Companies wary of investing in the Western Balkans

Western Balkan countries are struggling to attract more direct foreign investment despite big public campaigns in western media, lower taxes and other incentives.

The EU is warning the countries that the financial crisis is not the only problem. The high level of corruption, illegal state protection of some domestic tycoons and dysfunctional judiciaries are also considerable obstacles to investment.

Several EU governments and the European Commission in its annual progress reports...