENA countries. Among the key challenges facing the MENA region are job creation, fighting corruption, public sector reforms and trade diversification; the way towards a functioning market economy should not necessarily be as long and controversial as in the CESEE. MENA cou...more

Hungary suffers from a severe lack of credibility (by Sándor Richter; pp. 1-2) Keywords: sovereign default, IMF Countries covered: Hungary Topics: Macroeconomic Analysis and Policy Russia's WTO accession: impacts on Austria (by Vasily Astrov; pp. 3-11) Keywords: WTO, trade, FDI Countries covered: Russia, Austria Topics: International Trade, Competitiveness and FDI The impact of customs procedures on business performance: evidence from Kosovo (by Mario Holzner and Florin Peci; pp. 12-16) Keywords: customs procedures, trade facilitation, business performance Countrie...more

The main objectives of this study are the assessment of activation policies in the Western Balkan countries in the light of the EU policy frameworks and the capacity and effectiveness of the Public Employment Services (PES) to implement modern labour market services. The general strategy of the research is to examine the existing activation policies against the background of labour market developments in the Western Balkan countries. In a further step the study identifies opportunities for regional cooperation among the individual countries of the region. ...more

This paper aims to identify formal and informal institutional factors in customs procedures and their impact on the performance of small and medium-sized enterprises (SMEs) involved in international trade in Kosovo based on a questionnaire conducted in 2009. The econometric findings show that one of the most important obstacles encountered by SMEs are regular appeals against customs decisions that are assumed to be inter alia a consequence of frequent changes in over-complicated laws and regulations. However, there is a positive and significant effect of the formal customs institutions that fa...more

MENA in transition: any lessons from CESEE? (by Peter Havlik and Sándor Richter; pp. 1-7) Keywords: MENA, transition Countries covered: MENA, CESEE Topics: Other The EU and Russia: both important for Ukraine (by Vasily Astrov; pp. 8-9) Keywords: Ukraine, trade association, Russia, EU Countries covered: Ukraine, Russia, EU Topics: International Trade, Competitiveness and FDI; Other What price nationalism? Economic consequences of the break-up of Yugoslavia (by Vladimir Gligorov; pp. 10-13) Keywords: Yugoslavia break-up, post-Yugoslav countries Countries covered: Slovenia, Croati...more

The objective of this study is to analyse employment developments in the gas and electricity sectors in seven Western Balkan Contracting Parties of the Energy Community. These are Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Montenegro, Serbia and Kosovo under UNSCR 1244/99. In addition, the impact of the liberalization of the respective markets is examined (quantitatively and qualitatively) and the most likely trends for the future development are identified....more