The European Commission has informed the authorities that Bosnia and Herzegovina’s allocations under the Western Balkans Growth Plan have been reduced by 10 percent—from €1.085 billion to €976.6 million—the EU Delegation in BiH announced.
“The BiH authorities have been informed that if the final consolidated version of the Reform Agenda is not submitted to the European Commission by September 30, a further 10 percent reduction in initial allocations for BiH will be applied,” the statement said.
The Delegation emphasized that despite the political agreement reached at the Council of Ministers on June 27, BiH remains the only country in the region whose authorities have failed to submit a harmonized and finalized draft of the Reform Agenda to the European Commission.
It was noted that after a series of technical discussions with the European Commission, the Reform Agenda is almost ready, but domestic authorities have yet to finalize it—unlike other countries in the region that submitted their agendas by the summer of 2024, with the Commission approving them in October.
The Delegation reminded that the Reform and Growth Instrument is a key component of the Growth Plan, performance-based, and provides funding in exchange for the implementation of crucial reforms in areas such as the green and digital transitions, private sector development, and the rule of law.
“The Reform and Growth Instrument expires at the end of 2027, coinciding with the end of the EU’s seven-year budget cycle. This deadline cannot be changed,” the statement added.
The EU reiterated that it has repeatedly warned the BiH authorities that time is running out and that the country risks further funding cuts unless urgent action is taken.
Nevertheless, BiH can still benefit from the €976.6 million available through the Reform and Growth Instrument. The funds cut from the indicative allocations remain accessible to all six Western Balkan countries, including BiH, and will be redistributed based on satisfactory progress and overall reform outcomes.
“We urge the authorities in BiH to finalize the Reform Agenda as soon as possible for the benefit of the citizens,” the EU Delegation concluded.
Source: RTRS
