“At least half of the overall funding will support investment in infrastructure and connectivity, including transport, energy and the green and digital transition. The rest of the loans will be released as direct support for national budgets", the European Commission for EWB (European Western Balkans) emphasizes, explaining the mechanisms of spending money from the Growth Plan for the Western Balkans.

The first funds from this financial instrument are expected to be released soon, after the European Commission officially approves the Reform Agendas presented by Albania, Montenegro, North Macedonia, Serbia, and Kosovo. On the other hand, it is uncertain whether Bosnia and Herzegovina will receive the money at the same time because this country has been delayed in adopting the Reform Agenda.

The EU intends to allocate seven percent of the total funds from the Growth Plan to all partners in the Western Balkans that adopt valid Reform Agendas, as pre-financing. This tool, covering the period 2024-2027, is an EU financial mechanism worth six billion euros, approved with the aim of doubling the economic growth of the region in the next ten years.

From the total amount, two billion euros will be distributed as grants and the remaining part, four billion euros, in the form of loans with favorable interest. It is estimated that Serbia will receive 1.58 billion euros, Bosnia and Herzegovina 969 million, Albania 922 million, Kosovo 888 million, North Macedonia 807 million, and Montenegro 383.5 million.

Speaking about the procedures for the release of funds from the Growth Plan, the European Commission states for the EWB that "it will be conditional on the successful implementation of the Reform Agendas, which cover both reforms in the basic area and socio-economic reforms, in cooperation closely with the European Commission".

"The funds within the facilities must be released according to a fixed six-month plan, based on the request for the release of funds presented by the partners and after verification by the Commission for the satisfactory fulfillment of both general conditions related to macro-financial assistance, management of soundness of public finances, transparency and supervision of the budget and the relevant conditions of payment, and with the preconditions that the beneficiaries respect democratic principles and human rights", says the EC.

The European Commission adds that, in the Reform Agendas, "reforms are divided into quantitative and qualitative steps, which will serve as payment conditions and each step has an implementation deadline".

"The facility and loan agreements shall include obligations for the beneficiaries to take appropriate measures to prevent, detect and correct fraud, corruption, conflicts of interest and irregularities affecting the financial interests of the Union, to avoid double financing and to take legal action to recover the funds that have been embezzled, collect adequate data on the beneficiaries of the funds under the Instrument and the rights to be given to the Commission, the European Anti-Fraud Office (OLAF) and the European Public Prosecutor's Office (EPPO) ) where applicable", clarifies the EC.

Finally, the European Commission states that the EC "may reduce or recover the amounts if the financial interests of the Union are affected or if the beneficiaries have seriously violated an obligation arising from the agreements concluded within the framework of the relief".