Serbia is set to receive €1.63 billion over the next four years as part of the new Western Balkans growth plan, according to sources in Brussels reported by RTS.
This allocation, determined by the European Commission, takes into account factors such as population and GDP levels. Bosnia and Herzegovina is slated to receive €969 million, Albania €924 million, North Macedonia €807 million, Kosovo €888 million, and Montenegro €388 million based on the same criteria.
However, this financial support won’t be handed out automatically. The actual disbursement will depend on the EU’s assessment of Serbia’s progress in key areas like rule of law, democratic systems, normalization of relations with Pristina, and alignment with EU foreign policy.
While Serbia stands to receive nearly 30% of the total growth fund, it must demonstrate significant progress to access these funds. This includes implementing reforms in various sectors such as rule of law, business climate, human capital development, energy, green transition and the digital sector.
One of the reform priorities for Serbia is the implementation of OSCE/ODIHR election recommendations. Additionally, Belgrade must clarify how proposed reforms will enhance alignment with EU foreign policy.
Upon approval of the programs by the European Commission and member states, seven percent of the funds will be disbursed immediately, with the remainder released upon successful implementation of the agreed-upon reforms.
While some EU member states had pushed for full alignment with EU foreign policy as a precondition for accessing the growth fund, this condition was not adopted. However, countries can still raise this issue during the implementation and approval of individual tranches.
Serbia’s robust capacity in public administration is seen as an advantage in accessing these funds. However, challenges remain, particularly in areas such as rule of law, election quality, and alignment with EU foreign policy.
Overall, this financial support presents a significant opportunity for Serbia and the wider region. However, it underscores the need for sustained progress and reform efforts to fully benefit from the funds and advance towards EU integration.
