Centre for Civic Education (CCE) points out that Montenegro is not sufficiently utilizing the opportunities offered by the Growth Plan for the Western Balkans, the key European Union financial instrument for the 2024–2027 period designed to supports reforms, economic development and overall convergence of the region with the Union.
Through this instrument, the EU has allocated a total of €6 billion for the Western Balkans, of which Montenegrois entitled to €383.5 million – €110 million in grants and the remainder in low-interest loans. A portion of these funds is paid directly into the state budget, while the rest is disbursed through the Western Balkans Investment Framework (WBIF) for specific development projects.
Instalments are planned twice a year and are strictly linked to the implementation of Montenegro’s Reform Agenda 2024–2027, which includes around 130 qualitative and quantitative measures. After its adopting in September 2024 and obtaining approval from the European Commission, Montenegro received an advance payment of €26.8 million, while subsequent funds are released gradually, in line with completed reform steps
Each completed reform step entitles the state to a specific amount of financial support, often worth several million euros. Since part of the total support was already provided in advance, the corresponding amount is deducted from each following payment to avoid double counting of the same funds.
However, Montenegro is not fulfilling its obligations according to the set schedule, resulting in the loss of access to the full amount of funds allocated for this cycle. So far, in the two tranches the country has qualified for only partial amount of the support.
The first tranche related to measures implemented during the first reporting period until 28 February 2025, which included 14 planned steps. According to the Commission’s assessment Montenegro completed only 7, although the Government claimed to have fully executed 10. The remaining seven activities were deferred for completion within the next 24 months. Consequently, instead of the planned €29 million, Montenegro unlocked only €10.2 million (specifically, €11 million worth of completed steps, minus €0.83 million deducted from the advance payment).
In the second reporting period, out of 11 planned steps, the European Commission determined that Montenegro had implemented only 3, for which around €4 million were disbursed, out of a possible €22,5 million for all 11 steps. Additionally, 2 previously deferred steps were completed, resulting in total disbursement for Montenegro through the second tranche of €8.1 million (with approximately €0.5 million again deducted from the advance payment).
Hence, Montenegro has drawn €18.3 million (from a total of €19.7 million linked to completed reforms, after deducting €1.6 million already paid in advance), representing only 38% of the total value of reform measures (€52.1 million) planned for this period. It should be noted that these funds are not permanently lost, as the deadline for implementing the reforms can be extended, but such slow reform pace and the obvious ineffectiveness of the competent institutions seriously compromise the country’s credibility in fulfilling its commitments.
With the existing backlog of 13 unfulfilled steps, as only 12 of 25 planned reforms have so far been completed, and obligations to implement the upcoming, very ambitious cycle of 32 reforms by the end of the year, Montenegro faces a serious risk of failing to meet key obligations of this instrument. Overall, including pending and new commitments for the next reporting period, by the end of the year, within the next few months a total of 55 reform steps need to be completed.
CGO emphasises that initiatives such as the Growth Plan for the Western Balkans are of exceptional importance for Montenegro’s European integration and economic development, and warns that the Government’s approach to them underscores a lack of political will, strategic commitment and institutional accountability. The fact that only 38% of available funds have been utilized clearly illustrates the current administration’s real attitude toward reforms – a lot of rhetoric, but very few tangible results.
Ivan Kašćelan, Project Assistant