STUDY ECONOMY AND FINANCE A NEW GROWTH MODEL IN EU-CEE Avoiding the Specialisation Trap and Embracing Megatrends Over three decades ago the eleven EU member states in Central, Eastern, and South­eastern Europe(EU-CEE) start­ed their transition to market capitalism. Despite its many achievements the EU-CEE growth model may be reaching its limit in the years to come. The megatrends which will further impact the region’s growth include demographic, environmental, and techno­logical change. The Vienna Institute for International Economic Studies May 2021 Governments need to consider policy options to develop the region’s growth model in a way that would drive a more sustained and sustainable rate of convergence with Western Europe in the coming decades.