The visegrad countries from planned economies to EU membership

Poland, the Czech Republic, Slovakia and Hungary have in little more than ten years established market-based economies. The countries chose, in spite of geographical proximity and historical links, different reform strategies, especially with respect to inflation stabilisation and privatisation. The different strategies can to a large extent be explained by different starting points. In preparation for EU membership, the economic policies in the four countries have gradually converged. The economic results have been mixed. Many have gained from greater choice and higher living standards. Still, economic growth is only slightly above the performance of the EU countries, unemployment is high and government budgets exhibit large deficits. Membership of the EU could bring about more trade and investment and help narrow the income gap towards Western Europe.