The 12th Regional Summit of Governors, Finance Ministers, and Tax Administration Directors, organized by the Serbian Association of Economists, concluded successfully, reaffirming the urgent need for enhanced regional cooperation and open dialogue.

This high-level gathering convened key architects of fiscal and monetary policy – governors of central banks, finance ministers, heads of tax administrations – alongside representatives of international financial institutions and top executives from the banking and insurance sectors.

Participants had the opportunity to exchange ideas and visions regarding the future of the Western Balkans in an increasingly complex and uncertain geopolitical and geoeconomic landscape. The region is facing mounting challenges in preserving financial and monetary stability, particularly in the context of the Eurozone’s sluggish growth. Weakened economic activity of key trading partners is dampening export demand, foreign direct investment, and remittance inflows – leading to an increase in trade and current account deficits, and potentially jeopardizing macroeconomic stability.

Monetary policy across the region must therefore strike a delicate balance between safeguarding price stability and supporting economic growth – particularly given that euroized economies are even more vulnerable to external shocks. Ensuring a stable financial system requires responsible management of public finances, robust supervision of the financial sector, and the maintenance of high levels of foreign exchange reserves as protective buffers against adverse external influences.

To that end, fiscal and monetary policies of Western Balkan countries must be strategically crafted, well-aligned, and closely coordinated, with the overarching goal of improving risk management, preserving financial stability, and supporting long-term, sustainable economic development.

The summit was formally opened by Aleksandar Vlahović, President of the Serbian Association of Economists, who underscored in his keynote address the complexity of the current economic environment in both the region and the Eurozone – particularly with regard to widening external imbalances. He pointed to the growing deficits in Serbia and Albania, as well as the pronounced gap between CAD and SDL in Montenegro. Nonetheless, he emphasized that the financial sector in the Western Balkans remains fundamentally stable and resilient.

The Governor of the Central Bank of Montenegro, Irena Radović, emphasized that preserving macroeconomic stability remains the institution’s top priority, with a particular focus on sustainable public finances and sound fiscal policy. She cautioned that fiscal unsustainability poses a serious threat to the country’s overall economic stability.

The first panel, titled “SEPA and the Western Balkans: A Catalyst for EU Convergence and Access to the Single European Market,” concluded that SEPA membership constitutes a pivotal milestone in aligning the region’s countries with the EU. Montenegro, as the first country in the region to fully integrate its banking system within SEPA, demonstrated that reforms and collaboration are essential for achieving tangible benefits – ranging from reduced transaction costs to enhanced financial stability and sustained economic growth.

The second panel, titled “Geopolitical Fragmentation and Customs Pressures: Inflationary Risks and Monetary Policy Challenges in the Western Balkans,” addressed rising inflationary pressures, the fragmentation of global trade, and the constrained monetary policy space within the region. Governor Selimović highlighted the limitations faced by Bosnia and Herzegovina due to its currency board arrangement, while Governor Radović underscored the critical importance of fiscal discipline in Montenegro. According to Vice Governor Lang, Croatia’s experience confirms that political will and comprehensive structural reforms are indispensable for successful European integration. The panel concluded that deeper policy coordination, greater investment in productivity, and stronger institutional ties across the region are key to ensuring stability and accelerating convergence with the EU.

The second day of the Summit began with a keynote address by Dušan Borovčanin, CEO of the Expo 2027 project, who highlighted the significance of this first specialized exhibition in the region, as a vital platform for showcasing Serbia and the Western Balkans to more than six million visitors and participants from over 120 countries, including G20 members.

The panel titled “Responsible Fiscal Policy: A Prerequisite for Enhancing Stability and Economic Resilience Amid Weak Eurozone Growth” emphasized the need to safeguard fiscal stability through stronger policy coordination, institutional capacity building, and alignment with EU legislation. Participants advocated for a predictable tax policy and the removal of regulatory barriers to improve the region’s competitiveness and economic resilience.

The Summit concluded with a discussion on “Tax Administration Reform and Modernization: Objectives, Scope, and Constraints.” Heads of national tax authorities agreed that modernization is imperative to enhance tax collection and curb the shadow economy. Emphasis was placed on digital transformation, investment in human resources, and regional cooperation as key success factors. However, the success of these reforms ultimately hinges on sustained political commitment and international support.

The Vice President of the Serbian Association of Economists formally closed the Summit by expressing gratitude to all participants and announcing that the next gathering will take place in the second half of September 2026.

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