On 8 November 2023, the European Commission adopted a new Growth Plan for the Western Balkans, with the aim of bringing the Western Balkan partners closer to the EU through offering some of the benefits of EU membership to the region in advance of accession, boosting economic growth and accelerating socio-economic convergence. The need to advance gradually towards the EU through concrete, palpable and meaningful steps has been a persistent request of the Albanian Government.
In terms of development and economic convergence, the Western Balkan region is currently at around 35% of EU average level. Therefore, tackling economic convergence is an essential element in getting the Western Balkan partners closer to the EU. If implemented properly, the Growth Plan has the potential to double the size of the Western Balkan economies within the next 10 years. It will also help the Western Balkans prepare for EU membership through accelerated reforms, by bringing forward some of its benefits which will directly benefit the citizens of the Western Balkan countries.
To support this process a €6 billion financial instrument, the Reform and Growth Facility for the Western Balkans has been proposed for the period 2024-2027, based on four major pillars, aimed at:
1. Enhancing economic integration with the European Union’s single market, subject to the Western Balkans aligning with single market rules and opening the relevant sectors and areas to all their neighbours at the same time, in line with the Common Regional Market.

Seven priority actions are suggested:

1. Free movement of goods;
2. Free movement of services and workers;
3. Access to the Single Euro Payments Area (SEPA);
4. Facilitation of Road transport;
5. Integration and de-carbonisation of Energy markets;
6. Digital Single Market;
7. Integration into industrial supply chain
2. Boosting economic integration within the Western Balkans through the Common Regional Market, based on EU rules and standards, which could potentially add 10% to their economies. Based on EU rules, it is a stepping-stone to the opportunities of the Single Market.

3. Accelerating fundamental reforms, including on the fundamentals cluster, supporting the Western Balkans’ path towards EU membership, improving sustainable economic growth including through attracting foreign investments and strengthening regional stability;

4. Increasing financial assistance to support the reforms through a Reform and Growth Facility for the Western Balkans for the period 2024-2027, a proposal for a new instrument worth €6 billion, consisting of €2 billion in grants and €4 billion in concessional loans. Half of the funds, about € 3 billion in the form of long-term loans, will be released as direct support to the national budgets, and the other half will be allocated through the Western Balkans Investment Framework (WBIF), in the form of € 2 billion in grants and € 1 billion in loans. The Reform and Growth Facility is excepted to reinforce the current financial assistance under IPA III.
As part of the Plan, Albania has prepared and presented a Reform Agenda based on existing recommendations including from the annual Enlargement Package and looks forward to a speedy confirmation process in order to start without delay the implementation of the Plan to the benefit of its citizens, the country’s economy and convergence with the EU.