European Commission Announces New Financial Support Package for Western Balkans: Serbia Excluded

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The European Commission has announced a €171 million support package aimed at improving infrastructure development and the private sector across the Western Balkans.

The funding will go to Bosnia and Herzegovina, Montenegro, Albania, and North Macedonia, while Serbia will not receive funds from this package. According to the Commission, the initiative reinforces the EU’s commitment to sustainable growth and regional connectivity in the Western Balkans.

The package draws on multiple EU funding sources:

  • IPA III (Instrument for Pre-Accession Assistance) for projects in Bosnia and Herzegovina
  • Western Balkans Investment Framework (WBIF) contributions from bilateral donors for projects in Montenegro
  • Reform and Growth Facility (RGF) contributions for projects in Albania, Montenegro, and North Macedonia

EU Enlargement Commissioner Marta Kos emphasized the importance of investing in Western Balkan partners to bring them closer to EU membership:

“Over more than two years since adopting the Western Balkans Growth Plan, we have worked through initiatives like the Western Balkans Investment Framework to turn commitments into concrete actions. From improving infrastructure to developing businesses, these investments create real opportunities for citizens,” she said.

Key Allocation:

  • €91.8 million for infrastructure projects across the four partner countries, expected to mobilize €263 million in total investments across seven priority sectors, including digitalization, clean energy, human capital, transport, and environment.

Specific projects include:

  • Broadband infrastructure in Albania
  • Electricity transmission upgrades in North Macedonia
  • Construction and energy-efficient renovation of schools in North Macedonia and Montenegro
  • Electrification of the Durrës-Tirana railway in Albania
  • Drinking water and wastewater treatment projects in Bosnia and Herzegovina
  • €2.9 million for technical assistance projects in Albania and Bosnia to encourage future investments in energy, water, innovation, and research.
  • €76.3 million for programs supporting the private sector, including:
    • Western Balkans Advanced Program
    • “Be Green” SME Program
    • W-BOND pilot program for non-traditional financing
    • Strengthening public-private partnership capacities and administration in Bosnia

All projects will be implemented by Western Balkan partners in collaboration with international financial institutions.