First, the collapse of the Soviet Union dragged movie-making throughout the region to the brink of a financial abyss. Then, as privatization took off, cinemas began closing and were converted to sex clubs and discos.

A short time later, a new and potentially more lethal rival appeared on the scene, with Hollywood movies starting to fill up the cinemas that had survived the end of communism, further undercutting hopes of an early rebound in the local film business.

But as the more recent years have shown, filmmakers in Central and Eastern Europe (CEE) have been remarkably resilient. A new generation of directors is now emerging to help shape a modern cinema that in many cases explore the changes that were unleashed by the revolutions that swept away decades of Stalinism in 1989.

Romania leads the way

"Many of these filmmakers accumulated ideas and frustrations," said Mihai Gligor of the Romanian Film Promotion Association.

"Even after the revolution it was hard to get money," he said. "In many cases it was a fight with a system that was very corrupt. It was a continuing fight."

However, Romania has been helping to lead a revival in filmmaking in the region and a renewed global interest in a movie business that has produced some of the most pioneering figures in global cinema.

In particular, this follows the success of Cristian Mungiu's "4 Months, 3 Weeks, 2 Days" in winning the prestigious Palme d'Or prize at Cannes, which has also helped generate renewed interest among local audiences across CEE in films made by national directors.

Seven years ago, no films were being made in Romania, yet now the nation manages to pump out between 10 and 20 feature films a year.

Fresh and innovative

Underscoring the arrival of CEE's new generation of filmmakers, three Czech feature movies and two animated films were included in the official program of this year's Berlin Film Festival. Poland's Gdynia film festival last year included 30 entries from debut directors.

"They have a fresh and innovative approach towards filmmaking. Some of them have even invented a new film language," said Eva Vezer, General Manager of Magyar Filmunio, Hungary's film promotion board and a member of the European Film Promotion Board, describing the region's new wave of filmmakers.

Dashed hopes

What is more, the new CEE cinema appears to have emerged just as the dreams were fading across the region about what the fall of communism might have led to.

The result has been that many of the region's directors have been retracing the events surrounding the fall of Communism and the new social values that have taken shape.

This became clear from the films screened at this year's Karlovy Vary film festival, which showcases films from CEE.

These include movies such as "Dolina" by Hungarian director Zoltan Kamondi, about the takeover of a town by authoritarian forces, "Simple Things" by Russian director Alexey Popogrebsky, on personal turmoil set against urban life in St. Petersburg, and "Hope" by Polish director Stanislaw Mucha.

Hope portrays a struggle between money and a less materialist view of the world as a young man tries to negotiate with the thief who stole a rare painting from a Warsaw church to return the work of art.

Another Polish film screened in Karlovy Vary is "Saviour's Square" from directors Krzysztof Krauze and Joanna Kos-Krauze, which touched on the role of women in post-communist Eastern Europe.

The communist legacy

Zoltan Kamondi believes that, despite having lived under democracy, the basic instincts of many people in everyday life have not changed since the days when they were still living in a dictatorship.

Celebrations last year marking the 50th anniversary of the Hungarian revolution also gave the nation's film-makers the chance to look back on their country's battle to chart a more independent course.

Even directors such as Elke Hauck, who grew up under the communism in East Germany have sought to explore how East Germans have managed to adjust to the new world that emerged following the fall of theBerlin Wall.

In her debut film, "Karger," the hero finds he needs to make some radical changes to his life after it lurches into a crisis.

But drawing on largely unprofessional cast, one of the main characters told a press conference following a screening of the film in Karlovy Vary that she found it relatively easy to play her role.

Like her character, Anja Dietrich said: 'I am looking for a job right now.'