New opportunities to "bring the EU home" opened up last week with the announcement by the President of the European Commission, Ursula von der Leyen, of the new plan for bringing the countries of the Western Balkans closer to the European Union and their economic support. The plan can be understood as a helping hand to the countries of the region, whose accession process over the years was accompanied by a number of challenges. As Von der Leyen herself pointed out at the GLOBSEC forum in Bratislava - "the new approach of the EU is not only to ask the partners to take a step towards the EU, but also for the EU to take a big step towards them, and the common goal is to speed up the process ".

Judging by the announcement, the plan is to feel part of the Union through more benefits for the countries of the Western Balkans and their economies. This is a very encouraging message, especially in a specific period, when a war is being waged on European soil, EU-optimism in the region varies, and at the national level we are facing a political re-networking. At the same time, we are all exhausted by the several successive global economic crises that have occurred in the past three years. The positive momentum should be used, both from the point of view of the accession process to the Union, and from the point of view of "bringing the EU home", reforms and the possibility of enjoying the benefits of membership even before we become members.

Four pillars for the development of the Western Balkans

According to the announcement of the president of the EC, the new initiative to support the countries of the Western Balkans and their approach to the European Union is based on four pillars: 1) Approach to the EU single market, 2) Regional economic integration, 3) Acceleration of fundamental reforms and 4) Stimulating economic growth by increasing access funds. The announced package has a really wide scope and the economic benefits of it are manifold.

The countries from the Western Balkans will have the opportunity much earlier to feel the benefits of the main driver of the economic success of the Union - the common market. Most likely, the announced approach will refer to one of its larger segments, that is, the digital single market, which refers to the exchange of goods and services through digital channels. It includes areas such as e-commerce, cyber-security and facilitation of payment services and trade in goods. A common regional market can help speed up the process of accession to the EU, but also regional economic integration is essential for unlocking the region's enormous economic potential and making it more attractive to foreign investors.

The same is the case with the pre-accession reforms, because the rule of law and an efficient and credible judiciary are a positive signal for foreign investors, while the green transition and ensuring energy sustainability are key to stability and sustainable growth. Investment growth in the region is urgently needed, which will raise the standard of living and help in getting closer to the EU. As mentioned, an increase in pre-accession funds for the countries of the Western Balkans is planned, which will stimulate economic activity and create additional fiscal space.

The EU plan and the national plan for accelerating growth

Eurointegrations are my constant inspiration as an author as well. I have reviewed many times, both through economic theory and through empirical analyses, the benefits of the common European market, the importance of membership for foreign investors, the encouragement of the competitiveness of domestic companies, the improvement of the conditions for conducting business, the importance of pre-accession funds for the economy and living conditions, etc. "Bringing Europe home" has always been the axiom by which I have been guided and advocated in the creation and implementation of policies, keeping in mind the ultimate goal of integrations, which is to ensure economic progress and well-being for our citizens.

Our Plan for Acceleration of Economic Growth, which is based on the same premises and has the same goal, is in this direction. With this in mind, and intrigued by the newly presented EU plan for the Western Balkans, I have dedicated this column to a comparative analysis of the two plans and the strategy they should implement, as well as the synergy that can result from the further implementation of the national and European development plan.

First of all, if we analyze the structure of the EU plan, it is aimed at economic strengthening and connecting the region, improving the competitiveness of economies and increasing investments. If you look at the National Growth Acceleration Plan, you can conclude that a large part of the structure is the same, as well as the goals. Through the implementation of the two plans, the support of the European Union and the clear perspective for the ultimate goal, "bringing Europe home", that is, providing well-being for the citizens, will not be missing.

Economic connectivity and the single market

Undoubtedly the biggest benefit and driver of the economic development of the EU is the single market of half a billion consumers, through which the EU has become a trading superpower. The single market of the EU allows free movement of goods, services, citizens and capital, without customs duties, quotas and visas and free transfer of capital for individuals and legal entities. The common market sets common values ​​and standards, helps firms grow and supports innovation.

The common market requires everyone to produce according to the same rules and standards, which creates consumer confidence in the quality of the products, as well as confidence in the production process from the aspect of preserving workers' rights and from the aspect of environmental protection. On the other hand, the single market is a chance for companies, especially small companies, to attract new customers and investments, in order to grow further.

This is also very significant from the point of view of supply chains that allow easier access to new suppliers. At the same time, the single market is part of the response to global problems, such as climate change, through the development of a circular economy and taking advantage of the benefits of the digital revolution, as well as innovative solutions.

David Ricardo's theory of comparative advantages states that everyone should produce what they have comparative advantages for, so that through such specialization, greater productivity can be achieved and unit costs reduced. On the other hand, Michael Porter's theory of competitive advantages, and according to the endogenous theories of growth, innovations, human capital, infrastructure and financial capital are seen as the driving force of growth.

Looking through the prism of our economy, our enterprises entering the European market will be able to use the benefits of offering comparative advantages and achieving economies of scale in production, but will also be encouraged to improve their products, innovate, which it will make them more competitive. At the same time, the Government, by investing in improving infrastructure, strengthening human capital, as well as supporting investments and innovations in the private sector, will contribute to improving the competitiveness of our economy, encouraging investments and accelerating economic growth.

Here I would certainly add good governance, both in terms of the rule of law, and in terms of strengthening the capacity of institutions and improving the quality of public services. According to these premises, the national Plan for the acceleration of economic growth contains mechanisms to support the competitiveness and innovation of domestic enterprises, by providing access to finance and funds, as well as other instruments to support exports and the development of companies.

When it comes to regional connectivity, it should be mentioned that the Western Balkans has seen significant economic and social progress in the past two decades, and that with a population of 17,6 million citizens, as a market it is a challenge for the small developing economies that make it up. The initiative to connect in one market has existed throughout the years and certain steps have been taken. However, taking into account the benefits that can arise from further integration of the markets in the region, the EU raises the question of a single market in the Western Balkans as a pillar in the development plan of the region.

The access to new consumers, the strengthening and access to new supply chains, the reduction of export costs and the strengthening of the competitiveness of products in the region, the increase of attractiveness for foreign investors, as a single point of view - all these factors would affect the economic strengthening of the region and encouraging economic growth.

From there, as in the case of the EU single market, the benefits of connecting in the region should not be neglected, on the contrary, they are an important factor in the further development of the countries in the Western Balkans, as well as a condition for continuing on their European path. From the point of view of national policy, multilateral initiatives for connection in the region have always been enthusiastically accepted, while from the point of view of supporting companies for placement on the regional market, as in the previous case with the European market, we have more tools with which to support them to perform on the same.

Structural reforms

When it comes to the structural reforms for the advancement of the system and administration for a democratic society and market economy, I will mention that the measures and policies that we have foreseen and are implementing for accelerated, inclusive and sustainable economic growth are also in the direction of good governance - that is, the governance of law, suppression of corruption and raising the capacity of institutions. Of exceptional importance here is the concept of fiscal sustainability, for which we advocate and for which we have a separate action plan, and in that context the maintenance of macroeconomic and financial stability. There are also measures to encourage fiscal decentralization, ensure local and balanced regional development, sustainable and healthy living environment and digitization of the economy and public services.

At the same time, we act in the direction of improving the business environment and suppressing the gray economy, improving access to finance and the adaptation of technologies and modernization of agriculture.

From the perspective of supporting the competitiveness of companies, in addition to financial support, I will also mention the measures taken in relation to the development of human capital and the adequacy of the offer on the labor market. Through a comprehensive strategy for the development of human capital in the country, all areas that contribute to raising its quality are treated, through investments in education, health and social protection. Also, through active measures on the labor market and continuous raising of the funds intended for them, actions are taken to increase the adequacy of the workforce to the current needs of the companies.

Additional EU funds and investments

The last and very significant pillar both in the EU Growth Plan and in the national Accelerated Growth Plan is the encouragement of investments, both private and public investments, which will contribute to the creation of new values, stimulation of economic activity and provision of better conditions for life for citizens and economic development.

In that direction, the EU has announced new funds that will be available for the Western Balkans, and which will aim at the economic development of the region. Although the amount of the funds was not mentioned, without hesitation the EU over the years provides enormous support and is a partner for the development of the Western Balkans. Looking only at the example of our country, in the past 30 years EU support for our country is estimated at over 3,3 billion euros through grants and macro-financial support.

Discussing our national Plan to support economic growth, I will mention that it envisages an ambitious medium-term framework of 4 billion euros in public investment, mainly large infrastructure projects, which would attract twice as much investment in private capital, as a result of the multiplier effect of the plan. Within the framework of the capital mobilization strategy, in addition to the development funds of international organizations, more financial instruments are planned for the mobilization of domestic capital for development purposes, including the development of the government securities market.

For the outstretched hand

At the end of my presentation on this topic, really short considering the breadth of the problem, I would conclude that before us is a historic chance to solve a decades-long urge and goal and long-term provision of a better life for our citizens. A chance recognized is half the goal accomplished. We need to accept the extended hand of the EU, work to improve living conditions in our country, bring Europe home and become part of it. We can do that only by having a clear goal and putting national interests before personal interests. Running a good policy is always keeping the economy in mind, because the economy is what determines the quality of life of our citizens.

Minister of Finance Fatmir Besimi