I am pleased to welcome you to this regional conference to discuss macroeconomic and monetary policies related to the effects of the eurozone’s low inflation rate and the negative interest rates. I very much welcome this opportunity to debate on links and implications of such tendencies on the WesternBalkancountries.
The WesternBalkancountries need more technical, evidence-based, and un-politicized debate. This conference is about technical expertise feeding good policies. And it might contribute to foster the integration of the Western Balkans region
credit correction in WesternBalkancountries was not as severe as in the New Member States because the former relied more on expanding domestic deposit bases than did the latter.
But the fact that the credit cycle was milder has not meant that the WesternBalkancountries were able to avoid the after-effects of the crisis. The fallout from the crisis and the subsequent economic sluggishness has resulted in a surge in nonperforming loans (NPLs) in most Emerging European countries. But tepid structural reforms in the Western Balkans to address these problems head on
The paper provides quantitative estimates of the impact of the European trade agreements on trade flows. It applies both static and dynamic panel estimation techniques. The results are useful to policymakers because new intra-European trade agreements are being negotiated. In the absence of a further expansion of the European Union, estimates of alternative policies may help to clarify the policy debate. The paper also illustrates that the performance of individual countries under the trade agreements can be explained in terms of their macroeconomic environment. The conclusions are likely to be relevant to the western Balkan countries and Ukraine.
Akaika information criterion
Central and Eastern European countries comprise the 10 new member states on the continent, the westernBalkancountries, Moldova and Ukraine
Council for Mutual Economic Assistance
European Economic Area
European Free Trade Association
Agreements between EU and selected CEE countries ( Appendix I ).
Central European Free Trade Area ( Appendix I )