Central and Eastern Europe: A Region Overlooked

Jude Petrie, Intern 
13/05/2026

Central and Eastern Europe is being overlooked by the West at large. Western European countries such as Germany and France are experiencing economic woes, whilst Central and Eastern European (CEE) countries continue to grow between 3-4% per annum and now account for almost 1/5 of the European Union (EU)’s GDP on a purchasing-power basis. 

Despite this, Western European nations continue to dominate discussions over the economic future of the continent, in devising strategy on how to counter Russia’s aggression against Ukraine, and in public perception as the location of Europe’s prosperity and power.  

Yet it is Poland, with the highest defence spending as a proportion of GDP in NATO, that leads the way in the efforts of European nations to re-arm themselves and develop an independent defence capability, something particularly important following US President Donald Trump’s disregard for the transatlantic relationship in his second term. This growing strategic importance of the CEE region to European self-sufficiency signals a shift in the political and military “centre of gravity” on the continent, away from its traditional Western core toward a more security-focused East, where CEE countries are shaping Europe’s defence priorities and direction.

The region’s growing economic importance and role in defence, however, has not made it automatically as politically influential. Stereotypes still exist about a modernised West and “backwards” East, a hangover from the Cold War. Central and Eastern Europe also lacks the multilateral political institutions and groupings to provide an alternative political centre within the EU. 

Brussels remains the centre of EU decision making, leading the charge on the EU’s recently proposed “Made in Europe” plan, which plans to have 70% of the components of goods the EU makes to be of EU origin. This risks creating havoc by disrupting supply chains for EU businesses with production facilities in the UK, including many CEE-linked operations. Here, CEE businesses with a significant UK presence must be able to articulate to political stakeholders in London and Brussels alike how these developments could come at a detriment to them. 

The region risks being pulled along by a proposal largely backed by France, despite its potential negative effects on investment and pricing in Europe. The Czech Republic has voiced its concern, but because the economies of CEE remain individually much smaller than the likes of Germany and France, they struggle to exert the same influence over intra-EU debates and there is little evidence they are being listened to.

However, French President Emmanuel Macron’s political ambitions to shape the EU in his image are beginning to look fragile at best, and arrogant at worst, as his country’s economy posts sluggish growth rates, and its debt continues to soar.  It is clear that the CEE region and its businesses need to establish more of a collective voice in response and ensure major strategic decisions about the EU reflect the economic, political and security reality on the continent.

Of course, the region is not without its own problems. The election of Péter Magyar in Hungary promises improved relations with the EU and NATO following 16 years of Viktor Orban’s autocratic rule. However, the Russia-sympathetic Slovakian government and election of Kremlin-friendly Rumen Radev as President of Bulgaria continues to threaten internal divides. 

This comes on top of persistent Russian misinformation campaigns across the region, particularly in post-Soviet states such as Moldova, as Russia seeks to reverse its westwards turn. With some signs the region’s economic growth is beginning to slow, now is the time, before it is too late, for CEE countries and businesses to capitalise on their improved economic standing and exert the influence on the continental and global stage that these warrant. 

For CEE businesses, this means continuing to expand their footprint in EU and non-EU markets alike. Developing more sophisticated engagement plans with political and media stakeholders will be key to becoming more visible as CEE businesses compete with Western European and global household names for consumers. 

For politicians and policymakers in Brussels, embracing CEE’s growth can make the EU fairer and challenge the perception of non-EU rivals, such as Russia and China, that the continent is in a state of permanent decline.