{"id":3179550,"date":"2026-07-06T22:24:25","date_gmt":"2026-07-06T22:24:25","guid":{"rendered":"https:\/\/webalkans.eu\/?page_id=3179550"},"modified":"2026-07-10T09:45:34","modified_gmt":"2026-07-10T09:45:34","slug":"competitiveness-and-growth","status":"publish","type":"page","link":"https:\/\/webalkans.eu\/en\/themes\/economy\/competitiveness-and-growth\/","title":{"rendered":"Competitiveness and growth"},"content":{"rendered":"<h1>Competitiveness and growth<\/h1>\n<div>\n<p>A competitive economy in the Western Balkans is good for the region and good for Europe. The EU has long supported economic development in the Western Balkans. Yet big gaps in prosperity between the region and the EU remain.<\/p>\n<\/div>\n<p><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/05\/Competitiveness-and-growth.jpg\" alt=\"Competitiveness and growth\"><\/p>\n<div>\n<p>That\u2019s why the EU is stepping up support with the Economic and Investment Plan. Aligned with EU goals towards a greener and digital future, and backed with large-scale funding, this is the chance to build a more innovative, greener, and fairer economy for the future.<\/p>\n<\/div>\n<div>\n<p>        <img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/05\/Photo-CG-6.jpg\" alt=\"\"><\/p>\n<h3>What are the challenges?<\/h3>\n<div>\n<p>The Western Balkans are closely linked with the EU. The EU is their largest trade partner and investor. Yet despite much progress \u2013 in social and economic development, poverty reduction and improved living standards \u2013 the region\u2019s economies continue to lag behind the EU.<\/p>\n<ul>\n<li>The region faces continued challenges from weak competitiveness, high unemployment and significant brain drain.<\/li>\n<li>Poor governance and limited progress in tackling corruption are also major factors hampering growth.<\/li>\n<li>The COVID-19 pandemic has exacerbated these inequalities. Businesses have closed, jobs cut and livelihoods jeopardised.<\/li>\n<li>According to the World Bank, the region suffered its worst economic downturn on record in 2020. This was a direct result of the devastation brought on by the pandemic, and halted a decade of earlier progress.<\/li>\n<\/ul>\n<p>Working together is vital to closing the gap, limiting social damage, and stimulating the business environment.<\/p>\n<\/div>\n<\/div>\n<div>\n<p>        <img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/05\/How-is-the-EU-responding-1.jpg\" alt=\"\"><\/p>\n<h3>How is the EU responding?<\/h3>\n<div>\n<p>As neighbours and aspiring EU members, the EU is committed to narrowing these inequalities, and building more resilient and competitive economies in the Western Balkans.<\/p>\n<p>This means supporting the necessary reforms required to align with EU standards, while also providing funding and investment to reduce the development gap and make the economies more competitive. Collaboration is at the heart of this support.<\/p>\n<p>Working with governments, private companies and banks in the region, as well with International Financial Institutions (IFIs) and Development Finance Institutions (DFI) of EU member states, the EU has been supporting economic development for decades \u2013 through large-scale investment in transport and energy infrastructure projects, the private sector, innovation, and research, education, and much more.<\/p>\n<\/div>\n<\/div>\n<div>\n<h3>The EU accounts for 70% of total trade of the Western Balkan region<\/h3>\n<\/div>\n<div>\n<h3>EU companies account for 65% of Foreign Direct Investment in the Western Balkans<\/h3>\n<\/div>\n<div>*Results for period 2015 to 2020 (Western Balkans Investment Framework)<\/div>\n<h2>Ongoing support<\/h2>\n<div>The EU\u2019s <a href=\"https:\/\/ec.europa.eu\/neighbourhood-enlargement\/sites\/default\/files\/communication_on_wb_economic_and_investment_plan_october_2020_en.pdf\">Economic and Investment Plan for the Western Balkans<\/a> (EIP) takes this to another level. This will bring up to \u20ac9 billion in grant funding for investment in sustainable transport, clean energy, the green and digital transition, competitiveness of the private sector and skills.<\/div>\n<div>The EIP also introduces the creation of a Western Balkans Guarantee, expected to boost the investment capacity of the region \u2013 with the ambition to raise potentially up to \u20ac20 billion in investment across all priorities.<\/div>\n<ul>\n<li>\n<h3>Sustainable transport<\/h3>\n<div>Extending Trans-European Transport Network (TEN-T), with the aim of bringing the core network up to EU standards, promoting greener transport options, and creating stronger links in the region and with the EU.<\/div>\n<\/li>\n<li>\n<h3>Clean energy<\/h3>\n<div>Increasing the share of renewables in the energy mix, decarbonising energy systems and stepping up energy efficiency-in line with the EU\u2019s long-term ambition of achieving carbon neutrality by 2050.<\/div>\n<\/li>\n<li>\n<h3>Environment and climate<\/h3>\n<div>Large-scale support for the green transition, decarbonisation, depollution of air, water and soil, circular economy and promoting biodiversity, urban mobility and green transport solutions \u2013 in line with the EU Green Deal priorities.<\/div>\n<\/li>\n<li>\n<h3>Digital economy<\/h3>\n<div>Increasing support to deployment of broadband infrastructure, with a focus on connecting rural areas, as well as to digital skills and promoting cooperation in digital education.<\/div>\n<\/li>\n<li>\n<h3>Private sector and business<\/h3>\n<div>Strengthening the competitiveness of micro and SMEs in strategic sectors, while stimulating innovation and transition to the \u2018green\u2019 economy.<\/div>\n<\/li>\n<li>\n<h3>Education and skills<\/h3>\n<div>Stepping up support to high quality education and training systems, employment, health and social protection, with a particular focus on helping employment opportunities for young people and women, vulnerable groups and minorities, in particular Roma<\/div>\n<\/li>\n<\/ul>\n<h2>Stories about Competitiveness and growth<\/h2>\n<div>Real People, True Stories<\/div>\n<div>\n<\/div>\n<h2>Latest news<\/h2>\n<div>\n<\/div>\n<h2>Publications<\/h2>\n<div>\n<\/div>\n<h2>KEY CONTACTS AND PARTNERS<\/h2>\n<ul>\n<li>\n<p><a href=\"https:\/\/www.afd.fr\/en\">Agence fran\u00e7aise de d\u00e9veloppement<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/coebank.org\/en\/\">Council of Europe Development Bank<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.ebrd.com\/home\">European Bank for Reconstruction and Development<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.eib.org\/en\/index.htm\">European Investment Bank<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.eif.org\/what_we_do\/resources\/wbedif\/index.htm?lang=-en\">European Investment Fund<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.kfw-entwicklungsbank.de\/International-financing\/KfW-Development-Bank\/Topics\/Digitalisation\/\">KfW Development Bank<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"http:\/\/www.wbedif.eu\/\">Western Balkans Enterprise Development and Innovation Facility<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.wbif.eu\/\">Western Balkans Investment Framework<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.worldbank.org\/en\/about\">World Bank Group (including IFC)<\/a><\/p>\n<\/li>\n<\/ul>\n<p><!--more--><br \/>\n<!-- {\"type\":\"layout\",\"children\":[{\"type\":\"section\",\"name\":\"Title\",\"props\":{\"image_position\":\"center-center\",\"padding_top\":\"none\",\"style\":\"default\",\"title_breakpoint\":\"xl\",\"title_position\":\"top-left\",\"title_rotation\":\"left\",\"vertical_align\":\"middle\",\"width\":\"\"},\"children\":[{\"type\":\"row\",\"children\":[{\"type\":\"column\",\"props\":{\"background_color_gradient\":\"linear-gradient(to bottom, white 50%, #e9edff 50%)\",\"image_position\":\"center-center\",\"position_sticky_breakpoint\":\"m\"},\"children\":[{\"type\":\"headline\",\"props\":{\"class\":\"uppercase\",\"content\":\"Competitiveness and growth\",\"image_align\":\"left\",\"image_margin\":\"xsmall\",\"text_align\":\"center\",\"title_element\":\"h1\",\"title_style\":\"heading-small\"}},{\"type\":\"text\",\"props\":{\"block_align\":\"center\",\"column_breakpoint\":\"m\",\"content\":\"\n\n<p>A competitive economy in the Western Balkans is good for the region and good for Europe. The EU has long supported economic development in the Western Balkans. Yet big gaps in prosperity between the region and the EU remain.<\/p>\n\n\",\"margin_bottom\":\"large\",\"margin_top\":\"default\",\"maxwidth\":\"2xlarge\",\"text_align\":\"center\",\"text_style\":\"lead\"}},{\"type\":\"image\",\"props\":{\"block_align\":\"center\",\"image\":\"\/wp-content\/uploads\/2021\/05\/Competitiveness-and-growth.jpg\",\"image_alt\":\"Competitiveness and growth\",\"image_border\":\"rounded\",\"image_svg_color\":\"emphasis\",\"image_width\":1240,\"margin_bottom\":\"default\",\"margin_top\":\"default\",\"text_align\":\"center\"}},{\"type\":\"text\",\"props\":{\"block_align\":\"center\",\"column_breakpoint\":\"m\",\"content\":\"\n\n<p>That\u2019s why the EU is stepping up support with the Economic and Investment Plan. Aligned with EU goals towards a greener and digital future, and backed with large-scale funding, this is the chance to build a more innovative, greener, and fairer economy for the future.<\/p>\n\n\",\"margin_bottom\":\"default\",\"margin_top\":\"default\",\"maxwidth\":\"2xlarge\",\"text_align\":\"center\",\"text_style\":\"lead\"}}]}]}]},{\"type\":\"section\",\"name\":\"WHAT ARE THE CHALLENGES?\",\"props\":{\"image_position\":\"center-center\",\"style\":\"default\",\"title_breakpoint\":\"xl\",\"title_position\":\"top-left\",\"title_rotation\":\"left\",\"vertical_align\":\"middle\",\"width\":\"large\"},\"children\":[{\"type\":\"row\",\"children\":[{\"type\":\"column\",\"props\":{\"image_position\":\"center-center\",\"position_sticky_breakpoint\":\"m\"},\"children\":[{\"type\":\"panel\",\"props\":{\"content\":\"\n\n<p>The Western Balkans are closely linked with the EU. The EU is their largest trade partner and investor. Yet despite much progress \u2013 in social and economic development, poverty reduction and improved living standards \u2013 the region\u2019s economies continue to lag behind the EU.<\/p>\n\n\n\n<ul>\n\n<li>The region faces continued challenges from weak competitiveness, high unemployment and significant brain drain.<\/li>\n\n\n\n<li>Poor governance and limited progress in tackling corruption are also major factors hampering growth.<\/li>\n\n\n\n<li>The COVID-19 pandemic has exacerbated these inequalities. Businesses have closed, jobs cut and livelihoods jeopardised.<\/li>\n\n\n\n<li>According to the World Bank, the region suffered its worst economic downturn on record in 2020. This was a direct result of the devastation brought on by the pandemic, and halted a decade of earlier progress.<\/li>\n\n<\/ul>\n\n\n\n<p>Working together is vital to closing the gap, limiting social damage, and stimulating the business environment.<\/p>\n\n\",\"content_column_breakpoint\":\"m\",\"image\":\"\/wp-content\/uploads\/2021\/05\/Photo-CG-6.jpg\",\"image_align\":\"right\",\"image_border\":\"rounded\",\"image_grid_breakpoint\":\"m\",\"image_grid_width\":\"1-2\",\"image_height\":1000,\"image_svg_color\":\"emphasis\",\"image_width\":1000,\"link_style\":\"default\",\"link_text\":\"Read more\",\"margin_bottom\":\"default\",\"margin_top\":\"default\",\"meta_align\":\"below-title\",\"meta_element\":\"div\",\"meta_style\":\"text-meta\",\"panel_padding\":\"small\",\"panel_style\":\"tile-default\",\"title\":\"What are the challenges?\",\"title_align\":\"top\",\"title_element\":\"h3\",\"title_grid_breakpoint\":\"m\",\"title_grid_width\":\"1-2\",\"title_hover_style\":\"reset\",\"title_style\":\"h2\"}}]}]}]},{\"type\":\"section\",\"name\":\"HOW IS THE EU RESPONDING?\",\"props\":{\"image_position\":\"center-center\",\"style\":\"default\",\"title_breakpoint\":\"xl\",\"title_position\":\"top-left\",\"title_rotation\":\"left\",\"vertical_align\":\"middle\",\"width\":\"large\"},\"children\":[{\"type\":\"row\",\"children\":[{\"type\":\"column\",\"props\":{\"image_position\":\"center-center\",\"position_sticky_breakpoint\":\"m\"},\"children\":[{\"type\":\"panel\",\"props\":{\"content\":\"\n\n<p>As neighbours and aspiring EU members, the EU is committed to narrowing these inequalities, and building more resilient and competitive economies in the Western Balkans.<\/p>\n\n\n\n<p>This means supporting the necessary reforms required to align with EU standards, while also providing funding and investment to reduce the development gap and make the economies more competitive. Collaboration is at the heart of this support.<\/p>\n\n\n\n<p>Working with governments, private companies and banks in the region, as well with International Financial Institutions (IFIs) and Development Finance Institutions (DFI) of EU member states, the EU has been supporting economic development for decades \u2013 through large-scale investment in transport and energy infrastructure projects, the private sector, innovation, and research, education, and much more.<\/p>\n\n\",\"content_column_breakpoint\":\"m\",\"image\":\"\/wp-content\/uploads\/2021\/05\/How-is-the-EU-responding-1.jpg\",\"image_align\":\"left\",\"image_border\":\"rounded\",\"image_grid_breakpoint\":\"m\",\"image_grid_width\":\"1-2\",\"image_height\":1000,\"image_svg_color\":\"emphasis\",\"image_width\":1000,\"link_style\":\"default\",\"link_text\":\"Read more\",\"margin_bottom\":\"default\",\"margin_top\":\"default\",\"meta_align\":\"below-title\",\"meta_element\":\"div\",\"meta_style\":\"text-meta\",\"panel_padding\":\"small\",\"panel_style\":\"tile-default\",\"title\":\"How is the EU responding?\",\"title_align\":\"top\",\"title_element\":\"h3\",\"title_grid_breakpoint\":\"m\",\"title_grid_width\":\"1-2\",\"title_hover_style\":\"reset\",\"title_style\":\"h2\"}}]}]}]},{\"type\":\"section\",\"name\":\"KEY FACTS\",\"props\":{\"image_position\":\"center-center\",\"style\":\"secondary\",\"title_breakpoint\":\"xl\",\"title_position\":\"top-left\",\"title_rotation\":\"left\",\"vertical_align\":\"middle\",\"width\":\"large\"},\"children\":[{\"type\":\"row\",\"props\":{\"column_gap\":\"medium\",\"layout\":\"1-2,1-2\",\"row_gap\":\"medium\"},\"children\":[{\"type\":\"column\",\"props\":{\"image_position\":\"center-center\",\"position_sticky_breakpoint\":\"m\",\"width_medium\":\"1-2\"},\"children\":[{\"type\":\"panel\",\"props\":{\"content_column_breakpoint\":\"m\",\"image\":\"\",\"image_align\":\"top\",\"image_grid_breakpoint\":\"m\",\"image_grid_width\":\"1-2\",\"image_svg_color\":\"emphasis\",\"image_svg_inline\":true,\"link_style\":\"default\",\"link_text\":\"Read more\",\"margin_bottom\":\"default\",\"margin_top\":\"default\",\"meta_align\":\"below-title\",\"meta_element\":\"div\",\"meta_style\":\"text-meta\",\"panel_padding\":\"large\",\"panel_style\":\"card-secondary\",\"text_align\":\"center\",\"title\":\"The EU accounts for 70% of total trade of the Western Balkan region\",\"title_align\":\"top\",\"title_element\":\"h3\",\"title_grid_breakpoint\":\"m\",\"title_grid_width\":\"1-2\",\"title_hover_style\":\"reset\",\"title_style\":\"h3\"}}]},{\"type\":\"column\",\"props\":{\"image_position\":\"center-center\",\"position_sticky_breakpoint\":\"m\",\"width_medium\":\"1-2\"},\"children\":[{\"type\":\"panel\",\"props\":{\"content_column_breakpoint\":\"m\",\"image\":\"\",\"image_align\":\"top\",\"image_grid_breakpoint\":\"m\",\"image_grid_width\":\"1-2\",\"image_svg_color\":\"emphasis\",\"image_svg_inline\":true,\"link_style\":\"default\",\"link_text\":\"Read more\",\"margin_bottom\":\"default\",\"margin_top\":\"default\",\"meta_align\":\"below-title\",\"meta_element\":\"div\",\"meta_style\":\"text-meta\",\"panel_padding\":\"large\",\"panel_style\":\"card-secondary\",\"text_align\":\"center\",\"title\":\"EU companies account for 65% of Foreign Direct Investment in the Western Balkans\",\"title_align\":\"top\",\"title_element\":\"h3\",\"title_grid_breakpoint\":\"m\",\"title_grid_width\":\"1-2\",\"title_hover_style\":\"reset\",\"title_style\":\"h3\"}}]}]},{\"type\":\"row\",\"children\":[{\"type\":\"column\",\"props\":{\"image_position\":\"center-center\",\"position_sticky_breakpoint\":\"m\"},\"children\":[{\"type\":\"text\",\"props\":{\"block_align\":\"center\",\"column_breakpoint\":\"m\",\"content\":\"*Results for period 2015 to 2020 (Western Balkans Investment Framework)\",\"margin_bottom\":\"default\",\"margin_top\":\"default\",\"maxwidth\":\"2xlarge\",\"text_align\":\"center\",\"text_style\":\"meta\"}}]}]}]},{\"type\":\"section\",\"name\":\"ONGOING SUPPORT\",\"props\":{\"image_position\":\"center-center\",\"style\":\"muted\",\"title_breakpoint\":\"xl\",\"title_position\":\"top-left\",\"title_rotation\":\"left\",\"vertical_align\":\"middle\",\"width\":\"large\"},\"children\":[{\"type\":\"row\",\"children\":[{\"type\":\"column\",\"props\":{\"image_position\":\"center-center\",\"position_sticky_breakpoint\":\"m\"},\"children\":[{\"type\":\"headline\",\"props\":{\"content\":\"Ongoing support\",\"image_align\":\"left\",\"image_margin\":\"xsmall\",\"title_element\":\"h2\",\"title_style\":\"h2\"}},{\"type\":\"text\",\"props\":{\"column_breakpoint\":\"m\",\"content\":\"The EU\u2019s <a href=\\\"https:\/\/ec.europa.eu\/neighbourhood-enlargement\/sites\/default\/files\/communication_on_wb_economic_and_investment_plan_october_2020_en.pdf\\\">Economic and Investment Plan for the Western Balkans<\/a> (EIP) takes this to another level. This will bring up to \u20ac9 billion in grant funding for investment in sustainable transport, clean energy, the green and digital transition, competitiveness of the private sector and skills.\",\"margin_bottom\":\"default\",\"margin_top\":\"default\"}},{\"type\":\"text\",\"props\":{\"column_breakpoint\":\"m\",\"content\":\"The EIP also introduces the creation of a Western Balkans Guarantee, expected to boost the investment capacity of the region \u2013 with the ambition to raise potentially up to \u20ac20 billion in investment across all 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