EU financial assistance signed with Kosovo and North Macedonia, agreed with Albania and Montenegro

EU - Western Balkans informal meeting, February 2020; Foto: European Union

BRUSSELS – As of today, the European Commission, on behalf of the EU, has agreed Memoranda of Understanding (MoU) on macro-financial assistance (MFA) programmes with eight partners, including four Western Balkan countries, the Commission announced.

The agreements are part of the €3 billion macro-financial assistance package for ten enlargement and neighbourhood partners, aimed to help them limit the economic fallout of the coronavirus pandemic. It was first proposed by the Commission in April this year.

Memoranda of Understanding have already been agreed with Albania, Kosovo, Montenegro and North Macedonia, as well as other neighbouring countries. These documents have also been formally signed with Kosovo and North Macedonia, as well as Moldova and Ukraine. Negotiations of the MoUs with Bosnia and Herzegovina, together with Tunisia, are underway.

MFA is available to enlargement and EU neighbourhood countries experiencing severe balance-of-payments problems. Serbia has been notified of the possibility to receive the assistance but has not applied.

For Albania, the policy conditions for its €180 million MFA programme relate to strengthening public finance and the resilience of the financial sector, improving governance and fighting corruption, and enhancing social protection.

For Kosovo, the policy conditions for its €100 million MFA programme relate to strengthening public finance and financial stability, addressing youth unemployment and improving good governance, and the fight against corruption.

For Montenegro, the policy conditions for its €60 million MFA programme relate to strengthening public finance and the fight against corruption, enhancing financial stability, improving the business environment, and reforming social protection.

For North Macedonia, the policy conditions for its €160 million MFA programme relate to strengthening fiscal governance and transparency, the fight against corruption, enhancing financial sector supervision, improving the business environment, and tackling youth unemployment.