The EU Council and the European Parliament (EP) reached a provisional agreement on 4 April on the EU Growth Plan for the Western Balkans. Four days later, EU member states confirmed the political agreement on the Instrument for Reform and Growth for the Western Balkans.

This package provides financial assistance to the countries of the region.

The agreement was confirmed on 4 April by MEP Tonino Picula, who was the chief negotiator on behalf of the EP, through his Twitter profile.

Serbian President Aleksandar Vučić also discussed this topic by phone with the European Commissioner for Neighbourhood and Enlargement, Oliver Varhelyi.

"Excellent news from Brussels: The Growth Plan for Serbia and the Western Balkans has been approved and is becoming a reality. Thanks to Oliver Varhelyi, Ursula von der Leyen, and the European Commission for their exceptional engagement and support," Vučić wrote on Instagram.

Negotiations under Tight Deadlines

Negotiations between the Council of Europe and the European Parliament took place under specific conditions, with time pressure due to the June elections. The adoption of the decision required the consent of both institutions, one of which, the European Parliament, is formally dissolved at the end of April, after which the European elections follow.

It is now possible for this decision to be voted on during the April plenary session, after which the Growth Plan for the region will come into effect.

What Will Be Provided, and What Are the Conditions?

As previously reported, out of the €6 billion, €2 billion will be provided as grants, while the remaining €4 billion will take the form of loans with very favourable interest rates. The disbursement of these funds is conditional upon the Western Balkan partners implementing specific socio-economic and fundamental reforms.

These reforms include criteria applicable to all EU member states, such as the rule of law, respect for democratic principles, institutional reforms, and necessary steps to ensure that the funds are not misused.

In addition to the criteria related to reforms and the rule of law, there are also political conditions.

For Serbia and Kosovo, a prerequisite is defined as "constructive engagement in the normalisation of relations to ensure the full implementation of all obligations" stemming from the Agreement on the Path to Normalisation and its Implementation Annex from Ohrid, as well as all previous agreements reached within the Brussels dialogue.

Serbia and Kosovo must also begin negotiations on a Comprehensive Agreement on Normalisation of Relations, according to the document published by the EU Council.

The document also highlights the importance of aligning the Western Balkans with the EU’s Common Foreign and Security Policy.

According to the document, "Reform plans submitted by Western Balkan countries should include an explanation of how they will contribute to the progressive and continuous alignment with the EU’s Common Foreign and Defence Policy."

Confirmation of the Political Agreement

On 8 April, EU member states confirmed the political agreement on the Instrument for Reform and Growth for the Western Balkans, offering the region €6 billion in additional financial assistance for the period 2024–2027, Austrian Federal Minister for the EU and Constitution Karoline Edtstadler announced.

"Great news! Today, EU member states confirmed the political agreement on the Instrument for Reform and Growth for the Western Balkans worth €6 billion," Edtstadler posted on the social network X.

Austria’s Ministry of Foreign Affairs also commented on the same platform, describing it as excellent news from Brussels for all friends of the Western Balkans.

"EU member states have just confirmed a new instrument for reform and growth for the region. We have long advocated for this €6 billion financial incentive to support reforms among our partners and their gradual integration into the EU," stated the Austrian ministry on its account.