Wider Europe

In 2011, the EU made progress in enlargement despite the euro crisis. However, in 2012, the EU’s power in the Wider Europe was diluted, not just because the EU remains focused on the crisis but also because the emergence of a multi-tier Europe is in effect downgrading the value of membership of the EU. The recession in the EU – a key trading partner for all Western Balkan countries – has also hit local economies hard by depressing demand for exports and reducing FDI. Even the star performer in the Western Balkans, Croatia, is beset by negative growth for a fourth consecutive year. In other words, the EU is now exporting the crisis to its already-troubled periphery and this is to some extent undercutting its policy in the region.

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