ABSTRACT
In the stages of east central Europe's transition from communism, an urgent task was to establish a dialogue with the new movements, and this remains a priority for eastern Europe and the non-European successors to the former USSR. The European Union (EU) played a prominent role on the global stage in responding to this need, and within western Europe, Italy played a leading part both through its national initiatives and through its influence over EU policy. As access to the EU market for east central European exports improves under the Europe Agreements, and if the economic restructuring in the region makes it more competitive there is likely to be trade diversion from Italy. The revolutions in east central Europe occurred against a background of poor economic performance during the 1980s. More generally, growth in east central Europe would tend to improve the terms of trade of many countries.
