The European Commission disbursed funds to three Western Balkan countries under its Growth Plan on May 20, but Serbia was left out after failing to meet required reform conditions.

The Commission said on May 20 it had released €49mn to Albania, €44.2mn to Montenegro and €65.7mn to North Macedonia following a positive assessment of reform progress.

The payments relate to steps taken in areas including business competitiveness and innovation in Albania and Montenegro, and education and digitalisation in North Macedonia.

By contrast, Serbia and Bosnia & Herzegovina did not qualify for this tranche, as they have yet to fully implement policies set out in their reform agendas, which are required to unlock funding.

Serbia is awaiting disbursement of a second tranche worth €163.1mn and a third worth €265mn. The funds are not forfeited but remain on hold pending compliance with EU conditions.

A key requirement is progress on rule-of-law reforms, including alignment with recommendations issued by the Venice Commission on controversial judicial legislation adopted earlier this year.

In response, Serbia’s justice ministry said in late April it would set up a working group to amend the laws and bring them in line with EU standards.

The Growth Plan for the Western Balkans, adopted in 2023, aims to accelerate EU integration by granting earlier access to parts of the single market, boosting regional cooperation and increasing pre-accession funding tied to reforms.

With the latest payments, total disbursements under the scheme reached €212.8mn for Albania, €89.3mn for Montenegro and €142.1mn for North Macedonia.