One third of Hungary's GDP, one half of its industrial production, three quarters of industrial sales and nine tenths of its exports are generated by multinationals. Three quarters of the industrial sector is foreign-owned. One third of all foreign direct investment is German. France is the third largest investor. The situation is not much different in the Czech Republic where the overseas sales of the German-owned Skoda alone account for one tenth the country's exports. The relationship between Germany and central Europe is mercantilistic. Germany leverages the region's cheap labor and abundant raw materials to manufacture and export its finished products. Central Europe conforms, therefore, to the definition of a colony and an economic hinterland. From a low base, growth there - driven by frenzied consumerism - is bound to outstrip the northern giant's for a long time to come. But Germans stands to benefit from such prosperity no less than the indigenous population. Aware of this encroaching "economic imperialism", privatization deals with German firms are being voted down throughout the region. In November, the sale of a majority stake in Cesky Telecom to a consortium led by Deutsche Bank collapsed. In Poland, a plan to sell Stoen, Warsaw's power utility, to Germany's RWE was scrapped. But these are temporary - and often reversible - setbacks. Germany and its colonies share other interests. As The Economist noted correctly recently: "The Poles may differ with the French over security but they will be with them in the battle to preserve farm subsidies. The Czechs and Hungarians are less wary of military force than the Germans but sympathize with their approach to the EU's constitutional reform. In truth, there are no more fixed and reliable alliances in the EU. Countries will team up with each other, depending on issue and circumstances." Thus, the partners, Germany and central Europe, scarred and embittered, will survive the one's haughty conduct and the other's backstabbing. That the countries of Europe currently react with accommodation to what, only six decades ago, would have triggered war among them, may be the greatest achievement of the Euro-Atlantic enterprise. How the West Lost the East By: Dr. Sam Vaknin Also published by United Press International (UPI) Also Read The Caveman and the Alien The Expat Experts To Give with Grace The Pettifogger Procurators Why is America Hated The Pew Research Center published last week a report expansively titled "What the World Thinks in 2002". "The World", reduced to 44 countries and 38,000 interviewees, included 3500 respondent from central and east Europe: Bulgaria, the Czech Republic, Poland, Russia, Slovakia and Ukraine. Uzbekistan stood in for the formerly Soviet central Asia. The Times-Mirror 1991 survey, "The Pulse of Europe" was used as a benchmark.