Economic reform in the Western Balkans

The Prime Ministers of all seven Western Balkan nations were in London yesterday seeking closer economic ties with countries across the EU. 

Speaking at a forum at the European Bank of Reconstruction and Development’s (EBRD) for investment in the Western Balkans, Ken Clarke encouraged the PMs to put in place the necessary reforms to encourage economic expansion. The Foreign Secretary also met the group to discuss economic reform and urge progress, before they fanned out for a raft of meetings with UK investors and government officials, with the message that the Western Balkans are open for business.

With its young, dynamic population, extensive natural resources, and diverse cultures, the Western Balkans can be a key source of growth and innovation in Europe. Great progress has been made and we can be proud that UK investors are already backing projects there. Economic development is vital to bringing long term stability to the region and to the EU.  

It is important that economic reform delivers for the stability of the region. In Bosnia and Herzegovina in particular, the recent protests have shown a popular will for reform and action on corruption, unemployment and the lack of accountability of political leaders.

We have impressed on political leaders the need to heed this call and to take urgent steps to improve the country’s prospects and fulfill these aspirations for change. There is now an opportunity for the people and leaders of Bosnia and Herzegovina to work together for real change and to make progress on the country’s Euro-Atlantic future.

There is of course still work to be done by all the Western Balkan countries to continue their progress on economic governance and reform. They need to work to build effective and independent institutions, remove obstacles to trade, and ensure a sound rule of law basis. As Stefan Füle, the EU’s Commissioner on Enlargement, told the Prime Ministers yesterday the EU’s enlargement strategy has to take a new approach to the economy that prioritises jobs, competitiveness and growth. 

The UK remains a strong supporter of EU enlargement on the basis of firm but fair conditionality, and commitment to meeting the principles for which the EU stands – stability, good governance, democracy, human rights, and the rule of law. Once the Western Balkans meet the conditions for membership it will make a significant contribution to the EU’s prosperity and stability. Clearly, the future of the region lies within Europe.