Navigating Divergence: Economic and Political Challenges in the Southern Mediterranean Since the Barcelona Declaration

This essay examines the economic and political challenges that have shaped the Southern Mediterranean region since the 1995 Barcelona Declaration, highlighting persistent disparities with their Euro-Mediterranean counterparts. Despite the initial goals of economic convergence, the area remains fragmented due to structural impediments such as political instability, prolonged conflicts, and ineffective governance. External shocks, including the COVID-19 pandemic and the Russia-Ukraine war, have exacerbated existing vulnerabilities, widening the economic gap. The analysis reveals key patterns, including limited economic diversification, overreliance on traditional sectors, and an enduring dependence on external financial aid. Although some nations, like Turkey and Egypt, exhibit relative resilience, many Southern Mediterranean economies face rising external debt, unsustainable fiscal pressures, and slow industrial growth. Furthermore, trade and investment remain constrained by inadequate infrastructure, high transaction costs, and regulatory complexities, hindering integration with the EU. Comprehensive reforms emphasizing political stability, governance, and economic diversification are essential to achieving sustainable growth and economic convergence. Enhanced international cooperation, mainly through tailored EU partnerships and investments, can facilitate a more cohesive and prosperous Mediterranean region. Without these measures, the aspirations of the Barcelona Declaration risk remaining unfulfilled.