Publication: New Money
EThe advantage of cheap labor and abundant energy is being lost in the smoke of geopolitical conflicts, and the eastern flank of the European Union must reinvent itself or accept the risk of stagnation.
For three decades, the success of Central, Eastern, and Southeastern Europe (CESEE) has functioned as a predictable, as robust as it has been impressive, mechanism. It was a story of convergence fueled by a simple yet effective alchemy: combining a highly skilled but affordable workforce with proximity to Germany's industrial heartland and the availability of cheap energy resources.
This Western „extended workshop” model has transformed the region from a post-communist frontier into a vital cog in the global supply chain. However, as we enter the spring of 2026, it's becoming increasingly clear that this mechanism has reached its mechanical limits.
