With Europe in recession, the East will face continued tough times. However, even today some countries and some companies are doing well. With the right policies, the region can prosper in spite of the West’s difficulties.
The increasing cooperation between Poland, Lithuania, and wider Eastern Europe on energy could be one reason why Moscow has been seen recently as trying to drive a wedge between the Baltic neighbors.
The Eurozone continues to go from bad to worse. Greece may be on its way out. Spain wants a bank bail-out. Buried amongst this depressing cascade of impending catastrophe is some good news. The Baltic States have demonstrated the art of economic reform.
Poland and Lithuania unfortunately are stuck in a “bad” neighborhood with a large, over-bearing former overlord next door. They have an obvious incentive to work through their problems and cooperate, given their shared concerns.