While the economic challenges facing Russia and Turkey are growing, we're becoming increasingly optimistic about the outlook for the rest of Emerging Europe. The pick-up in growth in recent months has owed much to the turnaround in the euro-zone in general and Germany in particular. But the recovery will get support from domestic sources as we move into 2014 and one of the most important of these will be an easing in the pace of fiscal tightening. In this Watch we explain why the end of the austerity era may be in sight.
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