The European Parliament and the Council Presidency of the EU have reached a preliminary agreement on the creation of a Reform and Growth Fund for the Western Balkans. The Fund is the centrepiece of the Growth Plan for the Western Balkans presented by the Commission in November 2023.
The fund is expected to provide up to €2bn in grants and €4bn in loans to the EU’s Western Balkan partners between 2024 and 2027. By significantly increasing financial assistance to partners in the region, it will complement the existing Instrument for Pre-Accession Assistance (IPA III).
The interim agreement must be approved by the Council and Parliament in order to be formally adopted by both institutions after a legal and linguistic review.
On 8 November 2023, the European Commission adopted a new Growth Plan for the Western Balkans, which aims to bring the Western Balkan partners closer to the EU by giving the region some of the benefits of EU membership before accession, stimulating economic growth and accelerating socio-economic convergence.
European Parliament President Roberta Metsola wrote on X that enlargement is the EU’s strongest geopolitical tool:
We have a deal on Western Balkans Reform & Growth Facility! We’re investing €6 billion for reforms & gradual integration in the single market ahead of EU accession. Enlargement is our strongest geopolitical tool. Win-win.
