The Western Balkans continues to move closer to the European Union in terms of laws and regulations, but it is not following the same pace in economic and social development, Monitor reported.

A new analysis by the Vienna Institute for International Economic Studies (wiiw) shows that, even if the countries of the region were to maintain their current pace of progress, most of them would need several decades, and in some areas even more than a century, to reach average EU standards.

The report analyses eight main pillars of development: the economy, social policies, healthcare, education, governance, the environment, digitalization, and infrastructure, and highlights a region that is progressing at very different speeds.

Digitalization is the most successful story, where some countries could reach European standards within a few years, while infrastructure and the environment remain the biggest obstacles, with timelines that in most cases exceed a century. In social issues and governance, Kosova is closest to the EU. Serbia and Montenegro are closer to economic standards. Bosnia is closer to the EU in education, while North Macedonia is closer to the EU in governance, healthcare and digitalization standards. Albania has made progress in governance and digitalization, but remains very far from European standards in infrastructure, the environment, and pensions.

The report highlights that the region’s challenge is not only the pace of growth, but also its quality. Economies continue to rely on consumption, construction, tourism, and remittances, while investment in productivity, innovation, human capital, and infrastructure remains insufficient to close the gap with Europe.

If digitalization is the best story of convergence, physical infrastructure remains the most problematic story. The Vienna Institute identifies this as the area where the region is furthest from European standards and where progress is moving at an extremely slow pace.

North Macedonia ranks first in the region with 38.4% of the EU level, followed by Kosova and Serbia, at around 37%. Montenegro reaches 30.6%, Bosnia and Herzegovina 23.2%, while Albania remains at the bottom of the ranking with only 14.1% of the European average.

Although most countries have recorded small improvements during the past year, the report concludes that at current rates, almost all economies of the region remain more than a century away from European Union standards. Kosova is even considered to be moving away from the EU in this pillar.

Governance is one of the areas where differences between Western Balkan countries are relatively small. The convergence report shows that Montenegro leads the region with 76.7% of the EU level, followed by Albania, with 73.8%, and North Macedonia with 73.3%. Bosnia and Herzegovina ranks last, with 59.3%.

Almost all economies recorded improvement during 2024. Montenegro registered the strongest advance, while Albania ranked second in terms of the pace of progress. North Macedonia was the only country that lost ground against the European average.