Western Balkans: Environmental groups challenge Commission’s breach of Reform and Growth Facility safeguards

CEE Bankwatch Network and Climate Action Network (CAN) Europe have formally requested a review (1) of the European Commission’s decision to approve five Western Balkan countries’ Reform Agendas under the new Reform and Growth Facility. The groups argue that the approval breached EU law by failing to apply mandatory environmental safeguards and public consultation requirements.

On 23 October, the European Commission approved the Reform Agendas of Albania, Kosovo, Montenegro, North Macedonia and Serbia (2). These include lists of reforms to be undertaken by the countries in order to access funds from the Facility, as well as proposed investment projects to be financed through the Western Balkans Investment Framework.

According to the Regulation governing the Facility (3), the Reform Agendas were to be developed ‘in an inclusive and transparent manner, in consultation with social partners and civil society organisations’. Both the reforms and investment projects have to comply with various principles such as Do No Significant Harm (4) to the environment and exclusion of fossil fuels.

Yet Serbia and North Macedonia’s Reform Agendas include fossil gas pipelines and power/heat plants among their proposed investment projects. And all the countries include other projects likely to cause serious environmental damage, such as the Kruševo hydropower plant in Montenegro and motorways in sensitive locations. None of the Reform Agendas included any ‘Do No Significant Harm’ assessments, and the lists of projects were not available to civil society organisations or the wider public to comment on.

Although CAN Europe and Bankwatch raised concerns in July about a lack of transparency and consultation on the Reform Agendas, the Commission’s Directorate General for Enlargement (DG NEAR) failed to take corrective action or to pick up the issue in its country assessments.

Pippa Gallop, CEE Bankwatch Network – ‘The Reform and Growth Facility has the potential to contribute to a sustainable future in the Western Balkans, but only if its safeguards are applied. Too often in recent years, the Commission has taken hurried, non-transparent and ineffective action and sidelined civil society in the region. The new Enlargement Commissioner, Marta Kos, must urgently turn this around. Public scrutiny and proper environmental screening of EU funds are a must.’

Frosina Antonovska, CAN Europe – ‘The Western Balkan countries have been more successful in developing plans and committing to climate and energy goals, than delivering them in reality, with a lack of funding as a common excuse. The Reform Agendas could be a transformative tool, but so far, the absence of transparency, inclusiveness and consistency, are hindering this opportunity. The national agendas’ priorities and related investments must adhere to environmental safeguards and public participation principles, otherwise what “reformative” approach is being promoted for the region?’