Western Balkans: EU lawmakers reach deal on new support plan

Negotiators from the European Parliament and the Council of the EU reached a provisional agreement on Thursday on the Reform and Growth Facility for the Western Balkans, a new growth plan for the region including €6 billion in grants and loans to accelerate economic convergence with the EU.

Emphasizing EU values

MEPs managed to underpin their commitment to the integration of the Western Balkans through the inclusion of the “fundamentals first” approach. This principle links the rule of law, the fight against corruption and fundamental rights with the two other crucial areas of the accession process: ­­­economic governance and the strengthening of democratic institutions and public administration reform. MEPs also strengthened alignment with the Common Foreign and Security Policy, and managed to reinforce the consultation process with beneficiary countries’ Parliaments and civil society.

Strengthening oversight and transparency

MEPs enhanced the Facility’s governance, focusing on stronger parliamentary oversight and transparency. A regular high-level dialogue with the Commission will intensify Parliament’s role in monitoring and scrutinizing the Facility­’s progress and ensuring funding aligns with EU goals, such as democracy, economic stability, and regional cooperation. Furthermore, up-to-date data on final recipients receiving funding exceeding EUR 50 000 cumulatively over the period of four years for the implementation of reforms and investments under the Facility must be made available on a webpage by the relevant beneficiary countries.

In addition, a provision was added to address synergies and complementarities with other EU programmes, in particular the Instrument for Pre-accession Assistance (IPA), with a view to avoiding the duplication of assistance and double funding.

Supporting socio-economic reforms

The Facility aims to drive socio-economic reforms in the Western Balkans, advancing economic growth and EU alignment. MEPs obtained the establishment of a framework that ties financial support to clear progress indicators. A dedicated scoreboard will track and publicly display the progress of the Western Balkans Facility’s reform agendas, including key documents, payment conditions, and recipients of funds.

Quotes

Karlo Ressler (EPP, HR), co-rapporteur for the Committee on Budgets, said:

“The growth plan for six Western Balkan countries worth EUR 6 billion can be a real game changer. It is a political encouragement for the accession process, while speeding up real structural and institutional reforms, including alignment with EU’s Common Foreign & Security and Visa policies. Following the historic opening of accession talks with Bosnia and Herzegovina, this is one more important instrument that will bring these countries closer to the EU.”

Tonino Picula (S&D, HR), co-rapporteur for the Committee on Foreign Affairs, said:

“I welcome that this parliamentary mandate has strengthened enlargement, brought it back on the agenda, and this agreement confirms it. Our proposals in the agreement will increase funding for Western Balkans, by aiming to emphasize the importance of rule of law, transparency and reforms to bring these countries, our partners, closer to the EU. We agreed in the negotiations to include full alignment with EU’s common foreign and security policy, including restrictive measures, as one of the key objectives, which is very important for the Parliament and will give a clear sign to those countries in the region, that still need to fulfil this criteria.”

Next steps

The agreed provisional text still needs to be approved by the full house and the Council of the EU.

Background

The facility, unveiled as the keystone of the Commission’s new Growth Plan for the Western Balkans in November 2023, is designed to bolster the EU’s partners in the region by facilitating extensive socio-economic reforms, enhancing rule of law, and fundamental rights. It aims to propel the enlargement process and hasten the economic alignment of these partners with the EU standards. Spanning from 2024 to 2027, the facility plans to allocate up to €2 billion in grants and €4 billion in loans, supporting the Western Balkans on their accession path. The disbursement of these funds is contingent upon the successful implementation of the specified reforms outlined in the reform agenda of each beneficiary country.