Chiara Scotti: Programme for Strengthening the Central Bank Capacities in the Western Balkans with a View to the Integration to the European System of Central Banks - Phase III

Why It Matters

Enhanced central bank capabilities accelerate financial integration and support the Western Balkans’ EU accession pathway, boosting regional stability and market confidence.

Key Takeaways

• Phase III launches EU‑backed central bank capacity building
• TIPS Clone project modernizes Western Balkan payment systems
• Banca d'Italia to host SupTech training and policy forum
• Four bilateral missions target Albania, Bosnia, Kosovo, Serbia
• Programme supports EU enlargement and regional financial stability

Pulse Analysis

The European System of Central Banks (ESCB) has long used technical assistance to bridge the gap between EU member states and aspiring economies. Phase III of the EU‑financed programme, launched in Rome by Banca d’Italia, builds on the success of the first two phases that delivered training, internships and IT support to central banks in Albania, Serbia and other Western Balkan states. By concentrating on supervisory technology (SupTech) and market infrastructure, the new phase aligns the region’s monetary authorities with EU standards, a prerequisite for deeper economic convergence and eventual accession.

A centerpiece of the initiative is the TIPS Clone project, a joint effort between Banca d’Italia and five Western Balkan central banks to replicate the TARGET2‑Payments Infrastructure Service (TIPS). The clone aims to modernise payment processing, reduce transaction costs and enable cross‑border settlements that mirror the Eurozone’s real‑time gross settlement system. Complementary SupTech workshops will equip regulators with data‑analytics tools to detect risks early, while four bilateral missions to Albania, Bosnia‑Herzegovina, Kosovo and Serbia will tailor reforms to each country’s legal and technical environment.

The programme’s strategic relevance extends beyond technical upgrades. Strengthening central bank capacities is a cornerstone of the EU enlargement agenda, fostering financial stability, investor confidence and the rule of law in a region still recovering from geopolitical tensions. By embedding European best practices, the ESCB and Banca d’Italia help the Western Balkans meet accession benchmarks, potentially accelerating their path to EU membership. Continued cooperation also creates a network of interoperable payment systems, laying the groundwork for a more integrated European financial market.