Over 30 years ago the eleven EU member states in Central, Eastern, and Southeastern Europe started their transition to market capitalism. Despite its many achievements their growth model may be reaching its limit. The megatrends which impact the region�s growth include demographic, environmental, and technological change. Digitization of production, EU climate targets and the end of the internal combustion engine will exert an ever greater pressure on the economies in the region. Governments need to consider policies to develop their growth model towards a more sustained and sustainable rate of convergence with Western Europe in the decades to come.