The European Union Growth Plan for the Western Balkans is not just another EU fund, but an instrument for the transformation of local communities, and real transformation occurs only when citizens at the local level see concrete changes in energy efficiency, digitalization, the green agenda, and infrastructure.
This was emphasized during the thematic session entitled: ‘The EU Growth Plan for the Western Balkans – Opportunities for Local Communities in Montenegro’, which was held as part of the Joint Consultative Committee of the European Committee of the Regions and Montenegro.
Speaking about Montenegro’s position in the European Union, Gordana Đurović, President of the Montenegrin Pan-European Union and Co-Chair of the Joint Consultative Committee between the European Economic and Social Committee and Montenegro, stated that, reminded that it is a small country in terms of size, but complex in its internal structure and development challenges.
“Once Montenegro joins the EU, it will add only 0.14 percent to that large community of 450 million inhabitants. In terms of territory, we will contribute around 0.33 percent, while to the EU budget of more than €17 trillion we will add approximately 0.04 percent. That speaks to our size, but not to our complexity,” stated Gordana Đurović.
She emphasized that, despite the perception that Montenegro consists only of municipalities and the state, there are various divisions behind that — in terms of demographics, regional development, and competitiveness.
“We must acknowledge that Montenegro, no matter how small it is, is entering a large family that is itself highly complex. What is encouraging is that within the EU there are many small states that enjoy full participation in decision-making, while preserving their identity and sovereignty — and that is exactly what Montenegro wants,” said Gordana Đurović.
Speaking about the reform agenda within the framework of the Growth Plan, Gordana Đurović emphasized that Montenegro has set an exceptionally ambitious plan.
“Perhaps we were slightly delayed in adopting it, but our agenda is more ambitious than many others precisely because we want to accede quickly. In the areas of the business environment, human capital, digitalization, energy, and the rule of law, we have already implemented around 50 percent of the measures, while for the remaining 50 percent we have one to two years left, depending on the measure,” stated Gordana Đurović.
Gordana Đurović also warned about the challenges of co-financing and demographics.
“The value of the projects exceeds one billion euros, which means that each of them requires co-financing, often through loans. In addition, we are facing demographic challenges, an ageing population, low natural growth, and reliance on the diaspora. The economy and demographic revitalization must be two equally important pillars.”
Presenting the economic indicators, Bernd Christoph Ströhm, postdoctoral researcher and lecturer at the Vienna Institute for International Economic Studies (WIIW), stated that emphasized that Montenegro achieved a strong recovery after the severe decline in GDP during the pandemic.
“After a GDP decline of 15.3 percent during the pandemic, Montenegro recovered very quickly and strongly. This year, we expect growth of around 3.4 percent, with historically low unemployment below 10 percent,” said Bernd Christoph Ströhm.
At the same time, he pointed out that inflation remains a challenge, but that the potential in tourism and renewable energy sources provides a strong framework for development.
“Tourism is both a strength and a weakness of Montenegro. Diversification is essential, but at the same time, sustainable, high-quality tourism and investments in hydropower, wind, and solar energy can position Montenegro as a regional exporter of electricity,” assessed Bernd Christoph Ströhm.
He recalled that Montenegro is among the most successful countries in the region in terms of the level of implementation of reforms within the framework of the Growth Plan.
“By mid-2025, Montenegro had implemented around 88 percent of its obligations under the Reform Agenda, which is the highest level in the Western Balkans region. The Growth Plan offers a unique opportunity to accelerate EU accession while simultaneously delivering tangible benefits to citizens even before full membership,” said Bernd Christoph Ströhm.
Nenad Koprivica, representative of the CEDEM, stated that emphasized that the Growth Plan should primarily be viewed as a test of Montenegro’s absorption capacities.
“We must view the Growth Plan as a test of our absorption capacities. The question is whether, as a state, we are capable of utilizing what is available to us — and substantial funds are available,” stated Nenad Koprivica.
He recalled that Montenegro has been allocated €383 million for the period 2024–2027, and that transformation truly takes place only when citizens see changes in their own municipalities.
“Real transformation occurs only when citizens at the local level see concrete changes in energy efficiency, digitalization, the green agenda, and infrastructure. That is why the Growth Plan is not just another EU fund, but an instrument for the transformation of local communities,” said Nenad Koprivica.
He also warned about the risk of local communities being bypassed.
“If local self-governments are not sufficiently involved in planning, implementation, and monitoring, there is a risk that the funds will remain unused or that projects will be poorly implemented. Weak institutional capacities in certain municipalities may lead to missed opportunities,” said Nenad Koprivica.
As a solution, he emphasized the need for municipalities to join forces and strengthen regional cooperation.
“The experiences of Croatia and Slovenia show that municipalities were far more successful in accessing funds when they joined together in regional projects. This is particularly important for Montenegro, where small municipalities must work together to build capacities and develop projects,” said Nenad Koprivica.
Žana Jovanović, Head of the Unit for National Funds and the Reform Agenda within the EU Funds Management Structure at the Ministry of Finance of Montenegro, stated that emphasized that the Growth Plan represents a major development opportunity, but also a serious obligation for the state.
“The Growth Plan represents a major development opportunity for Montenegro, but we must view it through two components — reform measures and infrastructure projects. Despite having only around 7 percent participation in the total amount allocated for the Western Balkans, we have set ourselves as many as 130 steps that we must fulfill,” stated Žana Jovanović.
She emphasized that the Ministry of Finance of Montenegro, in close cooperation with the Ministry of European Affairs of Montenegro and other institutions, has a central coordinating role.
“The Ministry of Finance of Montenegro, in cooperation with line ministries and local self-governments, is one of the key actors responsible for coordinating the Growth Plan and fulfilling all the steps and reforms that we, as a state, have ambitiously undertaken,” said Žana Jovanović.
She recalled that the first infrastructure projects within the framework of the Western Balkans Investment Framework have already been approved.
“So far, five significant infrastructure projects have been approved, ranging from electricity infrastructure and preschool infrastructure in several municipalities to improvements in education. This clearly shows how important the funds from the Growth Plan will be precisely for local communities,” stated Žana Jovanović.
Speaking about the upcoming period, Žana Jovanović pointed out that the Growth Plan also represents preparation for future membership.
“This is a new financing model being introduced by the European Union, and it will remain in focus after 2028 as well. We are already preparing for the use of EU funds that will be available to us as a member state, and which could be up to ten times greater than the funds we have today,” said Žana Jovanović.
