28/05/2025
Prishtina, May 27, 2025
The Kosovar Centre for Security Studies (KCSS) has published a new policy report on the alignment of the Western Balkan Six (WB6) with the EU’s framework for screening of foreign direct investments (FDI). Released as the concluding output of the ASCEND project—implemented under the IGNITA initiative with the support of the Open Society Foundations – Western Balkans — the report contributes to growing policy debates on how the region can advance through targeted regulatory alignment.
The report “Alignment of the Six Countries of the Western Balkans with the EU Regulation on Screening of Foreign Direct Investments” examines the current state of FDI screening mechanisms across the region and proposes a clear roadmap for legal and institutional alignment with the EU Regulation 2019/452. It argues that FDI screening offers a tangible and politically feasible entry point for phased integration into the EU’s regulatory and security architecture that contributes to gradual alignment with EU internal market standards and integration into it.
Dr. Ramadan Ilazi, Head of Research at KCSS, underscored this potential: “The report argues that FDI screening is more than a compliance issue of WB6 with EU norms; it is a mechanism for WB6 countries to be gradually integrated into the EU’s institutional and regulatory fabric. FDI screening cooperation among WB6 and alignment with the EU norms is a test of institutional maturity and a tool for countering corrosive capital and malign foreign influence in our region.”
The study finds that, despite shared aspirations for EU membership, the WB6 countries are at different stages of readiness. Kosovo has taken the most concrete steps by adopting a Law on Sustainable Investments, which incorporates provisions for screening investments based on public order and national security considerations, in line with the EU Regulation 2019/452. Other countries are in early stages of legal drafting or policy planning, while Serbia and Bosnia and Herzegovina have yet to initiate meaningful legislative efforts.
Shqipe Jashari Sekiraqa, co-author of the report, emphasized the importance of adopting safeguards that balance openness with resilience: “The goal is not to close the door to investment, but to ensure that investment contributes to development without undermining public interest or exposing critical infrastructure to strategic vulnerabilities.”
The report notes that existing institutional gaps, fragmented responsibilities, and limited political prioritization have delayed alignment in many WB6 countries. It warns that the absence of screening mechanisms increases exposure to external influence, particularly in energy, telecommunications, and media sectors.
Marko Savković, Senior Advisor at ISAC Fund and one of the contributors, reflected on the broader regional implications: “This is an opportunity for the Western Balkans to move beyond passive alignment. Establishing screening frameworks helps ensure that countries are not only recipients of investment but also responsible stakeholders in Europe’s economic security.”
As the EU considers revising its own FDI screening regulation, the report suggests this is an opportune moment for the WB6 to seek observer status in EU-level coordination structures, such as the FDI Screening Contact Points network and the Expert Group. Aligning with these mechanisms, the authors argue, would support learning, build administrative capacities, and demonstrate a shared commitment to upholding European standards.
Policy researcher and co-author Armando Bode added: “This process should not be seen as an additional burden but as a pathway toward structured engagement. It allows Western Balkan countries to participate in EU-level conversations on investment and security before accession.”
The report calls on the European Commission to incorporate the alignment of FDI screening mechanisms into the negotiation and Stabilisation and Association Agreement (SAA) structures, in line with the EU’s revised enlargement methodology. It also recommends that the Commission provide targeted technical and financial assistance to support the implementation of these mechanisms.
At the same time, the report urges Western Balkan Six (WB6) governments to treat the development of FDI screening frameworks not as a standalone obligation, but as part of a broader effort to enhance governance, ensure transparency, and strengthen institutional capacity in managing foreign investments.
Regulation (EU) 2019/452 is negotiated under Chapter 30 of the EU acquis, which falls within Cluster 6 (External Relations). While alignment with the regulation has clear implications for Cluster 2 (Internal Market) and, to some extent, Cluster 1 (Fundamentals), greater emphasis should also be placed on its relevance to external relations—particularly given the growing geopolitical dimension of FDI flows.
The publication concludes the ASCEND project’s contribution to advancing operational integration of the WB6 into key EU security frameworks. Through detailed analysis, consultation, and dialogue, the initiative has highlighted how focused reforms—such as in cybersecurity, investment policy, and rule of law—can help sustain the momentum of the EU enlargement process.
Rather than waiting for full membership, the report suggests that the Western Balkans can and should begin assuming responsibilities that come with integration. FDI screening is one such area—concrete, necessary, and achievable.
