On the 23rd of October the European Commission approved the Reform Agendas of Albania, Montenegro, Serbia, North Macedonia and Kosovo following the green light given by the Council.
The Commission’s Implementing Decision states, that for the 2024–2027 period the Western Balkans candidate countries shall receive 2 billion EUR in non-repayable financial support and 4 billion EUR in loans through the Western Balkans Investment Framework which helps implement the Reform and Growth Facility.
As stated, its goal is to provide a “coherent and prioritized set of targeted reforms and investments in each beneficiary (the ‘Reform Agenda’), providing a framework for boosting inclusive sustainable socio-economic growth, clearly articulated and aligned with Union accession requirements and the fundamentals of the enlargement process. The Reform Agendas will serve as an overarching framework to achieve the objectives of the Facility.”
In the country profiles the Commission makes a thorough analysis that the pandemic and the war has slowed down economic convergence of the region to the EU, where purchasing power stands between 30-50% when compared to the economic bloc. The EU decided to write a New Growth Plan which would increase convergence towards the Single Market, boosting local and regional economic integration, help reach fundamental -institutional- reforms and establish the Reform and Growth Facility as a financial tool.
Looking at Serbia’s economy, while there has been significant economic growth, the main issue is state owned enterprises in the energy sector, which is underregulated and overfinanced. Its vulnerability towards third countries such as China and Russia can only be decreased by aligning itself to the Common Foreign and Security Policy both in trade, investments and energy. The analysis states, that anticorruption efforts are taking place where the country committed to establish an overarching framework to protect funds by 2028.
While looking at the evaluation of North Macedonia which is still heavily reliant on third country energy suppliers, the energy transition of the country is based on diversifying the energy mix towards renewables. This also includes decommissioning coal plants in Bitola and Kicevo while moving forward with electricity grid developments. Like Serbia, inefficient state-owned enterprises pose a challenge to further competitiveness. Tackling day-to-day operational costs considerably by 2027 will help reduce economic dependency on the national budget. All in all, to open competitiveness in state enterprises such as the railway and transport sector.
A good example for this is railway market liberalization in the EU, where Austrian and Italian markets are largely liberalized, meaning private companies can provide cheaper and higher quality services to people. Unfortunately, some EU member states have until 2034 to open up public transport / railway markets for increased competitiveness.
The Commission approval is a sign, that the Western Balkans candidate countries are strategic partners, however the EU itself should not lose sight of the reforms it needs to implement in its own member states. Full technological, market, infrastructure alignment is yet to be seen, since the convergence-gap of countries joining after 2004 is still significant. The task will be to commit to harmonize internal (convergence between EU member states) and external (convergence between EU and third countries) processes which will pose as a challenge as the EU is more like to react to crises rather than manage upcoming challenges.
Forrás: bbci.co.uk
