EU Enlargement


Western Balkans Strategy

Adopted by the European Commission on 6 February 2018, the strategy for ‘A credible enlargement perspective for and enhanced EU engagement with the Western Balkans’ (and the Annex with Action Plan), confirms the European future of the region as a geostrategic investment in a stable, strong and united Europe based on common values. It spells out the priorities and areas of joint reinforced cooperation, addressing the specific challenges the Western Balkans face, in particular the need for fundamental reforms and good neighbourly relations.

On 5 February 2020, the European Commission adopted the 2020 Communication “Enhancing the accession process – A credible EU perspective for the Western Balkans” . The Communication proposes changes to reinvigorate the process based on four principles: more credibility, a stronger political steer, a more dynamic process, and greater predictability.

Annual Enlargement Packages and Reports

Each year the Commission adopts its “Enlargement Package” – a set of documents explaining its policy on EU enlargement. The core of this package is a Communication on enlargement, which takes stock of the developments over the last year. It examines the progress made by the candidate countries and potential candidates, the challenges encountered and reforms to be addressed and sets out proposals for the way forward. In addition to the main Communication, the package contains the Reports in which the Commission services present their detailed annual assessment of the state of play of the reform progress in each candidate country and potential candidate over the last year. These assessments are accompanied by recommendations and guidance on the reform priorities.

On 30 October 2024, the European Commission adopted its 2024 Enlargement Package, providing a detailed assessment of the state of play and the progress made by the Western Balkans, Türkiye, Ukraine, Moldova and Georgia on their respective paths towards the European Union, with a particular focus on implementing fundamental reforms, as well as clear guidance on the reform priorities ahead (here).

Instrument for Pre-accession Assistance (IPA)

The Instrument for Pre-accession Assistance (IPA) is the means by which the EU has been supporting reforms in the enlargement region with financial and technical assistance since 2007. IPA funds build up the capacities of the beneficiary countries throughout the accession process, resulting in progressive, positive developments in the region.

The EU pre-accession funds are a sound investment into the future of both the enlargement region and the EU. They support beneficiaries to implement the necessary political and economic reforms, preparing them for the rights and obligations that come with the EU membership. Those reforms should provide their citizens with better opportunities and allow for the development of standards, equal to the ones we enjoy as citizens of the EU. The pre-accession funds also help the EU reach its own objectives including a sustainable economic situation, energy supply, transport, sound environment and climate change, and stability.

For the period 2007-2013, the Instrument for Pre-accession Assistance (IPA) had a budget of €11.5 billion. Its successor, IPA II, was allocated €12.8 billion for the period 2014-2020. For the multiannual financial framework period 2021-2027, the IPA III budgetary envelope is €14.162 billion.

The current beneficiaries are: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia, and Turkey. 

Assistance is also provided through multi-country / regional programmes.

IPA III (2021-2027)

The IPA III instrument is clearly aligned with the flagships and priorities of the ‘Economic and Investment Plan for the Western Balkans’ (October 2020), the Western Balkan Strategy ‘A credible enlargement perspective for and enhanced EU engagement with the Western Balkans (February 2018), and the Commission Communication ‘Enhancing the accession process – a credible EU perspective for the Western Balkans (February 2020).

IPA III presents a solid policy-driven approach, with strategic and dynamic deployment of assistance, putting the fundamental requirements for the EU membership at the core of the instrument. By further focusing EU financial assistance on key priorities, IPA III leverages support to reforms fostering sustainable socio-economic development and bringing the partners closer to the Union’s values and standards. At the same time, it is sufficiently flexible to adapt to the evolving situation in Türkiye and reflect developments in EU relations with the country.

For 2025-27, IPA III programming will focus mainly on preparing the beneficiary countries for accession, EU acquis alignment, as well as capacity building and technical assistance in order to ensure synergy and complementarity with the assistance provided under the Reform and Growth Facility.

Legal basis of IPA III

The IPA III Regulation was adopted on 15 September 2021, came into force on 20 September 2021 and is applicable retroactively from 1 January 2021. The IPA III Regulation is complemented by the Commission Delegated Regulation, which was adopted on 1 October 2021 and came into force on 3 December 2021. It sets out specific objectives and thematic priorities for IPA III assistance. The IPA III Implementing Regulation was adopted by the Commission on 15 December 2021 and entered into force on 16 December 2021. Furthermore, the NDICI-GE Regulation, which was adopted on 9 June 2021, entered into force on 14 June 2021 and applies retroactively from 1 January 2021, sets out certain horizontal provisions, which are also applicable for IPA III assistance. The Commission adopted a model for a Financial Framework Partnership Agreement (FFPA) between the Commission and the governments of the IPA III beneficiaries on 31 March 2022. On this basis, individual FFPAs were agreed with the six Western Balkan beneficiaries and Türkiye and entered into force by the end of 2022.

IPA III Programming Framework

The IPA III Programming Framework, as described in Article 7 of the IPA III Regulation, is the overarching European Commission’s strategic document for the use of EU funds assisting the IPA III beneficiaries for the duration of the 2021-2027 Multiannual Financial Framework. It replaces the previous country-specific strategy papers.

The programming framework 2021-2027 reflects the specific objectives of the IPA III Regulation and focuses on the priorities of the enlargement process according to five thematic windows, which mirror the clusters of negotiating chapters as per the revised enlargement methodology.

The programming of EU assistance is based on EU thematic priorities rather than pre-defined country envelopes. This allows rewarding performance and progress towards key priorities and increases the flexibility to respond to the evolving needs of the partners in their path towards accession.

IPA III planning and programming

The IPA III Programming Framework reflects the specific objectives of the IPA III Regulation and focuses on the priorities of the EU’s enlargement process. Under IPA III, programming of EU assistance is programmed according to five thematic Windows, which mirror the clusters of the negotiating chapters as per the revised enlargement methodology.

The thematic windows are:

Window 1: Rule of law, fundamental rights and democracy;

Window 2: Good governance, EU acquis alignment, good neighbourly relations and strategic communication;

Window 3: Green agenda and sustainable connectivity;

Window 4: Competitiveness and inclusive growth;

Window 5: Territorial and cross border cooperation.

In addition, a number of cross-cutting themes, such as climate change, environmental protection, civil society, gender equality and rights-based approach, are mainstreamed and therefore implemented under the five windows.

  1. Bilateral actions

In line with the IPA III Programming Framework, bilateral annual actions are prepared according to a two-stage programming process. In the first stage, IPA III beneficiaries prepare strategic responses outlining how their overall policies and sectorial strategies are in line with the recommendations and requirements of the specific policy instruments of the enlargement process, and how the proposed actions would contribute to the objectives of IPA III Programming Framework. The Commission then makes a first selection of actions based on policy relevance. The selected actions are further developed into fully-fledged action documents by IPA III beneficiaries. The Commission subsequently makes a second selection based on technical maturity. Only actions that are sufficiently technically mature are considered ready for adoption

  1. Regional/multi-country actions[1]

Regional/multi-country actions are complementary to bilateral actions. They are prepared on the basis of the IPA III Programing Framework by the Commission, in consultation with IPA III beneficiaries and other key stakeholders, to address issues of regional nature, and whenever the regional approach allows for greater efficiency than bilateral actions.

The multi-country programme provides assistance through 4 multi-country channels that provide a viable complement to national assistance:

A) Horizontal support: Technical assistance, informationand trainingfor authorities in IPA II beneficiaries, through the TAIEX instrument and in the form of twinning. And it provides support across the region to strengthen civil society and ensure free and independent media, as well as building capacity and promoting mobility in higher education and for young people, by contributing to the Erasmus+ Programme.

B) Regional structures & networks: Promotes regional cooperation, networkingand sharing of best practice to help IPA II beneficiaries prepare for EU membership, align their national legislation with EU law (acquis) and gradually adapt to EU standards and practices. Support in this strand will target initiatives like:

C) Regional investment support: Targeting projects with a clear regional dimensionthat help socio-economic development in more than oneIPA II beneficiary and address in particular investment needs related to: competitiveness of business, connectivity between beneficiaries and EU countries, environmental protection & climate change mitigation/adaptation. The main instruments providing such support are:

D) Territorial cooperation: Promoting good neighbourly relations between, and local development in, border regions– through cross-border programmes within the region and countries already in the EU, as well as transnational cooperation programmes and related macro-regional programmes (EU strategies for the Danube regionand for the Adriatic-Ionian region).  

Cross-border cooperation programmes

IPA III continues to support cross-border cooperation (CBC) between IPA beneficiaries (IPA-IPA CBC) and between IPA III beneficiaries and Member States (Interreg-IPA CBC), and to financially support participation of IPA III beneficiaries in European Regional Development Fund (ERDF) transnational and interregional cooperation programmes. IPA-IPA CBC assistance is programmed as multi-annual programmes covering the entire IPA III implementation period , while the Interreg-IPA CBC and ERDF transnational and interregional cooperation programmes are developed as part of the European Territorial Cooperation programming process.

Rural development programmes

The IPA III rural development assistance is provided on the basis of relevant priorities set out in the IPA III Programming Framework and the agriculture and rural development strategies of each IPA III beneficiary. Assistance is programmed as multi-annual programmes for each IPA III beneficiary, covering the entire period of the IPA III implementation.

[1] https://enlargement.ec.europa.eu/enlargement-policy/overview-instrument-pre-accession-assistance/multi-country-financial-assistance-under-ipa_en

Economic and Investment Plan for the Western Balkans

On 6th October 2020, the European Commission adopted a Comprehensive Economic and Investment Plan for the Western Balkans, with the aim to spur the long-term economic recovery of the region, support a green and digital transition and foster regional integration and convergence with the European Union. The Economic and Investment Plan sets out a substantial investment package mobilising up to €9 billion of funding for the region. It will support sustainable connectivity, human capital, competitiveness and inclusive growth, and the twin green and digital transition. In parallel to the Economic Investment Plan to support the region, the Commission has presented guidelines for implementing the Green Agenda in the Western Balkans.

The Plan identifies ten investment flagships to support major road and railway connections in the region, renewable energy and the transition from coal, renovation of public and private buildings to increase the energy efficiency and reduce greenhouse gas emissions, waste and waste water management infrastructure, as well as the roll out of broadband infrastructure. Other flagships include increased investments in the private sector to boost competitiveness and innovation, in particular of small and medium sized companies and a Youth Guarantee.

In addition to the EU’s significant grant funding to the region, the EU can provide guarantees to help reduce the cost of financing for both public and private investments and to reduce the risk for investors. Support through the new Western Balkans Guarantee facility, under the EU External Action Guarantee and the European Fund for Sustainable Development Plus, is expected to mobilise potentially investments of up to €20 billion in the next decade.

The Western Balkans Investment Framework (WBIF)

On 6th October 2020, the European Commission adopted a Comprehensive Economic and Investment Plan for the Western Balkans, with the aim to spur the long-term economic recovery of the region, support a green and digital transition and foster regional integration and convergence with the European Union. The Economic and Investment Plan sets out a substantial investment package mobilising up to €9 billion of funding for the region. It will support sustainable connectivity, human capital, competitiveness and inclusive growth, and the twin green and digital transition. In parallel to the Economic Investment Plan to support the region, the Commission has presented guidelines for implementing the Green Agenda in the Western Balkans.

The Plan identifies ten investment flagships to support major road and railway connections in the region, renewable energy and the transition from coal, renovation of public and private buildings to increase the energy efficiency and reduce greenhouse gas emissions, waste and waste water management infrastructure, as well as the roll out of broadband infrastructure. Other flagships include increased investments in the private sector to boost competitiveness and innovation, in particular of small and medium sized companies and a Youth Guarantee.

In addition to the EU’s significant grant funding to the region, the EU can provide guarantees to help reduce the cost of financing for both public and private investments and to reduce the risk for investors. Support through the new Western Balkans Guarantee facility, under the EU External Action Guarantee and the European Fund for Sustainable Development Plus, is expected to mobilise potentially investments of up to €20 billion in the next decade.

[2] https://www.wbif.eu/library

The Regional Cooperation Council (RCC)

The Regional Cooperation Council (RCC)[1] is an all-inclusive, regionally owned and led cooperation framework. This framework engages RCC participants from the South East Europe (SEE), members of the international community and donors on subjects which are important and of interest to the SEE, with a view to promoting and advancing the European and Euro-Atlantic integration of the region.

Within the framework of the general political guidelines set by the South-East European Cooperation Process (SEECP), the RCC works to develop and maintain a political climate of dialogue, reconciliation, tolerance and openness towards cooperation, with a view to enabling the implementation of regional programmes aimed at economic and social development to the benefit of the people in the region.

The Regional Cooperation Council (RCC) was officially launched at the meeting of the Ministers of Foreign Affairs of the South-East European Cooperation Process (SEECP) in Sofia, on 27 February 2008, under which auspices it continues to operate. In time, RCC agenda has shifted to a more focused and result-oriented interventions in a restricted number of areas. RCC works to promote the prosperity of South East Europe by supporting sustainable and equitable economic growth policies to enhance regional economic integration, green and digital transformation, while reducing the poverty and narrowing the existing social, economic and environmental divergences with the European Union.

Additionally, while assisting the region in deepening the process of regional and EU integration, RCC’s main driver will continue to be creating a climate for prosperous region, through creating a unique innovation hub, women empowerment, clean environment and competitive youth base.

 

Key areas:

Digital Transformation

Human Capital

Green Agenda

Competitiveness

Security Cooperation

Regional Coordination

[1] https://www.rcc.int/home

Central European Free Trade Agreement (CEFTA)

Central European Free Trade Agreement (CEFTA) aims at enhancing trade in goods and services, seeks to eliminate trade barriers between the Parties and attract investment to the region through fair, stable and predictable trade rules. The Agreement aims to harmonize its Parties’ regulatory framework with the EU and international standards. It also covers issues such as the protection of intellectual property rights, competition rules and state aid. Building on the original CEFTA, substantially enlarged and modern CEFTA was signed in December 2006 by Albania, Bosnia and Herzegovina, Bulgaria, Croatia, North Macedonia, Moldova, Montenegro, Romania, Serbia and UNMIK/Kosovo. Romania, Bulgaria and Croatia have withdrawn from CEFTA on their accession to the EU.

The CEFTA Parties have committed to establishing a regional economic area based on EU compliance with the objective of decreasing the cost of trade and production by eliminating market access barriers. Trade in goods and services between the CEFTA economies should be free of tariffs, quotas and other non-tariff barriers.

    Berlin Process

    The Berlin process[1] was set up in 2014 as a platform to increase cooperation between the Western Balkans-Six and the Berlin Process host countries as well as the EU. It is first and foremost a consistent and inclusive format for all 6 Western Balkan countries. High official representatives of the Western Balkan Six (WB6) and their peers in Berlin Process host countries meet at least once a year at the Summit and preparatory Ministerial meetings. The Process also involves the EU institutions, international financial institutions and the region’s civil society, youth and businesses. It provides high level political support and broad outreach and visibility to regional cooperation initiatives and respective policies, as well as to EU connectivity projects in the region. Over the years the Berlin Process continuously evolved and currently consists of the Summit itself, Ministerial Meetings (Foreign, Interior, Economy, Roma) and multiple side events (Digital Summit, Business Forum, Youth Forum, Civil Society Forum, Gender Forum, Science Conference, Purchasing Initiative of German Business and Agricultural Policy Forum).

    The Berlin Process aims at improving regional cooperation as well as cooperation with the EU in several policy areas to support countries in the region in achieving EU standards and to bring concrete benefits to the citizens in the region. The Berlin Process has the advantage of broad international support and involvement, including EU Member states and institutions. It offers a more structured framework and a unique inclusive WB6 approach for dialogue and collaboration, which leads to more effective and sustainable outcomes compared to other initiatives. It helps increase the countries’ competitiveness and ultimately prepares the WB 6 for EU Membership: 

    • Economic development by improving regional economic cooperation through deepening of the Common Regional Market
    • Energy security and energy transition
    • The Green Agenda to support the alignment of the region with the EU goals set out in the European Green Deal
    • The Regional Climate Partnership to support a Just and Green Transition
    • Development of Food, Agriculture, Rural Development and Forestry
    • Enhancing connectivity in the region through infrastructure projects (road, train, digital)
    • Improved cooperation in the field of cyber security
    • Increased cooperation in fighting organized crime and irregular migration
    • Contribution to reconciliation and exchanges between and within societies in the region 
    • Social and economic inclusion of minorities including Roma as set out in the Declaration of Western Balkans Partners on Roma Integration within the EU Enlargement Process in Poznan 2019
    • Business development through the exchange of politics, business and potential investors at a yearly Business Forum and through the Purchasing Initiative which strengthens the export business of Western Balkan companies. 

     

    Results of The Berlin Process, 4 types of output: economic, political and security, social and ecological transition projects

    Achievements and key documents adopted during 2024[2].

    [1] https://www.berlinprocess.de/

    [2] https://www.berlinprocess.de/en/page-documents

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