Analysing the key problems facing the transition countries in Central and Eastern Europe, this accessible book describes the legacy of the central planners, the progress achieved so far and the need for further reforms. It documents the outstanding successes and failures, and analyses why certain approaches to transition have worked and others have not. It tests where transition is over and shows how some countries have graduated from 'transition' to 'integration' through their efforts to join the European Union (EU). It discusses the costs and benefits of the eastern enlargement of the EU. The specific experiences of German unification, the Soviet Union's disintegration, and Russia's complex reforms are examined, as are the specific issues that need to be addressed in the Balkans. The book concludes by indicating how the expanding EU could help the poor performers through inclusion in a continent-wide integrated economic area.

Daniel Gros is the Director of the Centre for European Policy Studies, Brussels and is presently a member of the economic advisory council of the French Prime Minister. His major publications include Open Issues in European Central Banking (2000), EMU and Capital Markets (2000), European Monetary Integration, from the EMS to EMU (1992, 1998) and precursor to this volume, Winds of Change: Economic Transition in Central and Eastern Europe (1995) which he co-authored. Professor Alfred Steinherr is Rector at the Free University of Bolzano, Italy and Chief Economist of the European Investment Bank. His previous positions include Head of Research at the European Investment Bank, Economic Adviser to the European Commission and Adviser to the International Monetary Fund. He is author of Derivatives: The Wild Beast of Finance (2000) and is joint author of Winds of Change: Economic Transition in Central and Eastern Europe (1995).