Kosovo left out as EU disburses new Growth Plan funds to Albania, Montenegro, and North Macedonia

The European Commission has released the latest tranche of funding under the EU Growth Plan for the Western Balkans, allocating new financial support to Albania, Montenegro, and North Macedonia — but not to Kosovo, which remains excluded despite meeting the technical criteria.

Why is this important: Kosovo continues to miss out on millions of euros in EU funding due to its ongoing institutional crisis, which prevents it from formalizing the required agreements with the EU. While other countries move forward with economic support and integration projects, Kosovo’s political paralysis means it remains outside one of the region’s most significant financial initiatives.

Details: The European Commission confirmed that this is the second payment round for countries that have already fulfilled the conditions for disbursement. Albania will receive €99.3 million, while North Macedonia and Montenegro will also receive new funding under the Growth Plan, which aims to double the region’s GDP over the next decade.

Kosovo, however, cannot access the funds because there are no functioning institutions capable of signing and ratifying agreements with the EU — a process that requires approval by a two-thirds majority in Parliament. The situation persists despite the fact that the Commission approved Kosovo’s reform agenda back in autumn 2024.

Context: The EU has repeatedly emphasized that the Growth Plan is not open-ended. Countries that fail to meet eligibility and governance standards risk losing funds to others that do. Bosnia and Herzegovina also remains excluded for not adopting its national reform plan, but Kosovo’s case is seen as particularly frustrating in Brussels since its delay stems from political gridlock, not technical shortcomings.

European Commission President Ursula von der Leyen, who visited all six Western Balkan countries earlier this month, urged leaders to take “urgent steps” to ensure they can benefit from EU investment:

“The future of the Western Balkans is inside our Union. But countries must show they can deliver the reforms and institutional stability needed to make that future real.”

What’s next: Unless Kosovo forms stable institutions soon and ratifies the cooperation framework, it risks losing access to the Growth Plan entirely — as unused funds will be redirected to countries already implementing EU-backed reforms.