1.6 billion euros from the European Growth Plan for the Western Balkans for Serbia :: News

Within the new plan for the growth of the Western Balkans of a total of six billion euros, Serbia will be able to count on one billion and 630 million euros in the next four years, Radio-television of Serbia (RTS) has learned from sources in Brussels.

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 were 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,” the sources said.

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

On April 24, the European Parliament approved the Growth Plan for the Western Balkans, which should provide the region with two billion grants and four billion soft loans in the period from 2024 to 2027.

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

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.

The countries of the region need to meet a number of criteria in order to take advantage of the financial assistance package, which are related to the rule of law, respect for the principles of democracy, institutional reforms and taking the necessary steps to ensure that the funds are not misused.

In addition to the criteria related to reforms and the rule of law, there are also criteria of a political nature.

For Serbia and Kosovo, “constructive engagement on the normalization of relations with the aim of fully implementing all obligations” arising from the Agreement on the Road to Normalization and its Implementation Annex from Ohrid, as well as all previous agreements reached in the Brussels dialogue, was stated as a precondition.

The importance of harmonizing the countries of the Western Balkans with the EU’s common foreign and security policy is also emphasized.

As reported by RTS, sources state that 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 .

The reporter for Serbia, Vladimir Bilčik, said after the adoption of the plan in the European Parliament that Serbia’s advantage compared to others in the region is the good capacity of the public administration, and the challenges for withdrawing funds will be work on the rule of law, quality of elections and gradual alignment with foreign policy.

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

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