ABSTRACT
This chapter deals with the most important preconditions, measures and risks involved in the transition to market economies – while stressing that there is neither a theoretical foundation nor sufficient practical experience concerning this kind of systemic and political change. It shows that the desired targets – achieving balanced foreign trade and expanding exports – can only be met if at the same time the financial discipline of state enterprises is increased. The chapter discusses renegotiation of trade and cooperation agreements between the EC Commission and the former communist countries. During the ongoing transition from command economies within authoritarian systems to market economies in a setting of political pluralism, the East European countries are faced with a series of economic problems. Integration into the world economy necessitates also integration into the international capital flows. A social policy adjusted to the stabilization of the economy will have to safeguard the transitional programs socially and politically.
