EU free market rules: strategic options for transition economies.

Abstract

Purpose – This article seeks to examine the strategic options open to transition economies in Central and Eastern Europe in the face of intense competition in two highly sensitive economic sectors within the EU. Design/methodology/approach – This exploratory paper makes use of cross-country case analysis. Findings – The investigation demonstrated that protective mechanisms are used in veiled fashion to some degree even amongst the more economically advanced members of the EU and not just the transition economies as commonly perceived. It further argues that whilst a free and open EU will contribute to the quicker full realisation of its common market aspirations, transition economies are currently not adequately prepared for its required economic adjustments. Transition economies may need to respond in measured phases, taking into account its economic and political limitations. Otherwise, it might not be able to withstand the full onslaught of globalisation. Practical implications – This research challenges the one size fits all notion of zealous free marketers and offers a middle ground strategic option for transition economies in the EU for further evaluation by policy makers and academics alike. Originality/value – This research uses two highly economic sectors in the EU to argue for a more middle ground strategic economic strategy for transition economies in Central and Eastern Europe. This contrasts with the more global agenda of liberal economics.