David McAllister MEP: Deal on new support plan for the Western Balkans

Negotiators from the European Parliament and the Council of the EU have reached an agreement on the Reform and Growth Facility for the Western Balkans, a new growth plan for the region including €6 billion in grants and loans to accelerate economic convergence with the EU.

In talks with EU member states, MEPs were able to secure key improvements to a new support facility for the Western Balkans, focusing on transparency, rule of law, and economic integration.

MEPs managed to underpin their commitment to the integration of the Western Balkans through the inclusion of the „fundamentals first“ approach. This principle links the rule of law, the fight against corruption and fundamental rights with the two other crucial areas of the accession process: economic governance and the strengthening of democratic institutions and public administration reform. MEPs also strengthened alignment with the Common Foreign and Security Policy, and managed to reinforce the consultation process with beneficiary countries’ Parliaments and civil society.

MEPs enhanced the Facility’s governance, focusing on stronger parliamentary oversight and transparency. A regular high-level dialogue with the Commission will intensify Parliament’s role in monitoring and scrutinizing the Facility¬’s progress and ensuring funding aligns with EU goals, such as democracy, economic stability, and regional cooperation. Furthermore, up-to-date data on final recipients receiving funding exceeding EUR 50 000 cumulatively over the period of four years for the implementation of reforms and investments under the Facility must be made available on a webpage by the relevant beneficiary countries.

In addition, a provision was added to address synergies and complementarities with other EU programmes, in particular the Instrument for Pre-accession Assistance (IPA), with a view to avoiding the duplication of assistance and double funding.

The Facility aims to drive socio-economic reforms in the Western Balkans, advancing economic growth and EU alignment. MEPs obtained the establishment of a framework that ties financial support to clear progress indicators. A dedicated scoreboard will track and publicly display the progress of the Western Balkans Facility’s reform agendas, including key documents, payment conditions, and recipients of funds.

The facility, unveiled as the keystone of the Commission’s new Growth Plan for the Western Balkans in November 2023, is designed to bolster the EU’s partners in the region by facilitating extensive socio-economic reforms, enhancing rule of law, and fundamental rights. It aims to propel the enlargement process and hasten the economic alignment of these partners with the EU standards. Spanning from 2024 to 2027, the facility plans to allocate up to €2 billion in grants and €4 billion in loans, supporting the Western Balkans on their accession path. The disbursement of these funds is contingent upon the successful implementation of the specified reforms outlined in the reform agenda of each beneficiary country.