Brussels, (MINA-BUSINESS) – According to a new report by the CEE Bankwatch Network, the majority of funds from the European Union’s energy crisis package cannot be traced. 

 

“Only €163 million of the European Commission’s €1 billion emergency funding can be shown to have contributed to tackling the root causes of the energy crisis and advancing the Green Agenda for the Western Balkans,” states the report, which was published today.

 

More than two years after the lion’s share of the funds were disbursed, most spending and results still cannot be traced using publicly available sources.

 

“Announced in November 2022, the EU Energy Support Package for the Western Balkans aimed to mitigate the immediate effects of the energy crisis and accelerate the energy transition. €500 million was to be disbursed by the Western Balkans Investment Framework (WBIF), and the other half consisted of budget support to assist vulnerable families and small businesses,” CEE Bankwatch Network stated in a press release.

 

The press release reads that 90 per cent of the budget support funds were transferred between February and May 2023, with the remainder to be disbursed on completion of Action Plans. 

 

Tracking was to be based on indicators, not spending .The Commission published ‘indicative’ plans in 2022, but the finally adopted versions for Albania, Bosnia and Herzegovina, Kosovo and North Macedonia do not seem to be available online.

“Short-term subsidies for energy bills dominated the draft plans, with unclear results. In Albania, the support only covered existing schemes, while Montenegro and Serbia provided one-time payments with no long-term effect. North Macedonia subsidized all household electricity bills through transfers to state-owned utility ESM, instead of targeting vulnerable consumers,” the press release states.

 

Montenegro and Serbia also included ‘energy security’ measures in their Action Plans, including direct fossil fuel subsidies via the purchase of oil stocks.

 

All the countries planned incentives for insulation, efficient heating devices and/or small-scale renewable installations, but only Bosnia and Herzegovina and Kosovo published significant information on their progress. 

 

“Out of the €500 million budget support, Bankwatch was only able to confirm €41.1 million as contributing to a sustainable energy transition,” the press release reads.

 

According to, Pippa Gallop, Southeast Europe energy policy officer at Bankwatch, the lack of public information on the EU’s energy crisis package for the Western Balkans is beyond comprehension. 

 

“Hastily set up indicator-based funds are becoming the Commission’s modus operandi in the region, but without coherent spending plans, public consultations, regular progress updates and accountability, billions of euros of public funds risk being wasted,” said Gallop.

 

Davor Pehchevski, Balkan energy coordinator at Bankwatch, believes that the main energy crisis passed long ago, so it’s high time for the governments and the Commission to answer the billion euro question: what has been done and what has it achieved? 

 

“In a region known for its nepotism and corruption, it’s unbelievable that so much money was disbursed upfront, with so few conditions attached. We expect a thorough evaluation of the Package to be carried out as soon as possible, involving all relevant actors, and the results to be made publicly available,” said Pehchevski.