Montenegro has secured 26.8 million euros in pre-financing from the Reform Agenda, part of the Growth Plan for the Western Balkans. Today, 12.5 million euros from this favorable loan was allocated to the state budget, as announced by the European house.

Moreover, 14.3 million euros in grants and loans will be directed through the Western Balkans Investment Framework (WBIF) to enhance the country’s infrastructure. This pre-financing accounts for 7% of the total financial aid allocated for Montenegro under the EU growth plan.

The EU Ambassador to Montenegro, Johan Satler, stated that the growth plan assists Montenegro in implementing vital reforms and aligning its economy and living standards with those of the EU.

“I am pleased that the EU Growth Plan’s support for Montenegro will facilitate the execution of this important program, with funds disbursed based on achieved results. This serves as a strong motivation for Montenegrin institutions to advance reform measures, progressing in education, infrastructure, digitization, and numerous other sectors that will impact every citizen, even prior to full EU membership,” Sutler remarked.

Maida Gorčević from European Jobs noted that the government completed all necessary steps for the initial payment, including the assembly’s adoption of the Growth Plan and finalization of the Loan Agreement with the European Commission.

Of the total pre-financing amount, 14.3 million euros will be allocated to the energy investment framework via the Western Balkans Investment Framework, while the remainder will support the state budget priorities from the reform agenda by the end of 2027.

“The payment of this first tranche of financial assistance confirms that Montenegro is dependable in its reforms. This is a tangible indication that European integration is a realistic prospect for both citizens and the economy. Investing in infrastructure and reform policies will pave our way to the EU by 2028,” Gorčević stated.

The reform agenda was adopted on September 26 of last year, encompassing 32 Priority Sectors, including Business Environment and Private Sector, Digital and Energy/Green Transition, and the Development of Law and Fundamental Rights, alongside 14 Subsectors.

Implementing reforms from the reform agenda is a prerequisite for accessing funds from the Instrument for Reforms and Growth within the EU growth plan for the Western Balkans. This growth plan consists of a mix of grants and favorable loans totaling six billion euros for the years 2024-2027, with 383.5 million euros allocated for Montenegro. Of this, 110 million euros are non-refundable grants, while 273.5 million euros are favorable loans. The European Commission intends to distribute the entire amount upfront as pre-financing, with the remaining funds released in six semi-annual tranches, contingent upon the progress of planned reforms.

According to the EU delegation, by 2027, Montenegro could receive a total of 383 million euros in exchange for its progress in reforms related to rule of law, fundamental rights, renewable energy sources, digital economy, human capital development, and private sector growth.

Subsequent payments from this instrument will be executed following the fulfillment of reform steps agreed upon between the European Commission and the Government of Montenegro through the Reform Agenda.

The growth plan for the Western Balkans serves as a roadmap for alignment with the European Union’s economies, allowing gradual access to the EU’s single market. This will enable citizens of the Western Balkans to experience the early benefits of European integration while also supporting further regional economic integration. The growth plan allocates an additional 6 billion euros for financial assistance aimed at supporting socio-economic and key reforms, alongside necessary investments. Payments will be conditioned upon the implementation of reforms specified in the reform agendas prepared by beneficiaries. The European Commission is currently evaluating the fulfillment of the first set of reform steps.