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<https://www.atlanticcouncil.org/in-depth-research-reports/report/working-on-a-new-transatlantic-approach-toward-the-western-balkans/>
  


Working on a new transatlantic approach toward the Western Balkans


jbatchik

17–21 minutes

  _____  

October 7, 2024 • 11:00 am ET 

Maja Piscevic <https://www.atlanticcouncil.org/expert/maja-piscevic/>  and Ilva 
Tare <https://www.atlanticcouncil.org/expert/ilva-tare/>  

This essay is part of the report “Transatlantic horizons: A collaborative US-EU 
policy agenda for 2025 and beyond,” which outlines an agenda for common action 
for the next US administration and European Commission.


The bottom line


The Western Balkans is a region neither the United States nor the European 
Union (EU) can afford to ignore or mishandle. Tensions are too high, and the 
geopolitical implications of misinformed and misaligned policy are costly. The 
United States and the EU must work together, and play to their own respective 
strengths, to prioritize democratic and economic growth and alignment with the 
West.


State of play


Visits to the Western Balkans elicit two contradictory feelings. On the one 
hand, the region is vibrant and brimming with potential. The World Bank 
projects the regional gross domestic product growth for the Western Balkans 
Six—Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro, and 
Serbia—to be 3.2 percent this year and 3.5 percent in 2025, noting 
<https://documents1.worldbank.org/curated/en/099040524061582128/pdf/P5006481fb98fb0db1a9401e200293e761d.pdf?_gl=1*5ujrdv*_gcl_au*OTYwNDIzODc1LjE3MjM3NTQ2NjQ>
  some “cautious optimism.” On the other hand, too often the region is stuck in 
a disorganized and chaotic feedback loop, its violent histories seem 
inescapable, and its democratic culture remains lacking. Flashes of ethnic and 
political violence have risked upending 
<https://www.atlanticcouncil.org/blogs/new-atlanticist/five-questions-and-expert-answers-about-the-recent-clashes-in-kosovo/>
  the fragile peace between Serbia and Kosovo. Democracy ratings by 
international observers such as Freedom House are tracking democratic declines 
<https://europeanwesternbalkans.com/2024/04/11/freedom-house-democracy-deteriorates-in-the-western-balkans-serbia-faces-the-strongest-decline/>
  or stagnation in the region.

The United States and the EU have recognized the importance of the Western 
Balkans and have worked on engaging the region, to varying degrees of success. 
There has been modest progress on the region’s Euro-Atlantic integration, and 
there remains moderate to strong support 
<https://www.iri.org/news/iri-western-balkans-poll-strong-support-for-eu-membership-russias-attacks-on-ukraine-unjustified/>
  inside the region for a European future. There has also been renewed momentum 
from the EU to make progress on enlargement to the region as Russia’s 
full-scale invasion of Ukraine has reinvigorated the bloc’s understanding of 
the geopolitics of enlargement.

Yet structural issues continue to frustrate the region’s Euro-Atlantic 
trajectory. The EU’s enlargement process, with single member state vetoes 
holding up progress, remains deeply flawed. At the same time, US policy toward 
the Western Balkans, particularly focusing on the normalization dialogue 
between Kosovo and Serbia, has not produced the desired results, as local 
politics and nationalisms have torpedoed 
<https://www.crisisgroup.org/sites/default/files/2024-05/269-northern-kosovo-sovereignty.pdf>
  the Association of Serb-Majority Municipalities. These opportunities and 
challenges together will require leadership from the United States and the EU 
to realize the region’s potential.


The strategic imperative


Geopolitics is the main driver of the external focus on the Western Balkans. 
The region for years has been Europe’s “soft underbelly 
<https://www.ft.com/content/2287ba66-8489-11e4-bae9-00144feabdc0> ,” where 
Russia holds <https://www.cfr.org/backgrounder/russias-influence-balkans>  
significant influence as both an instigator and negotiator, especially in 
Serbia and Republika Srpska (the Serb-majority entity within Bosnia and 
Herzegovina) but also in North Macedonia, Montenegro, and Kosovo. Russia’s 
full-scale invasion of Ukraine has raised the stakes about Moscow’s willingness 
to inflame conflict in the region. Securing the region within the Euro-Atlantic 
framework will do much to stem Russia’s influence and diminish the chances of 
violence on the continent.

Another geopolitical driver is the role of China. Beijing has stepped up its 
involvement primarily through investments in major infrastructure projects and 
mines. The US House Foreign Affairs Committee estimates 
<https://foreignaffairs.house.gov/china-regional-snapshot-western-balkans/>  
that China has invested around $1 billion in the region annually since 2011, 
and approximately $10.3 billion in Serbia alone from 2009–2021. Five of the 
Western Balkans Six are members of China’s Belt and Road Initiative, and 
Serbia’s security cooperation with Beijing has grown to encompass 
<https://www.rferl.org/a/xi-vucic-china-serbia-media-extradition/32962554.html> 
 overseas “police stations,” surveillance and facial recognition camera 
installations, and joint military exercises.

There are positive motivators for transatlantic engagement, too. The region 
could be a success story for the West’s de-risking 
<https://www.atlanticcouncil.org/blogs/new-atlanticist/western-balkans-nearshoring-strategic-asset-eu/>
  agenda. Lower labor costs and the region’s strategic geographic location and 
physical proximity offer a twofold opportunity to help realize Europe’s—and the 
United States’—efforts to reshore its supply chains and investments and 
diminish China’s own influence.

Both the United States and the EU need a clear vision for the region. With the 
right strategy, the region can overcome its challenges and emerge as a stable, 
prosperous, and democratic part of Europe. By prioritizing democratic values 
and good governance, economic revitalization, and strategic partnerships, the 
United States and the EU can significantly and positively impact the region’s 
trajectory. Ultimately, a successful transatlantic policy in the Western 
Balkans requires a long-term commitment, sustained engagement, and a clear 
vision for the region’s future.


Looking ahead


The Western Balkans will remain a focus on both sides of the Atlantic. Either a 
Democratic or Republican administration is expected to be more engaged once in 
office than during this past election year and will bring a focus on security 
issues, economic development, and regional integration, as well as on the rule 
of law, the fight against endemic corruption, and democracy. In Europe, too, 
the European Commission will focus on the region, including on enlargement, 
economic growth, and the rule of law.

Of crucial importance is how the new administrations will implement their 
policies in the region. Many of the key topics and priorities have already been 
identified. For example, Serbia will likely be the main focus of the next US 
administration due to its relatively large size, economic development, and the 
deteriorating state of its democracy, rule of law, and media freedom—not to 
mention its geopolitical role as a willing partner to both Moscow and Beijing. 
The European Commission’s Growth Plan for the Western Balkans 
<https://neighbourhood-enlargement.ec.europa.eu/enlargement-policy/new-growth-plan-western-balkans_en>
  will also continue to be a centerpiece of transatlantic priorities for the 
region.

The uncertainties are prioritization and calibration. How will policymakers 
prioritize the need to address economic or democratic reforms? Will the United 
States continue its practice of giving the lead to the EU, which all countries 
in the region at least nominally aspire to join?

The prioritization of democratic values will be the key to engaging the region 
successfully in the future. A more decisive and uncompromising insistence on 
the development of democratic institutions and values—such as free and fair 
elections, the rule of law, and the fight against corruption and organized 
crime—must be a priority. Reforms in these areas are prerequisites for any 
sustainable economic progress and investment, and stronger democratic 
consolidation will do far more to reduce the impact of malign influences from 
Russia and China that thrive precisely in the absence of these values. Failing 
to prioritize democracy in the region will risk cementing the petrifying status 
quo.

Whatever happens in November, a much stronger and more active US role in the 
Western Balkans will be required. Previously, the United States has given 
primacy to the EU, but that strategy has not yielded convincing and sustainable 
results on key issues like the struggles of the Belgrade-Pristina dialogue (and 
the lack of implementation of the Brussels and Ohrid agreements that underpin 
it), and the festering ethnic tensions in Bosnia and Herzegovina. This is a 
consequential demonstration of the EU’s inability to take a leading role and 
bring key players to the table with the determination to reach an agreement. As 
a result, the process of normalization between Kosovo and Serbia has stalled—or 
worse, deteriorated.

The EU is an important and powerful bloc, but its institutional structure has 
limited its effectiveness. The bloc is a heterogeneous and loose union of 
twenty-seven members, many with vastly different priorities for the region. 
While still immensely influential, it is not decisive in some key policy areas, 
especially enlargement, where the current veto system has left the Western 
Balkans as a political punching bag for domestic politics among EU member 
states. A few such cases include Bulgaria and Greece blocking North Macedonia’s 
progress, Slovenia delaying Croatia’s 2013 accession over border disputes, and 
traditional enlargement skepticism in France and the Netherlands stemming from, 
among other considerations, domestic political concerns about, for example, 
immigration. Given that this decision-making framework is embedded in the 
highest legal act of the EU, it is not realistic to expect any change in the 
foreseeable future—even though change is much needed.

The United States is not as constrained in implementing its policy toward the 
Western Balkans. Provided the next administration does not change its 
priorities for the Western Balkans, it would be of crucial importance to take a 
more decisive stance in pursuing its interests, especially when it comes to 
security, the fight against corruption, the rule of law, media freedom, and the 
reduction of Russian and Chinese influence. All of these goals are achievable, 
but only if the next administration acts energetically and resolutely in their 
implementation.


Policy recommendations


There is much that the United States and the EU can do—together and 
separately—to enact positive change in the Western Balkans. Recommendations 
include:

Insist on the primacy of democracy and the rule of law. The underpinning of 
democracy should be a prerequisite of any approach to the region. The United 
States and the EU, therefore, must prioritize support for democratic reforms, 
anti-corruption efforts, and the rule of law in the Western Balkans, 
specifically through:

*       Anti-corruption measures: Corruption is a pervasive problem 
<https://images.transparencycdn.org/images/2024_NISReport_BetweenAnti-CoruptionReformAndDecline_English.pdf>
  in the region. US and EU policymakers should provide technical assistance to 
develop and implement effective anti-corruption strategies, including 
strengthening law enforcement, improving transparency, and protecting 
whistleblowers.
*       Judicial reform: Independent and impartial judiciaries are crucial for 
upholding the rule of law. Plans for the region should include the provision of 
training for judges and prosecutors and promoting the independence of the 
judiciary.
*       The empowerment of civil society: An independent and vocal civil 
society is essential for holding governments to account. The United States and 
the EU should support civil society organizations, particularly those working 
on good governance, human rights, and anti-corruption initiatives.

Scale up economic engagement. The Western Balkans region possesses untapped 
economic potential. The United States and the EU must significantly expand and 
see through economic engagement in the region. Building on the foundation set 
by the Western Balkans Democracy and Prosperity Act 
<https://www.shaheen.senate.gov/news/press/shaheen-wicker-introduce-new-bipartisan-bill-to-support-economic-development-promote-democratic-resilience-and-combat-corruption-in-the-balkans>
 , a bill introduced by US Sens. Jeanne Shaheen (D-NH) and Roger Wicker (R-MS), 
policymakers should aggressively pursue a strategy of investment, trade 
facilitation, and infrastructure development in the region by:

*       Doubling down on investment: Policymakers should double down on 
investments in the region, focusing on sectors with high growth potential, such 
as renewable energy, technology, and agriculture. Leveraging public-private 
partnerships will be key to attracting private capital and creating jobs. 
Investments should be coordinated or at least deconflicted between Washington 
and Brussels.
*       Streamlining trade: Facilitating trade, particularly between the United 
States and the Western Balkans, is an important signal of the West’s 
involvement in the region. Reducing trade barriers, simplifying customs 
procedures, and providing technical assistance on EU standards alignment will 
help boost exports and attract foreign investment.
*       Driving infrastructure development: Investing in infrastructure such as 
transportation, energy, and digital connectivity will help economic growth, 
regional integration, and the green transition. The United States can partner 
with the EU (and international financial institutions) to finance large-scale 
projects. This would be particularly welcome to counter Chinese infrastructure 
investments in the region.

Refocus on regional economic competitiveness. Increasing the Western Balkans’ 
competitiveness will make Europe more competitive. To accomplish this, a joint 
effort is needed to improve the business environment, foster innovation, and 
develop a skilled workforce, including by:

*       Improving the business climate: The United States and the EU should 
provide technical assistance to reform regulatory frameworks and improve 
governance with the goal of reducing bureaucratic hurdles, enforcing property 
rights, and combating corruption—all of which are essential for attracting 
foreign investment.
*       Fostering innovation: Supporting research and development, technology 
transfers, and entrepreneurship can help drive innovation and create new 
opportunities. Establishing innovation hubs and incubators can help nurture a 
culture of entrepreneurship.
*       Investing in human capital: A skilled workforce is essential for 
economic growth. The United States and the EU can support education and 
vocational training programs, particularly for young people. Instead of looking 
to emigrate elsewhere, the region’s youth can find incentives to stay.

Develop a new approach to the Serbia-Kosovo dialogue. The Serbia-Kosovo 
dialogue has been a longstanding and complex issue. It needs new life with 
incoming US and EU administrations. The United States, specifically, should 
play a more active role in facilitating a comprehensive and final normalization 
agreement. Recommendations include:

*       Introduce joint US-EU leadership: The United States and the EU should 
jointly lead the dialogue, leveraging their combined diplomatic weight and 
expertise.
*       Focus on normalization: The dialogue should prioritize practical steps 
toward normalization of relations, including economic cooperation, freedom of 
movement, and mutual recognition.
*       Develop conditional incentives: Economic incentives can be used to 
encourage progress in the dialogue, but they should be conditioned on concrete 
achievements. The EU’s Growth Plan can be a crucial mechanism to promote 
progress and discourage stagnation, or worse—cooperation with malign actors.
*       Addressing the root causes: The underlying issues of the conflict, such 
as minority rights and safeguarding territorial integrity, must be addressed to 
achieve a lasting peace.

Develop policy for cybersecurity and infrastructure protection. The Western 
Balkans is increasingly vulnerable 
<https://www.eeas.europa.eu/eeas/western-balkans-high-representative-borrell-announces-new-support-albania-montenegro-and-north_en>
  to cyber threats, as have been documented recently in Albania, Montenegro, 
and North Macedonia. Protecting critical infrastructure and building 
cybersecurity capacity are essential for economic growth and regional stability.

*       Cybersecurity capacity building: The United States and the EU should 
support the development of cybersecurity capabilities in the region through 
training, capacity building, and technology transfers.
*       Critical infrastructure protection: Partnering with the private sector, 
the United States and the EU can help protect critical infrastructure, such as 
energy, transportation, and telecommunications, from cyberattacks.
*       Countering disinformation: The spread of disinformation and foreign 
interference is a growing challenge. The United States and the EU have 
successfully supported media literacy programs and fact-checking to counter 
these threats, but more can be done at the local level in cities outside the 
capitals.

Refocus on countering malign influence. The Western Balkans remains a 
geopolitical battleground, with Russia and China seeking to increase their 
influence in the region. The United States and the EU should develop strategies 
to counter these efforts. Such a strategy should include:

*       Strategic competition: The United States should adopt a competitive 
approach to Russia and China, offering alternative partnerships, investments, 
and security cooperation.
*       Energy security: Reducing the region’s dependence on Russian energy is 
crucial. The United States can support diversification of energy sources and 
infrastructure development.
*       Information warfare: Countering disinformation campaigns and 
strengthening media literacy are essential to protect the region from foreign 
manipulation.
*       Strengthening NATO: Reinforcing NATO’s presence in the region is 
crucial to deter aggression and reassure allies. Eventually, moving Kosovo 
closer to NATO membership will be an important step toward regional stability.

  _____  

Maja Piscevic is a nonresident senior fellow with the Atlantic Council’s Europe 
Center and representative of the center in the Western Balkans.

Ilva Tare is a resident senior fellow at the Atlantic Council’s Europe Center 
and host of the #BalkansDebrief podcast.


read more essays


 

The Europe Center <https://www.atlanticcouncil.org/programs/europe-center/>  
promotes leadership, strategies, and analysis to ensure a strong, ambitious, 
and forward-looking transatlantic relationship.

Image: An attendee walks at the venue on the day of the EU-Western Balkans 
summit in Tirana, Albania, February 29, 2024. REUTERS/Florion Goga.

 

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