The objective of this report is to contribute to the definition of a sound policy agenda to enhance regional integration in the Union for the Mediterranean (UfM). The findings and policy considerations of the report offer support to governments of UfM countries to elaborate actionable policies for advancing economic integration in the Euro-Mediterranean region.
This report focuses on developments since 2021, when this same exercise of monitoring regional integration was first completed. It does so by analysing selected indicators that are both consistent with the state-of-the-art literature on economic integration and pertinent to the specific context of the UfM region. In particular, varied stages of economic developments of the UfM countries, and the existence within the UfM region of an already integrated area - the European Union (EU) -and a group of accession countries to the EU, the Western Balkans.
The context in which the economic integration process occurs among UfM members is complex and constitutes fundamental background for the analysis. Since 2021, the region has been exposed to severe shocks, notably Russia’s full-scale invasion of Ukraine with significant economic impact, disrupting supply chains and distressing food and energy security and prices, but also the ongoing conflicts in the Middle East which have increased geopolitical instability such that it affects efforts to build resilience, maintain investment attractiveness and foster socio-economic growth.
In recent years, other developments have also shaped the context underlying the integration process. A major development is the enhanced role of the Gulf countries in the Euro-Mediterranean, with intensified exchanges with countries in the Southern shore of the Mediterranean and with EU member states. In 2022, the European Union developed its first strategy for the Gulf region, “the Strategic Partnership with the Gulf”, reflecting the increased potential of cooperation with the six Gulf Cooperation Council (GCC) countries on issues of mutual interest, from climate change and energy security, to increasing trade and investment, to green and digital transitions and connectivity; and above all, working together to achieve sustainable peace and stability in the broader MENA region. In line with this strategy, during the first EU-GCC Summit, which took place in October 2024, the parties agreed to further deepen the trade and investment ties between the European Union and the Gulf countries by exploring the possibility of relaunching the negotiations on a regional EU-GCC Free Trade Agreement, which had been stalled in 2008, and by developing, in parallel, appropriate bilateral trade and investment frameworks. In spring 2025, the European Union and the United Arab Emirates formally launched negotiations on a bilateral Free Trade Agreement in a move which exemplifies the current deepening integration between the UfM and the Gulf countries. To acknowledge the intensified relations between GGC and UfM countries, this report has extended its analysis of trends and policy considerations to encompass the Gulf countries.
In terms of economic integration patterns, a second important development concerns integration efforts at the level of the African continent and its implications for the North African countries of the UfM and beyond. The implementation of the African Continental Free Trade Area (AfCFTA) aims to promote socio-economic growth development in Africa by boosting intra-African trade and Africa’s trading position in the global market. Accordingly, the analysis of trade integration in the UfM region in this report considers the new trade patterns with the African continent.
The importance of connectivity infrastructure to facilitate relations among UfM members has become central. High-quality and sustainable connectivity networks are today seen by policy makers in the UfM region as key to enhancing trade and investment, but also to increasing collaboration for research and innovation and skills development, and economic diversification in the Southern Mediterranean economies where this is still a priority. This report explores progress in the infrastructure for transport, energy and digital, and their interrelation, recognising the centrality of connectivity for integration. Also, the green transition has created additional opportunities for deeper economic integration across the Mediterranean. The EU’s strategic goals on green transformation have accelerated investments in renewable energy and infrastructure, connecting with the abundance of renewable energy potential in Southern Mediterranean countries.
There is recognition, across the region, of the need to better manage migration patterns. This report observes the development of new models for the mobility of people and legal migration opportunities – in particular, the EU skills and talent partnership programmes. These programmes combine the needs of receiving and sending countries of migrants by dedicating resources to skills development and opportunities to return to countries of origin, to avoid the brain drain that affect some of the UfM economies, including a number of EU members.
Strengthening cooperation is fundamental and every effort counts. This report offers a glimpse at how local communities across different UfM countries are working jointly to solve problems and achieve common objectives (Annexes A and B). They show that the ambition of integration in the Euro-Mediterranean can be nurtured at all levels.
In a context marked by ongoing conflicts in the Middle East and geopolitical uncertainty, this report clearly affirms the importance of a positive agenda for economic integration in the Union for the Mediterranean.
Along those lines and building on the 2021 Agenda for the Mediterranean, a New Pact for the Mediterranean has been conceived with the objective of further deepening strategic and political engagement across the two shores of the Mediterranean: not only through political and policy dialogue but also by fostering concrete initiatives of mutual interest. Through a combination of actions, the Pact aims to achieve a partnership of equals and, over time, a common space of peace, prosperity and stability, advancing economic and cultural ties, ultimately having a lasting beneficial impact on people, businesses and societies of the region. The New Pact for the Mediterranean will be presented in autumn 2025.