The Commission welcomes the political agreement reached today between the European Parliament and the Council on the €6 billion Reform and Growth Facility for the Western Balkans, underpinning the Reform and Growth Plan proposed by the Commission in November 2023. It constitutes an unprecedented offer to the Western Balkans to access some benefits of EU membership before accession. The Facility will provide increased financial assistance in exchange for socio-economic and fundamental reforms defined in ambitious Reform Agendas being prepared by the Western Balkan partners.
Ursula von der Leyen, President of the European Commission, said: “Enlargement is a key geostrategic priority. We want to bring the Western Balkans closer and faster to our Union. The €6 billion Facility agreed is a key step in that direction. By combining increased financial assistance and reforms, it will accelerate the progress of our Western Balkan partners on their EU path in advance of accession, foster their economic convergence and integrate them better in our Single Market.”
The overall amount of the Facility for the period 2024-2027 is €6 billion. This amount is composed of €2 billion in grants and €4 billion in highly concessional loans. At least half of the overall envelope will be allocated through the Western Balkans Investment Framework (WBIF), supporting infrastructure investments and connectivity, including transport, energy, green and digital transitions. The remaining part will be released as direct support to the national budgets.
Funds will be released twice a year, based on requests by the Western Balkan partners and following verification by the Commission and, where appropriate the EEAS, that all relevant conditions have been met. These conditions include payment conditions corresponding to qualitative and quantitative steps measuring progress and implementation results that have been agreed in the Reform Agendas, as well as general conditions related to macro-financial stability, sound public financial management, transparency, and oversight of the budget.
In case some conditions are not met, the Commission may suspend payments in part or in full depending on the condition. Following such a suspension and in case that Western Balkan partners do not fulfil the related conditions during a grace period of one year (or two years in the first year of implementation), the suspended amount will be withdrawn and may be redistributed among other beneficiaries in the subsequent years.
To finance the loan support, the European Union will raise €4 billion on the financial market until the end of 2027. The €2 billion of non-repayable support will be financed through additional resources from the Mid-Term revision of the Multiannual Financial Framework (MFF).
Ursula von der Leyen, President of the European Commission, said: “Enlargement is a key geostrategic priority. We want to bring the Western Balkans closer and faster to our Union. The €6 billion Facility agreed is a key step in that direction. By combining increased financial assistance and reforms, it will accelerate the progress of our Western Balkan partners on their EU path in advance of accession, foster their economic convergence and integrate them better in our Single Market.”
The overall amount of the Facility for the period 2024-2027 is €6 billion. This amount is composed of €2 billion in grants and €4 billion in highly concessional loans. At least half of the overall envelope will be allocated through the Western Balkans Investment Framework (WBIF), supporting infrastructure investments and connectivity, including transport, energy, green and digital transitions. The remaining part will be released as direct support to the national budgets.
Funds will be released twice a year, based on requests by the Western Balkan partners and following verification by the Commission and, where appropriate the EEAS, that all relevant conditions have been met. These conditions include payment conditions corresponding to qualitative and quantitative steps measuring progress and implementation results that have been agreed in the Reform Agendas, as well as general conditions related to macro-financial stability, sound public financial management, transparency, and oversight of the budget.
In case some conditions are not met, the Commission may suspend payments in part or in full depending on the condition. Following such a suspension and in case that Western Balkan partners do not fulfil the related conditions during a grace period of one year (or two years in the first year of implementation), the suspended amount will be withdrawn and may be redistributed among other beneficiaries in the subsequent years.
To finance the loan support, the European Union will raise €4 billion on the financial market until the end of 2027. The €2 billion of non-repayable support will be financed through additional resources from the Mid-Term revision of the Multiannual Financial Framework (MFF).