Today, the European Commission adopted a new growth plan for the Western Balkans, aiming to bring to the region some of the benefits of membership before accession, boost economic growth and accelerate essential socio-economic convergence. The aim should be to enable partners to step up reforms and investments in order to significantly accelerate the enlargement process and the growth of their economies. To this end, a new €6 billion Reform and Growth Facility for the Western Balkans has been proposed for the period 2024-2027. Payments will only take place after the agreed reforms are implemented.
THE new growth plan for the Western Balkans is based on four pillarsaiming to :
- Strengthening economic integration with the European Union single market, provided that the Western Balkans align with the rules of the single market and simultaneously open the relevant sectors and areas to all their neighbors in accordance with the regional common market. Seven priority actions are proposed:
- Free movement of goods;
- Free movement of services and workers;
- Access to the Single Euro Payments Area (SEPA);
- Facilitation of road transport;
- Integration and decarbonization of energy markets;
- Digital single market;
- Integration into industrial supply chains
- Boosting economic integration in the Western Balkans through the regional common marketbased on EU rules and standards, which could potentially add 10% to their economies;
- Accelerate fundamental reformsparticularly on the fundamentals side, supporting the Western Balkans’ path towards EU membership, improving sustainable economic growth, in particular by attracting foreign investment and strengthening regional stability;
- Increase financial aid to support reforms through a Reform and Growth Facility for the Western Balkans for the period 2024-2027a proposal for a new instrument worth €6 billion, made up of €2 billion in grants and €4 billion in concessional loans, payment of which is conditional on implementation by partners Western Balkans of specific socio-economic and fundamental reforms.
As part of the growth plan, each Western Balkan partner will be asked to prepare a Reform program based on existing recommendations, notably those of the annual enlargement package and the countries’ Economic Reform Programs (ERP). This reform program will be consulted, evaluated and adopted by the Commission.
Ursula, President of the European Commission von der Leyen said: “With today’s adoption of the new €6 billion growth plan for the Western Balkans, we are bringing the economies of the Western Balkans closer to the EU. The potential of this growth plan is extraordinary. This growth plan could double the economy of the Western Balkans over the next ten years. Through its combination of reforms and investments, it will enable the Western Balkans to will soon benefit from key areas of our single market, including the free movement of goods, services and workers, the single euro payments area, transport, energy and the digital single market.”
Next steps
It is now up to the European Parliament and the Council to examine the proposal for the Facility as part of the MFF mid-term review programme. Once adopted, the six Western Balkan partners will be invited to submit their individual reform programs outlining the socio-economic and fundamental reforms they will undertake to boost growth and convergence under the Growth Plan over the period. 2024-2027. Serbia and Kosovo must engage constructively in the EU-facilitated dialogue on normalization of relations, led by the High Representative, as a necessary precondition.
Background
Economic convergence is an essential element in bringing the Western Balkan countries closer to the EU. Currently, the level of convergence between the Western Balkans partners and the EU is not progressing fast enough, with the average GDP per capita in purchasing power of our Western Balkans partners lying between 30 and 50% of the EU average. EU.
Integration into the EU single market has been the main driver of economic growth for all countries that have joined the EU. The positive impact of integration into the EU single market on a country’s GDP and income levels has been clearly demonstrated in the past.
For more information
Commission communication on the new growth plan
Proposal for a Regulation Reform and Growth Facility for the Western Balkans
Fact sheet – A new growth plan for the Western Balkans
Commissioner Várhelyi’s speech at the AFET conference to present the new growth plan
Speech by Commissioner Várhelyi at the press conference on the new growth plan
Quotes)
With today’s adoption of the new €6 billion growth plan for the Western Balkans, we are bringing the economies of the Western Balkans closer to the EU. The potential of this growth plan is extraordinary. This growth plan could double the economy of the Western Balkans over the next ten years. Through its combination of reforms and investments, it will enable the Western Balkans to soon benefit from key areas of our single market, including the free movement of goods, services and workers, the single euro payments area, transport, energy and the digital single market. .
Ursula von der Leyen, President of the European Commission
The new growth plan for the Western Balkans constitutes an important offer for our partners, incentivizing them to make progress in relevant fundamental and socio-economic reforms. This offer can also accelerate progress towards the normalization of relations between Kosovo and Serbia through EU-facilitated dialogue. Each of our partners in the Western Balkans has the opportunity to boost economic growth and ultimately access the European single market, even before enlargement. It is also in the interest of the EU as a whole
Josep Borrell, High Representative/Vice-President
The new Growth Plan for the Western Balkans and the new Reform and Growth Facility build on the €30 billion Economic and Investment Plan (EIP) successfully launched in 2020. Our new Growth Plan for the Western Balkans 6 billion euros is a unique catalyst to accelerate real socio-economic development. integration in the region. As we accelerate the implementation of fundamental reforms, we will open our single market to the Western Balkans. This will narrow the economic gap between the European Union and our partners and prepare them for competition in the EU single market so that they can reap the benefits of EU membership from the first moment.
Olivér Várhelyi, Commissioner for Neighborhood and Enlargement