Kosovo loses €43.8M in EU Growth Plan funding over delayed reforms

Kosovo has lost €43.8 million from the European Union's Growth Plan after failing to complete six of the 13 reform steps scheduled for completion by June this year, due to a political deadlock and the dissolution of parliament, Kosovo's chief EU negotiator, Jeton Zulfaj, told the parliamentary Committee on European Integration.

According to Kosovo media reports, Zulfaj explained that the total value of the Growth Plan for Kosovo amounts to €882.6 million, two-thirds of which consists of favourable loans conditional on the implementation of a total of 111 reform measures by the end of August next year, CE Report quotes FENA.

On 15 July, Kosovo submitted its first official payment request for €153.4 million based on 20 completed steps. The European Commission is expected to announce its final assessment and the exact amount of approved funding in early November.

The main reason for the delays and the loss of more than €43 million is the inability to adopt key legislation during the political deadlock in Kosovo's parliament.

Media outlets in Pristina report that the outstanding obligations mainly concern reform packages in the energy sector, bankruptcy legislation, judicial reforms and the national strategy for combating organised crime. These legislative proposals have since been reintroduced into parliamentary proceedings.

Kosovo now faces another tight deadline, as it must complete a further 22 reform steps by 31 December to secure the next tranche of €131.5 million.

Implementation of the plan is further slowed by administrative procedures and mandatory consultations with Brussels, as the European Commission typically requires up to 90 days to provide comments on draft legislation. These include laws on innovation, public procurement and public-private partnerships, which are expected to be adopted by the end of this month.

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