Description:The report presents the socioeconomic context and the evolution of the health sector. It examines the trends and patterns observable in the areas of disease burden and socioeconomic inequalities in health, and the development of the health systems and policies as well as the way they should evolve in order to meet the future specific health challenges. The report demonstrates the economic importance of health for the countries of south-eastern Europe. Health, as a human capital ingredient, is especially relevant for sustained economic development and social cohesion. These two political objectives figure prominently on the EU agenda and play a central role in the European Union's Lisbon agenda.