Brussels – The total disbursement under the Growth Plan for the Western Balkans now reaches 12% of the total allocation after the European Commission made available €158.9 million in EU funds to Albania, Montenegro and North Macedonia on 20 May.
The decision followed the third request for payment and the positive assessment of the reform steps implemented by the three EU candidate countries to receive grants and loans under the Reform and Growth Facility – namely €49 million to Albania, €44.2 million to Montenegro, and €65.7 million to North Macedonia.
Considering all six Western Balkan countries, €673.6 million has already been disbursed, out of a total of €5.5 billion in allocations up to 2027. Of the required reform steps, only 90 out of 731 have been completed. Under the Growth Plan for the Western Balkans, the disbursement of funds is directly linked to the fulfillment of the EU-related reforms.
In Albania, the reforms assessed include measures to improve the business environment, facilitate investment and innovation, and expand access to finance, including for start-ups and companies active in the green and digital sectors. Tirana’s envelope now reaches €212.8 million (out of €922.1 million), with 33 reforms implemented out of 143.
In Montenegro, the Commission assessed reforms in the area of research and innovation, including support for scientists, businesses and research institutions, as well as further strengthening of the national innovation ecosystem. Podgorica’s envelope now reaches €89.3 million (out of €383.5 million), with 32 reforms implemented out of 130.
In North Macedonia, the reforms assessed include measures to improve the financing of primary and secondary education and to expand access to digital infrastructure and IT equipment in schools. Skopje’s envelope now reaches €142.1 million (out of €750.4 million), with 22 reforms implemented out of 136.
Part of the funds has been earmarked for the Western Balkans Investment Framework (WBIF). Once approved by the WBIF Board, they will support infrastructure projects in sustainable transport, clean energy, digitalisation and human capital development, in close cooperation with Western Balkan partners and international financial institutions.
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 €3.5 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).
