Western Balkans will divide over regional market idea

Significance

They have backed it with EUR9bn (USD10.5bn) in EU grants to develop cross-border infrastructure. In parallel, academics and think tanks, most recently the Vienna Institute for International Economic Studies, have been promoting the idea of regional economic integration.

Impacts

• The Commission is promoting deeper regional economic integration as a preparation for the EU single market.
• The World Bank estimates that eliminating regional customs barriers would save 30 million man-hours a year and save exporters USD3.2bn.
• Tensions may rise among non-Serb majorities in Bosnia, Kosovo and Montenegro, which have large Serb minority populations.