Financial markets across Emerging Europe have been hit by fresh concerns about the euro-zone debt crisis in recent weeks. So far at least, the sell-off in the region’s markets has not been as dramatic as that seen in the last few months of 2011. But with the initial euphoria following the ECB’s long term financing operations starting to fade, and a lasting resolution to the structural problems within the single currency zone still seemingly out of reach, it seems likely that markets in Emerging Europe will be hit by further bouts of contagion over the course of this year.
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