Bosnia implemented no reforms under EU Growth Plan, €108 million already lost

According to Euractiv portal, uneven progress shows that political instability is holding back some countries, while also raising questions about whether governments are implementing lasting changes or simply meeting deadlines to secure funding.

The European Commission launched the Growth Plan in 2023 to accelerate European integration. Funding is conditional on the implementation of specific economic, institutional and rule-of-law reforms, alongside the gradual integration of the six Western Balkan countries into parts of the EU single market.

Bosnia and Herzegovina has yet to implement any of the reforms envisaged under the Growth Plan, preventing it from accessing available funds.

The EU High Representative for Foreign Affairs and Security Policy Kaja Kallas warned during a recent visit to Sarajevo that further delays would result in additional financial losses.

BiH has already lost €108 million and could lose more than €370 million by the end of the year.

Kosovo faces a similar problem. It received €61.8 million in pre-financing in April, but a political crisis has prevented the implementation of the required reforms.

The Kosovo government estimates that the country has already lost around €40 million for failing to meet reform targets by the end of June, while it could lose a total of €250 million by the end of the year unless a functioning government is formed capable of adopting the necessary legislation.

European Parliament rapporteur for Kosovo Riho Terras said the country cannot make progress until the political crisis is resolved.

Serbia received one payment in January, but European Parliament rapporteur Tonino Picula called for further payments to be suspended until Belgrade demonstrates a stronger commitment to European reforms.

Albania, Montenegro and North Macedonia have secured multiple payments despite their own political divisions. Stable parliamentary majorities, such as in Albania, and political compromises in Montenegro have enabled faster adoption of reform measures.

The European Commission said the Growth Plan is both an instrument of European integration and a test of the Western Balkan governments’ ability to implement the reforms they have pledged.