Serbia has received only half of the first tranche of EU Growth Plan funds, highlighting the cost of delayed or incomplete reforms. The European Commission (EC) finally transferred €57 million in mid-January, just 50% of the planned €117 million, due to Serbia completing only three out of seven promised reforms.
The funds released corresponded to reforms completed in the second half of 2024. To access the full €1.588 billion allocated under the Growth Plan, Serbia must implement all 98 measures outlined in its Reform Agenda by 2027. Any funds not claimed on time risk being permanently lost or redirected, a scenario made plausible by Serbia’s historical delays and slow reform implementation.
Why the delay?
The EC evaluates progress twice a year, based on national reports. The latest disbursement revealed that Serbia had not implemented key measures, including:
- Amendments to media laws
- Voter register revisions according to ODIHR recommendations
- Election of a new REM Council
Pending reforms will be assessed in the next evaluation cycle.
The Growth Plan allows a maximum two-year grace period for 2024 measures and one year for 2025–2027 reforms. The Reform Agenda focuses on four core areas: business environment and private sector development, green and digital transition, human capital, and rule of law.
While Serbia did receive €111 million in pre-financing last year, this is only 7% of the total allocated funds. Meanwhile, neighboring countries Albania, Montenegro, and North Macedonia have already received funds based on completed reforms, with some obtaining second tranche payments.
Reforms vs. Politics
Despite recent progress, implementation in critical areas remains slow. Actions such as adopting the “Mrdić Laws” have been viewed in Brussels as a step backward in EU integration, while new operational teams and government measures indicate selective political prioritization.
The reforms completed so far, according to analysts, focus primarily on technical measures, such as EU visa compliance for four countries, 5G network security regulations, and electricity integration, rather than political and democratic reforms like free media, election fairness, and independent institutions.
Journalist Sofija Popović notes that Serbia has historically implemented only 4 out of 171 ODIHR recommendations since 2012, showing a lack of interest in improving election conditions. This raises serious concerns about the ability to complete the remaining measures within the timeline.
Financial Risks
If Serbia fails to complete the required reforms by the end of 2026, it risks losing €55 million from the first tranche alone. The 427 million euros allocated for reforms through 2025 also remain vulnerable. Ultimately, the pace of reform implementation and the release of EU funds depend entirely on political will.
“Although the EC will not reward governments for simulating reforms, these funds are meant to improve citizens’ lives, and some allocation is still expected. How much and when will depend on the authorities in Belgrade,” Popović concludes.
