Kos: Western Balkans risk losing over 700 million euros from Growth Plan collectively

(Patria) - European Commissioner for Enlargement Marta Kos warned that the Western Balkans risk losing hundreds of millions of euros by June due to insufficient implementation of the reform process foreseen by the Growth Plan.

- Last week, I wrote to the authorities in the region to accelerate reforms or their citizens will be at a loss. The Growth Plan is strictly performance-based and time-limited.

Currently, over 700 million euros are at risk of being permanently lost in the region if reforms are not completed by June or December 2026 - Kos stated at the European Parliament's Committee on Foreign Affairs (AFET).

Kos has warned the six Western Balkan countries in writing that they risk collectively losing over 700 million euros from the European Union's Growth Plan by mid-this year due to non-fulfillment of reforms, Radio Free Europe (RSE) has learned from reliable sources in the European Commission.

According to unofficial information, Kos sent this letter on April 17 to all the capitals in the region.

RSE sources confirmed that with this letter, Kos asked everyone to accelerate the reforms foreseen by the Growth Plan in order to utilize the full potential of this financial package.

Namely, the financial resources from the Growth Plan are time-limited. A precise deadline for implementation and a specific sum of money are foreseen for each reform step.

The European Commission has also foreseen a so-called grace period, which allows for a temporary postponement of implementation.

For steps that were supposed to be completed by mid-2025, the deadline expires on June 30 this year, while for steps that were supposed to be fulfilled by the end of 2024, this deadline expires during 2026.

- If this is not met, partners risk collectively losing over 700 million euros - an official from the European Commission confirmed to RSE.

Otherwise, five countries in the region have received the first or more funds from the Growth Plan, with the exception of Bosnia and Herzegovina, which was late in adopting the reform agenda.

The end of June this year represents the moment when each country enters the so-called moment of permanent loss if it does not fulfill the previously agreed reforms.

According to sources in Brussels, the potential losses in case all reforms are not undertaken, by country, are as follows:
‣ Albania 67.7 million euros;
‣ Bosnia and Herzegovina 373.9 million euros;
‣ Montenegro 15.1 million euros;
‣ Kosovo 68.8 million euros;
‣ North Macedonia 49.2 million euros;
‣ Serbia between 108.7 and 135.9 million euros.

Based on the maximum amount, a total of 710.6 million euros can be lost, which represents 11.84 percent of the total funding from the Growth Plan.

The Growth Plan is the EU's most ambitious package for the region, amounting to six billion euros. It aims, among other things, to double the economies of these countries in the next ten years.