Institutional Preparedness for EU Performance-based Instruments

Tirana, 6 October 2026 | The Reform and Growth Facility (RGF) is changing how the EU finances reforms in the Western Balkans and how governments must deliver them. Readiness for performance-based financing demands effective coordination, realistic priorities, reliable evidence and accountability for measurable results.

This was at the centre of discussions at TCF26 panel, “Readiness under Scrutiny: The Reform and Growth Facility (RGF) and Institutional Preparedness for EU Performance-Based Instruments,” moderated by CDI Executive Director Krisela Hackaj. The discussion brought together Mr. Filip Chaparoski of the Regional School of Public Administration (ReSPA); Ms. EridanaÇano, Director General of the State Agency for Strategic Programming and Aid Coordination (SASPAC) and Albania’s RGF National Coordinator; Mr. Bojan Vujović, National Reform Agenda Coordinator at Montenegro’s Ministry of European Affairs; and Ms. Laima Andrikienė, Member of the European Court of Auditors.

Opening the discussion, Mr. Chaparoski described readiness as “a system, not a checklist,” highlighting five essential dimensions: strategic priorities, institutional coordination, implementation capacity, evidence and verification, and accountability. Performance-based financing, he argued, should become “an accelerator of reform rather than another layer of compliance.”

Albania: building a culture of delivery

The RGF shifts the focus from financing activities to demonstrating verified results. Çano explained that Albania has introduced a clear results chain linking commitments, outcomes, responsible institutions, evidence and deadlines, supported by weekly monitoring to identify delays and implementation risks. “Result-based financing changes not only how reforms are financed, but also how government needs to manage them,” she said.

Under its third reporting package, Albania assessed 38 reform steps as completed, linked to around €215 million in financing. Disbursements from the first two reporting packages and pre-financing had reached €212.8 million.

For Ms. Çano, the key achievement is a stronger delivery culture grounded in political ownership, coordination, transparency and accountability. For the next phase, she called for implementation readiness to be built into reform design from the outset, including clear responsibilities, verification methods, data sources and evidence requirements.

Montenegro: linking reform delivery to accession

For Montenegro, the RGF has reinforced the country’s EU accession process, particularly efforts to close negotiating chapters. Mr. Vujović said many RGF reform steps overlap with accession benchmarks, creating an additional incentive for institutions to deliver.

Vujović highlighted the country’s initial €383 million allocation and approximately €90 million received, alongside five identified Western Balkans Investment Framework projects in energy, education infrastructure and digitalization.

He stressed that ministries must own the reforms, while coordinators can support implementation and communication with the European Commission. He also noted that institutions are still adapting to the facility’s financing model, under which activities are financed from national budgets before EU payments are made as a reward for verified performance.

Infrastructure delivery project maturity and impact remain challenges

Joining online, European Court of Auditors member Ms. Andrikienė noted that the Court has not yet audited the RGF itself. However, its June 2026 report on the WBIF is directly relevant, as at least half of RGF resources are expected to flow through that framework.

Drawing on the Court’s audit, she said many projects had been approved before reaching sufficient maturity. Projects typically began around 17 months later than planned, with further delays often exceeding two years. The audit found examples of completed infrastructure that could not yet deliver benefits because connecting sections remained unfinished. Based on implementation delays, weak project preparation and operational difficulties, the Court concluded that the region’s goal of completing the core Trans-European Transport Network by 2030 is unlikely to be met.

Ms. Andrikienė also stressed that indicators must measure real impact, not only formal milestones. Governments should demonstrate whether laws are implemented, infrastructure improves connectivity and reforms produce lasting institutional change. She called for clearer guidance on how “satisfactory fulfilment” of payment conditions is assessed, particularly where fulfilment is partial. “The Western Balkans need reforms that work and infrastructure that connects people, markets and opportunities—not more paperwork or infrastructure that exists only on paper,” she added.

Preparing for the next EU financing cycle

Looking towards the proposed Global Europe instrument for the post-2027 EU budget, panelists called for a simpler, more predictable framework connecting reform, investment, technical assistance and measurable results.

Ms. Çano said the next instrument should be designed as an accession-delivery instrument, allowing candidate countries to follow one clear pathway from national priorities to EU accession priorities. Flexibility should be combined with clear results, credible assurances and multiannual predictability.

Mr. Vujović said Montenegro is preparing for a possible transition towards cohesion policy funding by strengthening strategic planning, investment preparation and institutional capacity. He advised other countries to begin inclusive planning processes early.

Oversight and Transparency as part of readiness

The discussion also underscored the role of civil society, local authorities, academia, social partners and businesses in monitoring reforms, improving priorities and strengthening public trust.

Concluding the panel, Ms. Hackaj emphasised that CDI will continue to monitor the implementation of the RGF in Albania through its regular reporting and the Reform Tracker and is working on the third monitoring report to be published soon. The platform provides updated information on progress across policy areas, absorption capacity and reforms requiring particular attention, helping to keep implementation transparent and accountable.