Abstract
The countries of Central, Eastern and South-Eastern Europe have made considerable progress in economic transition and integration into the world economy, particularly into the European Union (EU), within less than two decades. Closer economic integration through trade and financial flows, progress in the EU accession process, including EU membership for ten countries by 1 January 2007, and the objective of adopting the euro in the future direct attention to the challenges of real convergence in the region.
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