The European Commission has officially informed the authorities of Bosnia and Herzegovina about the reduction of indicated allocations within the Growth Plan for the Western Balkans, which provides financial resources for reforms and development. Due to non-fulfillment of obligations, Bosnia and Herzegovina loses 10 percent of the planned funds, that is, more than 108 million euros. Instead of the initially planned 1.085 billion euros, the country can now count on a maximum of 976.6 million euros.
The main tool of the Growth Plan is the so-called An instrument for reform and growth, a mechanism that allocates money solely on the basis of results. It is envisaged that the beneficiary states will first submit to the Commission an agreed Reform Agenda, in which they will precisely define the goals and areas of reforms – primarily in the sectors of green and digital transition, private sector development and strengthening the rule of law. BiH is the only country in the region that has not yet submitted that key document in its final form.
Although the BiH Council of Ministers reached a political agreement on June 27, the final and agreed version of the Agenda has not been finalized to date. During the technical talks with the Commission, significant steps were taken, but the final political act was missing. In the meantime, Albania, Kosovo, Montenegro, North Macedonia and Serbia submitted their Reform Agendas during the summer of 2024, and the Commission approved them in October of the same year.
The European Commission has repeatedly warned that the Instrument for Reforms and Growth is based solely on performance. Countries that carry out reforms can count on full financial support, while those that do not meet the conditions will bear the consequences. The instrument’s budget lasts until the end of 2027, and that term cannot be extended.
Despite the cuts, BiH still has access to significant funds – almost 977 million euros – intended for infrastructure and digital projects. European funds that have been deducted from the indicative amounts will remain available to all countries of the Western Balkans, including BiH, but their distribution will depend solely on actual reform progress.
The growth plan represents a key opportunity for the countries of the region to deepen their economic integration with the European Union and improve their business climate and investment attractiveness.
The Commission once again called on the authorities in Bosnia and Herzegovina to urgently finalize the Reform Agenda and submit it by September 30, 2025. Otherwise, a further reduction of the amount by an additional 10 percent will follow.
The European Union emphasized that it remains a reliable partner of Bosnia and Herzegovina on its European path, but at the same time warned that inaction has its price. Time is running out, and political actors in the country are called to take responsibility and act in the interest of their citizens.
