A new WIIW study analyses the current economic situation in the countries affected by the Kosovo crisis and assesses immediate costs and longer-term prospects. A rudimentary set of vulnerability rankings is presented, and market reactions as well as the immediate reactions of the international financial community are analysed.

The Kosovo crisis brings in huge costs for the countries directly involved in the conflict, especially for Yugoslavia, but it also burdens the whole region with significant spillover costs. These are high by themselves, but their marginal impact may in fact be