Impact of the global crisis on neighbouring countries of the EU

This Occasional Paper reviews recent developments in the countries neighbouring the EU, in particular in the financial and monetary sector and in public finances. It contains three main parts.

The first part analyses the financial cross-border exposure of the EU's neighbours and reflects on the vulnerabilities of and risks to their economies in view of the financial crisis and global economic slowdown. It uses a broad range of financial indicators for this comparison and also describes recently announced and/or implemented policies and other crisis response options.

The second part is divided into two regional sections, dealing with the EU's southern and eastern neighbours respectively. Both sections look at the main areas of reform, such as macroeconomic developments, trade liberalisation and economic opening, business environment, governance, social development and poverty. They also
compare the monetary, fiscal and financial measures taken by countries within each region in more depth.

The third part contains country chapters, each of which gives an overview of the economy of one country. In addition to fiscal, financial and monetary issues, these chapters also contain countryspecific information on labour market developments and social indicators.