The Bertelsmann Stiftung Transformation Index (BTI) 2026 finds that East-Central and Southeast Europe remains the best-performing region among developing and transition countries, combining resilient economies with mixed progress in political transformation. While some countries continue democratic consolidation and Poland has been undoing the damage of previous illiberal rule, backsliding has deepened in Hungary, Slovakia and especially Serbia, now classified as a moderate autocracy. In the other Western Balkans countries, trends are uneven: Albania continues its positive trajectory and reaches its highest level of democratic development, while Montenegro shows more stable finances despite political instability. At the same time, North Macedonia’s EU path remains blocked, and BiH faces weak governance and internal divisions. Overall, growing polarization and erosion of democratic consensus are testing governance across the region. Read more here.
Source: BTI