European Parliament Approves €6 Billion Growth Plan for Western Balkans

The European Parliament has approved a €6 billion plan to support economic growth and reforms in the Western Balkans, with the goal of accelerating their integration into the European Union.

The Reform and Growth Facility, proposed by the European Commission in November 2023, is expected to provide up to €2 billion in grants and €4 billion in loans to the Western Balkan countries between 2024-2027, complementing existing pre-accession assistance.

The plan aims to give a new momentum to the enlargement process, based on the rule of law, transparency, and reforms, as the only means of bringing these countries closer to the EU. The Socialists and Democrats group in the European Parliament ensured that the plan would promote democracy, human rights, and gender equality in the region, as well as align it with the social, climate, and environmental standards of the Union.

To benefit from this financial assistance, the countries must fulfill a series of criteria related to the rule of law, democracy, institutional reforms, and ensuring the proper use of funds. For Kosovo and Serbia, there is an additional prerequisite of constructive engagement in the normalization of relations between them. The countries must also adapt their foreign policies to EU decisions, including sanctions against Russia.

Why this matters: The Reform and Growth Facility constitutes a significant advancement in the EU's efforts to support the Western Balkans' progress towards EU membership. The plan's emphasis on the rule of law, fundamental rights, and the fight against corruption highlights the EU's commitment to promoting its core values in the region.

The European Parliament endorsed the growth plan for the Western Balkans by a vote of 517 to 56 with 30 abstentions. Tonino Picula, the rapporteur, emphasized the importance of full alignment with EU foreign policy, including restrictive measures, for progress on the path towards the EU. He stated, "It depends on the political will of the Western Balkan leaders to achieve these goals, which must be backed by the EU with financial means."

Key Takeaways

• EU approves €6B plan to support growth, reforms in Western Balkans.
• The plan aims to accelerate EU integration and promote democracy, and human rights.
• Funds are conditional on the rule of law, democracy, institutional reforms, proper use.
• Kosovo and Serbia must show constructive engagement in normalizing relations.
• EU Parliament endorses plan 517-56 with 30 abstentions, stresses foreign policy alignment.