Western Balkans begins to benefit from EU Growth Plan, with Albania one of the first beneficiaries

In 2025, the Western Balkan countries began receiving funds from the European Union’s Growth Plan, a €6 billion package aimed at accelerating the region’s integration into the EU through economic, infrastructural, and institutional reforms.

Albania

Albania is among the first countries to benefit from the Western Balkans Growth Plan, a strategic EU initiative totaling €6 billion for the 2024-2027 period. This plan aims to speed up the European integration process of the Western Balkan countries by supporting reform advancement and the development of critical infrastructure.

According to the initial fund allocations, Albania has been granted €64.5 million, divided into two main parts:

Investments in infrastructure, where €34.5 million is channeled through the Balkan Investment Fund for infrastructure projects. This component focuses on improving transport networks, energy, and other infrastructures that support the country’s economic and social development.

Support for reforms with €30 million provided as loans to back the implementation of necessary reforms in public administration, justice, and the business climate. These reforms are essential for harmonizing Albanian legislation and practices with EU standards and improving the efficiency of state institutions.

Serbia

Serbia, as the largest economy in the region, has been an early beneficiary of the Growth Plan, receiving the largest share of funds based on its GDP and population.

Serbia has received €51.7 million in concessional loans for the state budget as part of the pre-financing envisaged under the Instrument for Reforms and Growth, a key component of the Western Balkans Growth Plan. This pre-financing represents about 7% of the total financial support allocated to Serbia by the EU plan.

Additionally, a further €59 million will be channeled through the Western Balkans Investment Framework (WBIF) to improve national infrastructure, emphasizing investments in strategic sectors such as transport, energy, and digitalization. Serbia has started investments in sectors like renewable energy, railway network modernization, and road infrastructure improvement. However, it faces political and institutional challenges in accelerating reforms, which will impact the continuity of funding.

North Macedonia

Earlier this year, North Macedonia received €52.2 million, divided into two key components: (a) infrastructure investments, with €28 million allocated for infrastructure projects aimed at improving the country’s physical and technological capacities. These investments support sustainable economic development and connect North Macedonia with regional and European networks; and (b) reform support, with about €24.5 million dedicated to the state budget to back necessary reforms.

This segment aims to strengthen reform processes in various sectors, including public administration, rule of law, and the business climate, which are critical for progress towards EU membership.

Montenegro

Montenegro has received €26.8 million in pre-financing, of which €12.5 million in concessional loans has been transferred directly to the national budget, providing direct support for financing planned reforms under the Reform Agenda.

An additional €14.3 million in grants and loans will be channeled through the Western Balkans Investment Framework (WBIF) to improve infrastructure in key sectors such as transport, energy, and digitalization.

This pre-financing represents about 7% of the total financial support Montenegro has received under this strategic plan. Montenegro has focused its efforts on investments related to tourism and urban development, as well as green energy projects. However, due to a smaller economy and political challenges, the pace of benefits from the Growth Plan is slower. The government has emphasized improving the investment climate and strengthening local governance.

Bosnia and Herzegovina

Bosnia and Herzegovina has not yet received any funds from the Western Balkans Growth Plan, in contrast to most other countries in the region that have received pre-financing for reforms and infrastructure investments. The lack of progress is closely linked to internal political divisions and institutional disagreements that have hindered the ratification of key agreements and the adoption of necessary reforms. This has negatively affected the functioning of the Council of Ministers and blocked progress in the European integration process.

As a result, Bosnia continues to lose important financial opportunities that would help improve infrastructure, administration, and the business climate. The unstable political situation and lack of a shared vision have created an impasse that also threatens the functioning of institutions and the salaries of state employees, endangering the prospects for economic development and EU integration.

Kosovo

Kosovo, with one of the youngest economies in the region, has yet to significantly benefit from funds supporting reforms and investments in basic infrastructure such as roads and energy. The necessary conditions for fund access, including the ratification of the Agreement on the Instrument for Reforms and Growth and the Reform Agenda, have not yet been met by Kosovo’s authorities.

This has left Kosovo behind other regional countries such as Albania, North Macedonia, Montenegro, and Serbia, which have received pre-financing and funds for reforms and infrastructure investments. Political challenges and internal deadlocks are slowing down the integration process and benefits from the Growth Plan.

The benefits from the Western Balkans Growth Plan largely depend on each country’s willingness and capacity to implement deep institutional reforms, combat corruption, and create a more favorable business climate. Albania and Serbia are currently ahead in the implementation phase, already receiving pre-financing for reforms and investments. Meanwhile, Montenegro has begun receiving funds but still faces challenges, and Kosovo has yet to secure these financial supports due to incomplete legal and institutional conditions.

Time is a key factor in this process, as the European Commission monitors progress and issues payments twice a year, supporting only countries that show concrete results in reform implementation. This underscores the ongoing need for Western Balkan countries to accelerate efforts to avoid missing opportunities for economic development and integration into the European Union.