Instrument for Pre-accession Assistance (IPA) III - Performance

Programme in a nutshell

Concrete examples of achievements (*)

^{(*)  Key achievements in the table state which period they relate to. Some come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.}

^{(1) This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence.}

Budget for 2021-2027

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Rationale and design of the programme

The Instrument for Pre-accession Assistance (IPA) is the means by which the EU has been supporting reforms in the enlargement region with financial and technical assistance since 2007.

Budget

Budget programming (million EUR):

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  Financial programming:
  + EUR 806.1 million (+ 5%)
  compared to the legal basis*

^{* Top-ups pursuant to Article 5 of the multiannual financial framework regulation are excluded from financial programming in this comparison. Financial programming excludes MFA loans provisioning.}

Since the beginning of the current multiannual financial framework, IPA III has been reinforced by EUR 631 million for the support to the refugees and host communities in Türkiye, out of which EUR 71 million and EUR 106 million came from the Heading 6 margin in 2022 and in 2023, respectively, while EUR 454 million came from the special instruments in 2023. On the other hand, EUR 67.6 million was transferred from IPA III to the Solidarity and Emergency Aid Reserve, to DG European Civil Protection and Humanitarian Aid Operations (ECHO) (for the crisis in Afghanistan)⁽⁵⁾, to DG International Partnerships (for technical assistance facilities) and to the European External Action Service (for staff expenditure in delegations).

^{(5) Compensated with the use of assigned revenue originating from recoveries originating from the instrument for pre-accession assistance for rural development.}

Budget performance – implementation

Cumulative implementation rate at the end of 2023 (million EUR) (*):

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Voted budget implementation (million EUR)⁽¹⁾:

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Contribution to horizontal priorities

Green budgeting

Contribution to green budgeting priorities (million EUR):

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Climate mainstreaming

• It is estimated that IPA III measures will contribute EUR 4 billion to climate mainstreaming in 2021-2027, and that IPA III contributed EUR 617 million in 2023.
• IPA III contributes to mainstreaming climate action in the EU’s policies and to achieving an overall target of 30% of EU budget expenditure supporting climate objectives. Measures under IPA III are expected to contribute 18% of the overall financial envelope of the programme to climate objectives, with the objective of increasing this percentage to 20% by 2027.
• Estimates reflect the reporting methodology of the Organisation for Economic Co-operation and Development’s Development Assistance Committee for the Rio markers on climate change mitigation and climate change adaptation. The budget for interventions contributing to climate change is weighted at 100% if mitigation or adaptation is the ‘principal objective’ of the measure and 40% if it is a ‘significant objective’.
• The partial results for 2021-2023 suggests that the evolution of this marker for IPA III is on track in relation to climate mainstreaming. The quality review of 2023 data will be performed during 2024. The Commission is committed to stepping up its efforts to achieve the climate target by the end of the multiannual financial framework.
• In 2023, two measures with climate adaptation and mitigation as a principal objective were adopted, namely the annual action plan in favour of Türkiye (environment and climate change, supporting climate-resilient sustainable agriculture and fisheries in Türkiye in line with European Green Deal objectives and its related policies).
• IPA III supports the beneficiaries in their efforts to align themselves with the climate change and energy package and in the implementation of the external dimension of the European Green Deal. In particular, the measures support the implementation of several priorities of the economic and investment plan for the western Balkans (clean energy, environment, transport) and the green agenda for the western Balkans, especially under thematic window 3 (green agenda and sustainable connectivity) of the IPA III programming framework. A great deal of support in relation to clean energy and smart transport is channelled to the beneficiaries via the Western Balkans Investment Framework, the European Fund for Sustainable Development Plus and the Green for Growth Fund. In Türkiye, the establishment of the Turkey Investment Platform in 2022 will ensure that the country can take advantage of the European Fund for Sustainable Development Plus and that investment is channelled to support the implementation of the Green Deal in Türkiye. 
• In Bosnia and Herzegovina, climate action has been successfully mainstreamed through the EU’s assistance. A successful example is the EU’s support for the preparation of a flood risk management plan in Bosnia and Herzegovina, which contributes to climate change adaptation. This intervention has supported the implementation of the action plan for flood protection and water management and thus increases the capacities of key stakeholders in Bosnia Herzegovina to manage flood risks, including prevention, protection and preparedness to respond to potential hazards, all in relation to the EU integration process.
• In Kosovo, the ‘support to waste management in Kosovo’ project improved the knowledge and skills of authorities and civil society in waste management, the circular economy and inter-municipal cooperation. The introduction of online waste-fee payments and an improved reporting system has increased the number of municipality reports from three in 2018 to 35 in 2022. A total of 36 municipalities adopted waste management plans, and 28 of them also adopted municipal regulations for specific waste streams (organic, bulky, and construction and demolition waste). The first deposit refund system for beverage containers has been established, together with applied measures for reducing the use of plastic bags. This was paired with investment in waste collection and separation. As a result, the number of illegal landfills decreased from 2 246 in 2019 to 747 in 2023. Today, 94% of the population has access to basic waste services, which is 36% more than in 2016.
   

Biodiversity mainstreaming

• It is estimated that IPA III measures will contribute EUR 587 million to biodiversity mainstreaming in the 2021-2027 period, and that they contributed EUR 91.7 million in 2023.
• Estimates reflect the reporting methodology of the Organisation for Economic Co-operation and Development’s Development Assistance Committee for the Rio marker on biodiversity. The budget for interventions contributing to climate change is weighted at 100% if biodiversity is the ‘principal objective’ of the measure and 40% if it is a ‘significant objective’.
• The partial results for 2021-2023 suggest that IPA III is in the early stages of implementation, while the evolution of this marker is on track. The quality review of 2023 data will be performed during 2024. The Commission is committed to stepping up its efforts to achieve the biodiversity target by the end of the multiannual financial framework.
• In 2022 and 2023, two new initiatives with biodiversity as a principal objective were adopted, namely the 2022 annual action plan in favour of Türkiye (environment and climate change) and the 2023 annual action plan in favour of Türkiye (climate resilient and sustainable agriculture and fisheries in the context of the European Green Deal).
• Biodiversity, ecosystem protection and ecosystem restoration are key pillars of the green agenda for the Western Balkans. The thematic window ‘green agenda and sustainable connectivity’ will be the primary entry point for supporting action on ecosystems and biodiversity. However, measures under other thematic windows of the IPA III programming framework, such as the ‘competitiveness and inclusive growth’ window, including the agriculture and rural development priority, will also contribute to biodiversity protection and the management of natural resources, in line with the goals of the European Green Deal. The EU biodiversity strategy for 2030 requires that all EU neighbourhood countries be on board, particularly those aspiring to EU membership. In those countries, which are biodiversity hotspots, specific support is provided to further align legislation with the EU’s acquis, notably the EU birds and habitats directive, and to prepare for the designation of Natura 2000 sites. Technical assistance is targeted at, among other things, supporting the management of protected areas and forestry management. For example, the EU4green project is supporting the preparation of nature and biodiversity data for floodplains in protected areas that are potential Natura 2000 sites in the western Balkans. These sites will serve as an example for other ecologically important habitats to develop nature. Considerable progress has been made in terms of acquis alignment, but challenges remain in ensuring its effective implementation, for instance with respect to illegal logging and the use of environmental impact assessments.
   

Gender

Contribution to gender equality (million EUR) ^(*):

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The initially estimated IPA III contribution to gender mainstreaming in 2023 was EUR 73.4 million through measures with gender equality as a principal objective (2) and EUR 1.2 billion through measures with gender equality as a significant objective (1). Please note that 2023 data are not final and will be quality checked.

Since 2021, 19 measures have been marked as G2, 225 have been marked as G1, and 108 have been marked as G0, which gives a percentage of 69% of measures marked as G1 or G2. In 2023, 18 measures were marked as G2, 88 were marked as G1 and 28 were marked as G0, which gives a percentage of 79% of measures marked as G1 or G2. Please note that data for 2023 are provisional and will be updated in the course of the year.

On 25 November 2020, the gender action plan III (2021-2025), a joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy, was adopted. It defines clear objectives and targets concerning gender mainstreaming in policies and programmes. The plan therefore established that, by 2025, at least 85% of all new external actions should have gender equality and women’s and girls’ empowerment as a significant objective or as a principal objective, and that at least one action with gender equality as a principal objective should be supported in each country and region. Such objectives apply to actions funded under IPA III, as established by recital 27 of the IPA III regulation and the IPA III programming framework. In November 2023, the European Commission and the European External Action Service adopted a joint midterm report on the implementation of the gender action plan III. 

The Commission’s gender expenditure tracking methodology for the EU budget is in line with the Development Assistance Committee’s gender equality policy marker methodology. Score 2 equals G2 and implies that gender equality is principal objective; score 1 equals G1 and implies that gender equality is a significant objective; score 0 equals G0 and means that gender equality is not targeted. The use of the Organisation for Economic Co-operation and Development gender marker is also aligned with the methodology established by the gender action plan III.

1. Making IPA III deliver on the objectives of the gender action plan III

• The gender action plan III has fostered a policy-driven, context-specific approach, in a Team Europe spirit. Country-level implementation plans are in place in six (out of seven) IPA countries. Set up by EU delegations in cooperation with EU Member States and based on meaningful consultations with partners including civil society and women’s rights organisations, they are the political and operational roadmaps for EU action to reach the objectives of the gender action plan III. 

2. Implementation of the gender action plan III by thematic area of engagement

• Combating gender-based violence is a priority for the EU in the western Balkans and Türkiye, where we promote the alignment with the EU acquis and relevant international standards, namely the Istanbul Convention. Many targeted interventions have been adopted or are under preparation to promote legal and policy reforms, changes in social norms and support for survivors. Through the EU–Council of Europe Horizontal Facility for the Western Balkans and Türkiye (EUR 41 million), the EU supports the improvement of access to justice for women victims of gender-based violence and/or domestic violence.
• In the area of sexual and reproductive health and rights, through the EU for improved health, social protection and gender equality programme in North Macedonia (EUR 11 million), the European Commission contributes to the provision of adequate equipment for maternal and neonatal care, training for healthcare professionals and awareness-raising activities to improve access to safe and effective healthcare for women and newborn children.
• Women’s economic and social empowerment is a priority for the Commission. It is key to achieving poverty reduction, inclusive and sustainable growth within the framework of the 2030 Agenda and holds enormous potential for economic growth in our partner countries. The Commission promotes women’s economic empowerment through (a) support for regulatory and policy reforms and practices to tackle the underlying barriers women face in their economic participation; (b) increased investment targeting women’s economic empowerment, such as through the European Fund for Sustainable Development Plus and global gateway investment; and (c) targeted actions supporting increased economic opportunities for women, such as through support for women entrepreneurs and increased access to finance. Through the EU4 mitigating socio-economic consequences of COVID-19 pandemic in Bosnia and Herzegovina programme (EUR 12 million), the European Commission seeks to improve women’s access to finance and to formal employment, in view of, among other things, a future ‘green’ and ‘digital’ economy.
• To promote equal participation and leadership, for example through the annual action plan in favour of Turkey for 2021 (EUR 11 million), the European Commission supported an increase in women’s participation in local decision-making processes for women-friendly cities.
• The EU action plan on women, peace and security was integrated as one of the thematic areas of engagement of the gender action plan III. While, under IPA III, there are currently no actions planned that focus specifically on women, peace and security, the gender perspective is integrated into a number of actions. For example, through the demining action – annual action plan in favour of Kosovo for 2021, the European Commission supports the clearance and release of minefields and cluster-strike areas, improving the protection of women and men civilians as a contribution to public safety and security. Gender equality is integrated through gender analyses in the background section, policy analysis and intervention logic of the action.
• The gender action plan III introduced a new and innovative focus on the promotion of gender equality in the formulation of green transition and digital transformation policies and operations. Through the EU for circular economy and green growth action in Albania, for example (EUR 30.9 million), the European Commission supports the systematic incorporation of a gender lens in the design of a circular economy, ensuring a more active role for women in the ecological transition, including through a comprehensive, gender-responsive and inclusive awareness-raising campaign.
• In Kosovo, gender equality has been successfully mainstreamed through EU assistance. A successful example is the EU’s support for the digital transformation of the economy by improving the digital skills of the workforce. The share of women ICT professionals who successfully completed a high-quality business and management training programme is very high (48.5%). 38.33% of the 1 513 people who obtained in-demand certification in cybersecurity, web application development, Enterprise Java and mobile applications, web development, Python, big-data analytics, machine learning or artificial intelligence are young women.
   

Digital

Contribution to digital transition (million EUR):

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• Since 2021, the IPA III has contributed EUR 960 million to the digital transition, including EUR 286.5 million in 2023. 
• Digitalisation is an indicator of the global Europe results framework level 3 (indicator 3.2), and is reported as such in the annual report on EU external action. The marker has been operational since late 2020, therefore the commitments and payments for 2021 correspond to a complete year. The marker exists for the whole of heading 6 of the budgets, including IPA III. 
• The budget for interventions contributing to digital transformation is weighted at 100% if measures are marked as a ‘principal objective’ or 40% if they are marked as a ‘significant objective’. No quality review has yet been performed. For an action to be considered to relate to digitalisation, the following general considerations must be taken into account.
  • An analysis of the digitalisation context must be conducted to inform future steps and facilitate the identification of the measure’s digital component.
  • After the analysis, the existence of a digitalisation-situation specific objective or result should be identified. It is important to make sure that this objective is backed by at least one indicator from the sector indicator guidance on digitalisation.
  • It should be kept in mind that the data and indicators found in the action document should be disaggregated by sex, age, socioeconomic status and region, where appropriate and applicable. 
  • In 2023, the Commission launched the neighbourhood regional window of the Digital for Development Hub. This hub aims to improve the EU’s and Member States’ coordination on digital issues in the western Balkans, in Türkiye and in other EU neighbourhood countries, with the possible development of Team Europe initiatives in the sector. 
• Since 2021, the Commission has concentrated its efforts on reducing data roaming prices within the western Balkans and the EU. In this context, the following two main milestones were achieved: (1) on 1 October 2023, the voluntary agreement on gradual roaming charges between the EU and the western Balkans, agreed at the 2022 EU–Western Balkans Summit and signed by 38 operators, entered into force; (2) the removal of data roaming within the western Balkans since July 2021. In 2022, the Commission approved two digital infrastructure projects with a value of EUR 45 million in IPA funding within the Western Balkans Investment Framework. This concerns the roll-out of rural broadband in Serbia and the establishment of smart labs in the Albanian education system. 
• In addition, concerning the western Balkans, the Commission is preparing an IPA regional digital programme for adoption in 2024 (EU4digital). This programme will accelerate the digital transition for the whole region, focusing on four main strands: (1) secure and sustainable digital and telecom infrastructure across the region; (2) enhancing the interoperability of public services; (3) digitalising businesses; and (4) developing digital skills.
• The IPA regional cybersecurity programme has been ongoing since 2023, aiming at increasing the cyber resilience of the western Balkans through (1) alignment with EU acquis and international standards; (2) supporting the design of governance frameworks; (3) increasing risk management capacities; and (4) building the capacities of computer security incident response teams.
• In 2023, executed commitment appropriations were adopted with regard to seven measures with digital transformation as a significant objective:
  • the multi-country multiannual action plan on an EU civil-society facility and media programme in favour of the western Balkans and Turkey for 2021-2023;
  • the EU’s contribution to the Western Balkans Investment Framework for 2021-2023;
  • the annual action plan in favour of Türkiye for 2023;
  • the annual action plan in favour of Türkiye (employment, education, social policies, EU support for participation in EU programmes and agencies for 2023 and 2024, environment and climate change, improving road safety in the context of the European Union acquis and the EU road safety strategy, supporting climate resilient sustainable agriculture and fisheries in Türkiye in line with European Green Deal objectives and its related policies).
• Digitalisation and the digital transition are an important part of the common regional market action plan, which aims to create a regional digital area focusing on roaming, digital skills, the digital economy, the recognition of electronic signatures and other forms of electronic identification, and the protection of data. This was the most important part of IPA III’s digital contribution in 2021, 2022 and 2023. Digital has also been recognised as an enabler, and has been integrated as a component in measures across different sectors.
• In Türkiye, through IPA III’s contribution to the third phase of the Horizontal Facility for the Western Balkans and Türkiye, a child-friendly digital citizenship education handbook was produced, and 42 teachers and school administrators from 14 pilot schools were trained on digital citizenship education.
• In Albania, through the support of the third phase of the Horizontal Facility for the Western Balkans and Türkiye, the IT Centre for the Justice Sector produced a roadmap for the development of the new content management interoperability services and a first draft of the interoperability framework for the justice sector of Albania, in line with European Commission for the Efficiency of Justice guidelines, on how to drive change towards cyberjustice. Moreover, in the run-up to the 14 May 2024 local elections, the Central Election Commission launched the Electronic Platform on Financial Monitoring and Reporting to help monitor the financing of political parties and electoral campaigns.

In Kosovo, through the support of the third phase of the Horizontal Facility for the Western Balkans and Türkiye, the Judicial Council finalised its 2024-2029 IT strategic plan, taking into consideration the revised European Commission for the Efficiency of Justice cyberjustice methodology.

Budget performance – outcomes

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• With IPA III, the EU is the largest donor in the enlargement region, generating added value through its substantial financial resources. By the end of December 2023, the Commission had committed (for annual programmes) or earmarked (for multiannual programmes) around EUR 8.68 billion out of EUR 14.162 billion in IPA III funds.
• By the midterm of the multiannual financial framework, IPA III had demonstrated its general effectiveness as a pre-accession instrument and was on track to deliver its main objectives, although it still faced some limitations. This was confirmed by the annual IPA assessment and the midterm evaluation of external financing instruments, conducted in 2023.
• Assistance under IPA III is based on a performance-based approach and a fair-share principle. Assistance is differentiated in scope and intensity according to the performance of the beneficiaries, in particular as regards their commitment and progress in implementing reforms, and also according to their needs. The fair-share principle means that no IPA III beneficiary committed to objectives of the instrument should receive a disproportionally low level of assistance compared to other beneficiaries. Therefore, the selection of actions prioritises their relevance in relation to the EU’s key strategic priorities and their maturity, requiring strong ownership and strategic planning capacity by its beneficiaries on bilateral programming. However, balancing performance assessment with the fair-share principle has limited the financial reward to well-performing beneficiaries, as affirmed by the midterm evaluation of IPA III.
• Based on the IPA III indicators, the overall picture for the western Balkans remains positive.
• The key performance indicator on political criteria in the western Balkans has remained stable compared to 2022. Slight improvements were seen in the indicators on the functioning of the judiciary, the fight against corruption, the fight against organised crime and freedom of expression. Progress was achieved, for example, with the advancement of judicial reforms supported by IPA III in Albania and Serbia. Some efforts were also made to strengthen the fight against corruption, though progress was limited across the western Balkans.
• IPA III support for fundamental rights has contributed to a greater understanding of the importance of guaranteeing these rights and freedoms, but some negative trends have continued, for example in relation to gender-based violence, which remains prevalent.
• For Türkiye, the key performance indicator on political criteria remained stable compared to 2022, and it stills lags behind the value of 2018, confirming the continued backsliding on fundamentals. This in turn continues to impact the level of IPA III assistance, which is limited in the areas of common interest, given that Türkiye continues to move further away from the European Union and that Türkiye’s accession negotiations have effectively come to a standstill.
• The key performance indicator on readiness for public administration reform remained stable from 2022. This was expected given the scale of reforms needed across the administration and the overall time it takes to implement comprehensive administrative reforms. However, as stated in the 2023 enlargement package, enlargement countries remain, overall, at best moderately prepared in terms of quality of their public administration.
• Concerning alignment with the acquis, the indicator is very close to reaching the target for 2027, both in the western Balkans and in Türkiye, which is in line with the funding allocated in 2021-2023 (39%) to IPA III window 2 ‘Good governance, EU acquis alignment, good neighbourly relations and strategic communication’. The value of the indicator ‘Attitude towards the EU: percentage of population with a positive general attitude towards the EU’ has surpassed the milestone value set for 2023, showing the positive trajectory of the main indicators of window 2 for both the western Balkans and Türkiye.
• Regarding the key performance indicator on economic criteria, progress was made in the western Balkans compared to 2022. As the October 2023 Berlin Process Summit confirmed, some progress was made with the common regional market following the signature of the Agreement on the Recognition of Professional Qualifications of Nurses, Veterinary Surgeons, Pharmacists, and Midwives and a number of joint statements relating to regional cooperation. However, as reaffirmed by the 2023 enlargement package, overall progress towards fulfilling the economic accession criteria remained too slow to substantially narrow the economic gap with the EU. The design of IPA III, especially the need to take into account a fair share according to the needs and capacities of the beneficiaries, along with performance, limits the possibility of accelerating the implementation of structural reforms. 
• On this basis, in November 2023, the Commission proposed a complementary financing instrument, the Reform and Growth Facility for the Western Balkans, to accelerate fundamental socioeconomic reforms with a new type of funding and ex ante payment conditionalities.
• The midterm evaluation of external financing instruments, which was conducted in 2023 (along with the final evaluation of the external financing instruments of the previous multiannual financial framework), confirmed that IPA III has been efficient in deploying a mix of methods and tools, including budget support, grants, loans and guarantees to holistically respond to its objectives. This derives from the following developments, among others, which aim to promote socioeconomic development.
  • A substantial proportion of IPA III funding has been allocated to the key enlargement policy priority: the economic and investment plan for the western Balkans. Since the adoption of the plan in October 2020, the Western Balkans Investment Framework has endorsed 59 flagship investments, amounting to EUR 8.9 billion, in key railway, road and waterway interconnections, renewable energy, energy efficiency and power interconnectors, waste and water management, new health and education facilities, digital infrastructure and private-sector development. The EU and bilateral donors contribute EUR 2.6 billion in grants to these investments.
  • Thanks to the European Fund for Sustainable Development Plus guarantee, further support is provided for reconstruction in Türkiye following the 2023 earthquake. Under window 1 of the fund, a framework loan for a total amount of European Investment Bank lending of EUR 400 million has been approved, which is expected to mobilise investment amounting to EUR 1.55 billion. The underlying operations will focus on the rehabilitation, construction and extension of facilities for sanitation and drinking water in the provinces affected by the earthquake in south-eastern Türkiye.
• Following the Russian war of aggression against Ukraine and the earthquakes in Türkiye, the flexibility of IPA III was tested. IPA III demonstrated adaptability and responded well to emerging crises. For example, the 2023 programming exercise for the western Balkans was refocused to address the immediate impact of the war in Ukraine, in order to cushion against increases in energy prices and their impact on vulnerable households and small and medium-sized enterprises, through the preparation and swift payout (90%) of six energy support packages amounting to EUR 450 million in budget support. 
• IPA III exploits synergies and contributes to several cross-cutting priorities at the same time, such as climate and gender.
• IPA III supports the beneficiaries in their efforts to align to the climate change goals. Several priorities of the economic and investment plan for the western Balkans (clean energy, environment, transport), along with the green agenda for the western Balkans, showcase numerous interventions increasing this alignment. EU4green supports Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia in implementing the green agenda. It succeeds in building synergies, encouraging new ideas, improving the quality of decisions, enhancing regulatory reforms and improving monitoring and reporting. Furthermore, evaluations also point out that there is evidence that the EU has been in instrumental in encouraging the development of incentives and instruments for the greening of small and medium-sized enterprises, with an emphasis on energy efficiency and renewable energies, mostly through blending interventions, while also addressing gender.
• As concerns the gender equality target, IPA III has increased the number of actions with gender equality as a principal or a significant objective in the first 2 years of implementation, although more effort is needed to meet the target. Actions under IPA III focus on horizontal priorities. In line with the EU gender action plan III and its key thematic areas of engagement, the European Commission’s efforts in relation to gender equality and women’s empowerment aim to take into account the challenges and opportunities offered by the green transition and the digital transformation. In this sense, actions financed under the IPA III instrument also approach gender equality from an intersecting point of view, by focusing on cross-cutting themes. Through the EU for circular economy and green growth action in Albania (EUR 30.9 million), for example, the Commission supports the systematic incorporation of a gender lens into the design of the circular economy, ensuring a more active role for women in the ecological transition, including through a comprehensive, gender-responsive and inclusive awareness-raising campaign.
• IPA III aims to ensure complementarity and synergies with the various types of programmes it supports. By the end of 2023, the Commission had adopted 2021-2027 IPA rural development programmes for Albania, Montenegro, North Macedonia, Serbia and Türkiye, along with nine cross-border cooperation programmes between western Balkans and IPA III beneficiaries, 10 cross-border cooperation programmes between IPA III beneficiaries and Member States, one transnational cooperation programme and one interregional cooperation programme, which is also available for western Balkan partners. Although implementation is at an early stage, the complementarity will build on the lessons learnt from IPA II.

MFF 2014-2020 – Instrument for Pre-accession Assistance (IPA) II

Prepared in partnership with the beneficiaries, IPA II set a new framework for providing pre-accession assistance for the 2014-2020 period.

IPA is a unique programme that supports IPA beneficiaries in their ambitious political and economic reforms and in their progressive alignment with the European Union's rules, standards, policies and practices on their path towards EU membership. It fosters reforms in candidate and potential candidate countries through a combination of financial assistance and policy dialogue, preparing them for the rights and obligations that come with EU membership.

Budget

Cumulative implementation rate at the end of 2023 (million EUR):

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• As of 31 December 2023, the Commission had implemented 99.4% of the IPA II commitment appropriations and 78% of the payment appropriations. 
• The payment rate is the result of IPA II being first and foremost an investment budget that finances projects that run over a long period of time.
• In average 2.3 years are needed to pay the total costs of legal commitments, less than the internal Commission target of 4 years for external action programmes. The implementation of IPA II payment appropriations is expected at the level of EUR 0.7 billion in 2024 and EUR 0.5 billion in 2025. This should bring the implementation of payment appropriations up to 83.7% of the total 14-20 envelope at the end of 2024 and 87.5% at the end of 2025.
• In 2023, 43.1% of IPA II payments were dedicated to measures in social infrastructure and services and 13.1% to multisector measures.  75.1% were implemented through indirect management, 22.7% through direct management and 2.2% through shared management.
• Finally, 176.6 million of IPA II voted budget appropriations was paid in 2023 under the Facility for Refugees in Turkey, while Member States contributed EUR 112.7 million. 

Performance assessment

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• IPA II is making progress towards achieving its overall objectives despite the large influence of external factors. The Russia’s war of aggression against Ukraine has left a heavy impact on the western Balkans, including on food and energy security, hindering the economic rebound following the COVID-19 pandemic.
• IPA II provided a clearer response to the pre-accession objectives in line with the Enlargement Strategy and its ‘Fundamentals first’ approach. In particular, a substantial portion of the IPA II funds was allocated to the sectors of Democracy and Governance and Rule of Law and Fundamental Rights. This approach made IPA II particularly fit for institution building. 
• The most important novelty of IPA II was its strategic planning focus with Indicative Strategy Papers for each beneficiary for the 7-year period. These planning documents ensured a stronger ownership through integration of beneficiary reform agendas with enlargement priorities. A Multi-Country Strategy Paper addressed priorities for regional cooperation and territorial cooperation. 
• According to evaluations (midterm evaluation of IPA II ( ) in 2017 and the final evaluation of IPA II which was conducted in 2023), IPA II allowed for a more systematic use of sector budget support and gave more weight to performance measurement. It was nevertheless also noted that while the introduction of the sector approach improved the strategic focus of IPA II, there was uneven uptake and implementation among beneficiaries. 
• Regarding the key performance indicator on political criteria in the western Balkans, this has remained stable compared to 2022. Based on the 2023 enlargement reports, progress was achieved, for example with the advancement of judicial reforms in Albania and Serbia. Some efforts were also made to strengthen the fight against corruption, however the progress was limited across the western Balkans.
• On the other hand, the 2023 annual report on Türkiye echoed the findings of previous years on backsliding from the EU values and standards, especially on rule of law and fundamental rights, and a lack of political commitment to implement the reforms necessary for the accession process, which has effectively come to a standstill in 2018, and therefore the EU and Türkiye relations continue on areas of common interest, subject to the conditions set out by the European Council. 
• Regarding alignment with the EU acquis, the western Balkans partners have generally improved their preparations. One of the key EU-funded tools for acquis alignment, the Technical Assistance and Information Exchange Instrument (TAIEX), allows the sharing of EU best practices and supports the alignment of national legislation in all chapters of the acquis. The sector approach promoted structural reforms especially through budget support and helped to transform a given sector and bring it up to EU standards. The cooperation with Member States through twining has also paid an important role. The combination of sector budget support and other forms of assistance has allowed to move towards a more targeted assistance, ensuring efficiency, sustainability and focus on results. Furthermore, progress is made in aligning with EU standards in the agri-food sector via their respective IPA rural development programmes.
• Concerning the indicator on the Cross Border Cooperation (CBC) programmes concluded, this remained stable compared to 2022.  The reason for not achieving the target value is related to the Serbia-Kosovo CBC programme. Despite the agreement on the path to normalisation that was reached last year, the situation has worsened after September 2023, impacting also the aforementioned programme. Of note, through the CBC Bosnia and Herzegovina – Montenegro programme, the project Increasing Capacities to Prevent, Prepare and Respond to Disasters – Resilient Border (EUR 500 000) strengthened capacities for managing risks from natural and other disasters by building training grounds, equipping protection and rescue teams and holding training sessions for members of the cross-border team. In the CBC Kosovo–North Macedonia programme, the CBCEcoKid project (EUR 351 212.72) strengthened the capacity of partner municipalities in enforcing environmental protection standards and values, which led to a reduction in energy costs of up to 30% in financial costs and minimised the impact on climate change. 
• The added value of the 2014-2020 Interreg IPA programmes is significant. These programmes have addressed issues that require both a territorial approach and coordination between all policies and funding instruments so that all go in the same direction. While transnational programmes focus more on ‘soft’ projects (e.g. studies, etc.), the cross-border ones emphasise rather on ‘concrete’ projects.

Contribution to the sustainable development goals