Kosovo Expected to Lose 40 Million Euros from EU Growth Plan for Western Balkans

Kosovo stands to lose more than 40 million euros from the European Union's Growth Plan for the Western Balkans because it failed to complete necessary reforms, according to Jeton Zulfaj, the national coordinator for reforms and economic growth.

The deadline for implementing these reforms was June 30, 2026. Zulfaj stated at a press conference that for steps not completed within the extended timeframe, the funds are forfeited. Of the 13 steps that had an extended deadline, seven are considered implemented, while six were not fully completed. The financial loss is estimated at over 40 million euros, though the exact value will be determined by the European Commission based on whether partial steps are counted.

The reforms that were not completed on time include the Law on Energy and Electricity, the State Aid Control System, the Law on Innovation, the Law on Interest on Late Payments, and a package of laws for judicial reform, including those concerning the Kosovo Prosecutorial Council (KPC) and the Kosovo Judicial Council (KJC). The Strategy for Combating Organized Crime was also among the unfulfilled reforms.

Zulfaj noted that approximately 83% of the outstanding reforms depend on their adoption by the Kosovo Assembly. Although these laws will no longer affect the release of these specific funds, their processing and implementation will continue. Kosovo plans to submit its first request for fund disbursement for all reforms completed by the end of June on July 16. The European Commission will make the final decision within 90 days of the request submission.

Overall, the reform agenda comprises 111 steps. To date, 62 steps are either being implemented or have been resolved, with 15 completed for which fund release will be requested. An additional 49 steps are still in the process of implementation, and 27 of these have a deadline of the end of this year.

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For steps that were not completed in the additional period, the money is lost. Of the 13 steps that had an additional deadline until June 30, seven are considered implemented, while six are not fully implemented. The costs are estimated at over 40 million euros.