Central and Eastern Europe face economic growth and EU budget challenges

Central and Eastern European economies are facing challenges in catching up with Western Europe, according to the International Monetary Fund (IMF). IMF regional representative Carlos Mulas-Granados noted that the time required to close the economic gap is extending due to several structural issues.

Key obstacles include demographic shifts and labor market inefficiencies. Specifically, the region struggles with the integration of women and citizens over the age of 50 into the workforce. In the Czech Republic, for example, the gender pay gap reached 18.5 percent in 2024, significantly higher than the EU average of 11.1 percent. Experts suggest that career interruptions due to maternity leave contribute to lost qualifications and wage disparities.

Simultaneously, negotiations are underway regarding the European Union's multi-trillion euro budget for 2028. While the European Commission proposes a streamlined approach where countries receive single, unified plans tied to specific reforms, several member states are divided. Major contributors like Germany and Austria are pushing for lower overall spending to redirect funds toward defense and innovation. Meanwhile, countries such as the Czech Republic are advocating for the protection of traditional funds, particularly those supporting agriculture and less developed regions, fearing that a shift toward centrally managed programs could favor wealthier nations.