In two committees of the European Parliament, the report on the position of this EU institution regarding the development and reform plan for the six Western Balkan countries – a package totaling 6 billion euros dedicated to investments in these countries – is expected to be approved on Monday evening.
This vote is part of the ordinary procedure for the EU’s decision to become formal.
To formalize the decision, the final step is for the Council of the EU, representing the 27 member states, and the European Parliament to agree on this decision in joint negotiations.
This is one of the most ambitious packages that the European Union has planned for the region’s countries, aiming for membership in the EU.
This package is unique, alongside the funds already available under the pre-accession programs known by the acronym IPA.
With this plan, the EU aims to stimulate economic growth in the six countries of the region, help the reform process, and thus assist these countries in preparing as quickly as possible for EU membership.
According to this plan, initially proposed by the European Commission and now supported by the Council, 2 billion euros will be allocated to the region’s countries in the form of non-repayable grants, while 4 billion euros will be in the form of favorable loans.
However, all three EU institutions have insisted that the countries in the region must meet a series of not-so-easy criteria to benefit from this financial assistance package.
Among them are basic criteria, which apply equally to all member countries. They relate to the rule of law, respect for democratic principles, institutional reforms, and taking necessary steps to ensure that funds are not misused.
In the proposals of the three EU institutions, now to be negotiated for approval as a joint decision, the condition for financial controls and independent audits is mentioned.
It is emphasized that payments for projects in the countries of the region will be conditional on strict criteria related to reforms. Before payment is made, the European Commission must report that the conditions have been met, and the decision must be approved by the Council.
If it is found that any country no longer meets the criteria, payments will be suspended.
In addition to criteria related to reforms and the rule of law, there will also be political criteria.
For Kosovo and Serbia, another “precondition” will be “constructive engagement in the normalization of relations between them, with the aim of fully implementing the respective obligations arising from the Agreement on the path towards normalization of relations and the Implementation Annex” and “engagement in achieving a comprehensive agreement on normalization of relations”.
All three EU institutions agree on the specific conditionality towards Kosovo and Serbia. However, the European Parliament requires clarification of the criteria based on which an assessment will be made as to whether one or the other country has met the conditions.
According to practice, the European Commission has the competence to assess this, taking into account the contribution of the EU’s External Action Service (EEAS).
Diplomats in Brussels warn that this condition should not be easily understood by either Kosovo or Serbia.
“If a decision had to be made today on payments for Kosovo and Serbia, the decision would not be positive, because neither party has fulfilled its obligations under the dialogue agreements, and for this, the EU has also expressed regret,” an EU diplomat told Radio Free Europe (RFE).
Negotiations between the European Parliament and the Council from March 14 to April 2 are expected to include differences in adapting the countries of the region to the EU’s foreign policy.
There is a difference in the texts prepared by the Council and the European Parliament, although both mention adaptation to the field of foreign and security policy. However, the Council mentions this as an “expectation”, while the Parliament calls it a “precondition”.
In the announcement of the Council of the EU from March 6, when agreement was reached among the 27 member states, it was said that “a stronger focus is devoted to partners’ alignment with EU positions in the field of foreign and security policy”.
However, in that approved document, adaptation to EU foreign policy positions is not explicitly mentioned as a precondition. It is more generally stated that “beneficiaries must demonstrate a credible commitment to European values also through their alignment with the Union’s common foreign and security policy, including restrictive measures”.
The European Parliament has proposed that alignment with EU positions in foreign policy be a clear precondition and formally mentioned, which also implies support for sanctions against Russia.
“Another precondition should be alignment with the Union’s common foreign and security policy, including the adoption of restrictive measures against Russia, as well as with the EU’s visa policy for third countries,” says the European Parliament’s proposal.
If the European Parliament’s request is accepted, no country that has not supported EU sanctions against Russia due to the occupation of Ukraine can receive payments from this fund.
Serbia is the only country in the region that has not yet adapted to EU positions regarding sanctions against Russia.
The word “full adaptation” has been removed from the European Parliament’s proposal because this would open up the possibility for different EU member states or the European Commission to interpret the condition too broadly, which would be problematic for some states, especially Serbia, Bosnia and Herzegovina, but also Kosovo.
Bosnia and Herzegovina, for the moment, as well as Albania, Montenegro, and North Macedonia, have 100 per cent alignment with EU positions. However, in the case of Bosnia and Herzegovina, this often depends on who is the minister or prime minister at any given moment.
Serbia’s level of adaptation is around 60 per cent. Kosovo, which has only applied for EU membership, is not formally required to adapt, but in many cases, it has done so unevenly, and the EU has welcomed it.
However, some diplomats have also pointed out to Kosovo that it does not have 100 per cent alignment with EU positions. As an example, they mentioned the opening of the Kosovo Embassy in Jerusalem, which is contrary to the EU’s common positions.
Nevertheless, they point out that all countries in the region must seriously and quickly start fulfilling the criteria, if they seriously aim to use the funds from the economic growth plan.
