EC Adopts Investment Plan for Western Balkans Worth EUR 9 Billion

The European Commission has adopted an economic and investment plan for the Western Balkans worth EUR 9 billion, which should help the region harmonize the economies with the Union's economy and create stronger regional bonds.

The Commission obliges to provide EUR 9 billion from the IPA funds between 2021 and 2027 for the economic harmonization of the region with the EU, primarily through investments and support to competitiveness, inclusive growth, sustainable connection and green and digital transition.

According to the plan that was viewed by N1, EUR 6 billion of the total amount is meant for investments in the sectors of transport, energy, digitization, agriculture, healthcare and education in all countries of the region, 1.5 billion is set aside for the private sector and the remaining 1.5 billion is meant for education systems.

The Commission has assessed that the coronavirus pandemic has caused great damage to the economies of the region, which, even before the outbreak, were not harmonized with the EU. They add that the plan should stimulate a long-term recovery and lead to sustainable development. The countries of the region, according to the Commission, must carry out reforms in order to get closer to the single market of the Union.

The adopted plan should free the economic potentials of the region and its considerable options for the economic cooperation and trade inside the region.

The Commission believes that a new system of guarantees should be established for the Western Balkans, through which up to EUR 20 billion in investments could be secured. According to the Commission, the priorities in carrying out this plan are a better connection between the economies of the region, which requires a strong will of the countries of the region to carry out the reforms, the strengthening of regional economic integration and the development of a single regional market based on the EU law.

Among the priorities are also waste water treatment management and energy sector transition from coal to renewable energy sources. The Commission has warned of bad governance in the countries of the region and limited progress in solving problems in the rule of law and countering corruption. It believes that cooperation within the region and with the EU is necessary in fighting money laundering, terrorism, extremism, human trafficking and illegal arms trade, as well as the smuggling of migrants.

European Commission

investment plan for the Western Balkans

support to competitiveness

inclusive growth

sustainable connection

green transition

digital transition