Deal on Reform and Growth Facility for the Western Balkans
30 May 2024 (updated 3 months, 1 week ago) // Published in printed Issue 1/2024
2018-Max_Planck_Herr_Wahl_1355_black white_Zuschnitt.jpg Thomas Wahl

In April 2024, the Council and the European Parliament reached agreement on a €6 billion Reform and Growth Facility for the Western Balkans. The facility is the financial pillar of a general Reform and Growth Plan for six Western Balkan countries proposed by the Commission in November 2023.

The funding is composed of €2 billion in grants and €4 billion in highly concessional loans. At least half of the overall envelope will be allocated through the Western Balkans Investment Framework (WBIF), supporting infrastructure investments and connectivity, including transport, energy, green and digital transitions. The remaining part will be released as direct support to the national budgets.

The idea of the facility is to provide increased financial assistance to Western Balkan partners in exchange for socio-economic and fundamental reforms defined in ambitious reform agendas. Reform agendas must be prepared by the Western Balkan partners and are approved by the EU. In order to receive EU support, the countries need to uphold several general preconditions, such as respect of effective democratic mechanisms. Funds will be released twice a year, based on requests by the Western Balkan partners and following verification by the Commission.

The Facility for the Western Balkans is part of the mid-term revision of the EU’s multiannual financial framework (→ separate news item). It is complementary to EU assistance already provided through the Instrument for Pre-accession Assistance (IPA).

In February 2024, the European Court of Auditors (ECA) published its opinion on the facility. The auditors suggested that additional EU money should be better protected. They also criticised that they were unable to assess the extent to which the intended €6 billion in support is likely to contribute to achieving the facility’s main objectives because an impact assessment had not been provided.

News Guide

EU Protection of Financial Interests

Author

2018-Max_Planck_Herr_Wahl_1355_black white_Zuschnitt.jpg
Thomas Wahl

Institution:
Max Planck Institute for the Study of Crime, Security and Law (MPI CSL)

Department:
Public Law Department

Position:
Senior Researcher