The key to how the EU funds are divided among beneficiaries is determined in the Annex to the Reform and Growth Facility regulation. Country envelopes take into account the population and ratio of the GDP per capita of the Western Balkan region to that of the beneficiary. Each beneficiary’s allocation was calculated based on the latest available data on the day of the entry into force of the Reform and Growth Facility regulation, i.e. 25 May 2024.
These allocations, which are initial values, are subject to change. The final allocation per beneficiary is not fixed, but rather depends on the results achieved through EU-related reforms. These expected results are set out in the beneficiaries’ Reform Agendas, where reforms are divided into individual quantitative and qualitative steps, serving as payment conditions.
In addition, beneficiaries are required to comply at all times with a) general conditions related mainly to the state of public finances and b) preconditions related to the functioning of democratic mechanisms. As a specific precondition, Serbia and Kosovo must engage constructively in normalising their relations.
If a beneficiary fails to meet all the conditions necessary to trigger the release of EU funds, the Commission has the authority to take action. This may involve reducing the funds allocated to the non-compliant beneficiary and redistributing them among other beneficiaries who have met the necessary conditions.
The allocation key uses 2023 Eurostat figures. At the time of calculation, population figures for Bosnia and Herzegovina and Kosovo were not available for 2023. Therefore, 2023 IMF data are used for the population factor of these two beneficiaries.
| Indicative percentual allocation | Indicative absolute allocation | Provisioning for loans |
| Albania | 16.4% | 922.1 | 59.2 |
| Bosnia and Herzegovina | 19.3% | 1085.1 | 69.6 |
| Kosovo | 15.7% | 882.6 | 56.6 |
| Montenegro | 6.8% | 383.5 | 24.6 |
| North Macedonia | 13.4% | 750.4 | 48.2 |
| Serbia | 28.3% | 1586.4 | 101.8 |
Note:
€ 30 million allocated to technical and administrative assistance for the implementation of the Facility are excluded from the split per beneficiary.
Provisioning for loans, € 360 million in total, will not be disbursed to the beneficiaries but paid to the Common Provision Fund of the Union.