The European Union is the largest donor in the Republic of Serbia. Since 2000, the EU has provided, through several various instruments and funds, more than EUR 7 billion in grants to the Republic of Serbia in order to support the reforms. The support from the EU funds is intended for the necessary legal, institutional, administrative, economic and social reforms on the path to the EU in various areas - from the judiciary, public administration, and public finances to education, employment, transport, agriculture, and environmental protection. Support also contributes to the development of local economies, reduction of discrepancies in regards to the development of different areas, providing the opportunities for employment, education and solving key challenges in society/country.
Serbia was granted candidate country status on 1 March 2012, which brought a new incentive for the use of IPA funds. The Instrument for Pre-Accession Assistance 2014-2020 (IPA) is an instrument of comprehensive support for the European integration process of candidate countries and potential candidates for membership, both in the field of financial assistance and in the field of technical support for reforms being implemented in the country. The Republic of Serbia is currently using funds from the EU Instrument for Pre-Accession Assistance IPA II for the period 2014-2020 and IPA III for the period 2021-2027. (From IPA II - the Republic of Serbia has been allocated around 1.5 billion euros; from IPA III - the Republic of Serbia has been approved so far close to 450 million euros through the Annual Action Plans 2021-2023). When it comes to the IPARD Programme, which is intended to support the field of agriculture and rural development, the EU has, through two programmes – IPARD II and IPARD III, provided grants totalling 463 million euros (175 and 288 million euros).
Our country is a beneficiary of funds available through the Multi-beneficiary IPA, as an instrument that supports initiatives of regional importance for the Western Balkans region. Through this instrument, initiatives are being implemented aimed at regional linking of public services/institutions in different areas (customs, police, etc.), initiatives such as investments in regional transport and energy infrastructure, business development and environmental protection, as well as those that promote good neighbourly relations and local development in border regions – through cross-border cooperation programmes within the region and with EU member states, as well as transnational and interregional cooperation programmes. In the period 2014-2020, 2.98 billion euros were allocated through the Multi-beneficiary IPA for all beneficiaries of the instrument, while in the period 2021-2027, around 3.6 billion euros have been allocated for the same purposes so far.
The cross-border and transnational cooperation programmes encourage the cooperation of border territories of neighbouring countries (cross-border cooperation) or the cooperation of parts or entire countries (transnational cooperation) in addressing issues of common interest such as cultural and economic cooperation, tourism, transport, service provision in different sectors, etc. The Republic of Serbia participates in seven cross-border cooperation programmes and two transnational cooperation programmes. In the period 2004-2016 over EUR 220 million has been contracted through these programmes in Serbia, while for the period 2014-2020 the EU has allocated EUR 260 million for the implementation of cross-border cooperation in our country. Union programmes represent a significant source of funding for initiatives in various areas, innovative solutions, investment in human resources and encouraging the mobility of young people. Their advantage is also that they enable the cooperation of legal and natural persons from EU Member States and acceding countries on concrete projects, and thus the adoption and implementation of proven best practices. The Republic of Serbia participates in 11 Union programmes.
In addition to the above, one of the primary purposes of the IPA instrument is to build administrative capacities for the implementation of funds available after accession to the EU, specifically the European Union’s Cohesion Policy funds. Cohesion policy represents the main investment and development policy of the EU, contributing to the creation of new jobs, the improvement of citizens' quality of life, and the overall economic development of both Member States and the EU as a whole.
It is also important to highlight funds such as the EU Solidarity Fund and the EU Regional Trust Fund in Response to the Syria Crisis (MADAD), which were established as the European Union's response to unpredictable challenges (natural disasters, migrant crisis) and which represent the Union's solidarity in addressing real challenges. The Solidarity Fund provided Serbia with €72 million in direct financial assistance, first for the rehabilitation of the consequences of the 2014 floods, and for the needs of public health protection due to the crisis caused by the COVID-19 virus, while from MADAD the Republic of Serbia received over 44 million euros for improving the management of migration flows.
In addition to the aforementioned instruments, in May 2024, the European Council adopted a regulatory framework for the Western Balkans Growth Plan, which aims to provide the countries of the region with some of the benefits even before formal EU membership, as well as to support the region in implementing reforms for sustainable economic growth, regional integration and a regional Common Market. Through this new financial instrument, the region will be provided with assistance in the amount of six billion euros (two billion euros in grants and four billion euros in soft loans). Support from this instrument will be aligned with the support already received by the region through the existing Instrument for Pre-Accession Assistance (IPA III). There will be a particular focus on sectors that are key to social and economic development, such as transport, decarbonisation, energy, green and digital transitions, as well as education and skills development, with a particular emphasis on youth.
