The European Union is weighing whether to withhold funding from a €1.6 billion package of loans and grants allocated to Serbia, amid concerns about reforms and compliance with EU conditions, according to officials familiar with the discussions.
The funding is part of the EU’s broader financial support framework for Western Balkan countries, aimed at backing economic growth, infrastructure development and governance reforms as states align more closely with EU standards. EU officials said disbursements are conditional on progress in areas including the rule of law, democratic standards, media freedom and anti-corruption measures.
Brussels has raised concerns about Serbia’s pace of judicial reforms and its alignment with EU foreign policy positions, including relations with Russia. EU representatives have warned that failure to meet agreed benchmarks could lead to delays or partial suspension of funds until conditions are met.
Serbian officials have said the government remains committed to EU integration and reform pledges, arguing that progress has been made on economic stabilization and institutional changes. However, critics inside Serbia and in Brussels say reforms have been uneven and that political pressure on independent institutions and media remains a concern.
EU funding decisions are typically reviewed in stages, with payments released as milestones are met. Officials said no final decision has been taken yet, but the option to withhold part of the €1.6 billion package remains under consideration if benchmarks are not fulfilled.
