The European Commission has introduced an ambitious Growth Plan aimed at accelerating the economic convergence of the Western Balkans with the European Union, offering a pathway to deeper integration ahead of full membership.

Adopted on November 8, 2023, the plan seeks to integrate Western Balkan economies into the EU’s single market, enhance regional economic cooperation, implement key structural reforms, and increase pre-accession financial assistance. The Commission hopes these measures will significantly accelerate the enlargement process and boost economic growth in the region, where GDP currently hovers at just 35% of the EU average.

To support these efforts, a €6 billion financial instrument—the Reform and Growth Facility for the Western Balkans—has been approved for the 2024-2027 period. Comprising €2 billion in grants and €4 billion in concessional loans, the facility ties funding to the implementation of fundamental reforms.

A Four-Pillar Strategy for Growth

The Growth Plan is structured around four key pillars:

1. Economic Integration with the EU’s Single Market
Economic integration has been the cornerstone of growth for past EU entrants. The new initiative will allow Western Balkan nations to benefit from partial access to the single market through seven priority actions, including the free movement of goods and services, labor market mobility, integration into the industrial supply chain, and participation in the Single Euro Payments Area (SEPA). The plan also prioritizes energy market decarbonization and digital transformation.

2. Strengthening Regional Economic Cooperation
The Western Balkans, long fragmented by political and economic barriers, will be encouraged to deepen cooperation through the Common Regional Market (CRM), an initiative based on EU rules and standards. Regional integration is viewed as a prerequisite for unlocking the full benefits of the EU’s single market and improving competitiveness.

3. Advancing Fundamental Reforms
The plan mandates that each beneficiary country draft a comprehensive Reform Agenda, subject to approval by the European Commission and the EU Council. These agendas focus on governance improvements, foreign investment attraction, and sustainable economic growth, all of which are essential for long-term stability and EU accession.

4. Enhanced Financial Support
In addition to existing pre-accession funds under the IPA III framework, the Reform and Growth Facility will provide targeted financial assistance. Countries implementing their approved reform agendas can access up to 7% of their allocated funds in pre-financing, with additional disbursements contingent on meeting reform benchmarks.

A Roadmap to Membership

The implementation timeline is already in motion. A key milestone came in May 2024, when leaders of the Western Balkan nations convened in Kotor. Further high-level meetings are scheduled, with another summit in Brussels in September and the Commission’s anticipated approval of Reform Agendas for Albania, Kosovo, Montenegro, North Macedonia, and Serbia by October 2024.

Once reform agendas are endorsed, the Commission will sign financial agreements with each country, allowing for fund disbursement. Additionally, a pipeline of investment projects under the Western Balkans Investment Framework is under development, aiming to bolster infrastructure, energy, and digital connectivity in the region.

A Path to Economic Transformation

The European Commission estimates that if fully implemented, the Growth Plan could double the size of the Western Balkan economies within the next decade. EU officials argue that bringing the region closer to the bloc’s economic framework will not only benefit its citizens but also enhance stability and security in southeastern Europe.

“The Western Balkans are at the heart of our European continent,” said a senior Commission official. “By accelerating their economic alignment with the EU, we are investing in our shared future.”

While challenges remain—ranging from political instability to entrenched economic disparities—the Growth Plan signals a renewed commitment to bringing the Western Balkans into the European fold. Whether the plan delivers on its promise will depend on the willingness of both regional governments and EU institutions to stay the course on reforms and integration efforts.