EU Commission adopts 9 bln euro investment plan for W. Balkans

The plan sets out a substantial investment package mobilising up to 9 billion euro of funding for the region to support sustainable connectivity, human capital, competitiveness and inclusive growth, and the twin green and digital transition, the EU Commission said in a statement on Tuesday.

Ten investment flagships were identified under the plan to support major road and railway connections in the region, renewable energy and the transition from coal, renovation of public and private buildings to increase the energy efficiency and reduce greenhouse gas emissions, waste and wastewater management infrastructure, as well as the roll-out of broadband infrastructure.

Other flagships include increased investments in the private sector to boost competitiveness and innovation, in particular of small and medium sized companies and a Youth Guarantee, the EU's executive body noted.

"The Plan also offers a path for a successful regional economic integration to help accelerate convergence with the EU and close the development gap between our regions, ultimately speeding up the process of EU integration. This plan should help to transform the Western Balkans into one of the most attractive region for investments in the world. Implementation of course will need to go hand in hand with reforms," Oliver Varhelyi, commissioner for neighbourhood and enlargement, said in the statement.

Better connecting the economies of the Western Balkans within the region and with the EU requires a strong commitment from the Western Balkans to implement fundamental reforms, deepen regional economic integration and develop a common regional market on the basis of the EU acquis in order to make the region a more attractive investment area, the Commission said.

"With the Economic and Investment Plan, we are backing our Enlargement Package assessment with action, providing deep and strong support for economic recovery and reform – for a modern, greener and more prosperous Western Balkans delivering better to their citizens on the road to the EU," Josep Borrell, EU high representative for foreign affairs and security policy, stated.

In addition to the EU's significant grant funding to the region, the union can provide support through the new Western Balkans Guarantee facility, which is expected to mobilise potentially investments of up to 20 billion euro in the next decade.

($ = 0.850258 euro)