Without reforms, BiH loses one billion marks from the Growth Plan by the end of the year, Marta Kos: There will be no extension of this deadline

Bosnia and Herzegovina faces the risk of permanently losing 373.9 of the total 976.6 million euros available to it through the Growth Plan for the Western Balkans if it does not implement reforms in the areas of strengthening the , judicial integrity, preventing conflicts of interest, and protecting whistleblowers by the end of the year, as it committed to under the Reform Agenda.

While warnings from the EU indicate that deadlines will no longer be extended, BiH has already been sanctioned with a 10% reduction in available funds due to delays, meaning that 108 million euros will be invested elsewhere instead of in development and infrastructure projects in BiH, and further procrastination means not only the loss of nearly one billion marks, but also further erosion of credibility on the European path.

Just last week, I sent a letter to the authorities, warning that Bosnia and Herzegovina risks losing hundreds of millions of euros if the necessary reforms are not implemented by December 2026. years” emphasized Marta Kos, European Commissioner for Enlargement, in a  at the opening of the First Consultative Forum on the Implementation of the Reform Agenda in BiH (CONFRA BiH), organized today in Sarajevo by  International in Bosnia and Herzegovina (TI BiH).

She added that there will be no extension of this deadline, warning that “almost 50 percent of the funds (977 million convertible marks) could be lost” and reminded that countries in the region have launched necessary reforms in governance, public administration, the private sector, energy, human capital, and the rule of law, after which the promised funds followed.

Unlike them, Bosnia and Herzegovina, where public focus has been too long on the amount of available funds rather than on the obligations that must be fulfilled, has still not signed and ratified the agreement on accession to the Reform and Growth Instrument and the loan agreement, which are prerequisites for using the 976.6 million euros.

However, inaction also carries its own cost. Namely, in the absence of reforms, Bosnia and Herzegovina risks losing 373 million euros from the funds allocated under the Growth Plan, in addition to the 108 million euros it lost last year.

“The reforms in the Reform Agenda are the blueprint for an economic transformation in this country – one that will help it to use its considerable economic potential. This country has an educated population, a proud industrial tradition and is geographically located in the heart of Europe close to the European Single Market.” stated Luigi Soreca, Head of the EU Delegation to Bosnia and Herzegovina, adding that these advantages are not being utilized sufficiently.

The education system needs urgent reform. Much of BiH’s industry relies on ageing technology, and needs to be modernised, including to take advantage of the clean energy revolution. BiH may be geographically close to the European Single Market, but barriers still exist to accessing it. The reforms in the Reform Agenda help bring these barriers down and move this country closer to receiving the benefits of EU membership. There is however also a cost to inaction – in the absence of reforms, regrettably, Bosnia and Herzegovina is at risk of losing EUR 373 million from its allocation under the Growth Plan, in addition to the EUR 108 million it lost last year” Soreca added.

Forum participants emphasized that the aforementioned funds from the Growth Plan are not a reward for declarative commitment to the European path, but support for countries that demonstrate , capacity, and responsibility to implement reforms. Therefore, BiH must appoint a national coordinator, establish a secretariat, a monitoring committee, and contact points for each reform step, so that it is clear who is responsible for implementation, monitoring, and reporting.

In addition, it was emphasized, the implementation process must be more open to the public, which means that the authorities must publish the Reform Agenda in the official languages of BiH together with a list of infrastructure projects to be financed from the Growth Plan, so that citizens know what the state has promised and where it plans to direct the available funds.

The Growth Plan is a test of institutional responsibility, not just a financial opportunity. If the authorities in BiH are not prepared to implement the reforms they themselves undertook, then the problem is not only in the lost funds, but in the message that political representatives are sending to the EU and citizens. The attitude toward the Growth Plan today shows the real attitude toward BiH’s European path “, stated Ivana Korajlić, Executive Director of TI BiH.

TI BiH warns that when establishing the institutional framework, lessons learned from a decade of a dysfunctional coordination mechanism must be utilized. Through the new system, it is necessary to define clear responsibilities, deadlines, and mechanisms for overcoming blockages, so that the implementation of the Reform Agenda does not turn into another captured process.

and other relevant actors need to be included in the work of the monitoring committee through a transparent process and clear criteria, based on expertise, experience, and proven results. Only in this way can the monitoring and reporting process be of higher quality, more open, and focused on real results.

Continued delays and political blockages do not only mean the loss of available funds. They directly harm BiH’s credibility before the European Union and member states, and reduce the chances that the country will make a serious step forward toward opening negotiations in the near future. Therefore, TI BiH calls on the authorities to open the implementation process of the Reform Agenda to civil society and to use CONFRA BiH as a space for regular dialogue, monitoring progress, and addressing obstacles in fulfilling undertaken obligations.

[Поткаст со министерот Андоновски] Како се гради дигитална иднина со помош на Реформската агенда?

Во оваа епизода на Reform and Monitor поткастот, министерот за дигитална трансформација Стефан Андоновски ги споделува достигнувањата и предизвиците во дигиталната трансформација на Северна Македонија, со фокус на Реформската агенда и имплементацијата на новите закони и системи.

Во разговорот министерот ги споделува и искуствата во остварувањето на реформските мерки, инфраструктурата и соработката со приватниот сектор, невладиниот сектор и ЕУ.

 

EU disbursed 7% or 61.2 million euros of the Growth Plan for Kosovo

The WB Reform and Growth Monitor Project welcomes the EU decision to disburse the 7% or 61.2 million euros of the Growth Plan for Kosovo. This step follows the ratification of the Facility and Loan agreements on 13 February 2026 and the completion of other technical procedures. This disbursement marks the country’s first step towards benefiting from the total package of 883 million euros allocated to Kosovo from the Growth Plan.

There is now no obstacle for the Government and the Assembly of Kosovo to continue implementing the Reform Agenda to reform country’s governance and benefit from the financial incentives. Our partners from Kosovo, the Group for legal and political studies calls on the executive and the legislative to do their utmost for the rapid, full and substantive implementation of all measures. Such implementation will bring the country closer to European Union standards and will bring substantial financial benefits to the country.

Three semesters have already passed, and as a result of the political crisis that has led to significant delays, Kosovo has no time to lose. GLPS therefore calls for immediate action, including the establishment of RGF Monitoring Committee and the implementation of the reforms pledged in the Reform Agenda. As an organization, we have monitored the first three semesters of implementation and will continue to do so for the remaining semesters, to keep the public informed on the state of implementation of the Agenda.

As per the latest Monitoring Report, GLPS recommends the following:

Build the Infrastructure: After the appointment of the National Coordinator, to immediately establish the RGF Monitoring Committee to meet EU technical standards.

Beat the Clock: Prioritize the June 2025 reform steps before the end of grace period to avoid irreversibly losing financial incentives.

Create a list of essential laws to be treated with priority by the Assembly.

Coordinate for Speed: Launch a dedicated task force to align line institutions on the most urgent reforms.

The latest report on Kosovo can be found here.

 

Sublimated Questions and Answers: Small Grant Facility “Re-form for Growth”

In accordance with the guidelines set forth in our Call for Proposals, the Reform Monitor Project has compiled and addressed all inquiries received regarding the Re-form for Growth: Small Grant Facility.

To ensure transparency and equal access to information for all prospective applicants, we have published a formal Sublimated Q&A Document.

QA-1

 

Re-form for Growth: Small Grant Facility

MK | BCMS | SQ

The project “WB Reform and Growth Monitor”, implemented by members of the Think for Europe Network (TEN) and Transparency International in Bosnia and Herzegovina (TI BiH), supported by the European Union, announces a Call for Proposals for the ”Re-form for Growth” Small Grant Facility (SGF).

The objective of this Call is to empower civil society organisations to provide independent monitoring, advocacy, and sector-specific perspectives on the implementation of the Growth Plan for the Western Balkans (GPWB).

A total amount of EUR 314,620 is allocated to the SGF to support up to 20 grants, with an implementation period of 10 to 12 months per action. The financial framework for the grants is as follows:

  • Maximum Grant Amount: EUR 16,000
  • Indicative Average Grant: EUR 15,730

The indicative regional distribution is planned as follows:

CountryNumber of Grants
Serbia4
Bosnia and Herzegovina4
North Macedonia3
Albania     3
Kosovo     3
Montenegro3
TOTAL20

In order to be eligible for a grant, the applicant must:

  • Be a legal entity;
  • Be non-profit making;
  • Be a civil society organisation whose activities are implemented at national and/or local level (i.e. within one or more local self-government units);
  • Demonstrate active engagement and relevant experience in one or more thematic areas relevant to this Call for Proposals, through its mandate, previous or ongoing activities, research, monitoring or advocacy work;
  • Be registered in one of the following countries: North Macedonia, Serbia, Montenegro, Albania, Bosnia and Herzegovina, or Kosovo, at least six (6) months prior to the publication of this Call for Proposals;
  • Be directly responsible for the preparation and management of the action, and not acting as an intermediary;
  • Have sufficient operational and financial capacity to carry out the proposed action;
  • Not be a beneficiary of funding under the EU Civil Society Facility (CSF) and Media Programme (Reference No. EuropeAid/179703/DH/ACT/Multi) for the same implementation period of the proposed action.

Thematic Priorities of the SGF: 

  1. Integration with the EU Single Market;
  2. Regional integration through the Common Regional Market;
  3. Priority Areas of the Reform Agendas;
  4. Implementation of the Reform and Growth Facility;

For more details about this call, please read carefully the GUIDELINES FOR APPLICANTS.

Submission and Deadline

Applications must be submitted electronically with the following completed documents, that can be downloaded from:

Submission Deadline: 06.05.2026

Applications shall be sent to: [email protected]; cc: [email protected] with the subject: “CfP: Re-form for Growth – (Country)_Application”.

The sublimated answers and clarifications to all the recieved questions regarding the call are avalaible at:

Montenegro: Space for Civil Society in Monitoring the Reform Agenda

The second meeting of civil society on the implementation of the Reform Agenda 2024–2027 and the Growth Plan for the Western Balkans was held, with assessments that better coordination in reporting is needed, as well as more significant involvement of civil society in verifying the fulfilment of reform steps.

During the meeting, the content of the three most recent semi-annual reports on the implementation of the Reform Agenda was reviewed. Participants pointed out that, although certain information on the implementation of reform steps exists, access to all evidence supporting the Government’s claims is lacking. It was emphasized that data availability is limited, particularly when it comes to documentation that would enable independent verification of the claims presented in the report.

It was concluded that, before the formal submission of reports, higher-quality interinstitutional coordination should be ensured, in order to avoid differences in the understanding of reform fulfilment between the European Commission and the Government of Montenegro. Participants assessed that institutional capacities in this area are still developing, and that a “learning by doing” approach is evident. The need was emphasized for future reports to be less descriptive and more analytical, so that reporting does not represent mere administrative compliance, but becomes a useful analytical tool for monitoring and improving reforms.

During the meeting, it was clarified how the European Commission verifies the Government’s claims regarding the fulfilment of specific steps. It was highlighted that there is no formally defined mechanism for the participation of civil society organizations in the process of verifying the evidence submitted by the Government to support the fulfilment of steps from the Reform Agenda. Nevertheless, there is a recognized willingness and openness to include civil society, particularly when it possesses relevant knowledge about the implementation of specific reform steps.

The meeting is a continuation of our initiative to involve civil society in monitoring the implementation of the Reform Agenda, which we launched with a meeting held last December.

Kosovo Ratifies EU Growth Plan Agreements: A Critical Step Forward

The Assembly of Kosovo has ratified the Facility and Loan Agreements with the European Union, marking a milestone for the country’s participation in the EU Growth Plan for the Western Balkans. This legislative action formally opens the path for the implementation of the Reform Agenda and provides access to the financial incentives designed to accelerate socio-economic convergence with the European Union.

While the ratification is a significant step, the focus must now shift toward the immediate fulfillment of technical requirements to ensure the disbursement of the initial 7% prepayment, totaling 61.8 million euros. This process necessitates the swift establishment of the Monitoring Committee for the Implementation of the Growth Plan and the formal appointment of a national coordinator. These administrative actions are essential to maintain the momentum of the Reform Agenda within the established deadlines.

The timeline for implementation is particularly compressed, as deadlines for the first three semesters have already passed. A primary concern is the upcoming reform measures set for June 2025, for which the final grace period expires on June 30, 2026. This specific phase includes 13 reform steps tied to an allocation of 90.7 million euros. Given that a significant portion of the allocated time for these measures has already elapsed, the coordination of efforts through a dedicated task force is highly recommended to ensure no further delays occur.

Ultimately, the successful execution of these reforms serves a dual purpose. It provides financial support for the national economy while simultaneously aligning the legal, political, and administrative framework with the EU acquis. After a period of legislative delay, a unified and accelerated approach to these reforms is necessary to meet the benchmarks of the Growth Plan and ensure the country remains on a steady path toward European integration.

Photo: Kuvendi i Republikës së Kosovës – Skupština Republike Kosova

Institute Alternative signes Memorandum of Cooperation with the Ministry of European Affairs

Institute Alternative signed a Memorandum of Cooperation with the Montenegrin Ministry of European Affairs, which will allow oversight and active participation from the civil society in the implementation of the Growth Plan.

This document serves as a formal agreement to collaborate on the monitoring of the Reform Agenda, ensuring that the process remains transparent and inclusive.

This Memorandum is a pivotal step for our project’s objectives. By securing a formal commitment to transparency, Institute Alternative has ensured that the monitoring process in Montenegro will be grounded in accessible, verified data.

This cooperation sets a positive precedent for the Western Balkans region, demonstrating that civil society organizations are essential stakeholders in the accession process.

European Commission approves first disbursement of Reform and Growth Facility funds to Serbia

The European Commission has adopted an Implementing Decision approving the first release of funds to Serbia under the Reform and Growth Facility (RGF) for the Western Balkans. The decision follows the Commission’s assessment of Serbia’s compliance with the Facility’s preconditions, general payment conditions, and the achievement of reform steps due by December 2024.

EC implementing decision

EC assessment

Follow the money: Funds are released, disbursement may wait

Under this Implementing Decision, the Commission approved a net amount to be released under this first payment request of around EUR 56.55 million, of which 16.23 million is in grants and 40.32 million is in loans. The total gross amount is EUR 61.1 million, comprising if of 17.55 million in non-repayable financial support (grants) and EUR 43.60 million in loan support. Part of the instalment is used to clear advances i.e. the pre-financing of 7% foreseen for all beneficiaries under the RGF. 

In line with the Facility and Loan Agreements, the approved funds will be transferred through the two main channels. The grant component will be made available through the Western Balkans Investment Framework (WBIF) and paid conditional on the conclusion of contribution arrangements and the submission of payment requests by the WBIF fund managers – EIB and the EBRD. This means that the EC implementing decision itself does not imply immediate cash transfers in form of grants. The loan component, on the other hand, is split into two components. Around EUR 14.0 million, or 34.75%, is earmarked for WBIF-linked investments and subject to separate contribution arrangements, while a sum of around EUR 26.3 million will be disbursed directly to Serbia’s Treasury. 

Pre- and general conditions met: cautious but accommodating interpretation

The Commission concluded that the pre-conditions and general conditions for payment are met, including democratic governance, rule of law, macroeconomic stability, and public financial management. This assessment is made despite explicit concerns noted in the same document, including persistent political polarisation and pressure on independent institutions, and ongoing challenges related to judicial independence, citizens’ and media freedom.

The release of funds is also conditional on Serbia’s constructive engagement in the EU-facilitated dialogue with Kosovo, which constitutes a specific precondition for these two countries under the RGF. In its assessment, the Commission concludes that this precondition is fulfilled, based on Serbia’s continued participation in the dialogue and input provided by the European External Action Service.

Reform delivery: Success in green and digital, delays in “Fundamentals”

Out of seven reform steps that were due in December 2024, assessed under Serbia’s first payment request, 3 reform steps were assessed as fully achieved, and 4 steps were assessed as not achieved.

The partial reform delivery of Serbia’s Reform Agenda comes with the Commission confirmation that the reform steps relating to the electricity market integration with key steps taken toward day-ahead market coupling with regional partners and EU, the adoption of a bylaw transposing the EU Toolbox for 5G Security and the termination of visa-free access for at least three third countries in view of alignment with the EU visa regime.

On the other hand, three of the four steps that have not been achieved are in the area of “Fundamentals”. It should be noted that this assessment reflects the situation at the moment when Serbia submitted its request for payment and does not fully capture subsequent developments. In particular, this is relevant in two cases. First, regarding media legislation, the assessment refers to the period prior to the adoption of key media laws, notably amendments to the Law on Electronic Media, the Law on Public Information and Media, as well as the adoption of the Law on Public Service Media, which were adopted subsequently and whose progress is acknowledged in the EC Serbia 2025 Report. The remaining unfulfilled steps relate to electoral framework reforms, notably the functioning of the ODIHR-recommended working group, the voter register audit, and the re-election of the REM Council as well as, in the domain of anti-corruption with the requirement for Serbia to adopt an action plan covering the entirety of the anti-corruption strategy implementation (2025–2028). In the area of state aid transparency, the inventory submitted by Serbia at the time of the payment request did not fully address earlier Commission comments and was therefore considered not achieved. However, the adoption of the final state aid inventory was later confirmed in the EC Serbia 2025 Report.

Already behind schedule: Delays and backloging crucial reforms

This implementing decision and assessment arrive later than those for other beneficiaries in relation to the December 2024 reform deadlines. For example, North Macedonia and Montenegro received their corresponding decision in July 2025, which highlights uneven pacing in the Commission’s assessment and decision-making across beneficiaries.

At the time of adoption of this implementing decision, the assessments of the June 2025 reform steps are still pending, for which Serbia has 10 additional reform commitments. Furthermore, the deadline to report on the December 2025 deadlines passed was 15 January 2026, covering a further 20 reform steps. This sequencing highlights the pressure for reform delivery as Serbia is advancing into the next reform cycles while assessments of earlier deadlines remain pending.

For all non-achieved steps due in December 2024, the grace period runs until 31 December 2026. During this period, Serbia may still complete the outstanding reforms without an immediate financial penalty. However, as explained above, these postponed reforms increase the pressure for administration to deliver an increasing number of reforms over time that may affect future payment requests.

Photo: © European Union, 2026, CC BY 4.0, via Wikimedia Commons

TI BiH joins the fight for transparent reforms in Bosnia and Herzegovina

We are thrilled to announce that Transparency International Bosnia and Herzegovina (TI BiH) has officially joined our project as an implementing partner.

As part of our mission to provide independent, data-driven monitoring of the European Union’s Growth Plan for the Western Balkans, TI BiH brings invaluable expertise in anti-corruption, public accountability, and the rule of law. Their involvement ensures that our monitoring of Bosnia and Herzegovina’s progress is backed by one of the most respected voices in civil society.

Founded in 2001, TI BiH is the national chapter of the global Transparency International movement. They are dedicated to fighting corruption and promoting transparency, accountability, and integrity across all sectors of society.

TI BiH serves as a vital watchdog, monitoring government performance, advocating for legal reforms, and empowering citizens to demand better governance. Their work is essential for ensuring that public funds, especially those tied to EU integration, are managed with the highest ethical standards.

The timing of this partnership is particularly significant. Following a long-awaited political consensus, the Council of Ministers of BiH adopted the country’s Reform Agenda on September 30, 2025. This was followed by the European Commission’s official approval on December 4, 2025, marking a turning point in the country’s European path.

The Reform Agenda is the essential roadmap required to unlock approximately €976.6 million in funding from the EU’s Reform and Growth Facility. The agenda includes 114 specific measures grouped into four critical pillars:

  1. Green and Digital Transition: Modernizing energy infrastructure and accelerating digital services.
  2. Private Sector Development: Improving the business environment and economic competitiveness.
  3. Human Capital: Developing and retaining local talent and aligning education with the market.
  4. Fundamentals and Rule of Law: Strengthening the judiciary, fundamental rights, and the fight against corruption.

The approval of the Reform Agenda is a massive step, but the disbursement of funds is strictly performance-based. Money will only be released as specific reform milestones are met.

Through the WB Reform and Growth Monitor, and with TI BiH now on board, we will provide rigorous oversight. Our goal is to ensure that these 114 measures lead to real, transparent, and tangible improvements for the citizens of Bosnia and Herzegovina.