The EU competition rules and impact on increasing market competitiveness on the Western Balkans

Elton Tota,Bardhyl Hasanpapaj

doi:10.22495/cgobrv5i2sip4

Elton Tota, Bardhyl Hasanpapaj

Open Access

https://doi.org/10.22495/cgobrv5i2sip4

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Abstract

Harmonizing national legislation with the EU acquis and developing capacities of the national competition authorities (NCA) remains a core element for increasing market competitiveness for the countries of the Western Balkans (WB). This research paper using a comparative approach while analysing data and information from a chronological point of view identifies the lack of progress of the Stabilization and Association Agreement (SAA) countries in the EU integration process. The paper identifies that most of the WB countries show similar shortcomings from the past which are still present and the progress achieved in this in the EU path is limited. The paper concludes that in order to achieve the targets defined in the SAAs the WB countries should enhance their efforts to not only approximate their legislation with the EU acquis but, in addition, establish appropriate mechanisms and increase the implementation capacities. The conclusions of the paper may be relevant for further researches regarding the more challenging issue as to why competition law in the WBs has not been sufficiently understood and developed in this region. Understanding and embracing the competition rules is important for economic development in general (Buccirossi & Ciari, 2018) while it contributes directly to the living standard of the citizens (Najdanović, Mladenović, & Tutek, 2019). This paper tries to contribute to this area of study which is not sufficiently studied as well and publications therein are not that many

Highlights

Increasing market competitiveness remains a challenge for all the Western Balkan countries (WBC) bound by the Stabilisation and Association Agreements[1], otherwise known as the Western Balkans[2]
Through comparing the existing situation in the WB with the final target of where it should be, this paper aims at raising awareness and understanding among the WB on fulfilling their international obligations assumed by the Stabilization and Association Agreement (SAA) where competition is one of the constituent criteria
The most recent EU legislative acts in the field of competition law do clearly address some of the current issues concerned, such as further strengthening the national competition authorities by providing certain guaranties for them; providing the effective exercise of the right to claim full compensation for the harm caused by infringements of competition law; and the developments in the legislation pertaining to investigating foreign subsidies operating in the EU internal market

Summary

Introduction

Increasing market competitiveness remains a challenge for all the Western Balkan countries (WBC) bound by the Stabilisation and Association Agreements (hereinafter: SAA)[1], otherwise known as the Western Balkans[2] (hereinafter: WB). Market competitiveness were neither fully operational nor well-structured to operate independently Such states’ structures in many of the WBC were established within certain Ministries (mostly Ministries of Economy) operating as departments or independent competition authorities responsible for observing the newly introduced market competition rules. The rules on competition are an important part of the EU integration process for the WB derived from the economic requirements of the Copenhagen Criteria (EU, 1993). In this regard, the WB countries had to move ahead along a clear roadmap following the respective EU legislation on competition rules leading, over the intervening years, to a “massive” standardization and harmonization process with the acquis communautaire. The necessity of developing competition rules was made especially clear when the WB became officially part of the EU’s regional approach through the mechanism of SAP3

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