The conflict between Serbia and Kosovo has obstructed both countries from becoming members of the European Union, as well as crippled opportunities for expanding trade and achieving economic growth.
A historic breakthrough was recently reached, when the Prime Ministers of Serbia and Kosovo agreed to bury the past and start working towards a more amicable relationship. Since the agreement, Serbia, who has recently been trying to build diplomatic relations with Abu Dhabi and attract Arab investments, has one lingering question: when will the European Commission begin to talk about granting Serbia membership?
The EC has not given a specific date, but has indicated that the deal between the two long-disputing countries was a good start, according to Reuters. The EC hesitated to allow membership due to the on-going issues, fearing that it would cause great political risks. Having EU-backing could lead to valuable support, funding and guidance for Serbia.
Belgrade’s economy and trade has suffered greatly since the 1998-99 war. Their troubles with Kosovo have warded off investors from western Balkan markets, suppressed reform and financial growth within the country.
Serbia shows great potential for market growth. With a population of 7.3 million people, it represents the largest of the ex-Yugoslav republics. Belgrade is an important city in the Balkan states, and although many of the countries within that region trade directly with the EU, it is important they increase trade between each other to improve financial growth. Moving towards an EU membership will help lessen corruption and inefficiencies within the current Serbian system. It will also help to build confidence amongst potential investors.
Since announcing the civil agreement, the EC has made a recommendation as a reward. Reuters notes that the EC is expected to make an announcement regarding the issue in June 2013.
Serbia has the potential to benefit immensely if they continue with negotiations. They will be able to exploit their country to links in the East and West and improve diplomatic relations needed to begin solving the many problems within their economy.
Serbia will unlikely join the EU before 2020, but regardless, discussions about moving forward and working towards reform can only lead to positive changes.
To read the full story at Reuters click here.
