THE ABSORPTION CAPACITIES OF SOUTHEAST EUROPEAN COUNTRIES IN THE USE OF EU FUNDS

Membership in the European Union is the aspiration of the most European countries, especially the underdeveloped and politically still unstable, former socialist countries. Those countries strives to find economic prosperity and political stability in the EU, despite many constraints of economic and political nature. In order to help solve the problem and ensure the more successful adaptation the EU has created special financial instruments to assist candidate countries, where each country is responsible for its own progress and withdrawal of available funds. This work will search all important determinants of use of EU Pre-Accession Funds in SEE countries taking into account features and specifics of each program, as well as problems these countries are facing with. The main purpose and aim of this paper is to explore the absorption capacities of candidate countries and potential candidate countries of SEE in withdrawing funds from EU pre-accession funds. Bearing in mind the political and economic specificities, special attention will be given to its absorption capacities and the possibilities for their improvement in the existing institutional and economic framework