era of permanent stagnation with high and rising unemployment. Euro area enters recession, CESEE to follow? Given the … recession. Consolidation fever has spread to the new member states – including those that formally refused to subscribe to the … abate – both within the euro area and outside. After the deep recession that beset almost all CESEE countries in 2009, most …

employment. Furthermore, patterns of adjustment across CESEE economies vary greatly, with some countries (such as Croatia … dampens consumption expenditures, and leads to cutbacks in employment (and wages), which, in turn, lower household incomes and … markets of the CESEEs and the situation of the banking sector respectively. Towards the end of 2011 the employment situation …