“Enhancing Growth through Regional Action – SEE 2020”

Ladies and Gentlemen, Excellencies

On behalf of DG Enlargement, and the European Commission more broadly, I am pleased to have the opportunity to address you today. And I look forward to hearing of the main results of this ambitious CEI – RCC partnership project. This region still has so much to gain from enhanced trade and cooperation that we must continue to explore every avenue and pursue every opportunity. The SEE 2020 agenda is an important contribution to this process.
 
In this context, I also look forward to this morning’s discussion on reconnecting regional and national agendas. Ultimately, the countries of South East Europe must move in the same direction and that direction is, of course, toward enhanced integration with the European Union. We are here to help.

But the process of European integration requires a tireless dedication to economic reforms and it is often difficult to keep going. As many of you will have read, the latest Report from the EBRD is called “Stuck in Transition?” And this description is sadly true of many countries in the region. We need to reignite the process of reform and to convince the people of these countries that there are significant benefits to be gained from one last push.

Countries that embrace economic reforms do get significant and early benefits that can lead to a virtuous cycle of modernisation and growth. The three Baltic countries, for example, who initiated a second round of reforms after 2008, posted by far the strongest growth rates in the whole of the European Union and Central and Eastern Europe for the past three years (2011-13).

In its annual assessment of enlargement in October, the European Commission emphasised the need to embark on a fresh push in enlargement countries. And, with this in mind, Commissioner Fule outlined a new approach to economic governance at the EBRD conference in London on 24 February.
 
The EU wants to continue to support the region in meeting the challenges of enhancing competitiveness, boosting growth and creating jobs. Over the past five years, we have faced the same challenges in the European Union. And our efforts to tackle the crisis are bringing results.
 
Unfortunately, none of the Western Balkan countries can truly be described as a functioning market economy. Unemployment across the region is high and the young are particularly affected. Public deficits and debt levels have been rising. And countries are vulnerable to external shocks.
 
The drive to improve competitiveness and level the playing field of opportunity is often hindered by the politicisation of decisions that should be market-driven and by the barriers posed by corruption. The rule of law is particularly important in delivering the legal certainty that gives confidence to investors. And investment is the hand maiden of reforms.

More generally, the reform of public finances and of labour market institutions and a reduction in administrative burdens for businesses should be priorities. Investments in education, skills and research also need to be high on the agenda.
 
The EU will begin a new dialogue on National Economic Reform Programmes. And we will, together with the IMF, give technical assistance to support the implementation of country specific recommendations. Also, the EU will invite countries to give overviews of their structural reform plans across the sectors of most concern for improved competiveness and growth. These overviews will sharpen the focus on key reforms.

Commissioner Fule recently explained, here in Sarajevo, how this enhanced dialogue will also help to accelerate the implementation of European Union funded projects.

The South East Europe 2020 Strategy for Jobs and Prosperity in a European Perspective could be a key reference point for the Commission, the International Financial Institutions and for the countries of this region as they identify these important tasks.

Thank you