Absorption capacity and the European integration of the Western Balkans

Abstract

This article analyses the impact of the European integration process on the Western Balkans; which process is assumed not only as an instrument for economic convergence and growth but additionally as an instrument for peace, security, and political reconciliation of the region. In addition, the article analyses regional integration, namely the transformation of the Regional Economic Area to the Common Regional Market in the Western Balkans. Regional integration in the Western Balkans is characterized by political obstacles, long-lasting transitions, and institutional and trade disputes among the participating countries. In the framework of the Berlin Process, the European Union introduced Common Regional Market as a new instrument to be implemented in the Western Balkans from 2021 to 2024. Besides Western Balkans limited implementing capacities, the European Union shows limited absorption capacity due to critical developments such as BREXIT and the COVID-19 pandemic. Therefore, there are two assumptions regarding the Common Regional Market; the first assumption is that, the Common Regional Market deepens integration among the Western Balkans; second, the Common Regional Market was launched due to a lack of concrete plans for the European Union enlargement towards the Western Balkans. This article examines whether the European Union enlargement process is affected by limited European Union absorption capacities, in which scenario the Common Regional Market serves primarily as a time–winning strategy. Or if the European Union enlargement process is affected by limited Western Balkans absorption capacities, in which case, these countries should increase their political stability, economic cooperation, and regional integration.