CNBCâs Martin Baccardax speaks to the Estonian Prime Minister Andrus Ansip, the Lithuanian Prime Minister Andrius Kubilius and the Latvian Prime Minister Valdis Dombrovskis about the outlook for the Baltic region.
Russian President Dmitry Medvedev said Friday that an increase in state ownership was inevitable in some sectors of the economy hurt by the global downturn, but promised it would be short-lived.
Eastern Europe will recover by the end of next year as government stimulus measures start to take hold and banks return to the region, Thomas Mirow, president of The European Bank for Reconstruction and Development, told CNBC.
The once-booming CEE is stealing the limelight again but this time for less palatable reasons. As one analyst put it, "Eastern Europe's problem is a greater weight on the Western European nations than the subprime is in the United States."
The credit crisis has had a near-catastrophic effect on many of the emerging economies in Eastern Europe. The International Monetary Fund shelled out tens of billions in emergency loans for the region, while governments have collapsed and angry protesters took to the streets in some countries.