Brussels – There is a group of frontrunners and a group of stragglers in the EU’s Growth Plan for the Western Balkans, which does not necessarily mirror the dynamics of the accession process. North Macedonia is a case in point, as it is set to receive part of the unspent EU funds originally allocated to other countries in the region, even though its accession process remains at a standstill.
“North Macedonia has qualified in the group of the countries where we will give additional money to the Growth Plan,” Commissioner for Enlargement Marta Kos said during a press conference in Skopje on 8 July, following a meeting with Macedonian Prime Minister Hristijan Mickoski. “You can only get the top-up because you are delivering on expectations,” she added.
North Macedonia is set to join “Albania and Montenegro” – as an EU source confirmed to The New Union Post – in this exclusive group of EU partners that have proved to be best placed to implement the required reforms and receive additional funds from the redistribution of around €330 million following the expiry of the grace period for the first payment request on 30 June.
As The New Union Post understands, while it is still too early to provide precise figures or a clear timeline for the redistribution of the funds, a final decision is expected in September.
“We are really seeing encouraging progress since the beginning of the year in the Reform Agenda,” Commissioner Kos said in Skopje, adding that the country “is now among the top performers” in aligning with EU law and European standards.
Although its accession negotiations have not yet begun because of a bilateral dispute with Bulgaria – which has been incorporated into the EU’s negotiating framework – the country’s efforts under the Reform Agenda remain closely linked to the accession process itself. As Commissioner Kos recalled, “at its heart are the reforms that bring concrete benefits to the citizens,” while also strengthening institutions and improving accountability and public services.
Speaking with The New Union Post, two sources familiar with the matter broke down the overall amount of EU funding at risk of being lost in 2026.
The biggest potential loser in this first disbursement of EU funds is Serbia, which stands to lose between €108.7 million and €135.9 million (out of a total allocation of €1.7 billion). Kosovo risks losing €68.8 million (out of €939.2 million), Albania €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).
After assessing each partner’s report on the reforms implemented, the Commission “can potentially look into the reallocation of the funding” and, in the coming weeks, decide whether to redirect funds permanently lost by one partner to another that has demonstrated a greater capacity to implement the required reforms.
In practice, countries such as Kosovo and Serbia could see their financial envelopes reduced – with or without redistribution – while North Macedonia, Montenegro and Albania could receive more funding than initially planned.
For the time being, Bosnia and Herzegovina is not affected by the reallocation of funds, as its deadline was exceptionally extended until December 2026. Nevertheless, Sarajevo could ultimately lose €373.9 million (out of €1.1 billion), having already forfeited more than €100 million because of delays in adopting the Reform Agenda in 2025.
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).
