EU’s Western Balkan partners – Albania, Bosnia and Herzegovina, Montenegro, Kosovo, North Macedonia and Serbia – are implementing their obligations under the Growth Plan at different speeds. The Plan is the European Union’s most ambitious financial package for the region. According to available reports and European Commission decisions, Montenegro, Albania and North Macedonia have made the greatest progress, with citizens already beginning to experience tangible improvements. Bosnia and Herzegovina and Kosovo remain at the back of the pack, while Serbia’s progress has been slowed largely by domestic factors.

According to the European Commission in Brussels, the Growth Plan is being implemented at full pace, with €673.6 million disbursed since the programme launched.

“Since May 2024, the European Union’s Growth Plan for the Western Balkans has delivered tangible benefits to the region and its citizens. With our support, our partners are implementing key reforms that pave the way for their integration into the European Union. So far, six Reform Agendas have been approved, five partners have received pre-financing – all except Bosnia and Herzegovina – while four have formally reported on the implementation of reforms, namely all except Bosnia and Herzegovina and Kosovo. We stand ready to support the acceleration of reforms that have not yet been completed so that all partners can fulfil their commitments within the additional deadline provided,” an EC spokesperson said.

The spokesperson stressed that reforms must remain a priority if Western Balkan partners are to take full advantage of the opportunities offered by the Growth Plan.

“We call on our partners to intensify their efforts so that reforms are implemented on time before the next reporting periods. If the June 2026 deadline is not met, all partners except Bosnia and Herzegovina risk jointly losing more than €333 million. For Bosnia and Herzegovina, the extended deadline expires in December,” the EC spokesperson added.

In terms of funding, Albania has received €212.8 million, Montenegro €91.2 million, North Macedonia €142.1 million, Serbia €167.5 million and Kosovo €61.8 million. Bosnia and Herzegovina has not yet received any payments, while the amount originally earmarked for the country has already been reduced.

The most visible changes on the ground in Albania, Montenegro and North Macedonia include the digitalisation of parts of public services, simplified business registration procedures requiring less paperwork, and increased investment in infrastructure.

Albania is investing in the modernisation of its railway infrastructure, broadband internet, upgrades to the electricity grid and the introduction of digital equipment in schools.

In Montenegro, citizens can already see improvements in land registry management, investments in energy efficiency through the renovation of public buildings and the modernisation of street lighting, a reduction in incidents targeting members of the LGBTIQ+ community, increased support for science and innovation, and stronger protection for recipients of social assistance. Within the judiciary, mandatory annual declarations of assets and conflicts of interest have been introduced, while staffing shortages in courts dealing with corruption cases have been reduced.

Following the European Commission’s approval of its Reform Agenda, Kosovo has begun, albeit slowly, to adopt new legislation, implement institutional reforms, digitalise public administration and improve public financial management.

North Macedonia has strengthened budget transparency and public financial management by making more data publicly available and amending the rules governing the appointment of independent members to the boards of state-owned enterprises. Significant efforts are also being made to align the country’s energy sector with EU legislation.

Serbia has already joined the Single Euro Payments Area (SEPA), which is expected to make international payments between Serbia and EU countries faster and cheaper once the system becomes fully operational. The country is also modernising its electricity grid and strengthening energy security, has established a European Digital Innovation Hub to support the digital transformation of small and medium-sized enterprises, and is working to improve the transparency of the governance of state-owned enterprises.

The EC spokesperson explained that partner countries submit progress reports and payment requests twice a year.

“The Commission assesses whether beneficiaries have satisfactorily fulfilled the payment conditions laid down in the Commission Implementing Decision. Compliance with these conditions requires that beneficiaries have not repealed or suspended the reform measures previously recognised as completed under earlier Commission decisions,” the spokesperson explained.

All projects financed under the Growth Plan are expected to be completed by the end of 2027, and no extensions of the implementation deadline will be granted. Countries that fail to meet their commitments will lose the allocated funding, which will instead be reallocated to other countries in the region. The Growth Plan is worth €6 billion in total, comprising €4 billion in concessional loans and €2 billion in grants. Funds were allocated to each country according to population and GDP per capita. Under the preliminary allocation, Albania was earmarked to receive €922.1 million, Bosnia and Herzegovina €1,085 million, Kosovo €882.6 million, Montenegro €383.5 million, North Macedonia €750.4 million and Serbia €1,586.4 million. Bosnia and Herzegovina’s envelope has since been reduced by 10%, to €976.6 million, after it became the last country in the region to finalize its Reform Agenda.