The European Union is seriously considering suspending or sharply reducing its financial assistance to Serbia. The package in question amounts to up to €1.6 billion in grants and loans under the Reform and Growth Plan for the Western Balkans. The main reason is the controversial judicial amendments that Brussels views as undermining judicial independence and weakening confidence in Belgrade’s European course.
EU Commissioner for Enlargement Marta Kos has repeatedly stressed that the new laws “destroy trust” and make it harder to defend Serbia’s interests within the EU. The Commission is already revising the conditions for allocating funds, which directly depend on progress in upholding the rule of law.
In January 2026, the Serbian Parliament and President Aleksandar Vučić adopted and signed a package of amendments to laws on courts and prosecution — the so‑called Mrdić laws. Critics, including judges and prosecutors themselves, claim the changes strengthen the influence of the executive branch and court leadership over ordinary judges, thereby reducing the judiciary’s independence.
The European Commission described the reform as “a step backward.” Several EU member states — including Scandinavia, the Baltic countries, and the Netherlands — have, in closed‑door meetings, called for a complete suspension of payments if the laws remain in force without taking into account the opinion of the Venice Commission, expected in June 2026. France and Italy have advocated a softer approach.
Losing European funding would deliver a serious blow to Serbia. The money supports investments in infrastructure, energy, environmental projects, and preparations for EU accession. Beyond judicial reform, Brussels also voices concern over the state of democracy, the fight against corruption, and Serbia’s limited alignment with sanctions against Russia.
In Serbia, the reforms have sparked mass protests among judges and criticism from the opposition. The government insists the changes are aimed at improving the efficiency of the judicial system.
A final decision has yet to be made. The European Commission awaits Belgrade’s response to the forthcoming opinion of the Venice Commission and may suspend the disputed provisions depending on the outcome.