EU to go special - Towards Enlargement EU Enlargement and Economic Growth
May 8, 2024
In this informative discussion, Richard Grieveson, the Deputy Director at the Vienna Institute for International Economic Studies and member of the Balkans in Europe Policy Advisory Group, dives deep into the economic transformation spurred by EU accession. He reveals how foreign direct investment and EU funds have propelled growth in newer member states. Grieveson outlines challenges facing the Western Balkans, emphasizing the need for governance reforms and better integration policies. He warns about the rising influence of China in the region as EU support stagnates.
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EU Enlargement Spurs Major Growth
- Central and Eastern European countries that joined the EU have seen significant economic growth, some surpassing older EU members in wealth today.
- This growth stemmed from institutional reforms, market transformation, foreign investment, and export strength anchored by EU integration.
Capital Access Drives Transformation
- Two main factors for economic success in new EU countries are significant foreign direct investment (FDI) and access to EU funds.
- These sources finance infrastructure and create an attractive environment for investment, critical for economic development.
Western Balkans' Slower Growth Explained
- Western Balkans face slower economic progress due to a less credible, longer EU integration process.
- They attract less FDI per capita and have limited access to EU funds compared to Central and Eastern Europe.