Concerns are growing in the Western Balkans over the consequences that the Eurozone debt crisis, especially as concerns Italy and Greece, will have on the economies of the countries in the region.

The concern, underscored the World Bank in a report released over the past few days, concerns in particular a possible reduction in investment flow and trade, the probable drop in remittances from the diaspora, and a decrease in banking activities, Italy and Greece, alongside Austria and France, are the countries hit the hardest in the banking sector of the Balkan region.

As underscored by the World Bank, last year 58.2% of the total export of the six Western Balkans countries (Serbia, Bosnia-Erzegovina, Macedonia, Montenegro, Kosovo, Albania) was mainly headed for EU countries, especially Italy and Germany.

Also in Croatia, which will officially become part of the European Union in July 2013, concerns are similar.

''Most foreign banks in the region are from EU countries, and especially Italy and Greece, and an intensification of financial tensions could lead to a decrease in credit-related activities in the region,'' said Ronald Hood, a World Bank economist.

Serious concerns on the matter have been expressed in particular in Serbia by President Boris Tadic and Economy Minister Nebojsa Ciric. ''We fear that the crisis in Greece and Italy could also hit us,'' said Tadic ,who believes that ''if the debt crisis hits Italy, we could also be severely affected.'' In the first nine months of 2011, Italy was the second top destination for Serbian exports and third as concerns imports.

Minister Ciric says that there is a real risk that the economic and financial crisis in Italy could have a negative impact on Serbian exports due to a drop in demand, although in his opinion there are not likely to be consequences on Italian investments and the projects already started in Serbia.

Italy is one of the largest investors in Serbia, where it is present with large groups (Fiat, Benetton) as well as with hundreds of SMEs (clothing, footwear) which provide jobs for over 20,000 people, and has a leading position in the banking and insurance sector.

The World Bank predicts growth in the Western Balkans of 2.5% in 2011 and 2.1% in 2012. However, if the Eurozone crisis becomes worse, this outlook will be revised downward.