European Commission. Photo: BIRN/Denis Sllovinja

Renewed Political Deadlock Puts Kosovo’s EU Funds in Jeopardy

Kosovo is at risk of losing tens of millions of euros in European Union funding if it fails to implement key reforms under the EU Growth Plan by the end of June.

Kosovo risks losing tens of millions of euros in European Union funding if political deadlock and delays in implementing key reforms continue beyond the June 30, 2026 deadline set under the EU Growth Plan for the Western Balkans.

The country remains without a functional parliament, and this political instability could delay the implementation of reforms required to unlock EU financial support.

Early parliamentary elections are scheduled for June 7, but the process of counting votes, certifying results, and forming new institutions is expected to continue beyond the EU’s reporting deadline.

In a statement to KALLXO.com, the European Commission said Kosovo is also eligible to receive up to EUR 882.6 million, “conditional on the fulfilment of Reform Agenda steps and if the general conditions and pre-conditions for payment are met”.

The Commission notes that Kosovo must accelerate the implementation of reforms following the delayed ratification of the Instrument Agreement and Loan Agreement.

“With the first grace period ending on June 30 this year for 13 reform steps, Kosovo risks losing funds if it does not progress on its implementation of the Reform Agenda,” the Commission stated.

According to the European Commission, June 30 marks the next reporting deadline, after which the EU will assess Kosovo’s progress before approving any additional disbursement of funds.

Kosovo ratified the agreement with the European Union on February 13, 2026, ending a year-long delay caused by political deadlock and repeated elections, which had effectively frozen access to nearly 882 million euros in potential EU funding.

After the ratification of the agreements,  the European Commission began transferring a pre-financing payment of 61.8 million euros to the country.

Kosovo’s Government previously announced that, under its Reform Agenda which serves as the basis for the allocation of EU Growth Plan funds, it has committed to implementing 111 reform measures. These reforms cover key areas such as the rule of law, governance, economic development, the green and digital transition, and human capital development.

However, according to the Government, the 13 reform steps due by June 30 alone are linked to funding worth approximately 90.8 million euros.

The broader EU Growth Plan for the Western Balkans, covering the 2024–2027 period, is worth 6 billion euros. Kosovo’s allocation includes around 253 million in grants and 629 million in loans.

In April, European Commissioner for Enlargement Marta Kos warned the six Western Balkan countries that they collectively risk losing more than 700 million by mid-2026 if reforms are not implemented on time.

She called on governments across the region to accelerate reform efforts in order to fully benefit from the EU financial package.

Five Western Balkan countries have already received initial payments under the Growth Plan, while Bosnia and Herzegovina remains behind after delays in approving its reform agenda.

08/05/2026 - 19:16

08 May 2026 - 19:16

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