The author analyzes regulatory reforms and economic development in the relatively advanced reform countries Poland, Slovakia, the Czech Republic and Hungary. As part of a regulatory target-performance comparison, the concrete results of the reform process in these countries are subjected to a market economy test and compared with each other. The analysis of the regulatory framework is based on a catalog of criteria that is aligned with the essential structural elements of a market-based order. The regulatory analysis shows that in the four reform countries, the break with the central administrative economic order was completed and the way was taken in the direction of a market economy. The analysis of the economic development in the four Central and Eastern European reform countries shows that the change of system has not yet led to prospering economies. The Central and Eastern European transformation countries are paying for their still existing reform deficits with only gradual economic recovery.