A political agreement was reached yesterday, Thursday, evening between the European Parliament and the Council on the “Reform and Development Facility for the Western Balkans”, amounting to EUR 6 billion.
In particular, this development plan for the Western Balkans foresees the allocation of 2 billion euros in grants and 4 billion euros in loans for the period 2024-2027, which will be drawn on the financial markets on extremely favorable terms. At least half of the total fund will be allocated through the Western Balkans Investment Framework (WBIF), supporting investments in infrastructure and connectivity, including transport, energy, green and digital transition. The remaining part will be released as direct support to national budgets.
Commission President Ursula von der Leyen said: “We want to bring the Western Balkans closer and faster in our Union. The EUR 6 billion Facility agreed is a key step in this direction. Combining increased financial aid and reforms, it will accelerate the progress of our Western Balkan partners on their pre-accession EU path, strengthen their economic convergence and better integrate them into our single market.”
According to the European Commission, this development plan for the Western Balkans “is the new instrument to speed up the preparations of the Western Balkans for EU membership, promoting some of the pre-accession benefits with a direct impact for citizens and businesses ». Increased financial assistance will be provided in return for socio-economic and fundamental reforms set out in the ambitious reform programs being prepared by the Western Balkan countries. Therefore, the speed of the enlargement process and the development of the economies of these countries are expected to accelerate significantly.
However, EU Council and European Parliament negotiators have agreed that the distribution of these funds will depend on the implementation of specific reforms in each of the six Western Balkan states, notably in the areas of rule of law, anti-corruption, fundamental rights, economic governance, strengthening democratic institutions and public administration reform.
Funds will be released twice a year, based on requests from Western Balkan partners and following verification by the Commission and, as the case may be, by the European External Action Service (EEAS), that all relevant conditions are met. If certain conditions are not met, the Commission may suspend payments in part or in full.
The political agreement reached is now subject to formal approval by the European Parliament and the Council. The regulation of the “Reform and Development Facility for the Western Balkans” will enter into force the day following its publication in the Official Gazette.
It is noted that this facility is complementary to EU aid already provided through the Mechanism for Pre-Accession Assistance (IPA).
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