North Macedonia has ratified the necessary agreements and is awaiting the disbursement of the first tranche of funds under the European Growth Plan, initially expected to be available at the start of this year. The first regular payments are anticipated between the second and third quarters of 2025, the European Commission told RFE.
Diplomatic sources informed RFE that North Macedonia could receive its first payment of €52.5 million from the European Growth Plan in early April.
This means that within just over a month, the government could have the funds available in the state budget, following the adoption and submission of the required agreements to the European Commission in Brussels, where they await final approval.
The Growth Plan, approved by the European Parliament and the EU Council in May 2024 and endorsed in October the same year, has a total budget of €6 billion. It aims to support investments and reforms in Western Balkan states as part of the 2024-2027 reform agenda.
North Macedonia is allocated €750 million, contingent on the successful implementation of domestic reforms pledged to EU institutions. The European Commission confirmed that five ambitious reform agendas from Western Balkan nations, including North Macedonia’s, are currently under review. Payments are expected to be finalized once the procedural steps in Brussels are completed.
“The Commission is finalizing the necessary procedural steps to enable the release of pre-financing as soon as possible in 2025. The first regular payments are expected between the second and third quarters of 2025, provided that the required conditions are met,” the European Commission told RFE.
North Macedonia’s government has completed its domestic obligations, securing parliamentary ratification of the agreements. EU regulations mandate two types of agreements: the Reform and Growth Instrument Agreement, which outlines financial cooperation rules between the European Commission and North Macedonia, and the Loan Agreement, managed by the Ministry of Finance, detailing the use of financial assistance in the form of a loan.
The government stated that throughout the past year, teams from the Ministry of European Affairs and the Ministry of Finance worked closely with the European Commission to finalize the agreements in line with national procedures.
“The text of the Reform and Growth Instrument Agreement was approved by the government on October 19, 2024, and signed by European Affairs Minister Orhan Murtezani, who was also appointed as the National Coordinator for overseeing the Reform Agenda. The ratification law was passed by parliament in January 2025 and published in the Official Gazette. The loan agreement with the EU under the Reform and Growth Instrument was approved in December 2024, signed, and submitted to the European Commission for final approval,” the government told RFE.
Once this process is completed in Brussels, the government expects the legal framework for fund disbursement to be finalized.
Initially, the European Parliament projected that Western Balkan countries would receive their first payments by the end of 2024. However, the timeline has been extended by at least four months into 2025.
Under the Growth Plan, North Macedonia must implement reforms across multiple sectors. The first tranche of €52.5 million will serve as pre-financing, with additional funds released based on reform progress. One key milestone is the adoption of a new Criminal Code by December 2025, alongside a new Criminal Procedure Code (CPC). If implemented on schedule, the European Commission will allocate nearly €13 million for these legal reforms.
The plan also includes public financial management reforms. Electronic auctions in public procurement procedures must be reduced to a maximum of 40% of published tenders by December 2025, which would unlock €8.5 million in funding.
In the energy sector, North Macedonia must install 800 megawatts of renewable energy capacity—solar and wind—by 2027 to receive an additional €8.5 million.
Growth Plan to Support Six Western Balkan States
Each country will receive an initial pre-financing payment amounting to 7% of their total allocated funds. Disbursements are calculated based on GDP, population, and other criteria.
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North Macedonia: €750 million total; €52.5 million pre-financing.
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Serbia: €1.58 billion total; €111 million pre-financing.
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Albania: €922 million total; €64.5 million pre-financing.
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Montenegro: €383 million total; €26.8 million pre-financing.
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Kosovo: €880 million total; €61 million pre-financing.
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Bosnia and Herzegovina: Eligible for €1.085 billion but has yet to submit a reform agenda.
The Growth Plan is the EU’s most ambitious financial package for the Western Balkans, structured around four key pillars:
- Economic integration with the EU single market – Facilitating free movement of goods, services, and workers, improving transport links, decarbonizing energy markets, and integrating into EU digital and industrial supply chains.
- Enhanced regional economic cooperation – Unlocking economic potential, creating business and employment opportunities, and making the region more attractive to European investors.
- Accelerated fundamental reforms – Boosting economic growth by attracting foreign investment and strengthening regional stability, while advancing EU accession prospects.
- Increased financial assistance – Providing additional financial incentives for implementing key reforms.
The European Commission will determine fund disbursements based on reform progress. If a country fails to meet the required conditions, payments may be suspended.
