SERBIA DEFINITELY SET TO MISS OUT ON EUROPEAN MILLIONS: Brussels reallocates funding, neighboring countries receive the money instead!

The European Commission is planning to reallocate part of the funding from the Reform and Growth Facility for the Western Balkans in favor of the countries making the fastest progress toward European Union membership—Montenegro, Albania, and North Macedonia, Euronews has learned from two European officials.

The facility is a €6 billion financial instrument launched in 2024 with the aim of encouraging EU candidate countries to implement the reforms required for membership.

Funds are disbursed only if participating countries meet previously agreed reform milestones within the specified deadlines.

Only a small portion of the funds has been disbursed

According to data from the European Commission, only around €673 million of the total €6 billion has been paid out so far, with almost all of that money going to just three countries—Montenegro, Albania, and North Macedonia.

Those three countries are currently regarded as the most advanced EU membership candidates thanks to the reforms they have implemented.

On the other hand, Bosnia and Herzegovina, Kosovo, and Serbia have fallen behind in fulfilling their commitments, meaning they could lose part of the funding originally allocated to them.

Commission: The money goes to those who implement reforms

The rules governing the facility allow the European Commission to suspend payments or reallocate funding if a country fails to complete the agreed reforms within the required timeframe.

Most reforms must be completed within one year, although the deadline for the program’s first year was extended to two years. That key deadline expired at the end of June.

A European Commission spokesperson confirmed to Euronews that the regulation allows funding to be reallocated to other beneficiaries if reforms have still not been implemented after the additional grace period expires.

“As the regulation provides, if reforms have not been implemented even after the end of the transitional period, the corresponding funds may be reallocated to other beneficiaries,” the Commission said.

The spokesperson added that the European Commission will now carry out a “comprehensive and objective assessment” of the performance of all Western Balkan countries.

Bosnia and Herzegovina could be the biggest loser

According to Euronews, Bosnia and Herzegovina could lose the most, as it has not received a single payment from the facility so far, largely because it has failed to implement any of the required reforms. The country’s complex institutional structure has been cited as the main reason.

Serbia and Kosovo have also failed to meet expectations. Although both previously received part of the available funding, they too could lose a portion of the money initially earmarked for them.

European Commissioner for Enlargement Marta Kos warned Western Balkan countries as early as April that they needed to accelerate reforms or risk losing funding from the Growth Plan.

“You are paid only for what you do”

European officials stressed that the mechanism is not intended as a punishment but rather as a system of financial incentives.

“It’s like being paid by the hour. You’re paid only for the work you’ve actually completed,” one European official told Euronews on condition of anonymity.

The European Commission is expected to inform EU member states during July about how much funding will be reallocated and which countries will receive it.

Among the options under consideration are allocating the additional funds to the best-performing candidate countries, using them for technical assistance across the Western Balkans, transferring them to candidate countries outside the region, or even returning the money to the European Union’s budget.

A Commission spokesperson emphasized that reforms must remain the top priority.

“Reforms must remain a priority for beneficiaries if they are to fully take advantage of the opportunities offered by the Growth Plan.”