Can the Western Balkans converge towards EU living standards?
The Western Balkans have lower living standards than the EU. While the gap is slowly closing, full convergence may take over 70 years. The primary issue is low productivity due to under-investment, weak institutions, unfavourable demographics, and a challenging business environment. This paper uses the EBRD's ATQ framework to identify key areas lagging behind the EU and suggests policy improvements to accelerate convergence.