POLITICAL INSTABILITY, ECONOMIC AND FINANCIAL CHALLENGES IN THE WESTERN BALKANS IN THE POST-PANDEMIC WORLD

Abstract

In the ever challenging post-pandemic world with emerging threats of revisionist global order and growing regional challenges, the Western Balkans region cannot be immune. From threats of destabilization of Bosnia-Herzegovina, the volatile situation in northern Kosovo, and the ongoing Serbia-Kosovo talks to the internal and external threats vis-à-vis Montenegro, the region is facing unprecedented challenges. The freezing of the European Union integration process, the new ideas of “Associate Members” and the new “clusters” methodology have led to enlargement fatigue not only from Brussels but also from regional capitals as well. On the other hand, the growing threats of Russia’s geopolitical ruptures and China’s economic penetration through “debt trap” diplomacy and other mechanisms are making governments and observers in the region increasingly skeptical. This paper tends to explore some of the insights and the economic effects both fiscal and monetary impact they have.