Russia’s national projects, NBU governor, ERM II

The postponement of President Putin’s flagship National Projects initiative seems to pave the way for the Prime Minister’s economic recovery plan to take centre stage over the coming years, but it also adds to the sense that Russia’s government is reluctant to loosen the purse strings to support the economy. Meanwhile, the appointment of Kyrylo Shevchenko as the new governor of Ukraine’s central bank is unlikely to ease fears over the NBU’s independence or that banking reforms will be reversed. Finally, the entry of Croatia and Bulgaria into the ERM II moves both countries closer to joining the euro, although there are a number of hurdles to overcome and euro adoption is still many years away.