The aim of this paper is to provide comparison between new EU member state and transition countries related to business environment improvements and rank them according to the results of multicriteria analysis. We have analyzed 22 countries during 2006–2010, looking at their environmental improvements such as reforms of institutions, government policies and overall national infrastructure. We have compared changes in business environment and FDI movements, establishing relation between the mentioned indicators. The analysis has shown significant differences between the EU member states and non members, where business environment is much stronger in the first group. Further, we have seen significant FDI decline in new EU countries, leading to the conclusion that those countries are more sensitive to international economic changes.