Last week, Bosnia and Herzegovina lost 100 million euros from the EU Growth Plan due to political deadlock. What happened to Bosnia last week is a warning to Kosovo: Those who perform will be rewarded, those who lag behind will be penalized.
After a deep sleep, the Russian invasion of Ukraine awakened the EU’s attention to the enlargement process.
Decisions that the EU had not taken for years were taken within a few months. Ukraine and Moldova gained candidate country status and began membership negotiations. Georgia and Bosnia and Herzegovina gained candidate country status. Bosnia also began membership negotiations. Albania and North Macedonia began membership negotiations. Kosovo gained visa liberalization.
But in parallel with these political decisions, the EU realized that political decisions alone would not be enough. In order for these countries to truly become ready for EU membership, deep reforms would be needed. And deep reforms – in addition to political will – require money.
Thus, a year after the Russian invasion of Ukraine, the idea of the Growth Plan for the Western Balkans was born. The idea was that in exchange for certain European reforms, the countries of the region would be rewarded with a financial package. Thus, 6 billion euros were made available to the countries of the Western Balkans for the period 2025-2027. Serbia was made available 1.6 billion euros, Bosnia and Herzegovina 1.1 billion euros, Albania 922 million, Kosovo 883 million, North Macedonia 750 million and Montenegro 384 million.
In order for countries to qualify for this money, they must complete a list of reforms in the period 2025-2027. Thus, Serbia promised to implement 98 reforms in four priority areas: (1) business environment and private sector development, (2) green and digital transition, (3) human capital and (4) rule of law. Albania promised to implement 141 reforms in five priority areas: (1) business environment and private sector development, (2) human capital, (3) green and digital transition, (4) rule of law and (5) public finance management.
Kosovo pledged to implement 30 reforms in five priority areas: (1) good governance, (2) green and digital transition, (3) business environment and private sector development, (4) human capital, and (5) rule of law. North Macedonia pledged to implement 37 reforms in five priority areas: (1) rule of law, (2) good governance, (3) green and digital transition, (4) human capital, and (5) business environment. Montenegro pledged to implement 31 reforms in four priority areas: (1) private sector development and business environment, (2) green and digital transition, (3) human capital, and (4) rule of law.
These were the promises, and in the old Balkan tradition, the promises were beautiful. But, before the first year of the Western Balkans Growth Instrument was even over, the troubles had begun.
Last week, Bosnia and Herzegovina had 10 percent of its funds cancelled as a result of failing to finalize its reform agenda. In its justification, the European Commission said: “Unfortunately, despite the political agreement reached at the BiH Council of Ministers on 27 June 2025, Bosnia and Herzegovina remains the only country in the region whose authorities have not been able to submit a finalised draft of the Reform Agenda to the European Commission… It has always been clear that the Reform and Growth Programme is based on performance and results: those partners who implement reforms can benefit from all available funds, while those who do not can see their funds reduced. The Reform and Growth Programme expires at the end of 2027, at the same time as the seven-year EU budget. This deadline cannot be changed. The EU has repeatedly warned the Bosnia and Herzegovina authorities that time was running out and that the country could face cuts in its funds if urgent action is not taken.”
At the same time, the EU warned Bosnia that if it fails to submit its reform agenda by September 30, 2025, it will lose another 10 percent of EU funds.
What happened to Bosnia and Herzegovina last week is a warning for Kosovo. Although Kosovo has submitted its reform agenda, it has still not managed to ratify the legal instruments necessary to operationalize the growth program, as a result of the failure to constitute new institutions.
Kosovo’s lack of performance and results could create a situation similar to that of Bosnia and Herzegovina. With the enlargement instrument, the EU has placed performance at the epicenter of the enlargement process. And as Bosnia and Herzegovina learned last week, performance is a double-edged sword: those who perform will be rewarded and those who lag behind will be penalized.