For Central & Eastern Europe, 2021 was a year of political instability and this year is expected to bring similarly pressing challenges.

The majority of the region is now governed by experimental and/or ideologically diverse coalitions, with many facing major question marks over their potential to remain in power throughout 2022 as the region hopes to continue its recovery from the COVID-19 crisis.

After a tumultuous election season last year, the region is also braced for much-anticipated electoral contests in Serbia, Slovenia, Hungary and Latvia, as well as troubled Bosnia and Herzegovina, with Hungary set to hold its most open general election in more than a decade. At the same time, the region's political stability depends not only on domestic political factors but also international affairs, most crucially the impasse between Russia and the West over Ukraine.

Below, Aretera highlights four key political developments for international investors to watch in 2022 which we consider have the potential to shape the political and economic life of the region for this year and beyond.