REL: Kosovo still no report on implementing reforms from the Growth Plan, even though the deadline expires at midnight

The deadline is July 15th, which practically means that Kosovo has until midnight to hand over the report to Brussels.

The report is necessary because on its basis the European Commission estimates the degree of implementation of reforms, on which the next payments from the Growth Plan depend.

Money sharing requires a positive assessment of the European Commission.

The Kosovo government has not answered the REL question if it will manage to submit the report on time.

So far, Kosovo has received only pre-finance of over 61m euros, representing seven percent of the total amount of 882m euros earmarked for the country.

Kosovo has not yet received a regular tranche from the Growth Plan, as it is estimated it has not met any reforming steps. The main reason was the institutional crisis that marked the whole last year and the inability to continue with implementing reforms.

European Commission spokesman Guillaume Mercier confirmed that four countries in the region have so far submitted their reports on implementing reforms.

The European Commission is ready to help partners from the Western Balkans speed up implementation of unfinished reforms so that they can be realised within the longer” deadline, confirmed for REL Mercier.

Besides Kosovo, the report has yet to be delivered by Bosnia and Herzegovina. In Brussels, they do not expect to receive documents from Bosnia, as this state has not yet approved the Reforms Agency.

On June 30th, the deadline for the fourth reporting period expired.

After the report's accession, the Commission will assess the implementation of relevant reform steps and make a decision to allocate relevant funds”, Mercier said.

Uneven Progress in the Region

According to official European Commission data, Western Balkan countries have launched almost all planned reforms, but only 57 percent of the steps have been fully met.

The European Commission stresses that differences between the countries are great.

Montenegro and Albania lead about 80 per cent of the steps that are met. North Macedonia is behind them, which in recent months has significantly accelerated the pace of reforms and is expected to exceed the 50 per cent scale.

Serbia is estimated to have realised about 35 per cent of the reforms, although work is under way at about 85 per cent of the planned steps.

Kosovo, Bosnia lag behind

Kosovo and Bosnia are the two countries that are apparently behind, due to different political circumstances.

In the debate held on 14 July at the European Parliament's Foreign Affairs Committee, Directorate General for Enlargement Director Jan Geert Koopman confirmed that Kosovo is stuck due to the political crisis in the country.

Kosovo is far behind. This is the result of internal political blockades over the past period, which have simply hampered the adoption of important legislation. However, following elections held in June of this year, we are now seeing Kosovo build the necessary institutional stability and, for this reason, expect even a higher pace of implementation of reforms”, Koopman said.

Bosnia, on the other hand, has not only received no cents from the Growth Plan, but also because of its failure to approve the Reforms Agency has lost over 100m euros.

Paying depends on results

Even the pace of payments vary significantly between countries.

Albania, Northern Macedonia and Montenegro have already received three regular installments.

Serbia has received only one fee, while other funds remain pending due to controversial laws in the field of justice. The European Commission is praising whether the conditions for new payments have been met.

The fact that no further payment has been made so far indicates that we have not been fully convinced that these conditions have been fulfilled”, Koopman said.

Kosovo and Bosnia have received no regular payments.

The mechanism is simple: states report on each reforming step, each step has a financial value, while the European Commission determines the amount that will be divided on the basis of results achieved.

I think it's very important to understand that strict conditioning represents a powerful incentive for implementing reforms. The dynamics of reforms we are seeing in the region are significant. Therefore, not all funds are used immediately should not be viewed as something negative. Rather, it is an integral part of the way this instrument” was conceived, Koopman said.

Funds could be lost forever as deadlines expire

Earlier this year, European Commissioner for Enlargement Marta Kos warned that the region threatened to lose about 700m euros due to delays in reforms.

According to European officials, this warning influenced countries to speed up the process. However, even the most advanced countries may lose some of the funds, as deadlines are approaching.

The last day of June and December represents the two key deadlines. Reforming steps that are not realised within these deadlines lose funding.

“For recall, the deadline for implementing reform steps under the fourth period of Reform and Growth Instrument reporting was June 30th 2026. The same date marked the conclusion of the period of tolerance for reform steps that should have been met in mid - 2025. As mentioned, the European Commission will now assess the reports and determine the respective” divisions, Guillaume Mercier confirmed.

What happens to lost funds?

The funds they lost do not return to the European Union budget.

The European Commission can recalculate the division of means at regional level and direct those countries that have successfully implemented reforms before the deadline.

In other words, the system transfers funds from countries that fail to achieve the required results to those that implement reforms more quickly.

However, since it is now clear that not all countries will use their funds, the European Commission has not yet decided what to do with the rest of the means.

Currently, options are under consideration for them to be directed towards other investments in the region, but the final decision has not yet been made. / REL/