Central And Eastern Europe’S Transition To A Market Economy And The European Integration: With Special Attention To Mitterrand’S Project Of European Confederation

In 1989 system changes occurred one after another in Central and East European countries. Immediately after the system changes there were two approaches to the problem of what the future of Central and Eastern Europe would be like. One was pan-European confederation proposed by French President Francois Mitterrand, and another was Jeffrey Sachs’ idea proposing a shock therapy and a breakup of the COMECON region. In practice Sachs’s idea, which was supported by the US government, was adopted. The USA, which played a shadow leading actor in the postwar European integration, again played the same role in the transformation of Central and Eastern Europe. Although not adopted, Mitterrand’s project included a grand plan of gradual changes of Central and Eastern Europe based on his historical insight and concern for ethnic problems. Peace has come to Central European and Baltic countries. In contrast, however, the shock therapy affected the Balkans negatively. In the former Yugoslavia the government succeeded in suppressing hyperinflation with the shock therapy, but its damage to the economy was very severe, intensifying conflicts among republics, leading to the breakup of the federation and ethnic conflicts.In South Eastern Europe exactly a Europe of “Sarajevo” that Mitterrand feared was revived.