The European Commission on Tuesday approved a €171 million ($186 million) support package aimed at strengthening infrastructure, boosting private sector development and accelerating economic convergence in the Western Balkans, as part of the bloc’s broader strategy to deepen ties with the region.
The funding will support projects across Albania, Bosnia and Herzegovina, Montenegro and North Macedonia, combining grants and technical assistance from several EU instruments, including the Instrument for Pre-accession Assistance (IPA III), the Western Balkans Investment Framework (WBIF) and the Reform and Growth Facility (RGF).
The Commission said €91.8 million of the total package will be directed towards infrastructure investments, expected to mobilise a total of €263 million in funding across seven projects in priority sectors such as digital connectivity, clean energy, education, transport and environmental protection.
Key projects include the rollout of broadband infrastructure in Albania, upgrades to the electricity transmission system in North Macedonia, construction and energy-efficient renovation of educational facilities in North Macedonia and Montenegro, electrification of the Durres–Tirana railway line in Albania, and drinking water and wastewater treatment facilities in Bosnia and Herzegovina.
“These investments will help strengthen regional connectivity, modernise public services and improve living standards,” the Commission said in a statement.
An additional €2.9 million will be allocated for technical assistance projects in Albania and Bosnia and Herzegovina to prepare future investments in energy, water, innovation and research sectors.
Alongside infrastructure funding, €76.3 million will be channelled into programmes designed to support private sector growth, particularly small and medium-sized enterprises (SMEs), which the Commission said are critical for job creation and economic resilience in the region.
Among the key initiatives are the Western Balkans Forward Programme, aimed at helping SMEs export higher value-added products and services to regional and EU markets, and the SME Go Green Programme, which supports investments in green technologies, circular economy practices, agribusiness and sustainable job creation.
The funding also includes support for the Western Balkans Opportunities by Non-traditional Debt (W-BOND) pilot programme, designed to expand access to finance for SMEs by diversifying funding sources beyond traditional bank lending, as well as a programme to strengthen public-private partnership capacities and governance in Bosnia and Herzegovina.
Following approval by the Western Balkans Investment Framework Operational Board, projects will move to implementation, including the finalisation of agreements with partner institutions, the launch of preparatory studies and completion of procedural requirements for private sector support.
The funding package is part of the EU’s broader Growth Plan for the Western Balkans, which seeks to integrate the region more closely into the EU Single Market, deepen regional economic cooperation and accelerate reforms linked to EU accession.
The Growth Plan is backed by the Reform and Growth Facility, a €6 billion financial instrument for the period 2024–2027, which ties financial support to reform progress in partner countries. Since its launch in May 2024, 13 investment projects worth €156 million have been approved under the facility, the Commission said.
European Commissioner for Enlargement Marta Kos said the new funding underlined the EU’s strategic commitment to the Western Balkans.
“Investing in our Western Balkan partners is key to bringing them closer to the EU,” Kos said. “From advancing infrastructure to enhancing business development, these investments are creating real opportunities for citizens and making the EU a lived reality across the region.”
The Western Balkans Investment Framework, established 15 years ago, plays a central role in channelling EU funds and loans to priority investments in transport, energy, digital infrastructure and human capital, contributing to the bloc’s Global Gateway strategy.
The Western Balkans – a region long seen as strategically important for European security and stability – has intensified efforts in recent years to align with EU standards and accelerate accession-related reforms, amid heightened geopolitical competition and renewed EU interest in enlargement.