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2020/06/12 / Erste Group Research

CEE Special | Challenge no.3 Rule of Law

Rule of Law is the third CEE Special Report from the series titled "CEE - 10 challenges for the new decade" after demography and environmental issues. Quality of regulation seems particularly important for investment activity. Improving institutional set-up is a marathon, however, with positive effects becoming apparent over time.

The picture is decidedly more mixed when looking beyond regulatory quality to take a broader view on the rule of law. The rule of law rank (which captures confidence in and adherence to the rules of society, in particular the quality of contract enforcement, property rights, the police, and the courts according to Worldwide Governance Indicators) have improved since 2000 most visibly in Baltic countries but also in Czechia, Romania, Croatia and Slovakia. Back then, Hungary and Poland were ahead of those countries, but have seen a decline in the rule of law over the last two decades. Deterioration in Hungary and Poland also became a concern for the European Union to the extent that it plans to tie EU funds to the rule of law.

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General information

AuthorErste Group Research
Product nameCEE Economies Special Report
Topic in focusFX, Macro/ Fixed income
Economy in focusCroatia, Czech Republic, Hungary, Poland, Romania, Serbia, Slovakia, Slovenia
Currency in focusCroatian Kuna, Czech Koruna, Euro, Hungarian Forint, Polish Zloty, Romanian Leu, Serbian dinar
Sector in focus-


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