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EU’s Pyramid Scheme in the Balkans

2023/10/16
in Macroeconomics

The parties to the Berlin process met in a pyramid in Tirana built by Albania’s infamous Communist leader Enver Hoxa. It was the first time the annual summit was held outside the EU.
The EU offered a new growth plan to six Western Balkan countries, including Albania, Bosnia, Kosovo, Montenegro, North Macedonia, and Serbia, in exchange for deep reforms before their full membership in the bloc. The EU is trying to reinvigorate the enlargement process, which has been stalled since 2013 when Croatia became the last country to join. The six Western Balkan countries are at different stages of integration into the bloc, with Serbia and Montenegro launching membership negotiations a few years ago, followed by Albania and Macedonia last year.
The EU has made it a requirement for Western Balkan countries to reform their economies and political institutions before joining, including by improving the regulatory structure for business, fighting corruption, and stamping out organised crime. The EU’s new growth plan could allow them to enter portions of the EU single market on a case-by-case basis in return for demonstrated reforms. The countries would be able to join the EU market in areas such as goods and services, road transport, energy, electricity, customs cooperation, e-commerce, and cashless payments.
The EU has already mobilised 16 billion euros ($16.8 billion) for investment in the region out of 30 billion euros ($31.5 billion) pledged three years ago. EU officials have urged the Balkan countries to overcome regional conflicts and stand together as Russia wages war in Ukraine. French President Emmanuel Macron did not attend the summit but was due to begin an official visit to Tirana later on Monday.

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