Interview with Dubravka Negrohead of the regional representation for the Western Balkans at the European Investment Bank, taken this year at the Macedonia 2025 summit in Skopje, where Nègre was one of the speakers.
European Western Balkans: can you tell us more about the role of the European Investment Bank in the Berlin process?
Dubravka Negro: Since the launch of the Berlin Process, the EIB has played an important role, as the EU bank, by complementing EU grants with our loans. The aim is to effectively support the development of transport and energy networks across the region in order to contribute to and increase connectivity in the Western Balkans. To this end, we have also worked intensively this year to secure new financing agreements, for example for the continued construction of the 5C road corridor in Bosnia and Herzegovina as well as for the rehabilitation of national roads in Montenegro to better connect it au with neighboring countries, but also to work on other new investment opportunities for next year, recognized as priorities by the governments of the region.
ISF: For example, what are the main current projects dedicated to strengthening connectivity?
DN: If we talk about Serbia, next to the road corridors, there is also the railway corridor 10, the financing of which was signed this year. In addition to the grant of around 70 million euros provided by the EU under the connectivity program, we have supplemented it with a loan of 134 million euros to support the electrification and modernization of this railway segment, which will connect Serbia and Bulgaria.
We are also actively working in other countries in the region. Let me also mention Montenegro and the railway connectivity between Serbia and Montenegro – the modernization of the railway network between Bar and the border with Serbia, which is also financed by an EU grant of 20 million euros , supplemented by an EIB loan of 20 million euros.
This shows that under the Berlin Process the availability of EU grant funds for major infrastructure development, particularly in the area of connectivity, has increased since 2014 and that we are here to provide a Competitive, long-term, favorable funding to supplement these grants, as grant funds are limited. The EIB’s aim is not only to complement these sources, but also to partner with other partners in the region, whether multilateral financial institutions, government authorities or the sector private, to achieve the goal of a better connected Western Balkans, which would later stimulate trade in goods. and people. Connecting people will also contribute to reconciliation in this region, which is also very important.
ISF: As we have seen in EIB reports, infrastructure receives the most funding, more than all other projects combined in the Western Balkans, but connectivity is not just about infrastructure – for example, it is also linked to the digital economy. What is the EIB doing to help other parts of the connectivity programme?
DN: If I may add, it is true that a large part of the EIB’s support goes to infrastructure, but an equally large part goes to support for small and medium-sized enterprises (SMEs), which are very important for the creation of jobs and to pave the way towards sustainable economic growth. The EIB Group invests in the local economy and local entrepreneurs.
Coming back to the digital economy, in the February EU enlargement strategy, digitalization was recognized as one of the priorities of the region, and many policy efforts are being carried out in all countries of the region to, for example, rationalize their roaming rates. in cooperation with the European Commission. On the other hand, the EIB is there to provide and support concrete investments, which would pave the way for improving digital connectivity in the Western Balkan countries. We are currently working on a few investment opportunities, notably in Albania and Serbia, to help these countries deploy broadband, improve the connectivity of certain public institutions, such as schools, and extend the Internet to a greater part of population.
This sector is evolving rapidly and has been underinvested, investment needs are significant and we are prepared to consider complementing EU grants with EIB funds. What is important for this sector is also private financing, and for this, the regulatory environment must improve. Different efforts are required from different sectors of the economy.
ISF: Could you expand a little on the regulatory aspect in the region, in broad terms?
DN: The EU strategy defines that the region needs more effective rule of law and governance, but what is needed in the economy is further restructuring of large state-owned enterprises, improving corporate governance and their effectiveness from a management and financial point of view. of view. The next step would also be the finalization of bankruptcy procedures, which would create space for a more active private sector in certain areas of the economy.
ISF: What is the outlook for the Western Balkans economic area?
DN: The need for a Western Balkans economic area has been recognized at the political level. What matters now is implementing this idea – which is easier said than done. Countries must cooperate in implementing this vision. These countries have significant trade volumes with the EU, but not enough with each other, and this could be improved in the future.
ISF: We heard during the Macedonia 2025 summit panel on the economic prospects of the Western Balkans that the economies of the region do not cooperate, but compete, and that they subsidize the production of the same products, thus lowering prices and trying to outdo each other. Do you see space for the creation of regional economic cooperation, which would not rely on tariff or non-tariff barriers?
DN: The EU is the main trading partner of all countries in the region and, from this point of view, one might ask what countries can do in synergy rather than in competition. At the level of the chambers of commerce, there is a good understanding of the gaps and the measures to be taken. Better interconnection of transport and energy between countries would improve this situation. Better and faster border crossings are also important, which has been the case for the EU as it has developed and grown towards a single market. I believe that engaging in this effort now would also contribute to the process of integration with the EU, because the ultimate goal of this region is integration into a common European market. The aim of the Western Balkans should be to attract more foreign direct investments, as they bring value, knowledge, skills and procedures and are important for the value chain. This benefits small businesses, which then become suppliers to larger ones. How countries attract them depends on their policy and decisions, but I certainly think that the presence and increase of these investments in the region is important, because they bring corporate governance, corporate responsibility and social, all subjects that are important for the development of society.
We have seen that FDI levels are increasing in some countries and we hope that this trend will continue and that the EIB can support FDI as we have done in the past – the most important being FIAT’s expansion of the The Kragujevac automobile factory, which then had an impact on the entire value chain of small suppliers in the area where the factory is located.