• 2024-07-01

Political, Social, and Economic Benefits of the EU Integration Process for the Western Balkans

Regional Youth Dialogue for Europe project

The process of European integration stimulates the development and transformation of all societal spheres, bringing with it numerous political, social, and economic benefits for the citizens of our region. The European Union (EU) is simultaneously the most important political partner of Western Balkan countries and the largest donor and investor in the region. Therefore, it is often difficult to make a clear distinction between political, economic, and social benefits, as political benefits are often also social and economic, while economic benefits are always political in nature. However, considering that the EU was originally established as an economic union, it is expected that the greatest benefits of EU integration will be found primarily in the economic sphere. Let us examine what the people of our region gain as a result of the EU integration process:

POLITICAL BENEFITS

Political stability: The creation of the European Coal and Steel Community in 1951 institutionalised the peace established in Europe in 1945. In 2012, the EU was awarded the Nobel Peace Prize for promoting peace, democracy, and human rights across the continent. The Nobel Committee's statement highlighted that the decision was based on the “stabilising role that the EU played in transforming most of Europe from a continent of war to a continent of peace.” Therefore, political stability is one of the most important political benefits of the European integration process for the Western Balkans, as EU membership guarantees peace and stability for member states, which is of exceptional importance to countries in our region that still bear the burden of the not-so-distant war past of the 1990s.

Regional collaboration: Given the above, it is also essential to highlight the benefit of regional cooperation, as reconciliation and the resolution of bilateral disputes between Western Balkan countries are preconditions for EU accession, thus contributing to regional stability and peace. However, nationalist narratives still dominate the region, maintaining tensions, with political leaders across the countries of the region exploiting them for domestic political gain. This prevents the population from fully appreciating the benefits of regional cooperation. Nevertheless, regional cooperation achieves its best results in the field of economic integration, which will be discussed further in the next section.

Democratic reforms, rule of law, and functional institutions: The European integration process requires the implementation of fundamental reforms that involve aligning the legal and political systems of Western Balkan countries with those of the European Union, with the aim of strengthening democracy and establishing functional and accountable institutions that serve the citizenry. Western Balkan countries must harmonise their legal systems with EU law, which entails strengthening the rule of law, the independence of the judiciary, freedom of the media, the protection of human and minority rights, combating corruption, and other essential areas.

SOCIAL BENEFITS

Freedom for citizens to travel, live, work, and study in the EU: Full EU membership would grant citizens of Western Balkan countries the right to free movement within the Schengen Area, facilitating travel and offering better business and educational opportunities. European educational programmes like Erasmus+ enable students, young people, and teachers from the Western Balkans to study, gain experience, or train in any EU country. Thanks to the EU integration process and the Berlin Process, in November 2022, Western Balkan leaders signed three agreements in Berlin concerning the freedom of movement with ID cards, the recognition of professional qualifications for doctors, dentists, and architects, and the mutual recognition of educational qualifications within the Western Balkans. This prepares the regional countries for integration into the much larger European market.

Better standard of living: EU membership also brings protection of labour rights, improved working conditions, higher wages, consumer protection, and environmental protection. Furthermore, through the harmonisation of standards with EU regulations, we would benefit from improved social policies and access to higher-quality healthcare. The EU also provides significantly enhanced medical treatments for patients in its member states.

Cultural diversity: The integration of various nationalities within the EU contributes to cultural diversity and strengthens intercultural dialogue, further developing a tolerant political culture within society. The EU encourages the preservation and promotion of the cultural heritage of its member states, which includes safeguarding cultural monuments, traditional customs, languages, and more. Through EU membership, countries of the region would have the opportunity to enhance the protection and promotion of their exceptionally rich cultural heritage.

ECONOMIC BENEFITS

Single market: Since the European Union was initially formed as an economic union, the greatest benefits of the EU integration process lie in the field of economics. The main driving force behind the EU is the single market, where goods, services, people, and capital move freely. The EU integration process allows companies from Western Balkan countries to access the single market and facilitates the export of goods and services, which in turn stimulates economic growth. The annual foreign trade exchange between Western Balkan countries and the EU amounts to approximately EUR 50 billion. The EU integration process of the Western Balkans has so far led to the establishment of a common regional market, which forms the backbone of deeper regional integration and a step towards the EU's single market. At the Western Balkans Summit held in Sofia on 10 November 2020, as part of the Berlin Process, the political leaders of Western Balkan countries supported the creation of a Common Regional Market that enables the free movement of goods, services, capital, and people within the region.

Investments and financial stability: The reforms that the Western Balkan countries must implement to become EU members also involve aligning with EU economic policies, which makes national economies relatively stable and reduces macroeconomic risks. Economic stability, together with political stability, attracts foreign direct investments, which contribute to economic growth and the development of the economy.

Access to EU Funds: By joining the European Union, we gain access to funds dedicated to implementing projects crucial for the region's economic development, such as infrastructure development (building roads, railways, telecommunications, and energy networks), as well as projects in agriculture, environmental protection, and other sectors. These projects also carry social and political benefits, such as enhancing regional cooperation through networking and better connectivity among the peoples of the region due to improved transport links and similar initiatives.

Telephone services without roaming charges: Thanks to the abolition of roaming charges, we can now use telephone services across the EU without additional costs. Within the framework of the Berlin Process, the Roaming Agreement has been implemented, under which roaming charges have been reduced by 86% to 96% across the entire territory of the Western Balkans.^[1]

Growth Plan for the Western Balkans – Implement Reforms and Be Rewarded

When I say that the economic benefits of EU integration are always political as well, I am also referring to the Growth Plan for the Western Balkans for the period 2024-2027, which the European Commission adopted in November 2023. This plan aims to allow the Western Balkans to enjoy certain EU membership benefits even before formally joining the Union. If we were to briefly describe the Growth Plan, it would be as follows: Those who implement the required reforms will receive a financial reward.

Essentially, the goal of the Growth Plan is to support the region's countries in implementing reforms through a new financial instrument worth EUR 6 billion, with particular focus on the Common Regional Market. Consequently, the development of the Common Regional Market could lead to the establishment of lasting peace in the region. The new financial instrument will focus on sectors crucial for socio-economic development, such as energy, the green agenda, digital transition, transport, education, and skills development, with special attention on youth.

The Growth Plan consists of four pillars:

1.  Bringing the Western Balkans Closer to the EU Single Market

Under this pillar, the EU will enable the Western Balkans to access certain areas of the single market before formally joining the Union, provided the region's countries fulfil their obligations within the Common Regional Market, focusing on seven priority areas:

1. Free movement of goods
2. Free movement of services and workers
3. Payments in Euro
4. Simplifying road transport
5. Integration and decarbonisation of energy markets
6. Single digital market
7. Integration into industrial supply chains

2. Strengthening economic integration within the Western Balkans through the Common Regional Market

Strengthening the Common Regional Market is a stepping stone towards the EU's single market if EU rules and standards are adopted and implemented, potentially increasing the GDP of the Western Balkans' economies by 10%.

3. Accelerating fundamental reforms

To qualify for financial support for reforms, the region's countries must prepare a so-called Reform Agenda, a plan of reforms they aim to implement to achieve set goals. The focus is on respecting democratic procedures, including free, fair, and transparent elections, a multi-party parliamentary system, free media, an independent judiciary, and the respect of human and minority rights. It is expected that implementing these reforms will lead to economic growth through attracting investments, strengthen regional cooperation, and help the countries in the region move closer to EU membership.

4. Increasing financial support for reforms through the reform and growth instrument for the Western Balkans 2024-2027

The Growth Plan foresees additional funds beyond those already received under the IPA III pre-accession funds. The Reform and Growth Instrument covers EUR 6 billion, of which EUR 2 billion will be in grants and EUR 4 billion in loans under favourable conditions, with a maturity period of up to 40 years. Beneficiaries will submit requests for payment to the European Commission twice a year, which will evaluate whether the goals and measures defined in the Reform Agenda have been met and will only disburse funds once these criteria are fulfilled.

Although there are many challenges in the European integration process for the Western Balkans, including the need for reforms within the EU itself and the lack of political will among regional leaders to speed up and implement reforms, EU integration remains the main driver of development and stability in the region. All member countries have experienced impressive economic growth after joining the EU, thanks to access to the single European market, with a significant increase in GDP, greatly improving the quality of life for the people. We must not lose hope that one day the citizens of the Western Balkans will experience all the benefits full EU membership brings. It may not be ideal, but it is the most developed political-economic union in the world.

Author: Marko Pantić, Attorney

* This publication was funded by the European Union. Its contents are the sole responsibility of the Center for Democracy Foundation and do not necessarily reflect the views of the European Union.