New support plan for Western Balkans: better governance, bolstering EU values

New €6 billion facility to support the EU’s Western Balkans partners

Strengthening rule of law and economic convergence

Enhanced oversight through delegated acts

MEPs call for robust conditionality and transparency

MEPs support stringent reforms and bolster EU values in the Western Balkans, focusing on transparency, rule of law, and economic integration.

In a vote on Monday, members from the Committees on Foreign Affairs and on Budgets adopted their position on the Reform and Growth Facility for the Western Balkans with 65 votes in favour, 5 against and no abstentions.

Emphasizing EU values

The draft report, prepared by Karlo Ressler (EPP, HR) and Tonino Picula (S&D, HR), supports the integration of the Western Balkans, underpinning its commitment through the "fundamentals first" approach. This principle links the rule of law and fundamental rights with the two other crucial areas of the accession process: economic governance and the strengthening of democratic institutions and public administration reform.

Strengthening oversight and transparency

MEPs intend to enhance the Facility's governance, focusing on stronger parliamentary oversight and transparency. A regular dialogue with the Commission and the use of delegated acts should intensify Parliament’s role in monitoring the Facility’s progress and ensuring funding aligns with EU goals, such as democracy, economic stability, and regional cooperation. MEPs also demand an Audit Board composed of independent experts, including beneficiaries' nationals, to protect the EU’s financial interests and ensure objective oversight of the Facility.

Supporting socio-economic reforms

The Facility aims to drive socio-economic reforms in the Western Balkans, advancing economic growth and EU alignment. MEPs insist on a framework that ties financial support to clear progress indicators. A dedicated scoreboard should track and publicly display the progress of the Western Balkans Facility's reform agendas, including key documents, payment conditions, and recipients of funds.

Quotes

Karlo Ressler (EPP, HR), co-rapporteur for the Committee on Budgets, said: “With this proposal, the EU shows a clear commitment towards enlargement. The Growth Plan has the full potential to be a game changer and political encouragement for the Western Balkan countries towards the accession process, while speeding up real reforms. Conditionality in areas of democratic standards, rule of law and alignment with EU values will remain crucial for accessing EUR 6 billion.”

Tonino Picula (S&D, HR), co-rapporteur for the Committee on Foreign Affairs, said: "Enlargement must regain its political relevance. Our proposals aim to optimize funding for the people of the Western Balkans, focusing on rule of law and conditionality. Transparency is key; expectations must align with legislative realities."

Next steps

The committees’ decision to enter into inter-institutional negotiations will be announced in plenary and will subsequently set the stage for the Parliament to start interinstitutional negotiations with the Council, with the aim of agreeing on a final text on the facility's structure and operational guidelines.

Background

The facility, unveiled as the keystone of the Commission's new Growth Plan for the Western Balkans in November 2023, is designed to bolster the EU’s partners in the region by facilitating extensive socio-economic reforms, enhancing rule of law, and fundamental rights. It aims to propel the enlargement process and hasten the economic alignment of these partners with the EU standards. Spanning from 2024 to 2027, the facility plans to allocate up to €2 billion in grants and €4 billion in loans, supporting the Western Balkans on their accession path. The disbursement of these funds is contingent upon the successful implementation of the specified reforms outlined in the reform agenda of each beneficiary country.