Oct 13, 2024 – The European Union is on the verge of approving a sweeping reform agenda for the Western Balkans, unlocking access to a €6 billion Growth Plan aimed at boosting economic development and accelerating integration into the bloc.
The package, first introduced in May, covers six countries: Kosovo, Albania, North Macedonia, Montenegro, Bosnia and Herzegovina, and Serbia. Five of these nations have received final consent from the EU’s Instrument for Pre-Accession (IPA) Commission, with Bosnia and Herzegovina still awaiting approval due to an incomplete submission.
EU officials are expected to formally approve the plan’s implementation on October 16, allowing the first payments to be made once the agreements are signed and ratified by national parliaments. A portion of the funding, €2 billion, will be provided as non-refundable aid, while the remainder will come as soft loans. The first disbursements could realistically begin in early 2025, although quicker ratification could lead to earlier payouts.
The EU aims to front-load 7% of each country’s allocated funds as a “pre-financing” payment. For Kosovo, this could translate to €61 million from a total of €880 million, while Albania is set to receive €922 million, with €64.5 million coming as pre-financing. Serbia will receive the largest share, with €1.58 billion allocated, of which €111 million could be disbursed initially.
The Growth Plan is designed to enhance regional cooperation, economic growth, and the development of a common market that will eventually be integrated into the EU’s single market. Countries failing to implement required reforms risk having their funds redirected to other beneficiaries. The EU has also linked specific conditions to the plan, including rule of law, financial transparency, and, for Kosovo and Serbia, constructive engagement in their normalization process.
This package, separate from the regular pre-accession funding tools, represents the EU’s most ambitious effort to support the region’s integration.
