central and eastern Europe does not generally act as poorly as sometimes and in a way much better than Western Europe and the euro area in particular. Before the crisis, it was marked by high growth, reaching 4 % per year in 2008 for the ten new members of the European Union (EU), compared to 0.5 % for the fifteen euro area countries. Its unemployment rate was approximately 6.5 % lower than in that area. In addition, duly captured by international financial institutions, it could report an exemplary discipline on public finances, with debt not exceeding 30 % of GDP for the vast majority of the 16 countries studied here (see summary tables at the end of this chapter) and was well below this level for several countries. The general government deficit, calculated on the basis of the average of 16 countries, was below 3 % of GDP. In addition to this, a young banking system which, although dependent on western parent companies which suffered the shock of the crisis, has not collapsed, despite the tragic warnings of the Cassanders, has not collapsed: the Baltic countries have enjoyed very strong links with the rich banking systems in Northern Europe, the countries of Central Europe (except Slovenia) have been able to build up sound banks during the transition, and institutions in South-East Europe have been, at least for a short time, saved by the joint action of international financial institutions under the two “Vienna Initiatives”.