CLEAR SIGNAL

Another summit of the Western Balkans-EU formula was convened in the Albanian capital, Tirana, showcasing that the current political challenges do not impede the core interests of the Western Balkan six nations. Their primary goal remains strengthening ties among themselves to achieve sustainable development objectives.

A notable feature of this gathering was the preceding Western Balkans-Ukraine summit. Following this event, Prime Minister Edi Rama of Albania, the host country, travelled to Baku to participate in a meeting of the Southern Gas Corridor Advisory Council. This serves as a significant indication of Ukraine and Azerbaijan's standing on the political agenda of the Western Balkans, notwithstanding their unwavering focus on EU integration.

The Western Balkans' voice ahead of the European Parliament elections

Staged four months prior to the European Parliament elections, the summit aimed to reassert the commitment to integration and autonomy from the prevailing political climate. While the Western Balkans had outlined their intentions pre-pandemic, recent events have notably influenced discussions between Brussels and the aspirant EU member states.

One appealing aspect of EU membership for the Western Balkans lies in its capacity to integrate neighbouring economies into the broader European market. This integration not only offers economic benefits but also brings about geopolitical and security advantages.

The European Commission introduced the new Growth Plan for the Western Balkans in November 2023, structured around four pillars designed to facilitate achievement through indirect financial backing. The initial pillar focuses on enhancing economic alignment with the EU market in legal, financial, and infrastructural aspects, fostering quality investments, market expansion, and establishing a unified European framework for small and medium-sized enterprises. The second pillar, centred on fostering economic growth via a shared regional market, could potentially boost national economies by up to 10%. Vital to realizing an enlargement strategy grounded in accomplishments is the implementation of institutional, political, and social reforms under the third pillar, aiming to facilitate rather than impede regional integration.

Lastly, the proposal suggests introducing a four-year cycle within the Reform and Growth Fund for the Western Balkans for the 2024-2027 period. This initiative entails allocating nearly €6 billion to drive economic transformation and expedite European unification processes.

How do you divide €6 billion?

The EU-Western Balkans summit primarily centred around the allocation of the €6 billion fund. Specifically, half of the funds are earmarked to flow through the Western Balkans Investment Framework, with €2 billion designated as grants and the remaining portion as loans.

European Commissioner for Enlargement and Neighbourhood Policy, Oliver Varhely, highlighted ongoing efforts within the European Parliament and the EU Council to enact relevant legislation. Varhely underscored the substantial competitiveness gap between EU member states and the Western Balkans, emphasizing the need to address disparities to ensure equitable participation in the common market. Discussions are underway in both the European Parliament and the European Council to devise a plan aimed at stimulating economic growth, complementing the EU's Economic and Investment Plan, which has already facilitated €16.3 billion in investments, including €4.5 billion in grants for targeted projects.

Persistent political tensions within the region pose significant obstacles to fostering sustainable trust-based relationships. Notably, Serbia maintains its claim over Kosovo, while Albania staunchly supports Pristina. Relations between Albania and North Macedonia, as well as Serbia and Bosnia, also encounter occasional turbulence. The summit highlighted the potential repercussions of allowing political disputes to spill into economic interactions, warning of the looming threat of a severe socio-economic crisis that could jeopardize prospects for EU accession in the near future.

During the summit, Albanian Prime Minister Edi Rama delivered a straightforward message, asserting, "Everybody should understand that maximizing benefits from the common European market hinges on full commitment at the regional level. Therefore, neighbourly behaviour plays a pivotal role in shaping outcomes. Hence, resolving political issues bilaterally is imperative."

Albania anticipates a decision to initiate negotiations with the EU promptly. However, in December 2023, the European Council faced a deadlock on this matter due to a veto from Greece. Commissioner Varhely criticized Athens' stance, emphasizing the necessity of fostering good neighbourly relations while allowing progress for all parties involved. "I fully understand the importance of good neighbourly relations, but you cannot build such good relations with your neighbours if you prevent the other from moving forward," the European official stressed.

First economy, then politics

The summit in Tirana underscored the imperative of fostering cooperation among countries in the common market, a move poised to spur economic growth and foster integration into the European market. The Growth and Convergence Plan aims to secure substantial economic benefits for Western Balkan nations through collaboration even before their accession to the EU.

Situated at a pivotal crossroads, Southeastern Europe presents a landscape rich in both opportunities and challenges. The region borders key bodies of water - the Mediterranean Sea to the south (a primary migration route), the Aegean Sea to the south-east (a crucial trade artery), and the Black Sea to the east (a vital energy conduit). This strategic area also serves as a geopolitical fault line. Furthermore, Türkiye, the immediate southern neighbour, stands as a NATO member and a significant regional force. Amidst the aftermath of the Arab Spring, neighbouring Arab nations grapple with internal security, political unrest, and environmental crises, increasingly viewing Europe as a sanctuary. Southeastern Europe emerges as a pivotal entry point for numerous refugees seeking access to the European continent. Brussels advocates for furnishing adequate security assurances to candidate countries, including support through the Frontex program, to effectively manage migrant influxes and safeguard the EU's external borders.

Full EU membership for these nations would fortify the Union geopolitically by attracting fresh investment prospects and markets, forging connections with conventional and sustainable energy pathways, and participating in the establishment of strategically vital supply chains.

The region's allure in the energy sector is amplified by new liquefied natural gas routes and enhanced pipeline infrastructure facilitating efficient gas delivery to the European market. Moreover, well-established transportation networks linking neighbouring countries position Southeastern Europe as a proficient logistics hub.

Amidst geopolitical rivalries

The competition among global economic powers, notably the US and China, often propels Europe to earnestly consider enlargement mechanisms as a means of safeguarding its interests. Current societal and technological shifts within Europe, catalysed by the pandemic and conflicts, have reshaped EU supply chains and engagements with economic and energy partners. In a bid to reinforce strategic autonomy, Brussels seeks to secure recovery and sustainable development prospects. The accession of the Western Balkans into the EU could inject fresh momentum into this process.

For the region's countries, entering the EU with established competitive advantages and operational projects is pivotal. The Southern Gas Corridor stands out as a definitive project in which Albania plays an active role. Through existing interconnections and forthcoming constructions, this corridor increasingly intertwines with all Southeastern European nations.

The prompt visit of the Albanian Prime Minister to Baku following the EU-Western Balkans summit is not coincidental - Azerbaijan's SOCAR contributes to Albania's gasification endeavours. Albania is anticipated to serve as a pivotal juncture for the vital Ionian-Adriatic gas pipeline, slated to supply Azeri pipeline gas to Montenegro, Bosnia and Herzegovina, Croatia, and eventually Slovenia.

For Europe, which is in dire need of alternative sources of energy supply, energy supply in the Western Balkans may become an additional factor for its integration into the European political and economic space.