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Will the manufacturing industry in east-central Europe survive when the host countries join the European Union? This controversial book challenges the assumption, made by the European Commission, that industries in transitional economies should have little difficulty establishing and maintaining a competitive position after entry into the European Union.

The analysis focuses on Hungary, Poland, the Czech Republic, Slovakia and the former east Germany. Issues discussed include:

• changes in economic structures, the transformation of enterprises and financial restructuring
• levels of competitiveness in the countries, the region and internationally
• industrial policy in the region
• levels and nature of investment
• limits and sources of growth
• integration into western Europe
• dangers of over-hasty harmonization of macroeconomic conditions with the European Union

The authors conclude that although the basic structures of a market economy are firmly established, the transition has not encouraged the development of more advanced industrial activities. They strongly suggest that there should be an active policy framework, based on international experience, specifically geared towards improving the international competitiveness of industry in east-central Europe.