The Great Gap - Assessing the New Growth Plan’s Potential to Address Socioeconomic Disparity
The Great Gap - Assessing the New Growth Plan’s Potential to Address Socioeconomic Disparity

Author(s): Marko Todorović, Ana Milinković
Subject(s): Politics, Regional Geography, Economic policy, International relations/trade, EU-Accession / EU-DEvelopment
Published by: Centar za evropske politike CEP
Keywords: Western Balkans; new growth plan; NGP; EU;
Summary/Abstract: The New Growth Plan (NGP) for the Western Balkans marks a significant departure from the existing Instrument for Pre-Accession Assistance (IPA). While the latter lacks reform-related conditionalities, the NGP’s funding will hinge upon the successful implementation of fundamental and socioeconomic reforms. By gradually providing increased financial benefits ahead of accession (amounting to roughly €6 billion, comprising €2 billion in grants and €4 billion in favourable loans), the initiative seeks to unlock the political will for reforms to take place and to facilitate socioeconomic convergence. According to the European Commission, the region’s convergence stands at approximately 35% of the EU average. Given the magnitude of this disparity, the pertinent question arises: Will the NGP prove sufficient to address the pressing socioeconomic gap and contribute to catching up with the EU average?

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