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bne March 2018 Southeast Europe I 37
Junker started his Balkan tour at the end of February with a clear message, which is keeping up the reform processes and the EU's commitment to supporting the Western Balkans countries’ European future.
"Today we confirm that the door of our union is open for the Western Balkans which is already an enclave surrounded by the EU, and that our offer is sincere," EU Enlargement Comissioner Johannes Hahn stressed.
Meanwhile, EU High Representative Federica Mogherini underlined that the next months will be crucial to make sure that this "historic and unique opportunity" is seized.
The race to 2025
The strategy explains the steps that need to be taken by Serbia and Montenegro to complete the accession process by 2025.
The European Commission underlined that a comprehensive, legally-binding normalisation agreement between Serbia and Kosovo is needed so that they can advance on their respective Euro- pean paths.
Belgrade needs the talks in order to accelerate its EU accession process, namely progress in the Chapter 35 which covers relations with Pristina. Talks with Pristina have been on hold for the last 14 months, initially because of the Kosovan snap elections and recently after the assassination of Kosovan Serb politician Oliver Ivanovic. However, Serbian Prime Minister Ana Brnabic recently said that Belgrade is ready to continue talks with Pristina.
In a statement on February 6, Brnabic welcomed the new strategy, saying that the Serbian government would speed up its efforts to meet accession criteria and implement reforms.
“I would especially like to point out that the Strategy, which gives the possibility of enlargement and the chance of entry by 2025, recognized the enlargement as a mechanism for further strengthening and stability of the EU,” Brnabic said.
Poor infrastructure holds back economic growth in Western Balkans
bne intellinews
The six Western Balkan countries have underdeveloped public infrastructure, which is an obstacle for their economic growth, according to a report from the International Monetary Fund released on February 8.
The report focuses on analysis of the current situation and on the possible benefits for the Western Balkan countries if they find a way to develop their transport, power, and telecoms networks.
“The IMF has identified the region’s missing core public infrastructure as
a significant obstacle for higher economic growth. Better transportation, energy, and telecommunications networks would help Western Balkan coun- tries raise productivity, integrate deeper into the bloodstream of global trade, and improve the region’s attractiveness for foreign investment,” the IMF said.
According to the report, a regionally coordinated public infrastructure push, coupled with better management of actual projects, could significantly increase per capita income.
“The long-term gain of real GDP per person could be as high as three to four percentage points,” the IMF noted.
However, to improve the level of their public infrastructure, the six countries need to find fresh funding and at the same time not to threaten their public finances as most of the countries already have high levels of public debt and high budget deficits.
The six countries should also improve regional cooperation as many infrastructure networks stretch over borders.
“Countries should consider saving on their recurring expenses to find resources for costly projects. Governments could create further room for maneuver by broadening their tax base (by eliminating exemptions and tax incentives) and strengthening tax compliance, both of which result in more revenues collected,” the IMF noted.
It added that external financing should play a significant role in public infrastructure development in the Western Balkans, leaving domestic financial resources to serve the needs of the private sector.
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