EU payments to Western Balkan countries delayed

The ambitions of the western Balkans leaders, as well as the President of the European Commission, Ursula von der Leyen, that the first payments from the EU Growth and Reform Package would be made by the end of 2024, were not realized.

Furthermore, they were not even made in early 2025 and it is not clear when they will be made.

The delays in payments, according to some diplomatic sources in the EU, are more to do with the delays of beneficiary countries – i.e. those of the Western Balkans – in closing internal procedures.

"It seems that this time the EU is more willing to make payments from this package than that the countries of the region are willing to receive them," an EU source told RFE/RL.

The European Commission did not answer exactly what stage the countries in the region are at, regarding the payments they expect to receive.

Officials only reminded that all countries in the region, except Bosnia and Herzegovina, have reform agendas approved by the EU and that they have met the criteria for advance payments worth 7% of the total from the EU.

"The Commission is currently finalizing steps in the procedure that will enable pre-finance payment as soon as possible in 2025. The first regular payments are expected to be made in the second and third quarters of this year, once the relevant criteria are met," the European Commission said.

It seems that the problem with some countries in the region, including Kosovo, is that the EU has to reach a loan agreement, as part of the financial means are in the form of loans and part grants without return.

Such agreements have the character of international agreements, so they must be ratified in parliament with two-thirds vote.

Due to the elections in Kosovo, which took place on February 9, the procedure of establishing the assembly and forming a new government is expected to take time, so the likelihood is small that it will receive any payments from the EU before the summer.

The total package for the six Western Balkan countries – Kosovo, Albania, North Macedonia, Serbia, Bosnia and Herzegovina and Montenegro – amounts to €6 billion and covers the period from 2024 to 2027.

Of this amount, 2 billion euros are grants from the EU without return, while the rest in the form of favourable loans.

The aim of this ambitious EU financial package is to help boost economic growth in this region and, thus, accelerate the process of its European integration.

According to an unofficial estimate, Kosovo will be able to benefit over 880m euros from this package. Over 250 million would be allocated as cash without return, while the rest in the form of convenient loans. The 7% share that would be paid as a pre-fund is about 61 million euros.

Albania will receive a total of 922 million euros, while 64.5 million as a pre-funded means.

North Macedonia will have 750 million euros available, while the first payment for it will be 52.5 million euros.

Serbia would be allocated a total of 1.58 billion euros, while the first payment would be 111m euros.

Montenegro would have a total of 383m euros available, while as a pre-finance of 26.8m euros.

Bosnia and Herzegovina will have 1 billion and 85 million euros available from the plan, while as a pre-finance of 76 million euros.

Calculate which country will have at its disposal how much financial means is made based on gross domestic product (GDP), number of inhabitants and some other criteria.

But in the first presentation of this plan, the countries of the region were clearly told that if they do not carry out reforms after 1-2 years, then the sum will be distributed to other countries.

The plan also aims to foster regional cooperation, as well as the development of the common market in the region, which would gradually be integrated into the European Union common market.

The European Union wants to make the first payments from this plan as soon as possible and start implementing projects that would be financed through it.

But at the same time, he also recalls the conditions that must be met throughout the process of realizing the projects.

They are about the rule of law, financial control and proper auditing according to European standards.

In the case of Kosovo and Serbia, a specific condition is also a constructive engagement in normalizing relations between them, including the implementation of the obligations of the dialogue facilitated by the EU.

Among the EU's requirements for the countries of the region is their adaptation to the EU visa regime. /REL