The European Parliament, the Council of Europe and the European Commission have adopted a decision on the Growth Plan for Western Balkans, respectively a fund that will provide significant financial support to Bosnia and Herzegovina (BiH) and the countries of the Western Balkans on their European journey. Thus, on April 24, 2024, the European Parliament voted the Growth Plan for the Western Balkans, the European Union's most ambitious financial package for our region so far, and 969 million euros were allocated to Bosnia and Herzegovina. When it comes to other countries of the Western Balkans, Serbia was allocated one billion and 630 million euros, Albania 924 million euros, North Macedonia 807 million euros, Kosovo 888 million euros and Montenegro 388 million euros.

The Growth Plan for the Western Balkans is based on 4 pillars:

1)     Strengthening economic integration with the single market of the European Union,

2)     Strengthening economic integration within the Western Balkans through a common regional market, which would enable a 10% growth in their economies,

3)     Accelerating fundamental reforms and

4)     Increased financial aid.

Through accession to the EU single market, the countries of the Western Balkans will be subject to stricter regulations and norms in the field of environmental protection, which will motivate them to adopt sustainable practices and technologies. At the same time, by establishing a common regional market, they will have the opportunity to cooperate on the improvement of infrastructure and to turn to the use of renewable energy sources and the reduction of harmful gas emissions. These measures will be supported by increased financial aid provided by the EU, which will serve as an incentive for the countries of the Western Balkans to move to more sustainable economic models and join the global green transition.

Before accession, the EU will open certain areas of the EU single market for partners from the Western Balkans. The focus will be on the following 7 initial priority areas:

1)     Free movement of goods, 

2)     Free movement of services and workers,

3)     Access to a single payment area in euros,

4)     Facilitating road transport,

5)     Integration and decarbonization of energy markets,

6)     Single digital market and

7)     Integration of Western Balkan companies into industrial supply chains.

Priority areas related to the free movement of goods, services and workers will contribute to strengthening BiH's competitiveness on the EU market because the aim is to create a unique market space that enables the free movement of goods, services, capital and people within the region thus reducing administrative barriers and simplifying operations. The participation of all partners of the Western Balkans in the Convention on Common Transit Procedures and the simplified recognition of professional qualifications, respectively qualifications of citizens of third countries are planned through these areas.

Access to the single euro payment area aims to reduce the costs of cross-border payments for the benefit of consumers and businesses, as an incentive for cross-border trade. When talking about the facilitation of road traffic, the focus is on enabling access of partners from the Western Balkans to relevant EU information systems such as the Internal Market Information System (IMI) and the European Register of Road Transport Undertakings (ERRU), as well as consideration of further facilitation of bilateral transport operations.

The EU's single digital market will allow the countries of the Western Balkans to freely use digital services and trade in digital products and services without barriers, which can improve the competitiveness of small and medium-sized companies in particular, allowing them to more easily access the market and use digital technologies for innovation and growth.

Activities in the area of integration into industrial supply chains will be focused on the development of strategic partnerships for value chains of sustainable raw materials, with a focus on identifying specific joint industrial projects and on the development of strategic partnerships for security of key medicines supply.

The integration and decarbonization of energy markets represents a key aspect of the Plan and offers significant opportunities for the economic progress of BiH. This segment of the plan is aimed at the modernization and improvement of the energy sector in order to create sustainable and efficient energy resources, with an emphasis on encouraging the use of clean energy, reducing harmful gas emissions and creating a climate-neutral economy. This would result in greater energy security, protection of health and environment, as well as in promotion of growth and the EU's world-leading position in the area of industry.

Integration into regional energy markets will provide BiH with access to a larger energy market, which will result in increased revenues and investments in the energy sector. In addition, cooperation with neighbouring countries on the decarbonization of energy markets will contribute to reducing pollution and improving the quality of life of the population.

The implementation of measures to decarbonize the energy sector in BiH paves the way for investments in new technologies and infrastructure, which will stimulate economic growth through the creation of new jobs and increased productivity. In addition, harmonization with European standards in the energy sector will provide BiH with the opportunity to become more competitive on the international market and attract foreign investments.

The comprehensive integration of energy markets will lead to the realization of positive economic and environmental benefits for BiH and ultimately contribute to the long-term sustainable development of the country and its progress on the way to membership in the European Union.

The Growth Plan for Western Balkans is expected to encourage greater investment in BiH, especially in key sectors such as energy and tourism, including road infrastructure, investment in education and support for small and medium-sized enterprises, which could boost economic growth, create new jobs and reduce the unemployment rate.

Improved regional cooperation, strengthening connections with other countries of the Western Balkans and reducing trade barriers will make it easier for Bosnian and Herzegovinian companies to access markets in the region, thus encouraging exports and strengthening the competitiveness of domestic products.

All in all, the Growth Plan for Western Balkans represents an important step towards the economic development of BiH, and its success depends on effective implementation and management. Likewise, this Plan represents a truly rare opportunity for the citizens of BiH to benefit from significant financial resources from the European Union.