Additionally, resistance to government-imposed cuts could create internal instability, the EIU noted.
It said the Balkan countries, a region that includes Romania, Bulgaria, Croatia and Serbia, are also significantly exposed to fallout from Greece’s problems because of investment, trade, remittance and banking links.
EIU estimates the region will post economic growth of 1.5% this year and of only 0.3% in 2012. Inflation, however, is expected to decelerate to 3.7% in 2012, from 5.9% predicted for 2011.
The think-tank expects the European Union will slide back into recession in 2012 and forecasts an economic contraction of 0.7%, from an average economic growth estimated at 1.5% in 2011.