David McAllister MEP: On the Reform and Growth Facility for the Western Balkans (24 April 2024)
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24. April 2024 In Aktuell, Allgemein, EN

David McAllister MEP: On the Reform and Growth Facility for the Western Balkans (24 April 2024)

Today, the European Parliament voted in favour of the €6 billion Reform and Growth Facility for the Western Balkans with 517 yes, 56 no and 30 abstention votes.

This Facility  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.

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during a grace period of one year (or two years in the first year of implementation), the suspended amount will be withdrawn and may be redistributed among other beneficiaries in the subsequent years.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).

In our previous report on the facility, the Committee on Foreign Affairs was clear that we want to enhance the Facility’s governance by focusing on stronger parliamentary oversight and transparency. This means a regular dialogue with the Commission and the use of delegated acts to intensify Parliament’s role in monitoring the Facility’s progress and in ensuring that our funding aligns with EU goals, such as democracy, economic stability, and regional cooperation. With this proposal, we have shown a clear commitment towards enlargement. This Growth Plan has the power to encourage real reform in the Western Balkans and to speed up their accession process.  However, democratic standards, the rule of law and the alignment with EU values remain a crucial prerequisite for accessing the Plan’s €6 billion.