Serbia risks losing €1.5B in EU funds over democratic backsliding

The European Union warned Serbia on Monday that it could lose access to approximately 1.5 billion euros in development funding if the country does not halt democratic backsliding, according to EU Enlargement Commissioner Marta Kos. International observers documented violence and irregularities during municipal elections in 10 Serbian towns last month, prompting the warning to Serbian lawmakers in Brussels.

The withholding threat signals the EU’s intensified efforts to integrate Western Balkan nations following Russia’s 2022 invasion of Ukraine, reflecting Brussels’ concern that Moscow could destabilize the region. Serbia’s access to the funds depends on continued compliance with EU democratic standards.

Kos told EU lawmakers that the European Commission is “assessing whether the country still fulfills the conditions for payments under the EU’s financial instruments.”

The Commission’s Assessment

The commission’s concerns span what Kos described as “laws that undermine the independence of the judiciary, to crackdowns on protesters and recurrent meddling in independent media.”

The EU’s intensified scrutiny reflects Brussels’ focus on integrating Western Balkan nations since Russia’s full-scale invasion of Ukraine in February 2022. The union fears Moscow could destabilize the region, making Serbia’s compliance critical to the bloc’s strategic interests.

Conditional Support

Serbia qualifies for the funding as part of an EU program to promote growth in nations working toward bloc membership if they implement reforms. The country has received 110 million euros to date, but approximately 1.5 billion euros remains conditional on continued democratic compliance.

A Balancing Act

Serbian President Aleksandar Vucic claims he seeks EU membership, but has maintained close relations with Russia. He attended Russia’s Victory Day parade alongside President Vladimir Putin last year, defying EU warnings.

Democracy Under Review

The EU’s Venice Commission, Europe’s leading body on democracy and constitutional affairs, visited Serbia last month to assess concerns raised by the country’s parliamentary leadership. The commission is expected to issue an “urgent opinion” based on its findings in the coming weeks.

Kos said Brussels expects Serbia “to fully align its judicial laws with the Venice Commission’s recommendations and to restore the independence of its media.”

“Serbia has to deliver,” she said.