The aim of this paper is to discuss the situation of the EU-10 CEE capital cities during the years since the 2008 financial crisis. The paper concentrates on metropolisation processes that became particularly pronounced at the end of the first stage of the transformation, long before the accession of these countries to the European Union. The main hypothesis is that these processes also continued in the conditions of the economic crisis. As a result, the capital cities in most CEE countries should have done relatively well coming out of the crisis, mainly due to the nature of their diversified economies and the significant share of advanced business services in their structure. As a result, the crisis provided an opportunity to ‘verify’ the viability of the current economic model in the short term, in the specific conditions of transformation economies.

This paper examines the development of international financial centres (IFC) in Central and Eastern Europe (CEE). The study argues that the development of the financial services in CEE is characterized by external dependency, which is manifested in the form of hierarchical command and control functions over CEE financial subsidiaries within the West European IFC network. The paper quantitatively compares the factors of IFC functions of Budapest in comparison to those of Warsaw and Prague. It argues that despite the lack of market evidence showing signs of a regional centre focus during the transition period, there are some signs of IFC formation. The paper assesses the uneven impact of the global economic crisis upon CEE financial centres and confirms that their development trajectories became more differentiated as a result of the crisis. The steady decline of Budapest during the second half of the 2000s was accompanied by the rise of Warsaw. Our analysis concluded that Budapest, despite its earlier endeavours, most likely lost the competition to become an international financial centre.

The development of Lithuania was deeply affected by the recent world economic crisis, which had a negative impact on most countries in Europe. However, the degree of impact was quite differentiated spatially, and various localities suffered from the crisis unevenly. The economic sectors that suffered the most in Lithuania, were concentrated in metropolitan areas, so the crisis damaged urban economy most seriously. How the economy of the capital city was affected at this time is a central question for researchers. Different areas and sectors of the urban economy were affected differently, so the impact on urban space was fragmented. Our analysis is mainly seeking to understand changes in the construction sector and housing market. The paper also tries to reveal the main features of the development of the whole Vilnius urban region, which occupies much wider territories than the city municipality. The capability to withstand economic threats depends both on urban economy and on the situation in the surrounding region or hinterland of the city. The process of the transformation of rural areas into urban regions is constantly taking place and in the case of metropolitan regions, it depends on the situation in the urban, country, and global economies. The rise of discussion about possible paths of prospective development of the Vilnius city region is also among the tasks of this paper.

This paper analyses the shifts in the system of governance of Kyiv in 2008–2014 as a crucial element of the resilience capacity of the region. The consequences of the economic crisis and the ongoing security crisis demand new approaches and solutions from the city’s leadership and community. For years Kyiv suffered from poor municipal leadership and unprecedented control by the central government, which undermined the resilience of its socio-economic system in the aftermath of the global economic crisis. However, new forms of community initiatives that bring together private and non-governmental actors are becoming widespread, and are becoming critical knowledge networks that are essential for successful long-term development. Changing institutional frameworks, and the firm commitment to decentralisation proclaimed by the country’s current leadership, open new avenues for harnessing the city’s potential. The challenge is in finding ways for constructive collaboration between formal and informal leaders of the city while building a new base for sustainable and competitive economic growth.

The global economic crisis that hit all the national economies in the EU area stimulated the need for new approaches in the planning and implementation of regional development policy. This paper investigates the debates about the role of the city of Riga and its development potential as the biggest city in Latvia, whilst also looking at the challenges and opportunities created by the need to respond to global changes. The article discusses the relevance of certain factors and demonstrates the actions taken by national authorities to promote the more balanced development of Latvia, as well as the opportunities to apply a place-based approach in promoting the development of Riga as the capital city of Latvia.