Emanuele Giaufret, Ambassador and Head of the EU Delegation to Serbia

The EU remains firmly committed to enlargement, and Europe’s Growth Plan for the Western Balkans, including Serbia, underscores this dedication. This plan represents a concrete effort to reinvigorate the enlargement process around the region

It must be clear to everyone that there is now real momentum for the Western Balkans, including Serbia, to advance on the road to becoming EU members,” says Emanuele Giaufret, Ambassador and Head of the European Union Delegation to the Republic of Serbia.

Speaking in this interview, he underlines the fact that, in the current geopolitical context of Russia’s unprovoked and unjustified war of aggression against Ukraine, enlargement has become one of the EU’s top priorities. “President von der Leyen has announced a dedicated Commissioner for Enlargement in the next Commission, as well as stepping up the EU’s internal preparedness to welcome new members,” says Giaufret.

How would you describe the current momentum in Serbia’s EU accession process? What key milestones do you see as necessary for Serbia to intensify accession negotiations?

— The EU is serious about enlargement and our Growth Plan for the Western Balkans, including Serbia, demonstrates that commitment. Through this Plan, we want to offer the Western Balkans some of the advantages of EU membership in advance of accession. In order for Serbia to benefit from this offer, it needs to deepen reforms on the EU path, which are also key to increasing investor confidence, including continuing to build an independent and efficient judiciary, ensuring sound public procurement and state aid practices, reforming the energy sector and stepping up the fight against corruption.

Overall, progress in rule of law areas – like the functioning of democratic institutions, the fight against corruption, freedom of expression and an independent judiciary – will continue to determine the overall pace of accession negotiations, together with the normalisation of relations with Pristina under the EU-facilitated dialogue and alignment with the EU’s restrictive measures. This means that we won’t be able to open the remaining negotiation clusters and chapters without progress in these areas.

How would you evaluate current efforts towards harmonising domestic regulations with European standards?

— Serbia has come a long way in terms of legislative alignment with the EU in many areas, but efforts need to be reinforced, not least because the process of legislative alignment is a “moving target”. The EU and its legislation evolve over time and it isn’t easy for any Government to keep up the tempo in this regard. Serbia’s Ministry of European Integration is doing a great job of maintaining and updating the plan of the required legislative activities in the context of the EU accession process in a document called the National Programme for Adoption of the Acquis. The relevant government ministries proposing the legislation need to step up their efforts in terms of meeting the targets specified in this plan over the coming years to ensure further alignment and harmonisation with EU legislation. The European Commission remains, as always, committed to helping the authorities with this task.

What do you perceive as the major advantages of, and risks to, investments and foreign trade in Serbia?

— Serbia has proven to be a very interesting investment destination over previous years, with record-breaking FDI levels and trade volumes growing constantly. In addition to Serbia’s well-known advantages as an investment destination and trade partner – such as its geographical position, labour force quality and the fact that it is by far the largest economy in the Western Balkan region, with ample growth potential – Serbia’s EU accession process is also a very important parameter for investment decisions. The EU accession process provides a stable anchor, setting the country on a predictable reform path, which is something that investors and businesses need the most: predictability, transparency, equal treatment and fair competition.

In the absence of progress in areas like the rule of law, the fight against corruption, freedom of expression and an independent judiciary, we will not be able to open the remaining clusters and chapters

This is what I keep hearing from business leaders and CEOs. They want to see Serbia on a stable path towards EU membership, as reassurance for their investment decisions and justification for their decisions in the eyes of their shareholders. It is also important to continue improving the business environment for SMEs, as they play a very important role in integrated value chains.

The Serbian Government insists that Serbia is working hard to keep up the pace in order to prove its readiness to open Cluster 3. After a considerable deadlock, do you believe we are on the verge of good news?

— As you know, from the technical standpoint, the European Commission has already recommended the opening of Cluster 3 three times in its annual reports. The final decision is nevertheless in the hands of EU Member States, which expect more efforts on some key issues. Specifically, while progressive alignment with the EU’s foreign policy has always been a requirement, it is clear that the Russian war of aggression against Ukraine has increased the relevance of this aspect in the EU accession process significantly. This is because alignment in the field of foreign and security policy is much more than percentages or technical issues. It is understood as an indicator that we can count on future members of the EU family to stand with us in defending our shared values and the security of our continent, which is at stake with Russia’s full-scale invasion of Ukraine.

In this respect, we very much welcome the support given by Serbia to the Ukrainian people in various forms: direct in-kind and financial support, but also joining us in multilateral fora in defending international law in the vast majority of cases. The latest example is Serbia’s vote in favour of the UN General Assembly Resolution on the safety and security of Ukraine’s nuclear facilities.

More broadly, EU member states are keen to see a consistent commitment from Serbia as a whole to its EU path and acceleration in the implementation of EU-related reforms. This eagerness to see enlargement progressing faster is reflected in the approval in record time of the EU Growth Plan and its related Reform and Growth Facility. Let me recall once more that the very aim of this unprecedented initiative is to boost the process and ensure the Western Balkans enjoy some of the benefits of EU accession before they actually join the Union, provided they deliver on key reforms. EU member states also want to see the impact of the EU accession process and EU assistance reflected more objectively in the public discourse and media. Finally, progress on the normalisation of relations with Kosovo* is of paramount importance to Serbia’s EU accession path, in addition to its significant contribution to regional stability, security, economic development and integration. The Agreement on the Path to Normalisation and its implementation annex have become part of Serbia’s Chapter 35 commitments, and therefore represent an obligation for Serbia on its EU accession path. Furthermore, Serbia and Kosovo need to engage constructively in the EU-facilitated Dialogue, as a necessary precondition for benefiting from the Growth Plan.

The swift drafting and adoption of the Growth Plan for the Western Balkans signals the strong political will of EU institutions and member states regarding enlargement policy. What is now expected from Western Balkan policymakers to ensure the plan’s full implementation?

— Indeed, Enlargement tops the EU’s agenda and there is a clear sense of urgency in the EU to make EU enlargement to the Western Balkans and other aspiring countries happen. I firmly believe that Serbia, and the Western Balkans as a whole, should seize and make use of this crucial moment. The time is now. The steps ahead are clear.

The Growth Plan for the Western Balkans is the practical translation of the political will to inject new momentum into the enlargement process in the Western Balkans. Of the total of six billion euros, about €1.6 billion has been mobilised for Serbia. Half of these funds will go directly to Serbian citizens, as budget support. The other half will be earmarked for strategic infrastructure through the Western Balkan Investment Framework. The release of these funds will be tied to progress on the Reform Agenda, with progress to be evaluated every six months and funds released. Each reform will have its own “weight” and will unlock certain financial compensation.

Could you provide details regarding the preparation and objectives of the first tranche for Serbia under the framework of the Growth Plan?

— The first payment, equating to around 7% of the total, will be made following the adoption of the Reform Agenda. Subsequent payments will require the assessment of the implementation of the Reform Agenda itself. The priority areas for the next four years are clear: improving the business environment and private sector development; implementing the Green and Digital Transitions; developing human capital; and progressing on fundamental reforms.

We would like to see Serbia tackle issues like the need for improved and more competitive public procurement practices; improved management of state-owned enterprises; reducing the skills mismatch on the labour market; a more competitive and sustainable agricultural sector; improved energy efficiency, and more. Underpinning all of this are measures to ensure the independence of the judiciary, the proper functioning of democratic institutions, the fight against corruption and areas like minority inclusion. These are all key issues that can either open or close the door for quick, dynamic and sustainable economic growth.

The design is such that if a country tackles these issues, it has a triple benefit: it unlocks its economic potential, receives a significant injection of additional EU funding for budgetary expenses and infrastructural development, and progresses on its EU integration path.

Overall, it is essential for the Serbian authorities to ensure proactive and objective communication regarding the EU, which is Serbia’s main political, trade and economic partner by far. The EU Delegation to Serbia will continue playing an active role in this regard, as well as outlining the opportunities and benefits that the EU integration process brings to Serbia, even before EU accession, including during the Opportunity Week this 20th to 27th September, which will provide a place and time for people in Serbia to get to know what the EU has for them.