Almost 20 years have passed since robust economic changes swept through Central and Eastern Europe. The years that followed have seen mass privatisation, large inflows of FDI and huge productivity gains in the private sector. Compared to these developments in the private sector, the public sector has been left behind. Indeed, until recently, it has been arguable that, with a few notable exceptions, little has changed in the past 20 years. However a combination of rising government deficits, a shrinking working population and demands from the tax payer for better value for money has led to government actions.