Granted candidate status in 2012, Serbia is now the largest beneficiary of EU funds via the Instrument of Pre-Accession Assistance III (IPA III) in the Western Balkan region. While IPA funds are allocated in line with European Union priorities, such as the Green Deal, the rule of law, fundamental freedoms, and administrative oversight, in order to forge closer ties with the EU for potential accession, there is ultimately no assurance of an outcome of EU membership. Furthermore, the complexity and technical nature of IPA funds means that many people in Serbia view EU funds as a way of subsidising and perpetuating the existing regime. IPA funds also lack a strong element of conditionality and despite Serbia’s persistent backsliding in the areas of democracy, the rule of law and human rights, the EU has not reduced the funding provided to this country.

The report primarily investigates the use of the instrument for pre-accession to the European Union. The IPA is a tool which is designed to streamline accession, bolster regional stability, stimulate reform, and foster collaboration, all the while reinforcing the core values and standards of the European Union in accession countries. 

Through seven case studies, this report explores the effectiveness, use, visibility and monitoring of EU funds in Serbia.