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DRAFT OPINION (COM(2023)0692 – C90408/2023 – 2023/0397(COD))

On the proposal for a regulation of the European Parliament and of the Council Establishing the Reform and Growth Facility for the Western Balkans

INTA-PA-758090

Committee on International Trade · Rapporteur: Helmut Scholz

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The Committee on International Trade's draft opinion responds to the proposed regulation establishing the Reform and Growth Facility for the Western Balkans. It supports the €6 billion facility for 2024-2027 but asks for more non-repayable support and flexibility on loan conditionality. The rapporteur wants the Facility to require improvements in social and working conditions, sustainable development and gender equality, and to prioritise rule of law, democracy and human rights. The draft opinion proposes ten amendments to the Commission proposal, covering income inequality, SMEs, labour rights, procurement origin rules, transition objectives, mainstreaming and preconditions for funds.

Committee position. The Committee on International Trade calls on the Committee on Foreign Affairs and the Committee on Budgets to take into account ten amendments to the proposed regulation. These add recitals on income inequality, SMEs and labour rights, and amend provisions on procurement origin, objectives, mainstreaming and preconditions for funds.

Key points

  1. The rapporteur supports the EU-Western Balkans summit conclusions of 13 December 2023 and the commitment to future accession based on democracy, rule of law, credible reforms and fair conditionality.
  2. The Facility will provide €6 billion for 2024-2027: €2 billion in non-repayable support and €4 billion in concessional loans from the European Union.
  3. The rapporteur welcomes the financial commitment but would have favoured more non-repayable support and flexibility on loan conditionality.
  4. The rapporteur insists that the Facility's ambition be conditional on better social and working conditions, sustainable development and fighting inequalities, particularly between men and women.
  5. All investments must help the region move to a green, climate-neutral, resilient, digital and inclusive economy.
  6. The rapporteur prioritises rule of law, democracy, human rights, an independent judiciary, fighting fraud, corruption, organised crime, money laundering and tax evasion, media and academic freedom, civil society, social dialogue, gender equality and minority rights.
  7. Amendment 1 adds a recital that Facility activities should reduce income inequalities to foster social inclusion and sustainable long-term growth.
  8. Amendment 2 adds a recital that Facility activities should support SMEs through technical assistance and technology transfer to strengthen industrial bases.
  9. Amendment 3 adds a recital that implementation should advance labour rights, equality, health and safety at work, non-discrimination, social protection and social dialogue.
  10. Amendment 4 requires all supplies and materials financed under the Facility to originate from Member States, Beneficiaries, EEA contracting parties and certain listed countries, unless they cannot be sourced at reasonable conditions, in which case procurement must follow EU due diligence rules.
  11. Amendments 5 to 7 add equitable transition, SME innovation through technical assistance and technology transfer, and stronger enlargement fundamentals including labour rights, reduced income inequalities, prevention of social dumping and gender equality to the Facility's objectives.
  12. Amendments 8 to 10 require mainstreaming of climate, biodiversity, human and labour rights, democracy and gender equality; allow Beneficiaries to remedy shortcomings before funds are withheld; and set the same origin rules for supplies and materials.

Who is affected

  • Western Balkans countries: Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia, which would receive support under the Facility.
  • Small and medium-sized enterprises in the Western Balkans, which should receive support through technical assistance and technology transfer.
  • Workers in the Western Balkans, whose labour rights, social protection and social dialogue should be advanced.
  • Suppliers and contractors, who must source supplies and materials from listed countries unless reasonable conditions are unavailable.

Figures and deadlines

  • €6 billion for 2024-2027, the Facility's total resources.
  • €2 billion in non-repayable support.
  • €4 billion in concessional loans granted by the European Union.
  • 13 December 2023, date of the EU-Western Balkans summit.