EU Unveils €158.9M to Boost Western Balkans Growth

European Commission

The European Commission has today made available €49 million to Albania, €44.2 million to Montenegro, and €65.7 million to North Macedonia under the Reform and Growth Facility. This follows the third request for payment and the Commission's positive assessment of reform steps implemented in the areas of business competitiveness and innovation in Albania and Montenegro, and education and digitalisation in North Macedonia.

With today's release, the total amount released under the Facility under their respective envelopes reaches €212.8 million for Albania, €89.3 million for Montenegro, and €142.1 million for North Macedonia.

Progress under the Reform Agendas

In Albania, the reforms assessed by the Commission include measures to improve the business environment, facilitate investment and innovation, and expand access to finance, including for start-ups and companies active in the green and digital sectors. Of the €49 million disbursed, €22.8 million will be transferred to the state budget, while the remaining funds are made available for investment projects through the Western Balkans Investment Framework (WBIF), subject to the applicable approval procedures.

In Montenegro, the Commission assessed reforms in the area of research and innovation, including support for scientists, businesses and research institutions, as well as further strengthening of the national innovation ecosystem. Of the €44.2 million disbursed, €20.6 million will be transferred to the state budget, while the remaining funds are made available for investment projects through the WBIF.

In North Macedonia, the reforms assessed include measures to improve the financing of primary and secondary education and measures in order to expand access to digital infrastructure and IT equipment in schools. Of the €65.7 million disbursed, €30.6 million will be transferred to the state budget, while the remaining funds are made available for investment projects through the WBIF.

The funds that are earmarked for the WBIF will, once approved by the WBIF board, support infrastructure projects in sustainable transport, clean energy, digital and human capital development. Projects will be implemented in close cooperation with Western Balkan partners and international financial institutions.

Background

The Growth Plan for the Western Balkans, adopted in 2023, aims to bring partner countries from the region benefits of membership ahead of their accession to the EU. It seeks to integrate partners into the EU's Single Market, advance regional economic cooperation, deepen EU-related reforms and increase pre-accession funding. This in turn accelerates the enlargement process and the growth of partners' economies.

The Plan is supported by the Reform and Growth Facility, its financial instrument with an envelope of €6 billion. Every six months, partners report on their progress on reforms implemented with the support of the Facility. The latest financial release relates to the third half-yearly reporting period, covering reforms implemented until the end of December 2025. The overall financing released under this instrument since 2024 amounts to €673.6 million.

The Western Balkans Investment Framework (WBIF) is instrumental in implementing the Reform and Growth Facility. It is channelling €3 billion in grants and loans under the Facility to support priority investments in transport, energy, digital and human capital. Established 15 years ago, the WBIF is a joint financial platform, bringing together the European Commission, financial organisations, EU Member States and Norway. It contributes directly to the EU's Global Gateway Strategy.

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