Global Investing

Easy business trend in emerging Europe

Polish central bank governor Marek Belka doesn’t apportion a lot of importance to the fact that Poland can boast the second biggest improvement in the latest World Bank’s ease of doing business index, after Kosovo.

“This year we have improved, but I don’t care too much about it,”  Belka said at a meeting in London today.

Others do see a significant trend emerging from the data around Poland which paints an optimistic picture for those wishing to start and do business in Europe, but not necessarily in the developed markets.

As Charles Robertson, economist at Renaissance Capital, says in a note:

Emerging Europe has done the most to improve its rankings. Poland jumped 19 places, Ukraine rose 15 places, Mongolia increased 12, … Kazakhstan was up 7 places, Russia 6. Latin America has fallen back.

Armenia is on Poland’s heels as the world’s third most impressive upward mover, reaching 32nd place from last year’s 50th.

Will invasion of Georgia steel EU into kicking its addiction to Russian oil and gas?

As George Bush might say, the EU is addicted to Russian energy. While no member wants to kick the habit totally, Brussels would like the bloc to reduce its growing dependence.

Even before Moscow invaded Georgia, the main non-Russian route for exporting Central Asian and Azeri crude and gas to Europe, the EU watched Russia’s regular cuts in energy supplies to neighbours with concern.

But EU members have been reluctant to take the hard measures that would allow them to bypass Russia, so analysts think their reliance on Moscow will grow.