Fourth deadline for Western Balkans reforms closes, decision on funds moves to evaluation stage

The fourth deadline for carrying out reforms under the Growth Plan for the Western Balkan countries has come to an end.

Beneficiary states had until June 30 to complete the planned reforms, while by July 15 they must submit reports on their progress. The European Commission will then review these reports to determine whether the reforms have been implemented and, based on that assessment, will decide on the disbursement of funds for each country.

Speaking to Radio Free Europe, European Commission spokesperson Guillaume Mercier stressed that funds from the Growth Plan are released only after reforms have been fully implemented. “The Reform and Growth Facility is performance-based and funds are paid only when reforms are fully implemented,” he said. According to him, the balance so far remains encouraging, as 78 percent of the reforms reported in the first three cycles have shown progress or been fully completed, while 22 percent remain stalled.

The European Commission also recalls that Growth Plan funds are limited in time. If a state fails to implement the specified reforms, the funds may be suspended and then reallocated to countries that perform better. The rules of the mechanism stipulate that beneficiaries have one year to meet their obligations before the funds are redirected.

According to European Commission data, Albania, Montenegro and North Macedonia are the three countries that have advanced the furthest in implementing their reform agendas. Albania has completed 33 reform steps and has benefited from more than 212 million euros, while in total it can receive 922 million euros.

Montenegro has advanced 32 reforms and has benefited from nearly 90 million euros. Meanwhile, North Macedonia has completed 22 reforms and has received more than 142 million euros. Kosovo, on the other hand, has not yet completed any reform step and so far has received only pre-financing funds, around 61 million euros.

Bosnia and Herzegovina continues to have received no payment from the Growth Plan, while last year it lost 108 million euros due to delays in submitting the Reform Agenda.

The European Union’s Growth Plan for the Western Balkans has been set with a budget of 6 billion euros for the 2024-2027 period. Of this amount, 2 billion euros are grants and 4 billion euros are loans on favorable terms.

Serbia – 1.5 billion euros;

Bosnia and Herzegovina – 976 million euros;

Albania – 922 million euros;

Kosovo – 882 million euros;

North Macedonia – 750 million euros;

Montenegro – 383 million euros.