Western Balkan continues to face challenges in achieving full economic potential. Upscaling transport and energy infrastructure creates a more favourable environment for growth of the private sector and investment. This brings opportunities for citizens and businesses alike in both the region and the EU.
Connectivity is at the heart of the new Economic and Investment Plan for the Western Balkans, presented by the European Commission in October 2020. The Plan aims to spur the long-term economic recovery of the region, particularly critical in the context of the massive disruption of the COVID-19 pandemic, and accelerate regional cooperation and convergence with the EU. Ongoing support to connectivity is vital - for the lives of people, for businesses and the economies of the region. The Plan foresees up to €9 billion of funding for key investment areas, including transport, energy, and the twin green and digital transitions. This will be a catalyst for creating long-term growth and jobs, and for supporting reforms required to move the region forward on its EU path.
In addition to the EU’s substantial grant funding to the region, the Economic and Investment Plan foresees dedicating over €1 billion to provide guarantees to help reduce the cost of financing for both public and private investments and to reduce the risk for investors: support through the proposed Western Balkans Guarantee Facility is expected to raise up to €20 billion of investment.
Sustainable transport
Focus on improving core transport corridors in the region, to make them faster and comply with EU standards. Better transport will facilitate trade and drive sustainable economic growth. Connectivity reforms and simplified border crossing procedures are key.
Clean energy
Reinforced support in the field of energy in line with the ambition to reach climate neutrality by 2050. Decarbonisation and transition to clean energy will be key. Priority will be given to energy interconnections and increasing the use of renewable energy sources.
Digital future
The new Digital Agenda for the Western Balkans foresees the deployment of an ultra-fast broadband, with a view to ensuring universal access, lowering the cost of roaming, developing digital skills and enhancing cybersecurity.
Private sector
Increased financial support to strengthen the competitiveness of micro and SMEs in strategic sectors and foster green growth and circular economy, under the new Western Balkans Guarantee Facility.
Environment & climate
The new Green Agenda for the Western Balkans will cover green transition, decarbonisation, depollution of air, water and soil, circular economy, and promote biodiversity, urban mobility and green transport solutions.
Human capital
Support for high quality education and training systems, employment, health and social protection. Key focus on improving labour market participation, especially of young people and women, vulnerable groups and minorities, in particular Roma.