Kosovo has received 61.8 million euros in pre-financing from the European Union's Growth Plan, after the country submitted the necessary documents to the European Commission and ratified the agreements related to this plan.
"The Economic Growth Plan offers concrete opportunities to accelerate EU-related reforms and bring Kosovo's economy closer to the EU's single market. Through this support, the EU aims to help Kosovo strengthen the rule of law, advance the green and digital transitions, and promote sustainable economic growth," said the EU's Head of Office in Kosovo, Eva Palatova.
Meanwhile, Kosovo's Prime Minister, Albin Kurti, said the country is committed to implementing the Reform Agenda within the deadlines to take advantage of the opportunities offered by the growth plan.
"Some time has indeed been lost, but we will do everything possible to accelerate reforms and fulfill our commitments. This is a difficult but achievable task," said Kurti.
On February 13, Kosovo's new legislative assembly ratified the international agreements with the European Union. These agreements are worth 882 million euros. Kosovo then had to officially notify the European bloc of the ratification of these agreements, reports REL.
Last year, when Kosovo faced a political crisis and a lack of new institutions, concerns were raised about the risk of losing these funds, as the agreements had not been ratified. The 61.8 million euros in pre-financing, according to the EU, is 7 percent of the total of 882.6 million euros in grants and favorable loans for Kosovo under the Economic Growth Plan.
"These funds will support the implementation of Kosovo's Reform Agenda and key infrastructure projects supported by the Western Balkans Investment Framework (WBIF), bringing Kosovo even closer to the EU," said a statement released by the EU.
Of the 61.8 million euros, 28.74 million euros in loans have been transferred to Kosovo's budget today, while the remaining amount, 33.04 million euros (17.73 million euros in grants and 15.31 million in loans), will be channeled through the Western Balkans Investment Framework (WBIF). The EU said Kosovo has committed to implementing 111 reform steps, covering areas such as the rule of law, governance, economic development, green and digital transitions, and human capital.
"Each reform step is linked to a specific financial allocation. Payments under the Economic Growth Plan will be made progressively as Kosovo implements the agreed reforms. If certain reform steps are not completed within the set deadlines, the corresponding funds will not be disbursed," the statement said.
The European bloc said the first deadline for 13 reform steps, worth 90.8 million euros, is June 30 of this year. Meanwhile, the end of this year will be the final deadline for another 27 steps worth 165.9 million euros.
The EU's package for the Western Balkans for the 2024-2027 period is worth 6 billion euros. In terms of budget allocations, Kosovo receives about 882 million euros, 253 million as grants and 629 million euros in loans, meaning it benefits the most funds per capita in the region.
In addition to receiving the pre-financing amount, the European Commission has also lifted all punitive measures it had imposed on Kosovo almost three years ago due to tensions in the Serb-majority north. The measures had significant financial costs for Kosovo, as various projects under the Pre-Accession Instrument (IPA II and III) and the WBIF were suspended or delayed.