No-deal Brexit fears, political instability in Romania

The growing likelihood of a no-deal Brexit is coming at a time when Central Europe is starting to be affected by weakness in the euro-zone and a more general slowdown in the global economy. The Czech Republic looks most vulnerable, although Hungary and Poland could probably weather a no-deal Brexit better. Meanwhile, developments this week that have left Romania’s government on the verge of collapse increase the risk that the country’s fragile fiscal position will worsen.