Press Release No. 23/195

CNB and IMF Conference "Policymaking in Choppy Waters: Fostering Resilience in Central Eastern and South-Eastern Europe" Starts Today

June 2, 2023

Dubrovnik , Croatia: The conference "Policymaking in Choppy Waters: Fostering Resilience in Central Eastern and Southeastern Europe (CESEE)," organized jointly by the Croatian National Bank (CNB) and the International Monetary Fund (IMF), started today in Dubrovnik. This is the third time the CNB and the IMF have teamed up to co-host such a conference.

The conference gathers representatives of the government of the Republic of Croatia, central bank governors and ministers of finance from the CESEE region, representatives of the European Commission and the European Investment Bank, as well academics, and civil society representatives.

The conference, co-hosted by the IMF Managing Director Kristalina Georgieva and the Governor of the CNB, Boris Vujčić, provides a forum to discuss key challenges and policy options for the region, focusing on enhancing energy security along the green transition, adjusting to ongoing shifts in trade and foreign direct investment patterns, and steering macroeconomic and structural policies in a world of more frequent supply shocks.

The working part of the conference will be opened by introductory remarks by Governor Vujčić and opening remarks by Managing Director Georgieva, while the Prime Minister Andrej Plenković will also deliver the welcoming speech.

Russia’s war against Ukraine has curtailed gas supply, dramatically increased energy prices, and made it more challenging for CESEE and other European economies to maintain reliable access to affordable energy. The discussion of the first panel, "Enhancing energy security along the green transition," will discuss how the energy crisis has affected CESEE economies, the short- and medium-term challenges for the region, and policies that could mitigate them.

The second panel, “Adjusting to ongoing shifts in international trade and supply chains,” will examine the resilience of cross-border supply chains to trade and FDI fragmentation risks fueled by the COVID crisis and Russia’s invasion of Ukraine. The discussion will explore risks and opportunities for CESEE countries pursuing growth strategies built on external openness and international supply chains.

In addition to delivering the opening remarks for the conference, the IMF Managing Director Kristalina Georgieva will also take part in the third and final panel, "Steering macroeconomic policies through more frequent supply shocks," exploring the implications of repeated supply shocks for monetary, fiscal and structural policies.

"Since the conference was last held in 2019, the world has been hit by unthinkable shocks: the Covid pandemic, Russia’s war in Ukraine, a cost-of-living crisis, and accelerating impacts of climate change,” said IMF Managing Director Kristalina Georgieva. “These shocks have hit the Central, Eastern, and Southeastern Europe region hard. IMF policy advice, technical assistance and financing have helped the region navigate these difficult years. We look forward to our ongoing engagement in the region, fostering resilience and improving the lives of people.”

"Recent years have been stressful and demanding, but they have also been an opportunity for learning important lessons. When it comes to these recent crises, there are three key lessons I believe we should take away - resilience, adaptability, and cooperation. Let us remember that old Dubrovnik based its prosperity on openness and trade, while at the same time building its resilience through smart and prudent economic, fiscal and development policies. This multifaceted strategy cannot be a better lesson against the backdrop of today's challenges.", said the CNB's Governor Boris Vujčić.