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Britain's decision to leave the European Union has unleashed volatility on the global markets, and SEE is no exception. The full impacts of the vote are still impossible to predict but for once analysts seem unanimous that the balance would be negative for most of us. However, whereas EU members in the region are mostly concerned about the economic repercussions of a potential Brexit, for candidates to join the bloc the biggest fears are that it may thwart their accession plans.

Macedonia held early election in December as part of a EU-brokered deal that aimed to resolve a protracted political crisis. The crisis began in January 2015, when SDSM's leader Zoran Zaev, then in opposition, accused the coalition government of VMRO-DPMNE and DUI of corruption, illegal wiretapping of more than 20,000 people and covering-up a murder. The conservative VMRO-DPMNE won a close victory against SDSM in the election, but failed to agree with ethnic Albanian party DUI on the formation of a coalition government after talks stumbled over the official use of Albanian language in the country, among other issues.

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In 2013 Chinese president Xi Jinping unveiled the One Belt and One Road Initiative - a development strategy under which China plans to invest hundreds of billions of euro in other countries in Asia and in Europe in a bid to strengthen its role in global affairs. The initiative, which later became populat as the Belt and Road Initiative (BRI) focuses on projects in transport infrastructure, energy, iron and steel. Countries in SEE fall within the strategy's scope, with Serbia attracting the most generous share of Chinese investments.

The eletricity market of Southeast Europe is heating up after earlier in 2016 day-ahead power exchanges were launched in Bulgaria, Croatia and Serbia, opening up new opportunities for energy producers, consumers and traders. As a step towards achieving market coupling, in April the power transmission system operators, regulators and energy ministers of six countries in the Western Balkans signed a memorandum of understanding on the integration of their day-ahead markets.

The coronavirus infection reached Southeast Europe (SEE) at the end of February, as the first case was reported in Croatia on February 25. By mid-March the number of confirmed Covid-19 cases in the region was approaching 1,000 and most countries had declared a state of emergency. Restaurants and shops, with the exception of pharmacies and food stores, had pulled down their shutters and air carriers had cancelled most of their flights. As countries closed their borders, supply chains and relations with clients on foreign markets were disrupted. A drop in orders forced companies to cut production and warn that they may need to lay off staff. The sectors most exposed to China were the first to take the blow but as the disease went global, its impact could be seen across the board, fueling fears about an impending economic slowdown.

The EU’s slow and disjointed response to the massive flow of refugees and migrants from the Middle East and North Africa left Southeast Europe in an unprecedented emergency. In March Slovenia sealed its borders to migrants, triggering a domino effect further south along the so called Balkan migrant route with Croatia, Serbia and Macedonia following suit. The move led to tension on the Greek-Macedonian border where thousands remained trapped, and put Bulgaria under increased pressure from illegal migrants.

On December 11, Romania held parliamentary elections following a year of technocrat governance. Romania's left-wing Social Democrat Party (PSD), won the elections and will have 221 seats of a total of 465 in the two houses of parliament. In order to have majority and have the right to choose the new prime-minister, PSD must make a coalition or attract 11 members from the other parties that entered parliament.

Moldova will hold its first direct presidential elections in 16 years, as in March, its Constitutional Court ruled that the president will be elected by popular vote. So far, Moldova's president was elected for a four-year term by a majority of 60% of the MPs in the 101-seat parliament. The expected fight between socialist leader Igor Dodon and pro-European candidate Maia Sandu in round two of elections once again shows Moldova at its eternal crossroad between Europe integration and the more familiar Russian alternative.