Brussels, 26/02/2014 (Agence Europe) - On 24 February, European Commissioner for Enlargement Stefan Füle called on the countries of the Western Balkans to continue their economic reforms and improve their investment climate. “None of the Western Balkans is a functioning market economy”, Füle told a conference, calling on the leaders to set in place a new economic governance.
Füle underlined the high unemployment rate, rising levels of debt and deficit and a vulnerable external situation in many countries of the region. Competitiveness is often hampered by the politicisation of decisions which should be centred on the market, he added. “These problems should be addressed through a credible reform agenda coupled with ample funds from the private and public sectors”, the Füle explained. He went on to say that reforms of the public finances and employment market institutions and cutting red tape for businesses should be “priorities”.
Füle said that investments in the countries would only happen if they improve the investment climate and create the conditions for sustainable growth, in order to help attract foreign direct investment and ensure that businesses could be competitive, flourish and have a new spirit of entrepreneurship.
New European approach
Füle also presented the European Commission's new approach to the economic governance, competitiveness and growth in the Western Balkans region, as announced in October. “This new approach is about building a common understanding between leaders of these countries and potential investors on the priorities for economic reform”, the commissioner explained. He said that the EU wants to help support the countries of the Balkans in the challenges of creating jobs, enhancing competitiveness and boosting growth.
Füle explained that the EU wants to support the process of dialogue on the national economic reform programmes by setting in place recommendations for each country in order to steer these reforms. “We will, together with the IMF, give technical assistance to support the implementation of these recommendations”, he added. The countries must also draft action plans on the management of public finances with, in the event of progress, the option of sectorial budgetary support under the instrument for pre-accession assistance (IPA). The Commission will also invite the Balkans to give an overview, every two years starting from 2015, of their structural reform plans in sectors which are important for boosting competitiveness and growth (transport, energy, education), in order to help investors to know where to act. “Significant funding through IPA II (2014-2020) will support this process and the ensuing reforms with a focus in particular on sector support”, added Füle, who also noted the importance of regional cooperation. (CG/transl.fl)