European Commissioner for Enlargement Marta Kos clarified on Monday that while there is no official “formal decision” to freeze funds for Serbia, the country has not received any payments from the EU’s Growth Plan since passing controversial judicial laws.
Speaking to reporters in Brussels, Kos emphasized the distinction between a permanent freeze and a continuous compliance verification process.
“I never said the funds are frozen. That is very important,” Kos stated. “What we are doing now is constantly verifying if all recipient countries under the Growth Plan meet the criteria. It is true that since the adoption of the justice laws a few months ago, we have not made any payments, but no formal decision has been made to withhold them indefinitely.”
The “Mërdiq Laws” and Judicial Independence
The friction centers on the so-called “Mërdiq Laws,” passed by the Serbian government in January 2026. According to the European Commission, these laws represent a “step backward” in Serbia’s EU integration process. Commissioner Kos has previously warned that these specific legislative changes restrict the independence of the judiciary, a core pillar of EU membership criteria.
Financial Implications for Serbia
The Western Balkans Growth Plan (2024–2027) is a €6 billion initiative designed to accelerate the region’s economic alignment with the EU. For Serbia, the plan has allocated €1.588 billion in a mix of grants and loans.
The financial breakdown of Serbia’s participation so far reveals a tightening of the purse strings:
- Total Allocated (2024–2027): €1.588 Billion.
- First Installment Performance: In January, Serbia received only €61.1 million out of a planned €112 million after meeting only three of the seven required reform benchmarks.
- Total Received to Date: Including pre-financing (7% of the total allocation), Serbia has received €167.59 million so far.
Reversion vs. Progress
Kos sent a firm message to Belgrade, noting that candidate status carries mutual obligations. If the European Commission concludes that Serbia has corrected its course and fulfilled the reform criteria, the payments will resume.
“We expect a candidate country to progress, not to mark a regression in specific areas,” Kos concluded.
Understanding the Growth Plan
The Growth Plan is conditioned on two main factors:
- Economic Integration: Gradual access to the EU Single Market.
- Fundamental Reforms: Strict adherence to the rule of law, democratic institutions, and judicial independence.
