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Apart from the former EFTA members (Iceland, Lichtenstein, Norway and Switzerland) and afew former republics of the Soviet Union (Bjelorussia, Moldova and Ukraina) the countries ofthe Western Balkans are the only European states outside of the European Union. They are verykeen to join the Union. The Balkans have always been the poorest part of Europe. The appeal ofthe wealthy European Union is apparent. Access to the largest market in the world, investment,modern technologies and generous regional funds give a hope that by joining the EU the WesternBalkans countries will join the rich club. At the moment performance of the Western Balkancountries does not guarantee that they will become rich by joining the European Union. Theircurrent production and trade structure makes it likely that the Western Balkan countries will belocked in inter-industry trade in which they will export products of low and medium technologicaland developmental level and import products of high technological and developmental level. Thismight lead to divergence rather than convergence between them and the European Union. Inother to overcome this problem the Western Balkan countries need to conduct radical reformsin the public sector, fiscal policy, industrial trade and investment policy. They also need to tacklecorruption, simplify administrative procedure, strenghten property rights and the lawful state. Allthis with the aim to change economic structure and shift from achievements of the second andthird to fourth technological revolution. Only if these reforms are successfuly implemented theWestern Balkan countries can hope to avoid the Greek scenario and possibly experience the Irishscenario.