Ukraine crisis threatens economies of its neighbours

The crisis in Ukraine poses a threat to the fragileeconomies in Central and Southeastern Europe,economists warn, reported the dpa.An editorial in Slovenia's Finance newspaper Wednesday compared theeconomic impact of the conflict between the West and Russia to thatof the US mortgage crisis in 2008.During the mortgage crisis in the US, "many in Europe thought it wasfar away.""While the crisis in Ukraine is different, it does not mean it doesnot come with dangers. The greatest dangers are for those who areunprepared and have no contingency," Finance said."The mistaken belief that individual economies can safeguardthemselves from the negative effects continues to prevail."Slovenia has been on the verge of seeking a bailout from the EuropeanUnion. Harsh austerity measures have averted the need to request one,but the country is not out of the deep water yet.Finance reported that Slovenia is trying hard to sell governmentbonds and companies have a collective debt of some 5 billion euros(6.9 billion dollars). Two major banks need strategic investors and the uncertainty over theSouth Stream pipeline due to carry Russian gas to Europe is cause forconcern, the newspaper said.