This paper makes the case for smart policy development in Central, Eastern and South-Eastern Europe (CESEE).It uses EIB Investment Survey (EIBIS) 2017 results for CESEE cities to outline local infrastructure gaps and demonstrate the productivity and innovation gaps between CESEE cities and other EU cities.It discusses negative demographic trends in Central, Eastern and South-Eastern Europe, and evaluates capital and non-capital regional convergence in CESEE countries.Introducing a Smart Region Index, to allow the identification of gaps in CESEE regions compared with the EU, it also uses EIBIS to provide further conclusions on obstacles to investment for CESEE municipalities and highlights the importance of the use of EU funds.

About European Investment BankThe European Investment Bank is the world's biggest multilateral lender. The only bank owned by and representing the interests of the EU countries, the EIB finances Europe's economic growth. Over six decades the Bank has backed start-ups like Skype and massive schemes like the Øresund Bridge linking Sweden and Denmark. Headquartered in Luxembourg, the EIB Group includes the European Investment Fund, a specialist financer of small and medium-sized enterprises.