Growth in Southeast Europe is set to reach 4.8 per cent in 2005, supported by political stability and the prospect of EU accession for Bulgaria, Romania and Croatia. The region witnessed significant overall improvements in the business environment, but there was also a slowdown in the pace of reform, including a pre-accession pause in reform by the EU candidate countries, the report says.
One exception is Serbia and Montenegro, which underwent significant reforms, including in large-scale privatisation, trade liberalisation and institutional development.
The EBRD warns that the Western Balkans countries must move ahead with comprehensive reform agendas to promote investment, private entrepreneurship and trade.