EU eyes €1.5bn funding freeze as Serbia’s rule of law problems deepen

Serbia faces the risk of losing up to €1.5 billion in EU funding, as the European Commission is considering suspending financial support over concerns about democratic backsliding and the country’s close ties with Russia.

Although not an EU member, Serbia has been eligible for financial assistance since opening accession talks in 2014, aimed at supporting legal and institutional reforms.

A decision to halt payments would complicate the bloc’s enlargement agenda at a time when countries such as Ukraine and Montenegro are pushing forward, while some member states, including France, call for a more cautious approach.

“We are increasingly concerned about what is happening in Serbia,” Enlargement Commissioner Marta Kos told Politico, citing legislation undermining judicial independence, repression of protesters, and continued pressure on independent media.

The Commission is currently assessing whether Serbia still meets the conditions required for disbursements under EU financial instruments, Kos added.

Last month, Serbia came under renewed scrutiny over reports of violence and irregularities during local elections, as well as a police operation at a university that led to clashes with students.

According to EU officials, these developments, combined with continued cooperation with Moscow, have marked a turning point in relations between Brussels and Belgrade, prompting a more assertive EU stance.

“As a candidate country, we expect Serbia to align with our foreign policy and move closer to our positions,” Kos said, without explicitly mentioning Russia.

Pressure has reportedly been mounting within the Commission in recent weeks to suspend funding, according to EU officials involved in enlargement policy. Brussels has already criticised judicial reforms promoted by President Aleksandar Vučić, whose government is facing sustained protests.

Serbia’s ambassador to the EU and chief negotiator, Danijel Apostolović, said he remains “confident that it will not come to that” and insisted that Belgrade remains committed to full EU membership. He added that talks with the Commission are ongoing.

The recently adopted package of judicial laws, which alters the appointment of judges and prosecutors, represents a “serious step backwards”, Kos warned when it was introduced.

The Council of Europe’s Venice Commission is expected to issue an opinion on the controversial reforms later this month. According to EU sources, its findings could trigger a decision to freeze funding.

Kos said she would insist that Serbia align its judicial legislation with the Venice Commission’s recommendations, while Belgrade has indicated it will comply once the opinion is delivered.

MEPs call for urgent EU action

Members of the European Parliament are also raising alarm over what they describe as a rapid deterioration of the rule of law, democratic standards, and fundamental rights in Serbia, urging the European Commission to act “with urgency and clarity”.

In a letter addressed to Commission President Ursula von der Leyen and the College of Commissioners, MEPs Vladimir Prebilič (Greens/EFA) and Sandro Gozi (Renew Europe) warn that recent developments mark a significant escalation in the erosion of democratic norms.

Particular concern is expressed over police actions at the University of Belgrade, including searches, the seizure of internal documents, and the public targeting of Rector Vladan Đokić — moves the MEPs describe as an attempt to intimidate academic institutions and silence critical voices.

Police action at Belgrade University: Vučić vows students will face defeat in upcoming elections

“The autonomy of universities, due process, and the rule of law are not optional in a candidate country,” the letter states. “What we are witnessing is deeply incompatible with European standards.”

The MEPs also condemn remarks by Serbia’s Minister of Information and Telecommunications, Boris Bratina, who suggested that police should use lethal force against students, calling it “a grave incitement to violence” and urging his resignation.

They express support for Rector Đokić and the student movement, describing their demands for accountability, transparency, and democratic standards as legitimate.

Police action at Belgrade University: Vučić vows students will face defeat in upcoming elections

Looking ahead, the signatories argue that the only credible path forward is the organisation of free and fair snap elections, stressing that such a vote cannot take place under current conditions.

They call on the Commission to take a firmer stance, including suspending EU funding until concrete and verifiable reforms are implemented, particularly regarding the voter registry and the functioning of the Regulatory Authority for Electronic Media (REM).

“A clear, firm, and urgent response is required,” the letter concludes, “to uphold European values and to support Serbian citizens in their pursuit of democracy and the rule of law.”

Balancing Brussels and Moscow

The EU remains Serbia’s largest donor, providing more than €586 million in grants between 2021 and 2024, with up to €1.5 billion in additional funding available subject to reforms. Since 2000, Serbia has received over €7 billion in EU funding and investment, according to government figures.

At the same time, Belgrade has long pursued a delicate balancing act between Brussels and Moscow, maintaining close relations with Russia while benefiting from EU support.

Sofija Todorović, head of the human rights organisation YIHR, warned that media freedom and the rule of law in Serbia are being “artificially sustained”, pointing to pressure on journalists and urging the EU to act “before near-total darkness sets in”.

EU patience with Serbia has been wearing thin in recent months. A critical report in November flagged regression on reforms and “anti-EU rhetoric” at the highest political level.

Tensions escalated further in December when Vučić skipped an EU – Western Balkans summit. The Serbian president, who has maintained close ties with Moscow during the war in Ukraine, has also criticised the slow pace of accession talks.

In February, Vučić suggested Serbia would favour deeper economic integration with the EU, including access to the single market, over full membership, an idea rejected by Kos, who stressed that such arrangements would still require substantial reforms.

Serbia signals openness to EU accession without veto rights

Sources: Politico, BGNES, Reuters, Democrats.eu

Caption: European Commissioner for Enlargement Marta Kos speaks during a press conference with the Serbian prime minister following their meeting in Belgrade, Serbia, 29 April 2025. Marta Kos is on an official visit to Serbia. EPA/ANDREJ CUKIC