At Europe’s doorstep: the Eastern Partnership and Western Balkans

Digital panel discussion with Charlotte Ruhe, Managing Director, Central and South Eastern Europe, European Bank for Reconstruction and Development (EBRD); Giorgi Badridze, Senior Fellow, Georgian Foundation for Strategic and International Studies (GFSIS); and Tom White, Director, Global Counsel.

Highlights from the discussion:

• The European Union (EU) remains the main yardstick for political and economic reforms for both Western Balkans (WB) and Eastern Partnership (EaP) countries. This results in similar strategies to attract inward investment by improving business environment through introducing EU acquis, cutting red tape and corruption. Work remains to be done especially on the rule of law side in the WB, where the commitment of governments to move ahead is essential. Some EaP countries also worked at aligning their rules and standards with the EU, however, this and the trade agreements with the EU have not transformed automatically to more intensive trade and investment relations. The EU could reciprocate by offering membership prospects for EaP – even if distant – or at the minimum, reinvigorating trade and investment links. Notwithstanding significant investment from the EU, EBRD and EIB, they are not the only actors interested in these countries. Specific historical, cultural, geopolitical and of course business considerations result in Russia, China, Turkey and to a lesser extent the US having a growing presence often focused on a certain sector or business deal.

• EU interest in the WB is primarily led by political considerations, but since the region sits geographically inside the EU completing energy and transport corridors across the region is a clear priority. Other priority sectors for investment include manufacturing, pharma, mining, renewable energy (also to comply with incoming CBAM regulations), technology and tourism. Recreating historically existing regional cooperation of the 18 million people would provide increased opportunities inside the region and to connect these markets with EU markets, but should include all six countries. Certain disappointment with slow EU membership negotiations can be felt throughout the region, but all in all the population and the civil society remains hopeful.

• Immediate neighbours of the EU in the EaP, such as Ukraine and Belarus, provide immense challenges in a geopolitical sense, while the South Caucasus is a missed opportunity so far. The EU’s reach to Central Asian and Caspian energy resources and raw materials is limited, while some EaP countries, such as Georgia and Azerbaijan, could provide a natural gateway. Green energy potential is present in the region, Georgia has excellent prospects for hydro energy.