Debate: EU-Western Balkans relations in light of the new enlargement package
Date: WEDNESDAY, 19 OCTOBER 2022
Speaker: Olivér Várhelyi
Language: EN

Since the start of the pandemic, the EU has supported the Western Balkans in the COVID-19 fight. We provided immediate emergency support, including equipment, and redirected funds to mitigate the socioeconomic impact of the COVID-19 crisis. The EU delivered the first vaccines to the region. Second, our economic and investment plan for the Western Balkans is our response to supporting the long—term socioeconomic recovery of the region. The plan comes with EUR 9 billion funding from the EPA, and a possibility to leverage EUR 20 billion in investments. And this is for the next six years.  Part of this funding is already well underway. In the last two years, we have adopted EUR 1.2 billion in investment grants under the Western Balkans Investment Framework, with a view to financing 24 flagship projects with a total investment value of EUR 3.4 billion. Third, the current energy crisis is a challenge for the Western Balkans as well as for the EU. Therefore, the EU involves the region in its policies and in its actions. The EU has invited the Western Balkans to join the common EU energy purchases for joint purchasing of gas, LNG and hydrogen. Serbia and North Macedonia have joined the first regional group meeting of the South East Europe Regional Task Force. The REPowerEU plan will help to reduce the EU’s and the Western Balkans’ dependence on Russian gas. However, we need to reduce further the EU’s and the Western Balkans’ dependence on Russian gas as a matter of urgency. That’s why we’re working on an energy rescue scheme for the entire Western Balkans. The funds we propose will address immediate, short—term and mid—term needs faced by the region. The immediate measures will include budget support to cushion energy price increases and their impact in particular on businesses, households and SMEs. These measures aim to tackle the energy crisis still this winter. Short—term measures will support diversification of energy supplies, will boost gas and electricity interconnectors, new storage facilities and LNG terminals. We’ll also deploy smaller renewable energy projects and energy efficiency measures. Mid—term assistance will include other investments contributing to the energy transition and security. These measures will cover large—scale renewable energy generation projects, upgrade of electricity transmission systems, district heating and schemes for energy efficiency for the old blocks of flats. Further, migration remains an area where we need to work even more closely with our Western Balkan partners. This is even more urgent given the increased migratory pressure experienced in the region over the past year. It must be clear that the EU only welcomes people through safe and legal routes while the door is not open for irregular entry. It must be clear that those who are not eligible and who do not qualify to stay will be returned without delay. It must be clear that we would protect the integrity of our asylum system. We will crack down on smuggler activities and criminal undertakings associated with it. This narrative requires a shift in our policy and the rebalancing of our assistance, including to respond to the emerging needs and challenges in the region.  We will not leave the Western Balkans alone. We will deliver on our part both politically and financially. We intend to significantly, by 60%, increase our funding to address migration challenges in the Western Balkans during the period of 2021–2024, meaning more than EUR 350 million. Now, let me give you a short overview about this year’s developments in the region, as there was new dynamism in our relationship with the Western Balkans. The EU held the first intergovernmental conferences with Albania and North Macedonia in July. This was a major breakthrough, opening a new chapter in the EU enlargement policy. The Commission started immediately the screening as the first step of the negotiation process. Both Albania and North Macedonia need to keep up the speed and make use of the screening process to explore the full potential to accelerate the implementation of EU reforms. Last week, the Commission recommended the candidate status be granted to Bosnia and Herzegovina by the Council on the understanding that a number of steps are taken. Granting candidate status is an offer; we’re doing this for the people of Bosnia and Herzegovina. But it also comes with high expectations. It is for the elite to turn this into reality. Following general elections on 2 October, we expect the legislators and the governments at state, entity and cantonal levels to be swiftly set up in order to focus on EU reforms. It will be for the European Council to take the final decisions, possibly in December. The Commission stands ready to step up its support and to be a reliable partner along this road. The Commission also continues to monitor and report on the implementation of the 14 key priorities based on progress on the ground. For Montenegro, the priority for further overall progress in the accession negotiations remains the fulfilment of the rule of law interim benchmarks set out on the Chapter 23 and 24. In order to reach this milestone, Montenegro needs to intensify its efforts in tackling outstanding issues, including the critical areas of freedom of expression and media freedom, and fight against corruption and organised crime. Serbia has made progress in the rule of law, in particular in the reform of the judiciary and in fighting corruption. Therefore, the overall balance in the accession negotiations is ensured. The EU is Serbia’s most important political and economic partner, and we want to help Serbia address its challenges, including in the area of energy security. At the same time, we need to count on Serbia as a sincere European partner, standing with us for our common values, security and prosperity. In the current geopolitical context, it is also clear that Serbia needs to step up its efforts in aligning with the EU positions on foreign policy, including declarations and sanctions against Russia. Since the beginning of the war in Ukraine, alignment of CFSP is more important than ever. We need our Western Balkan partners, who are otherwise our strategic allies, to come along with us on this. Kosovo enjoyed political stability throughout the year, and the authorities continue to demonstrate their commitment to the EU path. On visa liberalisation, the Commission stands by its assessment of 2018 that Kosovo has fulfilled all the benchmarks. The proposal is still pending in the Council and we support the renewed discussions by a technical update of our assessment. Both Belgrade and Pristina need to engage constructively in the dialogue process. With this, I thank you for your attention.