ABSTRACT
The year 1989 was a watershed moment in the flow of history as it signalled the start of post-communist transformation in Europe and the end of the cold war. Post-communist transformation marks the close of this century; its assumed and stated goal is to stop the decay of the former communist countries, to transform their non-viable economic systems into well functioning market economies and, eventually, change their political systems into pluralistic democracies. This undertaking is a historical challenge facing Europe. However, a growing malaise engulfing the Continent accompanies this challenge. There are signs indicating that the large European economies have been chronically losing ground in world competition during the past decades, and their dynamics have been featured by diminishing vitality. Additionally, the German reunification and the regional and international implications of the collapse of communism have put exceptional pressure on the direction, speed and accepted patterns of implementing the process of further European integration as defined by the Maastricht treaty. Whereas Eastern Europe (this term is used in a broad, traditional sense here) and the newly established states strive to achieve economic viability in a relatively hostile international environment, the Western European countries appear to be mainly concerned with regaining their vitality. The combination of problems, of a differing nature, faced by the two regions substantially complicates the tasks of policymakers in all the countries concerned.
