COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS New growth plan for the Western Balkans
Date: 2023-11-08
Institutions: Directorate-General for Neighbourhood and Enlargement Negotiations, European Commission
Subjects: Western Balkans, accession to the European Union, economic growth, economic integration, economic reform, financial aid, regional integration, regional market, single market

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 8.11.2023  COM(2023) 691 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS New growth plan for the Western Balkans  
 
 
INTRODUCTION 

The European Commission strongly believes that enlargement remains a key policy of the European 
Union and in particular that full EU membership for the Western Balkans is in the Union's very own 
political, security and economic interests.  

Russia’s war of aggression against Ukraine illustrates once again the need for a determined geostrategic 
investment in a stable, strong and united Europe. The war has had a significant impact on our Western 
Balkan partners, putting further pressure on their economies and societies and creating risks to their 
stability. The need to bring them closer to the EU and to accelerate their accession process, based on 
EU-related  reforms  in the countries,  has  never  been clearer  than  it  is  today.  A majority of  Western 
Balkans citizens think that their country's membership of the EU would be a good thing1. In this respect, 
the  new  growth  plan  for  the  Western  Balkans  will  represent  an  opportunity  to  further  increase  the 
visibility and awareness of the EU support to the region, strengthening the engagement with the local 
audiences. 

Economic convergence is an essential element in getting the Western Balkan countries closer to the EU. 
Currently, the level and speed of convergence between the Western Balkan partners and the EU is not 
satisfactory2 – either in terms of reform processes or of socio-economic convergence – and is holding 
back their progress on the EU track. Therefore, there is a need to jump-start and incentivise the Western 
Balkans’ preparations for EU membership by bringing forward some of its benefits especially in ways 
that can be felt directly by the citizens of the Western Balkan countries. The objective should be to 
enable  partners  to  step  up  reforms  and  investments  to  significantly  accelerate  the  speed  of  the 
enlargement process and the growth of their economies. 

GDP per capita in PPS (EU27 = 100), 2011-2022

120

100

80

60

40

20

0

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

European Union - 27 countries (from 2020)

Bosnia and Herzegovina

Montenegro

Albania

Kosovo*

North Macedonia

Serbia

* This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ 
Opinion on the Kosovo Declaration of Independence. 

1 Standard Eurobarometer 99 – Spring 2023 
2 Eurostat and World Bank 

1 

 
 
 
 
To this effect, the Commission is proposing a new growth plan for the Western Balkans based on 
four pillars, aimed at:  

1)  Enhancing economic integration with the European Union’s single market, subject to the 
Western Balkans aligning with single market rules and opening the relevant sectors and areas 
to all their neighbours at the same time, in line with the Common Regional Market; 

2)  Boosting  economic  integration  within  the  Western  Balkans  through  the  Common 
Regional Market3, based on EU rules and standards, which could potentially add 10%4 to their 
economies; 

3)  Accelerating  fundamental reforms, including on the fundamentals cluster5, supporting the 
Western  Balkans'  path  towards  EU  membership,  improving  sustainable  economic  growth 
including through attracting foreign investments and strengthening regional stability; 

4)  Increasing  financial  assistance  to  support  the  reforms  through  a  Reform  and  Growth 
Facility for the Western Balkans, a new instrument worth EUR 6 billion in non-repayable 
support and loan support, with payment conditioned on the Western Balkans’ partners fulfilling 
fundamental reforms, and in particular specific socio-economic reforms.6 

Economic convergence is a significant benefit of EU membership. The positive impact on a country’s 
GDP and income levels that arise from the integration with the EU’s single market, combined with EU 
Cohesion Policy, has been clearly demonstrated in the past. This requires investments in modernisation 
of the economies, as well as in infrastructure, for which additional financial assistance is needed. At the 
same time, fundamental reforms, including to strengthen the rule of law and fundamental rights, are 
indispensable to unleash the benefits of integration and to create a favourable environment to attract 
private investments and generate sustainable economic growth while reducing emissions. Building a 
modern, dynamic and decarbonised economy with improved employment opportunities will also reduce 
the incentive for outward migration. 

This  new  growth  plan  builds  on  the  existing  enlargement  methodology7  and  creates  a  package  of 
mutually reinforcing measures that will multiply the potential benefit of each measure. It also provides 
for more incentives and for the benefits of integration ahead of EU accession, thereby aiming to speed 
up  accession  negotiations.  Finally,  in  view  of  ensuring  a  level  playing  field  amongst  enlargement 
countries, it progressively adds further opportunities for the Western Balkans to those available under 
the existing Stabilisation and Association Agreements (SAAs). Speed is now of the essence and the 
objective is for the growth plan to start making a real difference already next year.  

The growth plan is without prejudice to the ongoing accession processes, and the specific conditions 
set out there in this context, in particular as regards the fundamentals. However, it will feed into this 

3 The Common Regional Market (CRM) is an initiative agreed by the leaders of the six Western Balkans at the 
Berlin  Process  summit  in  Sofia  2020.  The  CRM  and  its  associated  action  plan  are  intended  to  bring  the  four 
freedoms of movement (goods, services, capital and workers) within the region. 
4  Gomez  Ortiz  Maria  Del  Mar; Zarate  Vasquez,Roman  David; Taglioni,Daria.  The  Economic  Effects  of  Market 
Integration in the Western Balkans (English). Policy Research working paper; no. WPS 10491 Washington, D.C. : 
Group: 
Bank 
World 
http://documents.worldbank.org/curated/en/099544006202322289/IDU062c50b5106fe8046d1080530898bb
e45d6fa  
5 In line with Communication on “Enhancing the accession process – A credible EU perspective for the Western 
Balkans” COM(2020)57, the fundamentals cluster includes: chapter 23 – Judiciary and fundamental rights, 
chapter  24 – Justice, Freedom and Security, the economic criteria, the functioning of democratic institutions,  
public administration reform, chapter 5 – Public procurement, chapter 18 – Statistics and chapter 32 – 
Financial control. 
6 In its proposal of the mid-term revision of the Multiannual Financial Framework 2021 – 2027 (COM(2023)337 
final), the Commission proposed an additional EUR 2 billion for the Western Balkans. The EUR 4 billion would 
be provided in the form of concessional loans.  
7 COM (2020) 57 Final   

2 

 
 
 
process  by  incentivising  countries  to  accelerate  the  adoption  and  implementation  of  the  acquis. 
Moreover,  with  a  strong  focus  on  integration  within  the  Western  Balkan  region  it  should  help  the 
countries to focus on their common future as members of the EU and to overcome bilateral challenges 
that unfortunately consume too much energy in the region and hold it back. 

1)  Enhancing economic integration with the European Union’s single market 

Integration with the EU’s single market has been the main driver of economic growth for all countries 
that joined the EU. For countries on the path to EU accession, closer association with the EU’s single 
market would bring benefits that could be felt directly by their citizens.  

Providing the Western Balkans with more opportunities for closer links to the EU’s single market is a 
key rationale of the growth plan. The objective is to bring economies closer to the single market once 
the necessary level of preparedness has been achieved.  

As part of this growth plan, the Commission has identified seven initial priority areas, which the EU 
could  offer  to  the  Western  Balkan  countries.  Such  integration  would  deliver  substantial  economic 
benefits to the region and would ensure a broad level-playing field amongst enlargement countries.  

Completing the work to which the six partners have committed in the context of the Common Regional 
Market will be a necessary pre-condition for closer integration with the single market. The offer under 
the seven priority areas is based on own merits and also subject to prior alignment on EU acquis in each 
specific  area,  including  having  the  necessary  infrastructures  and  working  institutions.  No  Western 
Balkan partner shall be able to block access to the EU single market for the other five. 

These priority actions  can be implemented by using the existing legal basis of the Stabilisation and 
Association Agreements, through targeted complementary agreements or by amending, as necessary, 
the existing Transport Community and Energy Community Treaties. 

The offer to the Western Balkans8:  
7 Priority Actions for Integration into the EU’s single market 

1.  Free movement of goods:  

(i)  Agreements on conformity assessment to unlock the single market for goods manufactured 
in  the  Western  Balkans  following  alignment  with  the  relevant  horizontal  EU  product 
acquis.  

(ii)  Improved Customs and Tax co-operation agreement to streamline customs procedures and 
reduce waiting times at borders, through measures including prior exchange of information, 
mutual  recognition  of  authorised  economic  operators,  based  on  merit,  and  closer 
cooperation  in  the  development  of  their  national  single  windows  and  speedier 
implementation of the indirect tax acquis. 

(iii)  Participation of all Western Balkans partners in the Convention on Common Transit. 

(i)  requires  agreements  based  on  existing  provisions  in  the  SAAs,  (ii)  would  be  agreements 
complementing the SAAs and would build on existing work in the Common Regional Market 
where the Western Balkan partners are integrating among themselves on the basis of EU rules, 
(iii)  requires  joining  an  existing  convention.  Western  Balkans  partners  will  be  expected  to 
support all applications from within the region. 

8 The implementation of the priority actions, and the other proposals in the Communication will be subject to 
the relevant procedures under the Treaty on the Functioning of the European Union. 

3 

 
 
 
 
 
2.  Free movement of services and workers:  

(i)  For e-commerce related services including parcel delivery services9, tourism services and 
other activities where agreement has been reached within the Common Regional Market.  

(ii)  Recognition of skills and qualifications between the EU and the Western Balkans, including 
professional  qualifications.  Building  on  the  four  ground-breaking  “mobility  agreements 
agreed  in  context  of  the  Common  Regional  Market10  through  enhanced  co-operation, 
information exchange and use of transparency tools - such as the European Qualifications 
Framework  (EQF)  -  to  facilitate  faster  and  more  effective  recognition  of  skills  and 
qualifications. In particular, through  promoting an effective implementation by Member 
States  with  regard  to  Western  Balkan  countries  of  the  upcoming  Commission 
Recommendation on the recognition of qualifications of third-country nationals11.  

With regard to (i) existing legal bases of the SAAs would be used, once merit-based conditions, 
including alignment and implementation of relevant EU acquis, are fulfilled.  

3.  Access to the Single Euro Payments Area (SEPA):  

Reducing the cost of cross border payments to the benefit of consumers and businesses will act 
as a boost to cross-border commerce. As part of the work on the Common Regional Market the 
Western Balkans are collectively putting in place national legislation required by the European 
Payments  Council  for  participation  in  SEPA.  The  European  Commission  will  continue  to 
support the Western Balkan countries to align with the relevant EU legislation, and prepare 
their application to access SEPA. 

4.  Facilitation of Road transport:  

(i) 

(ii) 

Support Western Balkan countries to integrate their road transport in the region on the basis 
of the adoption of the relevant EU acquis. 

In parallel work towards granting access of the Western Balkan partners to the relevant EU 
information systems (IMI, ERRU) and consider further facilitation of bilateral transport 
operations, through a separate agreement complementing the SAAs.   

Both actions should accelerate the adoption of EU Road Transport acquis, provide significant 
economic benefits and progressively lead to further integration in the area of road transport. 

5.  Integration and de-carbonisation of Energy markets:  

Building on the existing work within the Energy Community to integrate the electricity market 
in  the  region  with  that  of  the  EU  and  opening  the  possibility  for  integration  of  other  energy 
markets. This will take into account the need for an equivalent carbon price to the EU Emissions 
Trading System’s carbon price or the application of the Carbon Border Adjustment Mechanism 
to allow for the continued electricity market coupling from 2030 onwards.   

This will be done by implementing the existing Energy Community treaty. 

9 Building on the existing intra-CEFTA parcel delivery services initiative and in line with the Regulation (EU) 
2018/644 on cross-border parcel delivery services. 
10 Recognition of Professional Qualifications of Doctors of Medicine, Doctors of Dental Medicine and Architects 
in  the  CEFTA  context;  Recognition  of  Higher  Education  Qualifications;  Mutual  Recognition  of  Professional 
Qualifications  for  Nurses,  Veterinary  Surgeons,  Pharmacists  and  Midwives;  and  Freedom  of  Movement  with 
Identify Cards in the Western Balkans. 
11 Adoption foreseen for 15 November 2023 

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6.  Digital Single Market:  

(i)  Facilitate the extension of the coverage of the current voluntary roaming agreement among 

telecom operators12; this would be an interim step until (ii) below; 

(ii)  Provide legal certainty for users and operators exploring solutions for a long-term roaming 
arrangement  to  include  the  Western  Balkans  in  the  EU  ‘roam  like  at  home’  area,  fully 
respecting the European Union’s international trade commitments;  

(iii)  Extend  the  EU’s  rules  on  addressing  unjustified  Geo-blocking  and  other  forms  of 
discrimination  –  based  on  customers’  nationality,  place  of  residence  or  place  of 
establishment – to the Western Balkans; 

(iv)  Integrate  the  region  into  EU  trust  services  once  national  legislation  is  compliant  with 
electronic identification, authentication and trust services (eIDAS). An intermediate step 
will  be  the  development  of  a  regional  Digital  Identity  Wallet  (“Balkan  Digital  Identity 
Wallet”) aligning with that of the EU and following the exact same technical specifications. 

(v)  Strengthen cybersecurity links through enabling the association of the WB countries to the 
Cybersecurity pillar of the Digital Europe programme by envisaging as a first step their 
access  to  the  Cybersecurity  Reserve  under  the  Cyber  Solidarity  Act13.  Promote  a 
comprehensive  implementation  of  the  EU  5G  Cybersecurity  Toolbox  by  all  Western 
Balkans partners. 

(vi)  Strengthen cross-border interoperability through national interoperability frameworks that 
are fully aligned with the European Interoperability Framework as a basis for interoperable, 
human-centric, digital public services. 

(i) is based on the existing voluntary arrangements, while (ii) to (iv) would require a viable legal 
solution (e.g. via amendment of the SAAs). (v) will require a change to the existing association 
agreement to the Digital Europe programme. 

7.  Integration into industrial supply chains:  

(i)  Develop strategic partnerships on sustainable raw materials value chains, after an initial 

focusing on the identification of concrete joint industrial projects. 

(ii)  Develop strategic partnerships for the security of supply of critical medicines. 

The development of strategic partnerships on sustainable raw materials value chains will be based 
on:  identification  and  implementation  of  joint  sustainable  raw  materials  and  battery  projects 
i.e.  exploration,  extraction, 
respective  value  chains 
covering  all  stages  of 
processing/manufacturing 
the  Western  Balkan 
recycling; 
companies/organisations  to  join  the  EU  Raw  Materials  Alliance  and  EU  Battery  Alliance14. 
Closer cooperation on research and innovation, capacity building via e.g. facilitating access of 
Western  Balkan  countries  to  the  European  Battery  Alliance’s  Skills  Academy  and  the  Raw 
Materials  Academy  (iii)  Extension  of  the  EU  international  strategic  partnerships  for  the 
production of critical medicines and active pharmaceutical ingredients. 

supporting 

the 
and 

and 

These priority areas reflect consultations with stakeholders across the region15 and represent a direct 
linkage to the on-going work for the implementation of the Common Regional Market.  

12 https://neighbourhood-enlargement.ec.europa.eu/system/files/2022-12/eu-wb-roaming-declaration.pdf  
13 The Cyber Solidarity Act is a Commission proposal which has not yet been adopted by the co-legislators. 
14 The two Alliances are coordinated by two Knowledge and Innovation Communities (KICs) of the European 
Institute of Innovation and Technology (EIT). 
15 Consultations have taken place at political and expert level with a range of stakeholders. There have been 
technical  discussions  with  national  administrations, business  across  the  region  have  been  consulted  through 

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The  Commission intends  to  propose amendments to the  SAAs so  as  to  introduce  a mechanism  that 
would  allow  the  SAA  bodies  to  extend  the  rights  and  obligations  of  the  EU  acquis  to  the  Western 
Balkans, once conditions are met. The mechanism would enable the institutions of the SAA to adopt 
annexes  containing  a  list  of  single  market  legislation  (“acquis”)  in  specific  areas  that  would  be 
transposed  into  domestic  legislation,  and  rules  on  monitoring.  Once  it  has  been  determined  by  the 
Commission that there is acquis alignment and the rules are being effectively implemented – and also 
that there is no significant risk to the level-playing field in the EU single market (e.g. a sufficient degree 
of  Antitrust,  Merger  and  State  aid  control,  where  appropriate)  –  a  decision  could  be  taken  by  the 
institutions of the SAA to grant reciprocal internal market treatment in the specific area concerned. In 
addition to access to the single market, adopting and implementing the acquis in this way would also 
have a positive impact on the path to accession. 

This approach would enable the SAAs to offer a progressive extension to specific areas of the acquis, 
in particular those with a specific link to the single market such as sanitary and phyto-sanitary measures 
and intellectual property rights. When looking at which sectors to incorporate, priority would be given 
to areas where substantive actions have been taken under the Common Regional Market.  

Furthermore, to directly support the seven priority actions and more broadly to ensure that their full 
potential is realised, the European Commission is proposing a series of complementary measures.  

As  a  minimum,  all  the  Western  Balkan  countries  should  fully  participate  in  the  relevant  EU 
programmes,  including  in  particular  the  single  market  programme,  the  Customs  and  Fiscalis 
programmes, the Digital Europe programme and Horizon Europe (including exploring extensions to its 
missions on ‘Climate-Neutral and Smart Cities’ and on ‘Restore our Ocean and Waters’). The fullest 
possible participation in Commission-led expert groups, according to EU rules, will be encouraged, as 
these are an important pathway for developing practical knowledge about the effective implementation 
of the acquis. The Western Balkan countries may benefit from the measures foreseen in the Commission 
Communication on “Enhancing the European Administrative Space (ComPAct)”, to help build better 
public administrations.  

The potential of further integration of the Western Balkans into the respective parts of the single market 
will be underpinned by strengthening infrastructure links with the EU. The Western Balkans Investment 
Framework (WBIF) is ready to step up support to put in place the necessary infrastructure set out in the 
Economic and Investment Plan16, implementing the Global Gateway Strategy in the Western Balkans, 
and closely linked to the Trans-European networks. Implementation of the individual Reform Agendas 
(see point 3 below) will be essential to that effect. Work will also continue on the development of the 
trans-European transport network (TEN-T) to improve connectivity between the Western Balkans with 
the EU, to support integration in the EU single market and promote a more sustainable transport system. 

2)  Boosting regional economic integration through the Common Regional Market 

The  Western  Balkan  region  faces  a  profound  economic  challenge  from  limited  attractiveness  to 
investors,  due  to  small  fragmented  markets  and  large-scale  outward  migration  as  a  consequence  of 
limited opportunities. At the 2020 Berlin Process summit, the region decided that integration at regional 
level,  through  a  Common  Regional  Market  would  be  one  of  the  key  approaches  to  address  such 
challenges. 

The Common Regional Market17 action plan sets out an extensive programme of actions based on EU 
rules and standards, to establish the four freedoms of movement within the Western Balkans: goods, 

dialogue with the Western Balkan 6 Chamber investment forum and there have been consultations with regional 
organisations, CEFTA, the Regional Cooperation Council, the Transport Community, and the Energy Community. 
16 Economic and Investment Plan https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1811  
17 Common Regional Market https://neighbourhood-enlargement.ec.europa.eu/enlargement-policy/policy-
highlights/common-regional-

6 

 
 
 
 
some  services,  capital  and  workers.  This  is  accompanied  by  a  Green  Agenda  and  a  Digital  and 
Innovation Agenda for the region. Despite much technical work having started, most results have yet 
to  materialise,  in  part  due  to  political  blockages  in  decision  making,  in  part  due  to  the  pace  of 
implementation, which needs to be accelerated substantially. 

Developing a Common Regional Market is essential for two reasons. Firstly, because it is crucial to 
unlocking the economic potential of the region, to creating opportunities for domestic firms and workers 
alike and to making the Western Balkans a more attractive place for European investors. It is estimated 
that the Common Regional Market could add 10% to the economies of the countries in the region.18  
Secondly, because the Common Regional Market is based on the adoption and implementation of EU 
standards. 

It therefore acts as a stepping-stone towards the EU’s single market in many sectors, and as a mechanism 
for  making  progress  in  the  accession  negotiations  while  reaping  early  economic  benefits.  Closer 
economic integration with the EU, goes hand in hand with building a Common Regional Market. As 
part  of  this  growth  plan,  the  Western  Balkan  countries  are  invited  to  re-commit  to  the  full 
implementation of the Common Regional Market Action Plan. 

The EU will provide substantial opportunities for integration in the EU’s single market only if the region 
delivers  on  regional  economic  integration.  Partners  that  are  not  fully  committed  to  the  Common 
Regional Market or impede the implementation of the Common Regional Market Action Plan cannot 
expect to benefit from the growth plan in terms of opportunities for single market integration (pillar 1).  

The  Central  European  Free  Trade  Agreement19  is the key  governance mechanism  for  managing the 
Common Regional Market. Its effective functioning is therefore essential. As such, the important work 
ongoing – notably in the following areas – needs to be speeded up:  

• 

trade facilitation through increased regional recognition of standards and certification (based 
on EU rules);  
reducing the negative impact of non-tariff measures;  

• 
•  opening up the service sector, in particular the new area of e-commerce; and  
• 

facilitating the movement of workers through mutual recognition of academic and professional 
qualifications.  

One of the success stories of the Common Regional Market has been the establishment of Green Lanes 
at borders within the region. Through the exchange of customs data in advance of goods arriving at 
crossing points, the transit times for goods is greatly reduced. Estimates suggest that a 3-hour reduction 
in waiting times is the equivalent of a 2% reduction in tariffs20. This success within the region has led 
to the establishment of Green Lanes (land borders) and Blue Lanes (maritime borders) between the 
region and some EU Member States. This is one example of how deepening customs co-operation can 
boost economic activity between the region and the EU. 

There are numerous workstreams within the Common Regional Market where progress could pave the 
way for closer integration with the single market. These include integrating the region into the EU’s 
systems  for  consumer  protection  and  market  surveillance,  mutual  recognition  of  academic  and 
professional qualifications, participation of all partners in the region in the European Committee for 
Standardisation (CEN) and the European Electrotechnical Committee for Standardisation (CENELEC). 

market_en#:~:text=The%20Common%20Regional%20Market%20action,1%25%20of%20the%20region's%20G
DP.  
18 As for footnote 4. 
19  The  Central  European  Free  Trade  Agreement  (CEFTA)  2006  brings  together  the  Western  Balkans  6  and 
Moldova in a regional trading area with the aim of liberalising trade in goods and services within the region. The 
work of CEFTA was incorporated into the CRM action plan in 2020. 
20 As for footnote 4. 

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Such integration requires the development of necessary institutions and practices, such as via the Single 
Market Academy to ensure that national systems fully align with those of the EU.  

Looking at the future, an ambitious successor to the current Common Regional Market action plan 
must be developed before the current one expires in 2024. The new action plan should incorporate 
the opportunities offered under this growth plan as well as fully reflecting the Green Agenda and the 
Digital and Innovation Agenda for the region. To future-proof the Common Regional Market and in 
preparation for the Carbon Border Adjustment Mechanism, the action plan should contain the necessary 
elements for the Western Balkans to advance on decarbonisation. 

3)  Accelerating fundamental reforms 

Experience  from  successive  rounds  of  enlargement  has  shown  that closer  integration  with the  EU’s 
single market and targeted financial support are not sufficient to achieving accelerated socio-economic 
convergence.  Sustainable  success  requires  comprehensive  reforms,  including  in  the  fundamentals 
cluster. They are essential for candidate countries to move ahead towards EU membership, and for their 
economies to cope with the competitive pressure of the single market, and to build competitive and 
sustainable businesses to attract private investment. Moreover, accelerating fundamental reforms will 
also have a positive impact on the pace at which countries move along their EU accession path.  

As part of this growth plan, every Western Balkan partner will be invited to prepare a Reform Agenda 
based  on  existing  recommendations  including  from  the  annual  Enlargement  Package  and  the 
conclusions  of  the  Economic  and  Financial  Dialogue,  based  on  the  countries’  Economic  Reform 
Programmes (ERP). The Agenda will be consulted with, assessed and adopted by the Commission.  

The Reform Agenda will identify a limited set of priority reforms, broken down into qualitative and 
quantitative steps which will serve as payment conditions, i.e. upon achievement, they will trigger the 
release of funds under the new Reform and Growth Facility according to a pre-determined timeline. 
Payment conditions will be linked to specific socio-economic reforms to unlock national and regional 
growth  potential,  and  to  specific  reforms  related  to  fundamentals  of  the  enlargement  process, 
including the rule of law, democracy, the respect of human rights and fundamental freedoms. Macro-
financial stability, sound public financial management, transparency and oversight of the budget are 
general payment conditions that have to be fulfilled for any release of funds. Another pre-condition 
should  be that Serbia and Kosovo engage constructively in the normalisation of their relations with a 
view to fully implementing all their respective obligations stemming from the Agreement on the Path 
to  Normalisation  and  its  Implementation  Annex  and  all  past  Dialogue  Agreements  and  engage  in 
negotiations on the Comprehensive Agreement on normalisation of relations. Disbursements will not 
be conditional on the above-mentioned proposed changes to the SAAs (i.e. to implement the 7 priority 
actions) being in place. 

The  Reform  Agenda  will  be  a  key  driver  of  the  growth  plan:  fulfilling  it  will  create  the  necessary 
preconditions  to  take  up  and  fully  benefit  from  the  available  single  market  opportunities,  to  trigger 
disbursements under the new Reform and Growth Facility and, at the same time, bring the countries 
closer to fulfilling the criteria for EU membership. 

4)  Supporting convergence through increased financial assistance: the new Reform and Growth 

Facility for the Western Balkans 

The new Reform and Growth Facility (hereafter the facility) for the Western Balkans will provide key 
support  to  the  implementation  of  the  new  growth  plan  and  its  four  pillars,  through  significantly 
increased financial assistance. Payments will be subject to strict conditions in terms of key reforms as 
set out under the Reform Agenda.  

The proposed facility will cover the period 2024-2027. It would provide financial support in the form 
of  non-repayable  support  (up  to  EUR  2  billion)  and  loans  (up  to  EUR  4  billion)  through  direct 

8 

 
 
disbursements to the national budgets, or as capital investment financing through the Western Balkans 
Investment Framework (WBIF).  

It will serve as the centrepiece of the growth plan, significantly increasing financial assistance based on 
an ambitious reform agenda focusing on necessary socio-economic reforms coupled with fundamental 
reforms, including on the rule of law and fundamental rights. It will introduce strong conditionality by 
establishing  a  payment  mechanism  based  on  achievements  of  key  reforms  taking  into  account 
recommendations from the latest Commission Enlargement Package21. Such an approach requires an 
entirely new design, different from the currently available external assistance instruments. This type of 
extensive ex-ante conditionality and proposed construction is not possible under the existing Instrument 
for Pre-accession Assistance (IPA III). Payment conditions will also be complementary to and reinforce 
other forms of bilateral support for the Western Balkans provided through other EU instruments. 

The  financial  impact  of  the  facility,  combined  with  the  funds  still  available  under  IPA  III  for  the 
remainder of the MFF 2021-2027, will provide the Western Balkans with roughly the same aid intensity 
per  inhabitant  as  cohesion  policy  does  on  average  in  the  EU.  Such  an  unprecedented  budget 
reinforcement  would  respond  to  the  growing  calls  from  the  region  for  stronger  socio-economic 
convergence; it would also reinforce the message to the region that the benefits of closer integration 
with the  EU  can  be felt in  advance  of  accession.  The  longer-term objective  is to  help  the region to 
achieve  its  full  potential  in  terms  of  economic  and  social  development  capacity  compared  to  EU 
Member States by 2030.  

The instrument is designed to be flexible, adapted to the objective of accelerating fundamental socio-
economic reforms and bringing the region closer to the EU, while ensuring predictability, transparency, 
visibility, and accountability of the funds.  

The  new  instrument  will  be  complementary  to  and  mutually  reinforcing  with  the  current  financial 
assistance under IPA III as well as – in particular to address legal and administrative obstacles to cross-
border cooperation – with Interreg cooperation programmes under the EU’s Cohesion Policy involving 
the  Western  Balkans.  The  specific  reforms  under  the  Reform  Agenda  will  allow  for  the  necessary 
conditions to be in place to fully leverage the impact of the significant financial assistance under both 
the new facility and under IPA III.  

CONCLUSION 

In  response  to  the  unprecedented  challenges  facing  the  Western  Balkans  resulting  from the  need to 
reinvigorate the economies following the COVID19 pandemic and the current impact of Russia’s war 
of aggression on Ukraine, the Commission is proposing that the EU makes a bold offer to the region. 
An offer that provides opportunities to boost socio-economic convergence and bring our partners 
closer  to  the  EU’s  single  market  in  many  areas,  in  addition  to  significant  additional  financial 
support. This offer seeks to bring forward some of the economic benefits to the pre-accession period 
to build stronger, more resilient economies and provide day-to-day economic benefits for businesses, 
workers and consumers alike. This in turn will have benefits for the whole EU – the integration of well 
prepared  and  economically  stronger  countries  applying  EU  rules  and  standards  already  before  their 
accession.  

To unlock the potential of this growth plan, the Western Balkan partners will need to meet this offer 
with  resolute  efforts  to  advance  both  on  the  domestic  reform  agenda  and  on  strengthening 
economic  integration  within  the  region.  Their  authorities  have  the  responsibility  to  communicate 
effectively  on  the  growth  plan  and  its  implementation.  Together,  the  Western  Balkans  and  the  EU 
should seize this opportunity to accelerate progress on the accession path. 

21 The Enlargement Package includes a Communication on EU enlargement policy and accompanying country 
reports. 

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 Measures supporting integration to the EU’s single market 

Entrepreneurship: Opportunities for business 

•  Boost innovation, increase knowledge valorisation, and protect investments in new products by 
establishing  a  structured  cooperation  network  among  the  Western  Balkan  partners  for  a 
harmonised application of intellectual property rights.  

•  Boost  agri-food  industry  development,  including  fisheries  and  aquaculture,  in  line  with  EU 
standards. Boost agricultural trade by recognising the Western Balkans contingency plans for 
fruits and vegetables and crop-based survey plans, already approved by the Central European 
Free Trade Agreement (CEFTA) parties. 

•  Boost  innovation  by  (i)  developing  a  dedicated  European  Innovation  Council  (EIC)  
pre-accelerator for the Western Balkans, helping deep-tech innovation companies develop their 
full  potential  with  concrete  ideas  and  investment  plans  and  (ii)  supporting  and  upskilling 
innovators and entrepreneurs, through the activities of the European Institute of Innovation & 
Technology (EIT) and its Knowledge and Innovation Communities. 

•  Accelerate  the  transfer  and  upscaling  of  technological  and  social  innovation  solutions  for 

achieving climate-neutral and smart cities. 

Closer to EU: Opportunities to prepare for the single market 

•  Set up a Single Market Academy - a programme of capacity building, designed to build the 
quality infrastructure of the Western Balkans up to EU levels of operation, so as to speed up the 
process of achieving free movement of goods. The first areas to be targeted will be standards, 
certification and conformity assessment. 

•  Promote  full  membership  and  participation  of  CEN  and  CENELEC  to  the  Western 

Balkans partners, when possible. 

Connect and modernise: Opportunities for digital 

•  Make the  Western  Balkan  region more cyber  resilient  and fight  cybercrimes  together, 
including by increasing participation in trainings and events organised by the EU Agency for 
Cybersecurity (ENISA). 

•  Grant full access to the European High Performance Computing Joint Undertaking (HPC).  

• 

Join the  Interoperable Europe Academy, to boost public administrations' advanced digital 
skills in the interoperability field. 

•  Support the deployment of secure international connectivity and 5G network infrastructure 
through WBIF investment projects, in line with the EU 5G Cybersecurity toolbox. 5G networks 
will support digital transformation in the region.  

•  Accelerate  the  digital  transition  of  SMEs  and  startups  through  participation  in  the  Digital 
Europe  Programme,  and  taking  part  in  the  network  of  European  Digital  Innovation  Hubs 
(EDIHs) supporting companies and the public sector in the twin (green and digital) transitions. 

•  Develop  a  dialogue  on  Artificial  Intelligence  (AI),  including  flagship  initiatives  such  as  AI 

models. The focus will be on Generative AI and specifically Large Language Models.  

Reskill and upskill: Opportunities for employment and training 

•  Extend Europass membership to all Western Balkan countries: helping job seekers to take 
the  next  step  in  their  career  and  open  up  new  opportunities  and further  support  their 

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participation  to  the  European  Qualifications  Framework  Advisory  Group:  facilitating 
transparency of skills and qualifications. 

•  Explore  participation  in  some  activities  of  the  European  Network  of  Public  Employment 
Services (PES Network) and cooperation with the Network22 strengthening the capacity of the 
public employment services in Western Balkans.  

•  Create safer workplaces through capacity building in Western Balkan Labour Inspectorates.  

•  Strengthen  active engagement in the European Year of Skills and the Pact for Skills to 
promote a mindset of upskilling and reskilling, using the group of National Coordinators as a 
platform of exchange on skills policies. 

•  Foster cooperation on vocational education and training, in particular on apprenticeships and 
work-based learning in the framework of the European Alliance for Apprenticeships. 

•  Continue encouraging the participation of all Western Balkans countries to the Employment 

and Social Innovation (EaSI) strand of the European Social fund Plus (ESF+). 

Time for Youth: Opportunities for Young People 

•  Make it easier for young people to study abroad by facilitating the recognition of academic 

qualifications and mobility periods. 

• 

Improve  access  to  quality  education  and  remove  barriers  to  learning,  working  towards  full 
participation of the Western Balkan partners in the European Education Area and supporting 
transnational cooperation of higher education institutions. 

Broader Horizons: Opportunities for easier tourism, travel, transport and cultural activities 

• 

Join  efforts  to  promote  Europe  as  a  tourist  destination  in  third  countries  through  full 
membership to all Western Balkan partners in the European Travel Commission. 

•  Observers in the Data Space for Tourism: providing the information necessary to improve 

tourism planning. 

•  Develop tourism talent partnerships on skills between the EU and to increase and improve 
their tourism offer. Further increase the participation of all Western Balkan partners to Creative 
Europe so as to support the role of cultural and creative sectors in the economy.  

Peace of Mind: Protection for consumers  

•  Give  market  surveillance  authorities  in  the  Western  Balkans  access  to  the  e-Surveillance 
Webcrawler tool, which detects products that have been notified as dangerous in Safety Gate.  

•  Give  access  to  some  public  information  of  Safety  Gate,  and  in  the  longer-term  exchange 

selected non-public information on the safety of products and measures taken.   

•  Grant access23 to selected elements of the e-Enforcement academy. 

22 In accordance with the conditions laid down in the Decision No 573/2014/EU of the European Parliament and 
of  the  Council  on  enhanced  cooperation  between  Public  Employment  Services  (PES)  and  in  particular  for 
countries which have joined the Employment and Social Innovation (EaSI) strand of the European Social Fund 
Plus (ESF+) 
23 To the extent that safeguards exist which allow for the treatment of information in accordance with EU law 
requirements. 

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