For Serbia, 1.6 billion euros from the European Growth Plan for the Western Balkans

This amount was determined based on an estimate by the European Commission, which takes into account the number of inhabitants and the level of GDP.

According to the same calculation, 969 million euros have been allocated for Bosnia and Herzegovina, 924 million for Albania, 807 for North Macedonia, 888 for Kosovo and 388 million for Montenegro.

Diplomatic sources state that almost 30 percent of the total fund for growth has been earmarked for Serbia, but that these funds will not be allocated automatically.

“The actual amount of funds used will depend on the EU’s assessment of whether Serbia fulfills the agreed goals in the reform of the rule of law, the democratic system, the normalization of relations with Pristina and harmonization with the EU’s foreign policy,” sources say.

These are additional financial resources compared to those already available through pre-accession IPA funds.

After the European Parliament gave the green light to the growth plan, the decision is expected to be formally confirmed by the EU Council of Ministers on May 7. In that case, the first payments could be expected before the summer break, according to Brussels.

As we learn, Serbia and other countries in the region have already submitted proposals for reforms in five key areas – rule of law, business climate and private sector development, human capital development, energy and green transition and the digital sector.

Reform priorities for Serbia

Among the reform priorities for Serbia is the fulfillment of OSCE and ODIHR recommendations on elections, and Belgrade is also expected to explain how the proposed reforms will contribute to greater compliance with the EU’s foreign policy.

After the programs are approved by the European Commission and member states, seven percent of the planned funds are paid immediately, and the rest when the agreed reforms are implemented.

In the internal debate between EU members, the request of some countries that full compliance with foreign policy be a prerequisite for using the growth fund was not adopted, but those countries will be able to refer to this issue during the implementation of the plan and the approval of individual tranches, according to sources.

The advantage of Serbia is the good capacity of public administration

After the adoption in the European Parliament, the rapporteur for Serbia, Vladimir Bilčik, said that the advantage of Serbia compared to others in the region is the good capacity of public administration.

On the other hand, the challenge for the withdrawal of funds, according to Bilčik, will be work on the rule of law, quality of elections and gradual alignment with EU foreign policy.

“This is an important additional instrument that can bring billions of euros to the region and to Serbia, given that it is the largest country in the region. This money is available to everyone, but only those who are progressing will be able to use it,” said Bilčik.

An informed EU official says that Serbia has a chance to use the available funds, but that it will not be easy.

“If you look at the list of conditions and rules that are incorporated into the Growth Plan, these are exactly the issues that have slowed down Serbia on its way to the EU so far,” said the official.