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Activity in the region has benefited from lower oil prices and the gradual recovery in the euro area, but elevated corporate debt is hindering private investment, according to the IMF’s latest World Economic Outlook report. The World Bank, for its part, has commented that a notable revival of investment underpinned economic growth, particularly private investment - both foreign and domestic. Exports are also helping to fuel this growth. Improving productivity, however, remains pivotal for boosting growth in the region.

On December 11, Romania held parliamentary elections following a year of technocrat governance. Romania's left-wing Social Democrat Party (PSD), won the elections and will have 221 seats of a total of 465 in the two houses of parliament. In order to have majority and have the right to choose the new prime-minister, PSD must make a coalition or attract 11 members from the other parties that entered parliament.

Rumen Radev, a former Air Force commander backed by the opposition Socialist party, won Bulgaria's presidential elections on November 13, defeating the candidate of the ruling centre-right party GERB, parliament speaker Tsetska Tsacheva. The election outcome prompted prime minister Boyko Borissov to submit the resignation of his minority coalition cabinet.

Croatian citizens last month voted for parliament for the second time in less than a year. The early elections were scheduled in July, following the dissolution of parliament - the culmination of a months-long long political crisis. Following the vote in which the conservative HDZ won 61 of the 151 seats in parliament versus 13 for centre-right MOST, the two formations reached an agreement to form a coalition government. The new government will also rely on support from deputies representing ethnic minorities and some smaller parties.

As Southeast Europe returns to steady economic growth, the mergers and acquisitions (M&A) market in the region is picking up again and an increasing number of both local and foreign investors push ahead with expansion plans. Romania holds the largest share of the region's M&A market, as the value of deals struck in the country last year is estimated at $3.54 billion (3.58 million euro), according to global consultancy Ernst&Young (EY). The most active M&A sectors in the region are IT, manufacturing, and wholesale&retail.

Britain's decision to leave the European Union has unleashed volatility on the global markets, and SEE is no exception. The full impacts of the vote are still impossible to predict but for once analysts seem unanimous that the balance would be negative for most of us. However, whereas EU members in the region are mostly concerned about the economic repercussions of a potential Brexit, for candidates to join the bloc the biggest fears are that it may thwart their accession plans.

Macedonia held early election in December as part of a EU-brokered deal that aimed to resolve a protracted political crisis. The crisis began in January 2015, when SDSM's leader Zoran Zaev, then in opposition, accused the coalition government of VMRO-DPMNE and DUI of corruption, illegal wiretapping of more than 20,000 people and covering-up a murder. The conservative VMRO-DPMNE won a close victory against SDSM in the election, but failed to agree with ethnic Albanian party DUI on the formation of a coalition government after talks stumbled over the official use of Albanian language in the country, among other issues.

Telekom Slovenie Sale

The EU’s slow and disjointed response to the massive flow of refugees and migrants from the Middle East and North Africa left Southeast Europe in an unprecedented emergency. In March Slovenia sealed its borders to migrants, triggering a domino effect further south along the so called Balkan migrant route with Croatia, Serbia and Macedonia following suit. The move led to tension on the Greek-Macedonian border where thousands remained trapped, and put Bulgaria under increased pressure from illegal migrants.