The European Commission is preparing to reallocate funding from the Reform and Growth Facility for the Western Balkans, redirecting unspent money toward the three countries deemed most advanced in their EU accession efforts, two EU officials have confirmed. The move, expected to be detailed to member states later this month, underscores Brussels’ determination to tie financial incentives directly to reform performance.
Launched in 2024, the facility offers up to €6 billion in grants and loans for the 2024–2027 period, with the stated goal of doubling the region’s economies within a decade. However, only about €673 million has been disbursed so far, and nearly all of that has gone to Montenegro, Albania, and North Macedonia—the so-called frontrunners. Bosnia and Herzegovina, Kosovo, and Serbia have received little or nothing, largely because they have failed to meet the strict reform conditions attached to the funds.
Reforms or Lose the Money
The facility requires each beneficiary to complete a set of reform steps by agreed deadlines. If a country misses a deadline, the Commission can withhold the corresponding funds. Beneficiaries have a one-year grace period to catch up—except for the first year, which allowed two years. That first grace period expired at the end of June 2026, triggering the current reassessment.
“As the regulation underlines, where reform steps are not fulfilled and have expired under the grace period, the corresponding funds can be redistributed among other beneficiaries,” a Commission spokesperson told Euronews. “Regarding the steps that were due on 30 June 2026, the Commission will now carry out a comprehensive and objective assessment across all beneficiaries.”
In practice, this means that unspent money will be shifted to the countries making the most progress. Montenegro, Albania, and North Macedonia have advanced furthest in the accession process, thanks to sustained domestic reform agendas. Bosnia and Herzegovina, by contrast, has not received any funding at all, hampered by its complex institutional setup. Kosovo and Serbia are also expected to be disadvantaged.
The Commission’s enlargement commissioner, Marta Kos, already warned all Western Balkan countries in April that they risked losing the funds if reforms were not accelerated. EU officials stress that the mechanism is designed as an incentive, not a penalty. “It’s like working by the hour,” one EU official said, speaking anonymously. “You only get paid for the work you actually do.”
The reallocation comes as the EU pursues a broader enlargement agenda, with Ukraine, Moldova, and the Western Balkan states all seeking membership. The bloc’s approach has been to tie financial support to concrete reforms, a strategy that has yielded mixed results. While frontrunners have made headway, laggards continue to struggle with political instability, corruption, and institutional weaknesses.
The Commission is expected to provide member states with a detailed breakdown of how much funding will be reallocated later this month. The decision will likely intensify debate over the EU’s enlargement strategy, particularly as some member states, such as Hungary, have blocked progress for Ukraine. Meanwhile, countries like Ireland have signaled they will push for faster accession during their upcoming presidency.
For the Western Balkans, the message is clear: reform or risk losing EU support. The frontrunners stand to gain, but the region as a whole remains a patchwork of progress and stagnation.
