Last year, on March 1, the Open Balkan initiative launched a common labor market, allowing citizens of Serbia, North Macedonia and Albania to apply and work freely across the three countries. However, nearly a year later, the simplified and accelerated procedures have not produced the expected results, according to Forbes Serbia.
This labor market could also be developed through the Regional Economic Area initiative, which includes more Western Balkan countries and aims to improve regional mobility. Yet, progress remains limited.
Dragana Đurica, General Secretary of the European Movement in Serbia, revealed that from March to November 2024, only 285 requests for free labor market access were approved: 282 from North Macedonia and merely 3 from Albania. Meanwhile, thousands of work permits continue to be issued through the traditional National Employment Service channels.
Citizens still prefer the old procedures mainly because social and health insurance processes have not been streamlined under the new system. In fact, in 2023, fewer employment permits were issued to citizens from these countries compared to previous years, highlighting the slow uptake of the Open Balkan market.
The initiative was intended to curb brain drain by allowing the region’s approximately 11 million inhabitants to work more easily in neighboring countries. However, Serbia currently employs more workers from countries like Sri Lanka, Nepal, and Pakistan than from neighboring Balkan countries.
Political support for Open Balkan is waning, especially as hopes for EU enlargement in the region are rekindled. Đurica stresses that regional cooperation should complement, not replace, the EU integration process — a concern shared since the start of projects like Mini Schengen and Open Balkan.
Meanwhile, the CEFTA agreement continues to facilitate regional trade, having more than doubled trade volume among participant countries since 2007. Recent improvements include the elimination of roaming charges and the introduction of SEPA, which removes business transaction fees.
Yet, non-tariff barriers remain a major obstacle, as there is no enforcement mechanism to ensure full compliance with agreements. According to CEFTA expert Andrea Matijević, unresolved issues within CEFTA will carry over to broader initiatives like the Common Regional Market.
In October 2024, CEFTA parties signed eight protocols and one recommendation aimed at boosting regional mobility and trade, but only three protocols have been ratified across all six Western Balkan countries. Ratification of the remaining protocols, including one addressing geopolitical blocking, is still pending in Serbia and elsewhere.
The success of regional labor and economic integration efforts depends heavily on resolving these political and administrative challenges.
