Brussels – “Currently, more than €700 million is at risk of being permanently lost across the region if reforms are not completed by June 2026, or December 2026 for Bosnia and Herzegovina.” Commissioner for Enlargement Marta Kos‘ warning to the Western Balkans sets no exceptions. Without the required reforms, EU funds promised under the Growth Plan will not flow.
“The Growth plan is strictly performance-based and time-bound,” Commissioner Kos said during the structured dialogue with the European Parliament’s Committee on Foreign Affairs (AFET) on 20 April, recalling that “last week I wrote to the Western Balkans authorities to step up their reforms, otherwise their citizens risk losing out.”
She also pointed out that half of the pot of potential lost EU funds regards Bosnia and Herzegovina, with “€400 million at risk.” Sarajevo already lost more than €100 million due to delays in the adoption of the Reform Agenda, which was finally given the green light on 30 September 2025. Adnan Ćerimagić, Senior Analyst for the Western Balkans at the European Stability Initiative (ESI), warned that access to the remaining €976.6 million was only theoretical, because “the country must deliver reforms in order to unlock the funds.”
Speaking to The New Union Post, two sources familiar with the matter broke down the overall amount of EU funds at risk of being lost in 2026. Bosnia and Herzegovina is the biggest potential loser, with €373.9 million (out of €1.1 billion), followed by Serbia, ranging from a minimum of €108.7 million to a maximum of €135.9 million (out of €1.7 billion in total).
Kosovo risks losing €68.8 million (out of €939.2 million in total), even though EU restrictive measures have finally been lifted and Pristina has recently received the first tranche of €61.8 million pre-financing under the Growth Plan. Albania could lose €67.7 million (out of €981.3 million), North Macedonia €49.2 million (out of €798.6 million), and Montenegro €15.1 million (out of €408.1 million).
What is the Growth Plan for the Western Balkans?
The Growth Plan for the Western Balkans was presented by the European Commission in November 2023 and approved by the co-legislators of the European Parliament and the Council in April 2024. The plan is structured around four key pillars, aiming both to “close the economic and social gap” between the EU and the Western Balkans and to allow for “on-the-ground integration even before the countries formally become EU member states,” as stated by European Commission President Ursula von der Leyen.
The first pillar focuses on economic integration into the Single Market across seven key sectors, provided the countries align with EU rules and open relevant sectors to neighbouring countries. These sectors include free movement of goods, services, and workers; access to the Single Euro Payments Area (SEPA); facilitation of road transport; integration and decarbonisation of energy markets; the digital single market; and integration into industrial supply chains.
The second pillar emphasises internal economic integration through the Common Regional Market, based on EU rules and standards. Brussels estimates that this could boost the economies of the six partners by an additional 10%.
The third pillar focuses on reforms that will support both the EU accession process for candidate countries and foreign investment, while also strengthening regional stability.
The fourth pillar addresses financial assistance. It established a new instrument worth €6 billion for the period 2024–2027 – including €2 billion in grants and €4 billion in low-interest loans – with payments conditioned on the successful implementation of agreed socio-economic reforms outlined in the Reform Agendas (similar to NextGenerationEU for the 27 EU member states).
