EC lay out economic recovery plans for the Western Balkans
The European Commission (EC) has adopted a comprehensive Economic and Investment Plan for the Western Balkans to aid them in long-term recovery from the effects of the coronavirus pandemic, as well as initiating a green energy transition and to foster regional integration and convergence with the EU.
The plan is set to mobilise €9 billion in funding for the region, which the EC claim will support sustainability, competition, connectivity, human capital and inclusive growth.
In parallel with this scheme, the Commission has also formulated a five-step guide for implementing the European Green Deal in the Balkan states in an attempt to significantly reduce emissions and fossil fuel consumption in the region. The five "central pillars" of the plan are:
- Prioritising climate action, including decarbonisation, energy and mobility.
- Circular economy, addressing in particular: waste, recycling, sustainable production and efficient use of resources.
- Biodiversity: attempting to protect and restore the local wealth of the region.
- Fighting air, water and soil pollution
- Sustainable food supplies in rural areas.
Also, there will be a shift towards digitalisation of the region, which the Commission claim will be a key enabler in allowing these criteria to be met and enacted. The concept of digitalisation and interconnectivity has become a priority for many governments in a post-pandemic world, with it also being a primary driving motivator in driving Industry 4.0 - or the fourth Industrial Revolution.
The plan further identifies ten investment flagships to support major road and railway connections in the region: renewable energy and the transition from coal, renovation of both public and private buildings to increase energy efficiency and reduce greenhouse gas emissions, waste and wastewater management infrastructure. Other investments include a boost to the private sector to encourage competition and innovation, with a particular emphasis on SMEs.
EU High Representative for Foreign Affairs and Security Policy and Vice-President of the European Commission, Josep Borrell, said: "The citizens of the Western Balkans are part of Europe and we have a shared interest in helping these six partners move forward on their EU path. With the Economic and Investment Plan, we are backing our Enlargement Package assessment with action, providing deep and strong support for economic recovery and reform – for a modern, greener and more prosperous Western Balkans delivering better to their citizens on the road to the EU."
Presenting the new plan, EU Commissioner for Neighbourhood and Enlargement, Olivér Várhelyi, said: “Today we are presenting our Economic and Investment plan for the Western Balkans to boost the economic development and recovery of the region. We will mobilise up to €9 billion of funding for investment flagships in the areas of transport, energy, green and digital transition, to create sustainable growth and jobs.
"The plan also offers a path for a successful regional economic integration to help accelerate convergence with the EU and close the development gap between our regions, ultimately speeding up the process of EU integration. This plan should help to transform the Western Balkans into one of the most attractive regions for investments in the world. Implementation of course will need to go hand in hand with reforms.”
The EU has also been supporting the efforts of governments in the region for the implementation of a more localised economic area in the vein of the European Economic Area expected to be endorsed at the Sofia Summit next month.
The EU says it is driven to bring the Balkans into the EU single-market and claim that strong governance is the primary pillar for economic growth. Therefore, they stipulate that integration and implementation of this economic zone will only be possible with the full cooperation of regional governments.
However, there have been reports that the Western Balkans and Turkey, who are in line to join the EU, will be slow to adhere to EU regulations, and are often lacking in areas such as corruption, judiciary freedom and freedom of the press.
The 2020 Enlargement Report finds that progress in the area of of the rule of law remains a significant challenge, not helped sometimes by "a lack of political will." A slow-pace in 'judicial culture' continues throughout the Western Balkans region "without sufficient commitment to the principle of judicial independence."
Furthermore, many of the candidates have faltered in successfully fighting corruption within their own nations, and often fall significantly short of the requirements for membership within the European Union.
Given the EU's dedication to some form of democracy, it is likely significant corruption and stifling of freedoms could severely slow progress towards the Western Balkans and Turkey becoming fully-fledged member states.
Mr Várhelyi added: "Our rigorous but fair assessments presented today detail where the countries stand with the reforms, with clearer guidance and recommendations on the future steps.
"Their dynamic implementation will speed up their progress on EU path and bring long-lasting results. In parallel, we have presented an Economic and Investment plan to spur their long term recovery and accelerate their economic convergence with the EU."
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