Table of Contents: I. External Challenges 12 1. The Transformation of Central and Eastern Europe 12 a. Trends in Central and Eastern Europe's Emerging Market Economies (EMEs) 12 b. The Impact on Germany 14 c. Political Consequences 14 2. Migration Pressures 16 a. The European Perspective 16 b....

The upswing in Europe, North America and Japan since mid-1975 has been unsteady. It has been sufficiently modest to allow a — however slight — decline of inflation rates. Since economic policy refrained from massive reflation, the shortrun outlook remains for a moderate recovery with no...