Europe, Macroeconomics and macroeconomic policy, trade policy, Trade, economic integration and globalization, Western Balkans

Integration: Stabilizing the Balkans

The report outlines the current economic relations between the EU and the Western Balkans and concludes that integration has proved to be a successful tool in support of economic development, and, to some extent, in stabilising a politically sensitive region. The EU should therefore further stress bilateral and regional integration, pressing for institutional reforms and conditioning its assistance to fighting corruption.  Trade-wise, the focus should be on the effective reduction of non‐tariff barriers, as this may strongly speed up the catching-up process in the region.  Based on economic recovery and new member state countries' experience, the rate of returning unskilled labour will gradually disminish over time.  Actions towards enhancing the skills of the working-age population in the Western Balkans will help to prevent future social strains.