Skopje, 22 January 2024 (MIA) - Leaders' meeting on the EC's Growth Plan for the Western Balkans is taking place in Skopje on Monday.

North Macedonia's Prime Minister Dimitar Kovachevski is hosting the Serbian President Aleksandar Vučić, Albanian PM Edi Rama, Montenegrin PM Milojko Spajić, Kosovo PM Albin Kurti, Bosnia and Herzegovina's Minister of Finance and Treasury Srđan Amidžić, as well as Director General at the Directorate General for Neighborhood and Enlargement Negotiations (DG NEAR), Gert Jan Koopman, and US Assistant Secretary of State for European and Eurasian Affairs, James O'Brien.

PM Kovachevski gave a doorstep statement ahead of the meeting, noting that it is a privilege to host an event with leaders from the Western Balkans, alongside representatives from the United States and the EU, as well as delegates from the European Bank, the Common Regional Market, and CEFTA.

“The objective is to discuss the Growth Plan for the Western Balkans, a concrete EU initiative to enhance regional cooperation among the countries and promote the integration of the common European market. The discussions began Sunday with a joint dinner with the leaders,” Kovachevski said.

He announced that a joint declaration will be adopted, serving as a commitment to implementing the activities. This includes, firstly, reforms in the countries; secondly, enhanced mutual cooperation; and thirdly, the implementation of activities from the Growth Plan, which will bring about reforms, connectivity, and financial instruments totaling €6 billion.

“We are already discussing concrete activities. This includes access to the Single Euro Payments Area (SEPA), which means eliminating a significant number of non-tariff barriers, introducing green lanes between the countries - all aimed at boosting trade, reducing trade barriers, increasing the competitiveness of the economies in the Western Balkans, and facilitating their quicker integration into the common European market before formal EU accession,” Kovachevski noted.

President of Serbia, Aleksandar Vučić, said that the meetings they had last night and today are important for the progress of the entire region. We have discussed with European and US officials about the Growth Plan, and we will continue the discussions today.

“We discussed two important matters: one is the European common market and participation in that market, and what is crucial for us are the green lanes. This is where our trucks will be able to pass freely through the borders of EU countries, allowing us to continue reducing their operational costs and strengthening our trade and industry. Important news is that in the next few days, we will be signing two protocols crucial for initiating the agreement for free access to the labor market in Tirana, Skopje, and Belgrade. I hope it will enter into force as of March 1,” Vučić noted.

Regarding the EU Growth Plan, Vučić stated that he and Koopman had extensive discussions about the conditions and the reforms that need to be undertaken to secure those funds and the optimal way to utilize them.

“We will make every effort to carry out those reforms, to obtain the opportunity for access to those financial resources as soon as possible, along with everyone else. I believe that by working together, collectively, we can make substantial progress on this plan. This is the first time we have met to discuss solely the economy, without addressing major political issues where significant differences exist among us. I believe that this is a good precondition for the progress of the region itself, and for people to feel the benefits of what we are working on,” Vučić said in a doorstep statement ahead of the meeting.

The Prime Minister of Albania, Edi Rama, stated before the meeting that this is indeed a crucial gathering for the steps we can and should take toward closer EU integration.

“It's about the new Growth Plan and the integration of the common market, something that was previously possible only for countries after they become part of the EU. This is an important change and an excellent opportunity that we should not miss. Therefore, it is crucial that all six Western Balkan countries prioritize our citizens and set aside politics and history. What we achieve in the coming months will define how our countries will look at the end of this decade,” Rama said.

Montenegro’s Prime Minister Milojko Spajić stated that the EU Growth Plan represents an excellent opportunity for everyone and sends an important signal, not only for the Western Balkan countries but also for businesses looking to invest in the region.

Director General at the Directorate General for Neighborhood and Enlargement Negotiations (DG NEAR), Gert Jan Koopman in a doorstep statement ahead of the meeting said that the Growth Plan is a potential game changer for the region and could double the size of the economies in the next decade.

“It’s very encouraging to see how the region has embraced this concept and is working very hard on the reforms that will help unleash this growth,” Koopman said.

Deputy PM for European Affairs Bojan Marichikj, Finance Minister Fatmir Besimi and their Western Balkan counterparts will also attend the meeting. In addition, the meeting will bring together representatives of regional organizations, the Regional Cooperation Council (RCC), CEFTA and the Western Balkans 6 Chamber Investment Forum (WB6 CIF), as well as international financial institutions such as the European Investment Bank, the European Bank for Reconstruction and Development, and the World Bank.

At the meeting, Borjana Krišto, the Chairwoman of the Council of Ministers of Bosnia and Herzegovina, will also deliver a video address.

On 8 November 2023, the European Commission adopted a new Growth Plan for the Western Balkans, with the aim of bringing the Western Balkan partners closer to the EU through offering some of the benefits of EU membership to the region in advance of accession, boosting economic growth and accelerating socio-economic convergence.

The new Growth Plan for the Western Balkans is based on four pillars, aimed at: enhancing economic integration with the European Union’s single market, boosting economic integration within the Western Balkans through the Common Regional Market, accelerating fundamental reforms, and increasing financial assistance to support the reforms through a Reform and Growth Facility for the Western Balkans for the period 2024-2027, a proposal for a new instrument worth €6 billion, consisting of €2 billion in grants and €4 billion in concessional loans, with payment conditioned on the Western Balkans’ partners fulfilling specific socio-economic and fundamental reforms.

The Plan identifies seven initial priority areas, which the EU could offer to the Western Balkan countries: 1) free movement of goods, 2) free movement of services and workers, 3) access to the Single Euro Payments Area, 4) facilitation of road transport, 5) integration and de-carbonisation of energy markets, 6) Digital Single Market and 7) integration into industrial supply chains.

Half of the funds, about €3 billion in the form of long-term loans, will be released as direct support to the national budgets, and the other half will be allocated through the Western Balkans Investment Framework (WBIF), in the form of €2 billion in grants and €1 billion in loans.

These funds will be geared towards investments in the field of transport, energy, digitalization, education and skill development, whereby 37% of the grants will be focused on green projects, i.e. fulfilling the climate objectives. Payments will be made twice per year in line with the fulfilment of the social and economic reforms by the countries.

Photo: MIA