European Commissioner for Enlargement, Marta Kos, has sent a stark warning to the six Western Balkan countries: failure to implement agreed reforms could cost the region over 700 million euros by the middle of this year.
According to information provided by Radio Free Europe (RFE), Kos sent an official letter to the region's capitals on April 17, requesting the acceleration of reforms in order not to lose the financial potential of the EU Growth Plan.
Deadline and "permanent loss phase"
So far, the first tranches of financing have been disbursed to five countries in the region, with the exception of Bosnia and Herzegovina, which is lagging behind due to delays in adopting the reform agenda.
However, the end of June this year marks a critical turning point. Under EU rules, any country that fails to meet the remaining reforms enters what is called a "permanent loss phase" – meaning that the funds allocated for that period are burned and can never be recovered.
Balance of losses by country
If the reforms remain unimplemented, the amounts at risk of being lost by country are:
Bosnia and Herzegovina: €373.9 million
Serbia: between €108.7 and €135.9 million
Kosovo: €68.8 million
Albania: €67.7 million
North Macedonia: €49.2 million
Montenegro: €15.1 million
In total, the potential loss amounts to €710.6 million, or about 11.84% of the total value of the projected financing.
The Growth Plan is the European Union's most ambitious package for the region to date, with a total value of €6 billion. The main aim of this project is to promote economic convergence, aiming to double the economies of the Western Balkan countries within the next ten years.
