The Government adopts the Reform Agenda under the EU Reform and Growth Facility for the Western Balkans

On 9 October 2024, at its 223^rd session, the Government of the Republic of Kosova adopted the Reform Agenda of Kosova under the European Union Reform and Growth Facility for the Western Balkans.

This facility is a new EU framework for accelerating reforms for European integration of the entire region that combines reforms with direct financial contribution from EU funds to the budgets of beneficiary countries and investment projects. Its purpose is to support reforms to fulfil EU membership criteria and to accelerate economic growth and integration in the region and with the EU Single Market. It was initiated by the European Commission in November 2023, through the New Growth Plan for the Western Balkans, published on 8 November 2023.

The Reform Agenda was negotiated with the European Commission and planned by the Government of Kosova during 2024. As a medium-term reform document, it foresees 111 reform steps that will be implemented by the end of 2027 in five priority areas, as follows:

1. Governance, Public Administration Reform and Public Finance Management, containing 4 reforms and 15 reform steps, distributed in 2 subareas:
   • Public Administration Reform, and
   • Public Finance Management;
2. Green and Digital Transition, containing 8 reforms and 28 reform steps, distributed in 6 subareas:
   • Digitalisation of Public Services and Infrastructures;
   • Cybersecurity;
   • Market Reforms;
   • Decarbonisation Policy;
   • Renewables Deployment; and
   • Energy Efficiency;
3. Private Sector Development and Business Environment, containing 7 reforms and 26 reform steps, distributed in 2 subareas:
   • Business Environment; and
   • Access to Finance;
4. Human Capital Development and Retention, containing 5 reforms and 19 reform steps, distributed in 2 subareas:
   • Education; and
   • Labour Market; and
5. Fundamentals / Rule of Law, with 6 reforms and 23 reform steps, distributed in 6 subareas:
   • Judiciary;
   • Fight against Corruption;
   • Fight against Organised Crime;
   • Fundamental Rights;
   • Democracy; and
   • Visa Policy.

Upon the implementation of these reforms Kosova will receive up to EUR 882,609,009 in EU funds. Of this total amount, EUR 253.3 million are grants, while the rest, EUR 629.3 million, are long-term loans. Around half of this total amount of funds will be given as direct support to the Kosovo budget, while the remaining half will be available for investment projects through the Western Balkans Investment Framework (WBIF).

The legal basis for the implementation of the Reform Agenda is the Facility Agreement, the Loan Agreement and the Government Decision on its adoption.

Reforms are medium-term objectives to be achieved in the respective policy areas by the end of 2027 through reform steps. Reforms address systemic aspects of the advancement of legislation, policies and functioning of institutions toward alignment with EU legislation, standards and good practices. They address priority challenges and needs in the respective areas and contribute to the achievement in Kosovo of the goals set by the EU in the Reform and Growth Facility, while reform steps are specific objectives that contribute to achieving them. Reforms and reform steps have been identified based on Kosova’s sectorial strategies that are either in force or being drafted, i.e. they are reforms planned by our own institutions within the EU integration reform dialogue that takes place with the EU and other relevant mechanisms.

The EU Reform and Growth Facility for the Western Balkans is based on four pillars and has four objectives:

1. Enhancing economic integration with the EU Single Market;
2. Accelerating economic integration within the Western Balkans through the Common Regional Market, focusing on seven priority areas of the economy:
   • Free movement of goods;
   • Free movement of services and workers;
   • Access to the Single Euro Payments Area (SEPA);
   • Facilitation of road transport;
   • Integration and decarbonisation of energy markets;
   • Digital Single Market; and
   • Integration into industrial supply chain.
3. Accelerating implementation of fundamental reforms for EU accession and sustainable economic growth, including by attracting investments and strengthening regional stability; and
4. Increasing financial assistance in exchange for the implementation of fundamental and economic reforms through the financial package for the forthcoming medium-term period.

The financial package of this facility envisages for all countries of the region to jointly benefit from EU funds in the amount of EUR 6 billion in total (EUR 2 billion in grants and EUR 4 billion in loans) during the 2024-2027 medium-term period. Of this total, each country will benefit a proportional amount, based on the number of inhabitants and gross domestic product, in exchange for implementation of reforms foreseen in the Reform Agendas.

Last modified: December 11, 2024