Focus on European Economic Integration Q2/08

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• Focus on European Economic Integration 2/08 (PDF, 2.4 MB) June 2008.

Studies and Analyses

• Editorial (PDF, 93 kB) Focus on European Economic Integration 2/08 en Jun 30, 2008, 12:00:00 AM

• Developments in Selected Countries (PDF, 1.1 MB) Focus on European Economic Integration 2/08 en Jun 30, 2008, 12:00:00 AM

• Real Estate, Construction and Growth in Central and Eastern Europe: Impact on Competitiveness? (PDF, 359 kB) Égert, Martin. Égert, Martin – Focus on European Economic Integration 2/08 This paper studies recent developments in the construction sector in Central and Eastern Europe (CEE) against a number of benchmarks including a set of mature OECD countries. In addition to analyzing the recent rapid increase in the importance of the construction sector in CEE countries, the paper also asks whether rapid growth in this sector may have negative implications for the long-term competitiveness of the CEE economies. In order to address this question, we look at negative Dutch disease-style repercussions on the manufacturing sector by the recent strong growth in construction in the CEE countries. We find some tentative evidence for such effects although the strong growth of the construction sector in the CEE countries is a rather recent phenomenon. en Jun 30, 2008, 12:00:00 AM

• Housing Loan Developments in the Central and Eastern European EU Member States (PDF, 233 kB) Walko. Walko – Focus on European Economic Integration 2/08 Over the past few years, lending to households2 has grown substantially in most Central, Eastern and Southeastern European (CESEE) countries, with housing loans accounting for the bulk of new lending in many of them. The pace of credit growth has raised concerns about macroeconomic and financial stability, and has been a topic often addressed by economic analysis on the region. The rapid development of housing loans in CESEE has assumed an additional dimension since mid-2007, when the problems in the U.S. housing market started to culminate. Given the topicality of the issue, this short analysis reviews recent major developments of housing loans in the ten Central and Eastern European EU Members States(CEE-MS) and outlines its major driving forces, associated risks, and policy implications, covering the period from end-2004 to end-2007. en Jun 30, 2008, 12:00:00 AM

• The OeNB Euro Survey in Central, Eastern and Southeastern Europe - The 2008 Spring Wave Update (PDF, 227 kB) Dvorsky, Scheiber, Stix. Dvorsky, Scheiber, Stix – Focus on European Economic Integration 2/08 This paper presents the main results of the second wave of the OeNB Euro Survey conducted in Central, Eastern and Southeastern Europe (CESEE) in May/June 2008. The results on foreign currency-denominated assets, both cash and deposits, broadly confirm the picture obtained from the first wave of the survey, namely that the euro plays a dominant role throughout the CESEE region. New evidence on foreign currency loans (FCLs) reveals that the share of FCLs in total household loans is substantial, both in Central and Eastern Europe (CEE) and Southeastern Europe (SEE). The article for the first time presents survey results on people’s general economic sentiment, comprising their assessment of the present and future economic situation, perceived and expected inflation and expected exchange rate developments. Finally, the paper provides an update on the expected date of euro adoption in the EU Member States surveyed. en Jun 30, 2008, 12:00:00 AM

• Financial Sector Development in Serbia: Closing Ranks with Peers (PDF, 568 kB) Barisitz, Gardó. Barisitz, Gardó – Focus on European Economic Integration 2/08 After a major structural reshuffling in the early 2000s, the Serbian banking sector embarked on a rapid catching-up process. Against the background of an emerging credit boom, financial deepening has advanced rapidly in recent years, largely making up for the late onset of banking reform. However, the pace of convergence to the intermediation levels of Serbia’s Central, Eastern and Southeastern European peers as well as the high degree of euroization have also raised financial stability concerns, with credit and foreign exchange risks representing the main challenges. The sector’s high capitalization, its increasing efficiency, the predominance of foreign banks and the central bank’s efforts to rein in lending growth to more sustainable levels are important factors in alleviating financial stability concerns. Profitability is still comparatively low, but increasing. en Jun 30, 2008, 12:00:00 AM

• Selected Abstracts (PDF, 58 kB) Focus on European Economic Integration 2/08 en Jun 30, 2008, 12:00:00 AM

• 62nd East Jour Fixe (PDF, 309 kB) Focus on European Economic Integration 2/08 en Jun 30, 2008, 12:00:00 AM

• Statistical Annex (PDF, 95 kB) Focus on European Economic Integration 2/08 en Jun 30, 2008, 12:00:00 AM