Strong support for the private sector is necessary for the region’s transition to a greener, more inclusive and sustainable economic model, according to Alessandro Bragonzi, head of the European Investment Bank’s (EIB) regional office in the Western Balkans, adding that 12.1 billion euros have been invested in the region over the past 40 years, of which 6.1 billion euros to Serbia, primarily in the transport and private sector.
Bragonzi says that comprehensive financial and technical assistance is part of the EU’s contribution to the sustainable development of Serbia and the Western Balkans, and especially emphasizes that the EU is the largest donor to our country, with 3.6 billion euros in the last 20 years.
This, he points out, makes the EIB one of the largest and longest-term partners and financiers in the region.
He emphasized that the EIB, in cooperation with the European Commission, provided assistance to the region in the fight against the Covid-19 pandemic last year, and that it would continue in the same direction, recalling that the Economic and Investment Plan worth nine billion euros was adopted.
“These funds will be available for major projects in the areas of green and digital transition, inclusive growth, sustainable transport and the creation of a common regional market. Special support is provided to the private sector, which should, among other things, potentially encourage up to 20 billion euros in new investment,” Bragonzi said in an interview with Business Magazine.
When it comes to the private sector, the EIB conducts research to better understand the existing obstacles faced by private companies in the Western Balkans.
More than 28,000 observations from 43 countries around the world were covered on a wide range of topics, such as productivity, innovation, trade, management and access to finance.
According to the research, the biggest obstacles to business are access to finance, informality, political instability, tax rates and employee education.
He adds that, as before, he will continue to invest in micro, small and medium enterprises, in order to maintain jobs, emphasizing that EIB loans provide the best financial conditions.
Bragonzi says the EIB’s current priorities are to support the recovery from Covid-19 and implement a green and digital agenda for the Western Balkans, and in 2020 the EIB increased aid to the region and despite the crisis, the EU bank increased investment in the Western Balkans to 873 million euros, which is almost 50 percent more than in 2019.
He notes that the EIB will support the implementation of the Economic and Investment Plan, which provides for loans, grants and technical assistance.
Asked when the Western Balkans will join the EU, Bragonzi said that there are still important preconditions that need to be met.
However, he points out, the EIB will continue to support the Western Balkans on its path to joining a sustainable and competitive region, RTV reports.
