Growing Challenges and Ways Forward in Light of the War in Ukraine and Regional Tensions in the Western Balkans

Richard Grieveson () and Branimir Jovanović ()
Additional contact information
Richard Grieveson: The Vienna Institute for International Economic Studies (wiiw)
Branimir Jovanović: The Vienna Institute for International Economic Studies (wiiw)

Chapter Chapter 5 in The Future of European Integration, 2026, pp 139-170 from Palgrave Macmillan

Abstract: Abstract Over the past three decades, the Western Balkans have faced significant economic underdevelopment and slow growth, which we attribute to three main factors. First, the stalled EU integration process, combined with a lack of credible accession prospects and insufficient financial support from the EU, has constrained the region’s growth potential. Second, unresolved regional disputes have impeded economic cooperation and integration, further retarding development. Third, the region’s inadequate economic model has led to low levels of investment, poor human capital development, and persistent issues of high poverty and inequality. The ongoing war in Ukraine has reinvigorated EU enlargement discussions; but it also presents fresh challenges. The Western Balkans risk being overshadowed by Ukraine’s accession process, which could potentially delay their own EU integration. Additionally, external influences—particularly from China and Russia—have grown in the wake of the EU’s limited engagement. This is complicating the region’s path towards EU membership. These challenges can be addressed through more substantial and expedited integration of the Western Balkans into EU structures, the resolution of deep-seated territorial disputes, and the adoption of a more interventionist and egalitarian economic model. Key policy options that could have the most significant impact include granting the Western Balkans full access to the EU budget, opening up access to the EU single market, and implementing enhanced industrial and innovation policies to stimulate domestic investment.

Date: 2026
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:stuchp:978-3-032-20186-7_5

Ordering information: This item can be ordered from
http://www.palgrave.com/9783032201867

DOI: 10.1007/978-3-032-20186-7_5

Access Statistics for this chapter

More chapters in Studies in Economic Transition from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().