CHAIR’S CONCLUSIONS 

MEETING OF THE WESTERN BALKANS SIX (WB6) DEPUTY PRIME MINISTERS AND MINISTERS OF EUROPEAN INTEGRATION 

28th February 2024

Deputy Prime Ministers and Ministers of European Integration of Western Balkans (WB6), representatives of the European Union, and other partners met on 28th February 2024, in Tirana, to discuss the Growth Plan for the Western Balkans.

Deputy Prime Ministers and Ministers (WB6) welcomed the proposal of the European Commission in November 2023 for a new Growth Plan for the Western Balkans, to extend the benefits of European Union Single Market to the region before formal accession to the EU, with the goal of stimulating potentially the doubling of economic growth and speeding up the much-needed socio-economic convergence with the EU.

As a side event of the Leaders Regional Summit on Growth and Convergence, which will be held on 29th February 2024, in Tirana, Deputy Prime Ministers and Ministers for European Integration discussed the design of Roadmap (timelines) on priority actions of Pillar 1 and the Reform Agenda’s (Pillar 3 and 4) and reflected on the opportunities, priorities, and main challenges in the implementation of new Growth Plan.

Deputy Prime Ministers and Ministers (WB6) emphasized the importance of regional cooperation in the Western Balkans in the framework of the new Growth Plan and called for further phasing in and accelerated integration to individual EU programs and policies, as defined in the EU accession negotiations’ methodology. 

They expressed strong support for further economic alignment of the Western Balkans with the EU Single Market, through the EU enlargement process, as mutually beneficial for the region and for the EU. 

Building on the contributions of the high level Conference, organized on 22nd January 2024  in Skopje and informal meeting of Ministers for European Integration and the European Commission, organized in Tirana on 12th February 2024, the participants took stock of the progress marked  in the framework of the Growth Plan (Pillar 1, in particular), ongoing challenges, and prospects for regional cooperation in the Western Balkans as a steppingstone towards the gradual integration of the region in the EU policies, mechanisms, institutional bodies and instruments.

Deputy Prime Ministers and Ministers (WB6) welcomed the Commission’s decision to open the call on the Critical Medicines Alliance to Western Balkans stakeholders from industry and civil society.

Deputy Prime Ministers and Ministers (WB6) emphasized the importance of joining the region in other EU instruments, forums, and committees and voiced to the European Commission their interest to accelerate their participation, amongst other, by also providing the Western Balkans with Commission’s support and assistance on furthering progress with comitology, in the context of accelerated integration.  This is the only way for Western Balkans to transfer institutional know-how from the EU, and to build up the necessary institutional infrastructure to the benefit of our citizens and businesses.

Deputy Prime Ministers and Ministers (WB6) voiced their interest in establishing a core team from the European Commission and Western Balkans to collaborate closer for the implementation of the Growth Plan and especially the 7 priorities of pillar 1 on “Strengthening economic integration with the EU’s single market”.

Individual reform agendas within the Reform and Growth Facility have revealed the need to enhance administrative capacity. Deputy Prime Ministers and Ministers (WB6) call for technical assistance from the European Commission that will help Western Balkans to manage and deliver the Growth Plan Facility as well as for the development of a communication and outreach initiative on the Growth Plan and the Facility.

Deputy Prime Ministers and Ministers (WB6) expressed the need to bridge the socio-economic gap and enhance convergence between the Western Balkans and the European Union. They voiced their interest in stepping up cooperation among themselves and with the EU on several policy areas, such as the Single Euro Payments Area (SEPA), green lanes and facilitating trade and transport, and digitalization, as first priority actions lines out of Pillar 1, during 2024, and also flagged some other potential areas of intensifying preparatory work and talk in the upcoming regional meetings as the continuing design of the next Trade and Transport Facilitation Program (2.0), digital wallet, geo-blocking, and critical raw materials and critical medicine industrial value chain partnerships, etc.

 

1. Single Euro Payments Area (SEPA)

Deputy Prime Ministers and Ministers (WB6) recognize the critical role of payment systems for the functioning of markets. Cost and time-efficient payments make trade cheaper and allow competitive firms to grow and offer consumers easier access to goods and services. 

A sound and efficient payment system supports the development of financial intermediation, the deepening of financial markets and enhancement of financial stability thus creating a climate in which investors can expand their businesses. 

Deputy Prime Ministers and Ministers (WB6) emphasized the importance of joining the Single Euro Payments Area (SEPA) to facilitate cross-border cashless payments where euro is used, by harmonizing payment processing and allowing people doing business across borders in euros, with the same ease as domestic transactions within the members of SEPA. Opening SEPA for non-EU members represents a unique opportunity for the Western Balkans to significantly reduce costs of payments within the region and with the EU.

Deputy Prime Ministers and Ministers (WB6) highlighted the importance of design and implement a clear action plan, by each WB6, in cooperation with EC and EPC, to advance with the fulfilment of the SEPA requirements, with the aim to apply to join SEPA within 2024.

 

2. Trade and Transport Facilitation

Deputy Prime Ministers and Ministers (WB6) expressed full support for the Joint Transport Community-CEFTA Declaration on ‘Taking forward the Green Lanes” issued at the Connectivity Summit in Budva on 15 and 16 May, and the follow-up work on the Roadmap for Green Lanes and coordinated controls at the EU-Western Balkans border crossing points.

Deputy Prime Ministers and Ministers (WB6) express appreciation for the support the European Commission is currently providing us with in relevant areas, of EUR 135 million in grants for the period 2020-2028, for regional actions related to authorized economic operators and quality infrastructure to modernization of border crossings and custom cooperation, mainly in the form of technical assistance, advisory services and facilitation etc. and commit to steer further support with countries public institutions on the current related actions/initiatives.

Deputy Prime Ministers and Ministers (WB6) emphasized the importance of enhancing trade facilitation efforts on the part of the European Commission, the Transport Community and CEFTA and countries public institutions. This includes efforts to reduce long waiting times at key border/common crossing points with the EU Member States, time and cost spent on import and export processes, uncertainty about transit times undermining competitiveness of exports, and difficulties for Western Balkans companies to demonstrate the quality of their products and compliance with EU standards.

Deputy Prime Ministers and Ministers (WB6) called for complementary approach among EU, Western Balkans and development partners and expressed support to establish a Regional Program for Trade and Transport Facilitation (2.0), in collaboration with the World Bank, Transport Community, CEFTA and RCC, in the context of the framework of the Roadmap for Green Lanes, to enable convergence of the Western Balkans to the EU single market by reducing trade barriers and costs and improving transport efficiency between the Western Balkans and EU. The programme should take into account the on-going actions undertaken within the Common Regional Market and by the Transport Community and identify gaps, in particular with regards to future investments where the knowledge and simultaneous regionally spread investment capabilities of the World Bank may be most beneficial.   

The program may focus on:

• Supporting improvements in border and corridor efficiency through: (a) investing in priority border crossing points; (b) supporting second generation trade facilitation reforms to align with EU procedures.
• Strengthening market competitiveness through: (a) investing in improving quality systems for exports to meet EU market standards; (b) improving transport logistics performance.
• Investments in trade and transport facilitation to support and capitalize on policy and regulatory reforms.

The Program should aim to cover actions in WB6 and EU member states bordering countries and build on growth gains across.

 

3. Extending EU Digital Initiatives to Western Balkans

Deputy Prime Ministers and Ministers (WB6) agreed that in the framework of the Growth Plan, Pillar 1 “Strengthening economic integration with the EU’s Single Market”, EU should provide access to EU initiatives to bring citizens and businesses of the Western Balkans closer to the EU Single Market.

Participants agreed to work together for joint initiatives inspired from the success of current EU initiatives in digital transformation as:

• Digital Innovation Hubs Network in Western Balkans

Deputy Prime Ministers and Ministers (WB6) agreed to support the establishment of the Innovation Hubs Network in Western Balkans (facilitating companies and public institutions) in the framework of the Digital Europe Program’s call “Network of European Digital Innovation Hubs-Associated Countries”. 

This initiative aims to:

• Set-up the Initial Network of European Digital Innovation Hubs (EDIH) from all designated candidate entities resulting from the Expression of Interest. 
• Upgrade these entities to provide the complete set of services of an EDIH, including the necessary infrastructure, in a specific geographical area, covering the needs of the local SMEs, small mid-caps and/or public sector organizations with respect to their digital transformation. 
• Each EDIH will provide services based on a specific focus/expertise, which will support the local private and public sector with their digital and green transformation.

 

• Wi-Fi for Western Balkans 

 

Recognizing the success of the WiFi4EU initiative, as part of the European Commission’s Digital Single Market strategy, which has provided support to thousands EU Municipalities by supporting the provision of free public wireless internet around the main centres of public life, powering also digital services in relevant sectors, Deputy Prime Ministers and Ministers (WB6)  called on actions to implement such initiative which has been extended already to the Western Balkans by the European Commission. 

This initiative is expected to start to be applied in Wester Balkans similarly to the WiFi4EU implemented in EU Member States, within 2024. The Wi-Fi for Western Balkans may work through vouchers awarded to applicant Municipalities as a streamlined funding scheme covering the equipment and installation costs of Wi-Fi access points. 

Deputy Prime Ministers and Ministers (WB6) endorse, broadly, the 4 timeline fiches of joint actions on the above, presented by the European Commission, and committee to steer the work related there in with countries relevant public institutions.

Deputy Prime Ministers and Ministers (WB6) recognize that the economic integration is the only way in which the Western Balkans economies can reach their full potential. Economic integration can facilitate access to a larger consumer base, a greater pool of qualified and skilled workers, additional sources of financing, and new technologies. A larger market means more opportunities for local firms, but also means more incentives to innovate and enhance competitiveness.

Looking into the future, Deputy Prime Ministers and Ministers (WB6) agree to continue the good practice started on collaboration within themselves and the EU. They voiced their interest in stepping up this cooperation in the upcoming meeting, in Montenegro, to discuss on other policy areas as: deepening the trade and transport initiative, Geo-blocking, digital wallet, critical raw materials and critical medicines etc.