New EU investment package for Western Balkans

The new flagship investments fall under three priorities of the Economic and Investment Plan: environment and climate, sustainable transport and support to the business sector, said the European Commission.

As part of the first priority, reconstruction and rehabilitation of water supply and sanitation infrastructure is planned in Montenegro and Bosnia and Herzegovina. The second priority focuses on advancing on Corridor X rail infrastructure, with the high-speed Belgrade – Velika Plana connection enabling a faster flow of passengers and freight in the region. The third priority involves the launch of a new facility for innovation and green transformation of enterprises in the region.

This package will support eight new flagship investments in water supply and sanitation, wastewater treatment and rail transport, as well as innovation and green transformation in small and medium enterprises.

The EC said the investments will be rolled out in close cooperation with the Western Balkan partners and international financial institutions.

European Commission President Ursula von der Leyen said the new 1.2 billion euro package strengthens regional connections.

“Our Western Balkan partners are building their European future. These investments, along with necessary reforms and access to our Single Market, will prepare our partners' economies to join our Union,” said Von der Leyen.

The investment package includes 300 million euros in EU grants from the Instrument for Pre-accession Assistance (IPA III), additional bilateral contributions from EU Member States and Norway, loans from international financing institutions and contributions from the economies of the Western Balkans.

The package was endorsed by the Operational Board of the Western Balkans Investment Framework (WBIF) during the 1-2 July meeting.

The EU's Economic and Investment Plan for the Western Balkans (2021-27) aims to spur long-term recovery, accelerate a green and digital transition, and foster regional cooperation and convergence with the EU.