On Tuesday, the Council made a significant stride by approving the creation of a Reform and Growth Facility for the Western Balkans, a substantial investment worth 6 billion euros. This new instrument is not just a financial commitment but a testament to the EU’s vision of supporting EU-related reforms and fostering economic growth in the region. It also underscores the EU’s commitment to accelerating future membership procedures. The facility, which will be in effect from 2024 to 2027, is expected to provide up to €2 billion in grants and €4 billion in loans to the EU’s six Western Balkan partners, including Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia, over the coming years.
Alignment with the EU’s values
The region’s six countries are at different stages in their membership applications, but residents have been frustrated with the slow pace of the process. Croatia was the last country to be accepted by the EU in 2013. The main aim of the facility is to support Western Balkan partners’ alignment with the EU’s values, laws, rules, standards, policies and practices, with a view to future EU membership, as well as their progressive integration into the EU single market and socio-economic convergence with the EU. The facility will support a range of socio-economic and fundamental reforms, including reforms related to the rule of law and fundamental rights.
“The facility will support a range of socio-economic and fundamental reforms, including reforms related to the rule of law and fundamental rights,” the Council said.
The six countries pledged to adapt customs regulations and create joint border crossings like EU member countries. They also set targets to launch research and development hubs for industry and install free Wi-Fi in public places.
Reform Agendas
In order to receive support under the facility, each partner in the region plays a crucial role in preparing a Reform Agenda, setting out the reforms they plan to undertake to achieve the facility’s objectives. The Western Balkan partners’ reflections on how the measures included in the Reform Agendas are expected to contribute to progressive and continuous alignment with the EU’s Common Foreign and Security Policy are of utmost importance. EU member states will have a key role in approving the beneficiaries’ Reform Agendas and, if necessary, their amendments, highlighting the collaborative nature of this process.
Preconditions for EU support
General preconditions for EU support under the facility are comprehensive and reflect the EU’s commitment to democratic values and human rights. Partners must continue to uphold and respect effective democratic mechanisms, including a multi-party parliamentary system, free and fair elections, pluralistic media, an independent judiciary and the rule of law. They must also guarantee respect for human rights, including the rights of persons belonging to minorities.
For Serbia and Kosovo, another precondition is that they engage constructively with measurable progress and tangible results in the normalisation of their relations to fully implement all their respective obligations stemming from the Agreement on the Path to Normalisation and its Implementation Annex, as well as all past Dialogue Agreements and that they engage in negotiations on the Comprehensive Agreement on the normalisation of relations. Serbia has not recognised Kosovo’s 2008 declaration of independence, and recent tensions have sparked concern among Western powers. Both have said they want to join the EU, but the bloc has warned that their refusal to compromise jeopardises their chances of membership.
Ensuring transparency
To ensure transparency, the Western Balkan partners will be required to set up a web portal for publishing up-to-date data on final recipients receiving more than EUR 50,000 in total over the four-year period under this facility. This measure is a testament to the EU’s commitment to openness and accountability, and it aims to provide the public and stakeholders with a clear view of how the funds are being utilised.
The regulation on establishing the Reform and Growth Facility for the Western Balkans will now be signed, published in the EU Official Journal, and entered into force on the following day. Once in force, the Western Balkan partners will be invited to submit their respective Reform Agendas to the Commission, laying out the socio-economic and fundamental reforms they plan to undertake between 2024 and 2027.
