Balkan Developments

Zelensky arrives in Belgrade for first official visit

On August 8, Ukrainian President Volodymyr Zelensky will pay his first official visit to Belgrade as head of state, BTA reported. The visit to President Aleksandar Vučić comes after Serbia remained the only participant in the Ukraine-Southeast Europe Summit, refusing to sign the joint declaration in support of Ukraine. Despite their differences, the two countries have intensified political dialogue and negotiations on a free trade agreement. Both Ukraine and Serbia are candidates for EU membership, but Belgrade's negotiations are at a standstill, as the country has not synchronized its foreign policy with that of the Union and has not imposed sanctions on Russia.

Fitch: Deficit and rising debt continue to plague Romania

International rating agency Fitch has affirmed Romania's sovereign credit rating at BBB- but maintained a negative outlook due to weak public finances, rising public debt and political uncertainty. According to the agency, EU membership and European financing continue to support the economy and access to external capital, but the country remains vulnerable due to a high fiscal deficit, current account deficit and rising public debt, BTA reported. Fitch expects the budget deficit to decline to 5.9% of GDP in 2026 from 9.3% in 2024, after which its decline will slow. The agency also forecasts a contraction of the Romanian economy by 0.6% in 2026, as weaker consumption and an unfavourable external environment will limit growth despite EU-funded investments.

Skopje secures funding for rail connection with Bulgaria

North Macedonia has secured nearly €500 million for the construction of the third section of the Corridor 8 railway to the border with Bulgaria. The government has signed agreements with the EU, the European Investment Bank and the European Bank for Reconstruction and Development, which include €149 million in grants and €350 million in loans. Deputy Prime Minister Aleksandar Nikoloski announced that Skopje and Sofia have reached an agreement on the construction of the cross-border tunnel and will request joint European funding for the project. The tender for the construction of the 22-kilometer Kriva Palanka - Deve Bair section is expected to be announced in the coming weeks. Corridor 8 is a key transport link between the Adriatic and Black Sea and connects Bulgaria, North Macedonia and Albania.

Strong donation support for Turkish opposition leader Özgür Özel's New Party

The new party of Turkish opposition leader Özgür Özel has raised about 3.3 million euros from nearly 86,000 donors in just 48 hours since the start of its funding campaign. The "New Party" was established on July 24 after a deep split in the Republican People's Party (CHP) caused by a court ruling to annul the congress at which Özel was elected leader. Under Turkish law, political parties that receive at least 3% of the vote in a parliamentary election are eligible for funding from the Ministry of Finance, with the allocation determined by their share of the vote, turkishminute.com reports. State funding triples in years of parliamentary elections and doubles in years of local elections. Since the New Party has not yet participated in parliamentary elections, it is not eligible for state party funding and currently relies on private donations. Özel called on his supporters to support the formation until the procedures for official membership are completed.

Red coral smuggling network busted near Skopelos

Greek authorities have uncovered an alleged international scheme for the illegal collection and trafficking of red coral in the Aegean Sea. During an operation by the Special Operations Directorate of the Independent Authority for Public Revenue and the coast guard off the island of Skopelos, a yacht posing as a tourist vessel was inspected. According to investigators, it was actually a floating base for illegal collecting of corals, in.gr reports. Corals, diving equipment and tools were found on board. The value of the confiscated cargo is estimated at around 800,000 euros. The vessel was rented by Italian citizens, and the investigation indicates a connection to a transport company used to send shipments to Italy. Red coral is highly valued for its use in jewelry, but it grows by only about 0.2 millimeters per year and is a protected species.

Compiled by: Miglena Ivanova