Growth Plan

Growth Plan | EU Reform and Growth Facility for the Western Balkans

 

The European Union Reform and Growth for the Western Balkans (RGF) is a new framework for accelerating reforms for the integration of the whole region into the EU that combines EU accession reforms with direct financial contributions from EU funds to the budgets of beneficiary countries and investment projects for this purpose. The RGF aims to support beneficiary countries in implementing the reforms required to meet EU membership criteria, as well as to accelerate economic growth and economic integration in the region and with the EU Single Market.

 

This facility was launched by the European Commission in November 2023. To this end, the EC adopted the new Growth Plan for the Western Balkans and published it on 8 November 2023. The main economic objective of the Growth Plan is to double the economies of the region within the next ten years. This plan is based on four main pillars and has four objectives:

  1. Strengthening economic integration with the EU Single Market;
  2. Accelerating economic integration within the Western Balkans through the Common Regional Market, focusing on seven priority areas of the economy:
    • Free movement of goods;
    • Free movement of services and workers;
    • Access to the Single Euro Payments Area (SEPA);
    • Facilitation of road transport;
    • Integration and decarbonisation of energy markets;
    • Digital Single Market; and
    • Integration into industrial supply chains.
  3. Accelerating the implementation of fundamental reforms for EU accession and sustainable economic growth, including by attracting investments and strengthening regional stability; and
  4. Increasing financial assistance in exchange for the implementation of fundamental and economic reforms through the next medium-term financial package. The RGF financial package foresees that during the 2024-2027 medium-term period all countries of the region will together benefit from EU funds worth a total of EUR 6 billion (EUR 2 billion in grants and EUR 4 billion in loans). Out of this amount, each country will benefit a proportional amount, based on the size of its population and gross domestic product, in exchange for reforms to meet the criteria for EU membership in priority areas.

 

The RGF foresees that by the end of 2027 Kosova will benefit up to EUR 882,609,009 in EU funds.

 

Country-specific reforms are planned within the Reform Agendas. In order to implement the reforms under the IR, the Republic of Kosova has negotiated with the EC its Reform Agenda, which was adopted by the Government of the Republic of Kosova on 9 October 2024. For more details, see the Reform Agenda and the summary below.

 

The national legal basis for the RGF, including the Reform Agenda, is the Facility Agreement and the Loan Agreement. These agreements were ratified by the Assembly of the Republic of Kosova on 13 February 2026.

 

Subsequently, on 19 March 2026, the Government of the Republic of Kosova adopted Decision No. 02/05 on the RGF implementation system.

 

Rules of Procedure of the EU Kosovo Reform and Growth Facility Monitoring Committee

 

Government Decision on the RGF Implementation System

 

Reform Agenda

 

Reform Agenda – Summary

 

Loan Agreement

 

Facility Agreement

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