The plan for economic growth in the countries of the Western Balkans, worth six billion euros for the period 2024-2027, is a "reward for implemented reforms", according to the General Directorate for Enlargement Policy (DG NEAR), but for certain countries, such as Serbia and Kosovo, there will be preconditions in the form of progress in the normalization process.
On Wednesday, the European Commission adopted, along with reports on the progress of countries in the European integration process, a plan containing a number of proposals for the integration of the countries of the region into various EU programs even before formal membership in the Union.
It is a financial instrument that foresees two billion euros in grants and four billion in the form of favorable loans or capital investments.
Four pillars
The growth plan for the Western Balkans has four pillars with the aim of strengthening economic integration in the EU single market, then strengthening integration within the region through a common regional market, accelerating basic reforms and increasing financial aid to support reforms, in which the mentioned financial part is worth six billion.
Unlike the IPA funds, when the money was given in advance and the Union hoped for results, now this fund is set up differently - each government creates its own reform agenda that should be undertaken in the four-year period, which is the duration of the plan.
In that time period of four years for the reform agenda, it is then necessary to work out in detail the reforms that will be undertaken in a period of six months, one year, they add in the General Directorate for Enlargement Policy (DG NEAR).
When the reform is completed, the money is paid to the national budget for six months, DG NEAR points out and states that the Growth Plan system is "reform - reward".
Special prerequisites
DG NEAR explains that there are special preconditions for the payment of money when it comes to the normalization of relations between Serbia and Kosovo, because progress is expected in the normalization of relations and the implementation of all agreements reached.
If side A blocks progress in the implementation of the agreement, they will not receive money, while side B will receive support, they explain.
A similar situation and a similar condition is for access to the single market. If someone blocks cooperation within the Common Regional Market, obstructs it and is not committed to it, they will not get access to the EU single market, it added.
"You are only blocking yourself, no one else2," they specify in the DG and indicate that they "got the impression" that Belgrade and Pristina were clearly informed about this recently during the visit of the President of the European Commission, Ursula von der Leyen.
The intention is that the first payments will start next year in this period, but what must be done before that is that the Council of the EU and the European Parliament agree on this proposal of the European Commission.
"We want the process to be completed in the spring, so that we don't fall into a gap due to the elections in the European Parliament." If the reforms are not fulfilled, the money will be lost", they state in DG NEAR and adds that if the reforms are fulfilled, the money will be paid as budget support.
It's still being shared
Discussions are still ongoing as to how much money each country in the region will receive, added DG NEAR, explaining that three billion euros will go to an investment fund, which implies that if you have good projects, the money will be available.
The other three billion will be divided as budget support between the countries, but the details are still being discussed.
Along with the Growth Plan for the Western Balkans, IPA funds remain available to the countries.
In the event that the country receives the first installment of money, "awards", and then backslides in reforms, the next installment will not be paid.
The money will not "leave the region" if none of the states fulfills the requirements of the reform agenda, but the sum of three billion for budget support will go to a part of the money for investments, the remaining three billion.
Seven priority actions
The document states that the first pillar on which the Growth Plan is based is strengthening economic integration in the EU single market, which includes seven priority actions - free movement of goods, services and workers, access to the single euro payment market (SEPA), facilitations when it comes to road transport , integration and decarbonization of the energy market, a single digital market and integration into industrial supply chains.
The implementation of these proposals will increase the freedom of movement of goods, workers and services among the countries of the region, as well as with EU countries.
As an example, the establishment of "green lines" at border crossings, where goods pass faster with a faster customs procedure, is mentioned.
The countries of the Western Balkans should fully participate in the relevant EU programs, especially in the single market program, the fiscal and customs program, the European digital program and the Horizon Europe program, the document states.
The countries of the region, in parallel with the rapprochement of the EU, the document states, should strengthen mutual cooperation and achieve the goals of the common regional market, as well as accelerate reforms related to the rule of law.
For some countries, such as Bosnia and Herzegovina, i.e. Albania, attention must be paid to migration, because in Bosnia and Herzegovina almost five percent of citizens leave the country every year.
The goal of the Plan is to ensure economic growth in the region of seven percent per year.
BG/FoNet
Read daily news, analysis, commentary and interviews at www.vreme.com
