The European Commission has requested additional funds for the Western Balkans region during the review of the medium-term financial framework.
In the proposal presented by the President of the European Commission Ursula von der Leyen, an additional 2 billion euros for the next four years have been requested, in addition to the funds previously approved in the seven-year framework for the period 2021-2027.
In the past as well, European officials have stated that there is an increased need for additional financial resources for the Western Balkans due to new challenges, mainly related to security and migrant movements.
In the latest proposal for increased financial assistance, the European Commission cited the pandemic, the conflict in Ukraine, the energy crisis, migration, inflation, and rising interest rates as justifications.
Part of the additional funds being requested by the European Commission is intended to assist the Western Balkan states in addressing migration challenges, as the European bloc assesses that a large number of migrants pass through the so-called “Balkan Route” and then head towards EU countries.
The additional funds are expected to finance the strengthening of border controls, refugee shelter centers, and various programs for migration management.
For the next four years, the European Commission has requested an additional 15 billion euros for migration issues. These funds are intended to assist in managing migration from Syria, as well as from neighboring countries of the EU such as Turkey, North Africa, and the Western Balkans.
The European Commissioner for Budget Johannes Hahn stated that the European bloc must assist its partners, especially Moldova and the Western Balkan states, in dealing with migrant movements to protect borders and address the consequences.
The European Commission has proposed an overall increase in the EU budget of 66 billion euros for the next four years. The majority of the budget is allocated to continue assistance to Ukraine, but also to tackle migration challenges and the digital competitiveness of the EU.
The EU operates on an annual budget, but this budget is within the framework of a multi-year budget.
The current seven-year framework is expected to be revised with the European Commission’s proposal.
President of the European Commission Ursula von der Leyen stated that this change in the bloc’s budget is necessary because, according to her, the world has dramatically changed following Russia’s attacks on Ukraine, and now the EU is facing consequences such as the energy crisis and price hikes.
The greatest increase is specifically requested to continue assistance to Ukraine. In this regard, the European Commission has proposed the creation of a reserve fund of 50 billion euros. However, this includes 33 billion euros of loans that need to be repaid, while 17 billion euros are planned to be grants, which means financial assistance without the obligation of repayment.
The European Commission’s proposal to revise the multi-year budget framework needs to be accepted by the member states in the Council and the European Parliament. Typically, some member states, especially net contributors to the budget – meaning those who pay more than they receive from the European Union’s budget – are against significant increases.
Diplomats in Brussel have stated that agreement on assistance to Ukraine will be easier to reach, but other proposed increases will face opposition, especially from countries like the Netherlands, Germany, Austria, Finland, Denmark, and other net-paying countries. President von der Leyen stated that the European Commission would not seek this increase if unforeseen circumstances had not occurred.
The European Commission hopes to reach an agreement on the budget increase before the end of the year. In June of the following year, elections for the European Parliament will be held, and the new composition of the European Commission will be determined by the end of that year.
Sources in the EU have said that the Western Balkans region needs not only the continuation of financial assistance through pre-accession programs (IPA) at the current level but also an increase. Assistance to the six Western Balkan countries aims to help them prepare for integration into the EU.
All countries in the region have candidate country status for EU membership, except for Kosovo.
In December 2022, Kosovo applied for membership in the EU and is considered a “potential candidate”, which is why it is included in EU programs for countries in the enlargement process.
