Since 2014-16, the region’s overall convergence score has stagnated, primarily due to weakening performance in the Greening cluster and the absence of progress in Business Environment, which have offset the progress achieved in Infrastructure and Connectivity, and Skills:
Infrastructure and Connectivity is the cluster where the region has achieved the fastest convergence with the EU, mainly driven by improvements in digital and energy infrastructure. Notable advancements in areas such as mobile connectivity and electricity cost have contributed to this strong performance. However, continued weaknesses in transport infrastructure continue to constrain broader improvements across the cluster.
Skills, while the region’s weakest performing cluster overall, is the only other cluster to demonstrate convergence with the EU, with progress driven primarily by improvements in employment and education-related indicators. However, persistent gaps in labour productivity and low research and development expenditures continue to weigh on overall performance.
Business Environment remains the strongest performing cluster, underpinned by robust foreign direct investment inflows and, to a lesser extent, SME export performance. However, convergence in this area has stalled, mainly due to enduring challenges in creating a level playing field and developing access to finance.
Digital Transformation achieved the region’s second-highest convergence score, supported by high levels of internet connectivity and the ongoing development of the information and communication technology sector. Still, overall potential is tempered by relatively low digital engagement among citizens and businesses.
Greening is the only cluster where the region diverged from the EU. The relative performance of most indicators has deteriorated over time, with only marginal improvements observed in energy and water productivity. Overall, this worsening trend reflects continued difficulties in accelerating decarbonisation and improving resource use efficiency.