Page 7 - SE Outlook Regions 2024

connectivity.
Other countries are investing into liquefied natural gas (LNG) infrastructure. Croatia already has ambitions to become a regional energy hub following the opening of the LNG terminal on the island of Krk, and Montenegro is looking to follow suit. Meanwhile, Romania has its own substantial offshore gas reserves in the Black Sea Neptun Deep perimeter.
There are also investments into renewables as countries embark on the green transition; however, several countries in the region are heavily dependent on coal, notably Kosovo, North Macedonia and Serbia. Bulgaria too is facing protests over transition plans for its coal regions. However, there are positive examples in the region. Albania produces almost all its electricity from hydropower and is now diversifying into other renewables; Romania has slashed its coal use in recent years.
Politically, 2024 is a super-election year for Romania, with both presidential and parliamentary elections looming towards the end of the year. The ruling coalition comprising the centre-left Social Democratic Party (PSD) and centre-right National Liberal Party (PSD) is expected
to gain re-election – one of the main unknowns ahead of the election is how well the radical right Alliance for the Future of Romania (AUR) will
perform. A candidate backed by the PSD is the most likely choice of president as incumbent President Klaus Iohannis nears the end of his second term.
The upcoming elections have, however, caused problems for Romania as the pressing need for fiscal consolidation is pushed down the political agenda in favour of more voter-pleasing policies mainly spearheaded by the senior ruling PSD.
Croatia will hold a general election in 2024 and political tensions between rival parties have already started escalating. Rivals to the ruling HDZ party led by Prime Minister Andrej Plenkovic have seized on a series of corruption scandals as they seek to unseat the HDZ. In North Macedonia an election is expected in May, where the SDSM will seek to hold on to power in the face of a growing shift by voters towards their nationalist rival, VMRO-DPMNE.
Serbia ended 2023 with a general election in December that resulted in yet another landslide for the Serbian Progressive Party that has been in power since 2012. Hopes that the snap general election would stabilise the political situation in the country were dashed as it was followed by a
wave of protests by opposition groups that claim the vote – especially the local election in the capital Belgrade – was rigged, and strong
criticism from Serbia’s Western partners.
EU accession remains the primary foreign policy goal of the Western
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