The missile that landed in Poland on Tuesday and the subsequent reaction in financial markets serve as clear reminders of the close proximity of Central and Eastern European countries to the war in Ukraine and that developments surrounding the war will continue to cause periodic bouts of volatility in the region’s financial markets. Meanwhile, media reports this week suggest that the EU could be nearing a decision to unblock Hungary’s EU recovery funds, but any agreement would probably contain very strict criteria to tackle corruption and the rule of law, which the government might not stick to.
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