Strategic Moves - Regional Environmental Center for Central and ...

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E X E C U T I V E S U M M A R Y
S T R AT E G I C M O V E S
range from USD 2,600 in Kosovo (as defined under UNSCR 1244) to USD
16,500 in Croatia. However, due to the economic recession, economic activity in
SEE contracted sharply in the second half of 2008 as a result of reduced foreign direct
investment, lower demand for exports, and less cross-border lending.
In Albania, Croatia, Montenegro and Serbia, the unemployment rate in 2008
ranged between 11 and 14 percent, while in the former Yugoslav Republic of Macedonia
it was around 33 percent and in Kosovo (as defined under UNSCR 1244)
and Bosnia and Herzegovina it was approximately 40 percent. Unemployment levels
have a direct impact on affordability and willingness to pay for environmental
infrastructure services.
The region’s mid-term macroeconomic outlook remains favourable but is dependent
on the maintenance of internal and regional stability, the continuation of
structural reforms, market liberalisation, infrastructure restructuring and privatisation.
EU accession
The countries of SEE have moved closer to EU membership in recent years as
the region has, to varying degrees, made progress in reforms and in meeting the criteria
and conditions established under the Stabilisation and Association Process.
For SEE countries, future EU accession is the strongest driver for reforms and is a
high priority on national agendas. The pre-accession period provides a unique window
of opportunity for reforms. It is a chance to develop human capacities and to
consolidate and strengthen institutions in order to increase their ability to implement
the EU environmental acquis.
Lessons learnt from CEE show that early emphasis should be given to institutional
and administrative reform, and that rushed and insufficiently coordinated transposition
may lead to non-integrated, unclear, complicated and poor-quality legislation.
Relevant EU policies and related investments
The implementation of environmental legislation, and especially of certain investment-heavy
directives, requires significant efforts for the upgrading and construction
of new environmental facilities in the water and waste sectors, which will
entail significant public and private costs representing more than 2 to 3 percent of
the countries’ GDP. On the other hand, compliance will eventually lead to a range
of benefits linked to improved health and better living environments.
Experiences from the EU-10 have shown that certain environmental investments
will be particularly costly to implement. In the waste sector, the following directives
pose a significant financial challenge for the public sector:
• Waste Framework Directive (2008/98/EC)
• Landfill Directive (1999/31/EC)
• Incineration Directive (2000/76/EC)