Economic convergence is a strategic priority for the Western Balkans, underpinning the region’s efforts to achieve sustainable growth, reduce disparities with the European Union and advance on the path towards EU membership. Strengthening economic ties with the EU is vital not only for boosting resilience and improving living standards, but also for promoting regional stability and accelerating the integration process.
All Western Balkan economies are committed to joining the EU, and the enlargement process remains a key driver of domestic reforms. Albania, Bosnia and Herzegovina, Montenegro, North Macedonia and Serbia are EU candidate economies, while Kosovo is a potential candidate. The revised enlargement methodology, introduced in 2020, aims to increase the credibility and predictability of the process by putting greater emphasis on fundamental reforms and stronger political engagement (European Council, 2021[3]). Since then, several economies have made tangible progress: Albania and North Macedonia have formally launched accession negotiations, Bosnia and Herzegovina was granted candidate status in December 2022 and began accession talks in March 2023, and Kosovo officially submitted its application for EU membership in December 2022 (European Parliament, 2025[4]).
Albania, Montenegro, North Macedonia and Serbia have made varying levels of progress in negotiations during the assessment period. For Montenegro, 33 of the 35 negotiating chapters have been opened, of which three have been provisionally closed as of December 2023 (European Commission, 2023[5]). So far, 22 out of 35 negotiation chapters have been opened for Serbia. The European Council’s latest conclusions stated that Serbia had made overall progress, but progress on judiciary reforms, strengthening fundamental rights and the normalisation of relations with Kosovo determines the pace of negotiations (European Council, 2025[6]). The first intergovernmental conference with Albania and North Macedonia took place in July 2022, marking the formal start of accession negotiations. At the same time, the first step in the accession negotiation process was taken with the launch of the analytical examination of the EU acquis, the “screening”. Since then, Albania has opened several negotiation clusters, reflecting continued progress and commitment in its EU accession process.
The EU is the region’s largest source of financial assistance. The continued significant support from the EU helps the Western Balkan economies to realise their reforms and endeavours that bring them closer to the acquis. Over the past two decades, the region’s economies have benefited from the Instrument for Pre-accession Assistance (IPA), loans from the European Investment Bank (EIB), and funding through the Western Balkans Investment Framework (WBIF). These instruments have supported projects to enhance infrastructure, strengthen human capital, boost competitiveness, and promote the green and digital transitions — all critical to advancing economic convergence with the EU.
Building on these efforts, the European Commission’s Growth Plan for the Western Balkans, adopted in November 2023, provides a key framework to foster socio-economic convergence ahead of accession. Backed by EUR 6 billion in grants and loans, the Growth Plan aims to offer some of the benefits of EU membership before formal accession. It is structured around four main pillars:
1. enhancing integration with the EU single market
2. advancing regional economic integration through the Common Regional Market
3. accelerating structural reforms, including reforms in the fundamentals cluster of the EU accession process
4. increasing financial support through the new Reform and Growth Facility.
As part of its implementation, all Western Balkan economies, except for Bosnia and Herzegovina, have submitted reform agendas that outline key structural reforms in four priority areas: 1) business environment; 2) green and digital transformation; 3) human capital development; and 4) the rule of law. These areas serve as the basis for accessing Growth Plan funding (European Commission, 2023[7]).
