Alignment of the Six Countries of the Western Balkans (WB6) with the EU Regulation on Screening of Foreign Direct Investments

Country Western Balkans

Date 28 May 2025

Author Dr. Marko SAVKOVIĆ, Armando BODE, and Shqipe JASHARI SEKIRAQA, with contribution from Dr Ramadan ILAZI and reviewed by Dr Ana KRSTINOVSKA

Publisher Kosovar Centre for Security Studies (KCSS)

This policy brief gives a diagnostic of the different legal situations in the Western Balkans countries regarding the EU regulations on Foreign Direct Investment (FDI) screening. The authors believe that filling the “legislative gaps” and increasing “institutional capacities” they identify will show at the same time the seriousness of the Western Balkans countries in joining EU single market. Recommendations of policies are made, focused on the FDI Screening, to pave the way for “phased integration”. Four key takeaways are identified: First, FDI screening is one potentially low-hanging fruit for phased accession. Second, Kosovo seems to spearhead the efforts on FDI alignment and demonstrates regulatory leadership. Third, the Institutional gap is the main obstacle across WB6 regarding FDI screening and alignment with EU norms. Lastly, the EU should go beyond encouragement and move toward conditionality on FDI screening alignment.

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