Finance
EU reconsidering funds for Serbia as justice laws 'eroding trust'
Published by Global Banking & Finance Review®
Posted on February 13, 2026
2 min readLast updated: February 13, 2026
Quick Summary
The EU may withhold 1.6 billion euros from Serbia due to judicial reforms that erode trust in the rule of law, impacting Serbia's EU membership bid.
EU May Reassess Financial Support for Serbia Amid Trust Issues
Concerns Over Serbia's Judicial Reforms
By Edward McAllister
Impact of Reforms on EU Relations
BELGRADE, Feb 13 (Reuters) - The European Union could withhold funds from a 1.6 billion euro allocation of loans and grants to Serbia, after Belgrade passed laws that are "eroding trust" in its commitment to the rule of law, the bloc's enlargement commissioner said.
Response from Serbian Government
Reforms to centralise the judiciary that came into force this week brought criticism from judges and prosecutors who see them as bolstering President Aleksandar Vucic's hold on power, weakening the fight against organised crime and undermining Serbia's bid to join the EU.
Future Steps and Expectations
“These amendments are eroding trust. It is becoming harder for those in Brussels who are willing to advance with Serbia to make their case," EU enlargement commissioner Marta Kos said in emailed comments to Reuters late on Thursday.
Kos said the commission was reviewing funding for Serbia under the EU Growth Plan for the Western Balkans, aimed at aligning the region to EU rules and ultimately bringing countries such as Serbia into the bloc. Serbia was allocated 1.6 billion euros of loans and grants under the programme.
"These (funds) contain preconditions linked to the rule of law," she said.
Serbia began official talks to join the EU in 2014 but widespread corruption and weak institutions have slowed progress.
The judicial reforms include limiting the mandate of chief public prosecutors and granting court presidents - responsible for court administration - greater powers over judges. Critics fear the reforms will erode judges' independence and jeopardise high-level corruption cases overseen by the Public Prosecutor’s Office for Organised Crime.
The government did not immediately respond to a request for comment on Friday. The justice ministry has said that the new laws will make the judiciary more efficient by streamlining the decision-making process.
Since the backlash, Serbia has requested the opinion of the Venice Commission, a panel of constitutional law experts of the Council of Europe, a human rights body.
"Once that opinion is issued, we expect these laws to be revised accordingly and in an inclusive manner," Kos said.
(Reporting by Edward McAllisterEditing by Peter Graff)
Key Takeaways
- •EU may withhold 1.6 billion euros from Serbia.
- •Judicial reforms in Serbia erode trust in rule of law.
- •Reforms criticized for centralizing judiciary power.
- •EU reviewing Serbia's funding under Growth Plan.
- •Serbia seeks Venice Commission's opinion on reforms.
Frequently Asked Questions about EU reconsidering funds for Serbia as justice laws 'eroding trust'
1What are judicial reforms?
Judicial reforms are changes made to improve the efficiency, fairness, and independence of a country's judicial system, often aimed at enhancing the rule of law and access to justice.
2What is the rule of law?
The rule of law is the principle that all individuals and institutions are accountable to the law, which is fairly applied and enforced, ensuring justice and equality.
3What is the EU Growth Plan for the Western Balkans?
The EU Growth Plan for the Western Balkans is an initiative aimed at providing financial assistance and support to countries in the region to help them align with EU standards and facilitate their integration.
