News archive - 2013 Economic and Fiscal Programmes of some WBC: EU Commission's overview and country assessments

The European Commission's made available its assessments of the 2013 Pre-Accession Economic Programmes (PEPs) of some candidate countries: the former Yugoslav Republic of Macedonia, Montenegro, Serbia as well as that of the potential candidate countries: Albania and Bosnia and Herzegovina. The PEPs are precursors of similar programmes which EU Member States are supposed to submit. PEPs should outline a medium-term policy framework, including public finance objectives and structural reform strategies. The Commission assesses  whether the programme is plausible and in line with the country's accession perspective and whether it respects the required format and meets information needs.


Regarding Serbia, Montenegro, FYR of Macedonia, a combination of external and domestic factors (such as continued uncertainties in the euro-zone, unfavourable weather conditions, subdued credit growth) created obstacles to higher growth. Economic growth is projected to recover over the programme period, driven mainly by domestic demand; however, the programmes' macroeconomic assumptions appear to be on optimistic side. External imbalances are set to persist and constitute a source of vulnerability whereas fiscal discipline and budgetary planning leave ample room for improvement. Finally, structural weaknesses hampering growth potential call for more determined action.


As far as Albania and Bosnia and Herzegovina are concerned, in its assessment, the Commission found that both countries experienced a substantial economic slowdown in 2012, while immediate prospects remained uncertain. The two EFPs expect a marked improvement over the coming years. However, such assumptions are subject to significant downside risks, including enduring weaknesses in the main trading partner countries. Weak economic growth in 2012 led to shrinking external imbalances, but vulnerabilities still remain. Fiscal planning and predictability leave ample room for improvement. Structural reforms are indispensable to remove bottlenecks to growth. The two EFPs, while broadly succeeding in identifying the main challenges, still lack a strategic and comprehensive approach outlining specific and targeted policy measures to address these bottlenecks.


Geographical focus
  • Albania
  • Bosnia and Herzegovina
  • Montenegro
  • Republic of North Macedonia
  • Serbia
Scientifc field / Thematic focus
  • General

Entry created by Desiree Pecarz on September 5, 2013
Modified on September 5, 2013