We have been among the most pessimistic forecasters on Emerging Europe over the past five years and the as yet unresolved debt problems in the euro-zone continue to cast a long shadow over the outlook. But assuming that the single currency bloc manages to muddle through without spiralling into a fresh crisis, Russia and Turkey aside, the conditions may now be falling into place in much of Eastern Europe for a Goldilocks period of relatively strong growth accompanied by low inflation.
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