THE EU AND CENTRAL-EUROPE - THE REMAKING OF ECONOMIC RELATIONSHIPS

The reconstruction of economic relationships between Central Europe an d the EU since 1989 has involved a major redrawing of the economic map of Europe, This paper investigates these relationships in the case of the V4 countries, disaggregating, wherever possible, the Czech and Sl ovak components of Czechoslovakia - prior to the 'Velvet Divorce'. The analysis considers four main axes of change: stabilisation and privat isation, the reinternationalisation of international trade, foreign in vestment, and research and development. This leads to a consideration of how these changes are influencing the prospects and challenges of p otential membership of the EU, Stress is placed throughout on how appl ication of the 'sharp shock' model of economic transition is influenci ng the emergence of the new economic map of Europe. Comparisons with S outhern Europe in the 1980s are particularly instructive in terms of u nderstanding both the challenges of membership and of the changing app roaches of the EU to enlargement.