Amer Kapetanović, secretary general of the Regional Cooperation Council, urged the Western Balkans to speed up implementation of its common regional market plan and remove barriers to business and trade. He described a unified market of 18 million people as a test of the region’s readiness for possible gradual inclusion in the European Union single market before full EU membership.
Kapetanović said the region has made progress towards a common market, but substantial work remains unfinished. Some agreements have been signed and others ratified, yet their implementation has not taken hold in practice. He called for the removal of administrative and other obstacles that hinder business and the movement of goods and services.
Businesses must be able to operate freely across the region and create added value, he said. He contrasted six fragmented, small markets with a single market of 18 million people, arguing that small, fragmented economies can grow only to a certain level.
Market access and investment
Better links between Western Balkan economies are particularly important for attracting foreign investment, according to Kapetanović. Potential investors consider not only the opportunities in an individual market, but also whether they can sell goods and services across the region.
He illustrated the question facing an investor in Bosnia and Herzegovina: whether goods could be sent to Montenegro and then onwards to Serbia. Work to address such barriers is being carried out with the CEFTA Secretariat, the Energy Community and the Transport Community.
Kapetanović called the common regional market a “test for all of us”. If the region is not ready for a market of 18 million people, it is not ready for one of 350 million, he said. The ability to connect Western Balkan economies also matters in the context of possible gradual access to the EU single market before full membership.
Joint action could help the region move towards convergence with the European Union, he said. Kapetanović put the region at 35% of the EU average. His call for faster implementation centres on turning existing agreements into arrangements that businesses can use in practice.
Energy links and technology policy
Connecting regional electricity systems with the European Union is another priority identified by Kapetanović. Such links are a key prerequisite for avoiding additional costs that the EU’s Carbon Border Adjustment Mechanism (CBAM) imposes on producers.
CBAM already affects some sectors, including steel, cement and metals production, and the list of covered products is expected to expand through 2030. Kapetanović cited Liechtenstein, Iceland and Norway as countries outside the European Union that have established appropriate connections with the European electricity market.
On artificial intelligence, Kapetanović said economies of every size and strength face challenges from its development. Global attention is increasingly focused on rules and standards for the controlled development and use of AI. He urged the region to monitor the European Union’s resilience and its plans concerning the technology’s effect on the labour market.
Greater use of AI in workplaces will bring changes and some imbalances to labour markets, he warned. Kapetanović called for timely consideration of employee retraining, limits on the use of new technologies and a regulatory framework for artificial intelligence. He raised questions about what will happen to workers, whether they will be retrained and how far AI should be allowed into the labour market.
Security aspects of AI development and use also need attention, including security protocols and the protection of citizens, he said. The Regional Cooperation Council cannot impose rules on regional governments, but can help align positions and find common solutions. Kapetanović said it could bring different voices together, find a common position and establish a joint platform for work with governments.
