COMMISSION STAFF WORKING DOCUMENT KosovoFMT:Style_footnote reference,Superscript,Style>*_x0009_This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence. 2022 Report Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 2022 Communication on EU Enlargement policy

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EUROPEAN
COMMISSION
Brussels, 12.10.2022
SWD(2022) 334 final
COMMISSION STAFF WORKING DOCUMENT
Kosovo* 2022 Report
Accompanying the document
Communication from the Commission to the European Parliament, the Council, the
European Economic and Social Committee and the Committee of the Regions
2022 Communication on EU Enlargement policy
{COM(2022) 528 final} - {SWD(2022) 332 final} - {SWD(2022) 333 final} -
{SWD(2022) 335 final} - {SWD(2022) 336 final} - {SWD(2022) 337 final} -
{SWD(2022) 338 final}
*
This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and
the ICJ Opinion on the Kosovo declaration of independence.
Offentligt
KOM (2022) 0528 - SWD-dokument
Europaudvalget 2022
1
COMMISSION STAFF WORKING DOCUMENT
Kosovo* 2022 Report
Accompanying the document
Communication from the Commission to the European Parliament, the Council, the
European Economic and Social Committee and the Committee of the Regions
2022 Communication on EU Enlargement policy
*
This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion
on the Kosovo declaration of independence.
2
1. INTRODUCTION.................................................................................................................4
1.1. CONTEXT .....................................................................................................................4
1.2. SUMMARY OF THE REPORT ..................................................................................4
CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS .....................7
2.1. FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION
REFORM...................................................................................................................7
2.1.1 Democracy....................................................................................................7
2.1.2 Public administration reform ......................................................................11
Chapter 23 - Judiciary and fundamental rights.........................................................16
Chapter 24 - Justice, freedom and security...............................................................42
2.3. ECONOMIC DEVELOPMENT AND COMPETITIVENESS ...................................................59
2.3.1. The existence of a functioning market economy............................................60
2.3.2. The capacity to cope with competitive pressure and market forces within the
Union ..........................................................................................................67
2.4. PUBLIC PROCUREMENT, STATISTICS AND FINANCIAL CONTROL .................................70
Chapter 5 - Public procurement................................................................................70
Chapter 18 - Statistics...............................................................................................72
Chapter 32 - Financial control ..................................................................................74
3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION...........77
4. NORMALISATION OF RELATIONS BETWEEN KOSOVO AND SERBIA...........79
5. EUROPEAN STANDARDS...............................................................................................80
CLUSTER 2: INTERNAL MARKET ........................................................................................80
Chapter 1 - Free movement of goods........................................................................80
Chapter 2 - Freedom of movements for workers......................................................82
Chapter 3 - Right of establishment and freedom to provide services.......................82
Chapter 4 - Free movement of capital ......................................................................83
Chapter 6 - Company law .........................................................................................84
Chapter 7 - Intellectual property law ........................................................................85
Chapter 8 - Competition policy ................................................................................87
Chapter 9 - Financial services...................................................................................88
Chapter 28 - Consumer and Health Protection .........................................................90
3
CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH ................................................93
Chapter 10 – Digital transformation and media........................................................93
Chapter 16 - Taxation ...............................................................................................94
Chapter 17 - Economic and monetary policy ...........................................................96
Chapter 19 - Social policy and employment.............................................................98
Chapter 20 - Enterprise and industrial policy.........................................................100
Chapter 25 - Science and research..........................................................................102
Chapter 26 - Education and culture ........................................................................103
Chapter 29 - Customs Union ..................................................................................106
CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY............................107
Chapter 14 - Transport policy.................................................................................108
Chapter 15 - Energy...............................................................................................109
Chapter 21 - Trans-European Networks .................................................................112
Chapter 27 - Environment and climate change.......................................................113
CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION ................................................116
Chapter 11 - Agriculture and rural development...................................................116
Chapter 12 - Food safety, veterinary and phytosanitary policy..............................117
Chapter 13 - Fisheries.............................................................................................118
Chapter 22 - Regional policy and coordination of structural instruments..............119
CLUSTER 6: EXTERNAL RELATIONS .................................................................................120
Chapter 30 - External relations ...............................................................................120
ANNEX I – RELATIONS BETWEEN THE EU AND KOSOVO...................................123
4
1. INTRODUCTION
1.1. CONTEXT
The EU-Kosovo Stabilisation and Association Agreement (SAA) has been in force since April
2016. A second phase of the European Reform Agenda was adopted in October 2021 to further
guide the implementation of EU-related reforms under the SAA framework. The authorities
continued to demonstrate visibly their commitment to Kosovo’s European path.
The Commission’s proposal to lift visa requirements for Kosovo citizens is still pending
in the Council. The Commission maintains its assessment from July 2018 that Kosovo
has fulfilled all visa liberalisation benchmarks. The European Parliament reconfirmed its support
for the Commission’s proposal for visa liberalisation.
The EU-facilitated dialogue on the normalisation of relations between Kosovo and Serbia
continued with meetings at leaders’ and chief negotiators’ level.
The COVID-19 pandemic continued throughout the reporting period. The public health
containment measures and other restrictions introduced to limit the severity of the pandemic
were lifted in May 2022. During the reporting period, Kosovo adopted two fiscal packages in
order to mitigate the severe economic and social impact of the
crisis.
After Russia’s invasion of Ukraine began at the end of February 2022, Kosovo immediately
condemned Russia’s war of aggression and expressed support for Ukraine’s independence,
sovereignty and territorial integrity. The government adopted several packages of restrictive
measures against Russia and Belarus, mirroring the measures imposed by the EU and the United
States. The government also responded to the refugee crisis, suspending its visa regime for
citizens of Ukraine. Kosovo declared its readiness to accept up to 5 000 refugees and to host 20
Ukrainian journalists.
1.2. SUMMARY OF THE REPORT1
The reporting period overlapped with the first full year in office of the Vetëvendosje-led
government. Kosovo enjoyed political stability, with the government holding a solid majority in
the Assembly.
The Assembly’s work continued to be negatively affected by a polarised political atmosphere
and difficulties in achieving decision-making quorum, even though the government relies on a
strong majority. This is partly due to poor management of the legislative agenda on the part of
the majority but also because opposition members of the Assembly (MPs) abstained from voting
to prevent legislation from being adopted.
1
This report covers the period from June 2021 to June 2022. It is based on input from a variety of sources, including
contributions from the government of Kosovo, and EU Member States, European Parliament reports and
information from various international and non-governmental organisations. This also includes the results of
comparative assessments and indices produced by other stakeholders, in particular on rule of law.
The report uses the following assessment scales to describe the state of play: early stage, some level of preparation,
moderately prepared, good level of preparation and well advanced. To describe progress made during the reporting
period, it uses the following scale: backsliding, no progress, limited progress, some progress, good progress, and
very good progress. Where appropriate, also interim steps have been used.
5
The 2021 municipal elections were overall well-organised, transparent and competitive.
Kosovo’s electoral process still needs comprehensive strengthening to address long-standing
weaknesses throughout the electoral cycle, as identified in successive EU election observation
missions since 2014.
The situation in the north of Kosovo remains challenging, in particular in terms of corruption,
organised crime, and the conditions for freedom of expression.
There is some level of preparation in the area of public administration reform, but limited
progress was made in this area. Notably, some key positive steps were taken by developing
overarching strategies on public administration reform (PAR) and public finance management
(PFM) for 2022-2026, adopting legislation to proceed with the first wave of streamlining of
public agencies and launching the development of a new salary law. There has been little
progress in implementing the existing legislative framework for public administration reform.
Kosovo is still at an early stage in developing a well-functioning judicial system. While some
progress was made, the overall administration of justice continues to be slow, inefficient and
vulnerable to undue influence. Steps were taken to start implementing the rule of law strategy
and action plan and to reform the legislative framework governing the prosecutorial system by
amending the Law on the Kosovo Prosecutorial Council. Justice reform should be addressed first
and foremost by improving the implementation of existing tools to safeguard the integrity, the
independence and the efficiency of the judicial system. The government’s commitment to fully
implement the Venice Commission’s Opinion on the concept document on vetting of judges and
prosecutors, in close cooperation with the EU, is welcome.
Kosovo is at an early stage / has some level of preparation in the fight against corruption.
During the reporting period, some progress was made with the adoption of significant anti-
corruption legislation. There is a need to improve the implementation of the overall legal
framework. Sustained efforts are needed to achieve more proactive investigations, final court
decisions and final confiscation of assets. Despite the efforts already made, there is a need for
strong political will to continue to effectively address systemic corruption risks and a robust
criminal justice response to high-level corruption.
Kosovo is at an early stage in the fight against organised crime and limited progress
was made in investigating and prosecuting organised crime cases. The powerful tools envisaged
by the Criminal Code and the Law on Extended Powers of Confiscation are not yet fully utilised.
A number of successful operations targeting organised crime took place, involving international
and cross-border cooperation. Fighting organised crime in the north of Kosovo continues to be
challenging.
Some progress was made in the fight against terrorism and the fight against and prevention of
violent extremism, in line with the objectives set out in the EU-Kosovo implementing
arrangement for the Joint Action Plan on Counter-Terrorism for the Western Balkans. The
Kosovo authorities need to be more effective in their efforts to combat money laundering and the
applicable law should be brought in line with the EU acquis and international standards. The
legal framework broadly guarantees the protection of human and fundamental rights in
line with European standards. Kosovo showed commitment to addressing gender inequality.
More needs to be done to effectively guarantee the rights of persons belonging to
6
minorities, including Roma2
and Ashkali and displaced persons, to ensure gender equality in
practice, and to advance the protection of cultural heritage. The lack of administrative
instructions to implement the law on child protection hampers further progress in this area. As
regards freedom of expression, Kosovo has some level of preparation and benefits from a
pluralistic and lively media environment. However, concerns remain regarding public smear
campaigns, threats and physical attacks on journalists. The lack of financial self-sustainability
leaves the media, including the public broadcaster, vulnerable to political and business interests.
The Kosovo authorities continued to make progress in managing migration. Migration
governance and asylum should be further strengthened.
Kosovo made some progress on the economic criteria, and is at an early stage
of developing a functioning market economy. The economy demonstrated resilience during the
pandemic. Nevertheless, long-standing structural challenges, such as the widespread informal
economy, the high prevalence of corruption and the overall weak rule of law, continue to hinder
the private sector.
While the fiscal rule has been suspended since 2020, the economic recovery as well as
formalisation gains led to a strong increase in tax revenue and a low public deficit in 2021.
Driven by surging commodity prices, inflation increased substantially. The financial sector
remained stable, and lending continued to expand. Despite strong political opposition, the
government took fiscally prudent positions regarding war veterans’ pensions and the Kosovo
Pension Savings Trust.
Kosovo made limited progress and is at an early stage in terms of ability to cope with
competitive pressure and market forces in the EU. Little progress was made on improving
the quality of education and addressing skill gaps in the labour market. Kosovo made some
progress in improving road infrastructure and increasing investment in renewables, but the
coal-based, outdated and unreliable energy supply remains a concern. Kosovo still lacks a long-
term energy strategy. Kosovo made some progress in digitalising the economy.
As regards good neighbourly relations and regional cooperation, Kosovo continued to
participate in most regional fora. Kosovo maintained overall good relations with Albania,
Montenegro and North Macedonia. There has been no change in Kosovo’s formal relations
with Bosnia and Herzegovina, which does not recognise Kosovo’s independence and the two
maintain a strict visa regime.
The EU-facilitated Dialogue on the normalisation of relations with Serbia continued with regular
monthly meetings on the level of Chief Negotiators and a High-level meeting on 18 August
2022. The Parties adopted an Energy Agreements’ Implementation Roadmap in June 2022 and
agreed on travel with only identity cards between Kosovo and Serbia in August 2022. Kosovo
needs to engage more constructively and make further substantial efforts on the implementation
of all past agreements and contribute to reaching a comprehensive legally binding normalisation
agreement with Serbia. Such an agreement is urgent and crucial to enable Kosovo and Serbia to
advance on their respective European paths.
2
All these groups are considered under the wider ‘’Roma‘’ umbrella term under the EU framework for National
Roma Integration Strategies.
7
During the reporting period some progress was made in aligning with European standards in the
area of statistics and financial control, while limited progress was achieved in aligning with
European standards in the areas of public procurement. In most of the areas related to the internal
market, Kosovo has some level of preparation, including on competition. During the reporting
period, Kosovo made some progress in all areas, except on consumer policy and health
protection, where only limited progress was made.
Kosovo made some progress in the areas of competitiveness and inclusive growth (customs,
taxation, economic and monetary policy, digital transformation and media, enterprise and
industrial policy, social policy and employment, education and culture) and limited progress in
the area of research.
On the Green Agenda for the Western Balkans and sustainable connectivity, Kosovo made some
progress in the area of transport and limited progress in the areas of energy, environment and
climate change. In the field of resources and agriculture, Kosovo made some progress on food
safety, veterinary policy and phytosanitary policy, but only limited progress on agriculture.
On external relations and trade policy, Kosovo made limited progress during the reporting period
and is at an early stage of preparation. Kosovo has not yet ratified the Central European Free
Trade Agreement’s additional protocols on trade facilitation and trade in services. Kosovo
introduced export restrictions on a number of agricultural food products without justifications or
prior consultation with the Commission.
Overall, Kosovo needs to improve its administrative capacity and coordination, across all
sectors, to achieve effective implementation of the EU acquis.
CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS
2.1. FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM
2.1.1 Democracy
The reporting period overlapped with the first full year in office of the Vetëvendosje-led
government. Kosovo enjoyed political stability, with the government holding a solid majority in
the Assembly. This political enviroment has been conducive to Kosovo stepping up its efforts to
strenghten democracy and the rule of law, to fight corruption and to intensify legislative
activities, including on EU-related reforms.
Opposition parties generally remained actively engaged in the Assembly, and on some occasions
supported key EU-related legislation. However, a frequent lack of quorum in the Assembly and
boycotts by opposition parties caused delays in adopting key laws.
In autumn 2021 Kosovo held regular local elections. Despite shortcomings, the elections were
overall well-administered and transparent. They were also competitive, except in Kosovo Serb
areas. Women remain under-represented at all levels of participation and decision-making: in
political parties, electoral administration, as well as central and local assemblies.
8
Elections
The 2021 municipal elections were overall well-organised, transparent and competitive. The
campaign was vibrant, and a plurality of contestants offered voters a real choice, with the
exception of the Kosovo-Serb municipalities, where political competition was limited. The very
low number of women in mayoral races reflects low female political participation in Kosovo.
Kosovo should address long-standing weaknesses, as identified by successive EU election
observation missions since 2014. Kosovo should implement all the recommendations, in
particular regarding procedural shortcomings and disproportionate restrictions that contradict
international standards. The Assembly established an ad hoc committee to address these
recommendations. Key recommendations should be implemented well in advance of the next
elections. The new electoral legislation should contain safeguards that limit political interference
in the electoral process.
Kosovo held regular mayoral and municipal assembly elections on 17 October 2021 in all 38
municipalities, and 21 mayoral election run-offs on 14 November 2021. Elections were assessed
by observers as well-administered and competitive, while the election campaign was peaceful.
Vote counting and the tabulation of results were assessed as transparent, yet the process was
lengthy and marred by significant weaknesses.
In the first round, 17 out of 38 mayors were elected. The run-off mayoral elections took place
four weeks later in the remaining 21 municipalities, including in the two biggest cities, Pristina
and Prizren. Voter turnout in the first round was 42.72%, and 37.08% in the runoffs.
Out of 14 women mayoral candidates, only two were placed in their party’s electoral strongholds
and both were elected. A total of 1 937 women (37%) stood for municipal assembly seats, in
accordance with the 30% gender quota for including women on electoral lists, and 36 of them
(12%) headed lists. Few political parties exceeded the 30% gender quota, and therefore did not
meet the 50% target for representation foreseen in the Law on Gender Equality.
The legal framework for elections remains unchanged since 2010. Kosovo should address all
shortcomings and contradictory provisions in the law. Almost all recommendations offered by
previous EU electoral observation missions remain unaddressed, mainly due to the frequency of
early parliamentary elections. Political parties need to deliver on their commitment and to
actively participate in the ad hoc committee to address all recommendations from successive EU
observation and expert missions in a comprehensive and transparent manner.
Political parties need to seriously address the issue of gender inequality in their programmes
and statutes, and to take affirmative action to overcome the obstacles that limit women’s
participation in political life. Kosovo needs to harmonise verification mechanisms for and
restrictions on candidates with criminal records in line with international standards. The
Assembly adopted the Law on Political Party Financing and Campaign Financing.
Parliament
The Assembly’s work continued to be negatively affected by a polarised political atmosphere
and a lack of decision-making quorum, despite the fact that the government relies on a solid
majority of 67 seats (out of 120). The Assembly increased the use of fast track/accelerated
procedures for adoption of key legislation. Efforts are needed to strengthen the role of the
Assembly as a forum for constructive political dialogue and consensus-building, particularly
9
regarding the EU reform agenda. The Assembly adopted new rules of procedure. The Assembly
still needs to improve its internal management, adopt an annual work plan, swiftly move from a
show-of-hand system to electronic voting and strengthen its oversight function.
The Assembly remained the main forum for political dialogue between the ruling majority,
opposition and non-majority communities. However, inflammatory language against political
opponents continued to be used in debates. The majority and the opposition need to improve
political dialogue and work together to further advance the EU reform agenda and build
consensus around major reforms. Due to the local elections in the autumn of 2021, the
Assembly’s work slowed down as MPs engaged in the electoral campaign.
Frequent absences of members of the Assembly Presidency in meetings, the non-participation of
Srpska Lista, and later the resignation of the Democratic Party of Kosovo (PDK) Vice-President
upon his election as mayor of Mitrovicë/a, made it frequently impossible for the Assembly
Presidency to reach a quorum to hold meetings.
Regarding the Assembly’s legislative role, it often lacked a decision-making quorum, partly due
to poor management of the legislative agenda on the part of the majority but also because
opposition members of the Assembly (MPs) abstained from voting in order to prevent the
adoption of legislation. As a result, agenda items were delayed for months.
During the reporting period, the Assembly approved 77 laws, 27 of which related to the
ratification of international agreements. A total of 21 laws, including the Law on Budget 2022
and the Law on Mid-year 2022 Budget Review were approved by accelerated procedure, thereby
deviating from the deadlines provided by the rules of procedure. With regard to EU-related
reforms, the Assembly adopted a number of significant pieces of legislation, amongst others the
law on asset declarations and on political party financing.
The Assembly plenary debated regular annual reports of independent bodies. The Assembly
should support the work of the independent regulators and institutions more systemically, by
appointing their board members in a timely manner and ensuring regular monitoring of the
implementation of the recommendations provided by committees.
The Assembly has no annual work plan. The Assembly needs to improve the planning and
coordination of its work to ensure a more predictable law-making process and attendance of MPs
and ministers.
For over a year the Assembly has not reinstated the electronic voting technology and continued
using a show-of-hand voting system, which on many occasions led to incorrect voting results.
More importantly, under the show-of-hands voting system the Assembly does not publish the
voting records of MPs, which undermines transparency and accountability to the public.
There were efforts to improve parliamentary oversight of all government branches; yet,
effective control remains weak. The Assembly exercised its oversight of the executive through
sessions for parliamentary questions, ministerial hearings by committees, and monitoring of
implementation of laws. The Assembly has to exercise all available tools to hold the government
and other institutions to account.
Governance
During the reporting period, Kosovo enjoyed political and institutional stability, which provided
a conductive environment and opportunities to implement EU-related reforms and adopt overdue
10
legislation. In this context, some progress was made in adopting and implementing EU-related
reforms. Kosovo adopted the National Programme for the Implementation of the Stabilisation
and Association Agreement (NIPSAA) and the European Reform Agenda (ERA) II Action Plan.
Kosovo has strenghtened its capacity to coordinate the implementation of commitments and
obligations arising out of the Stabilisation and Association Agreement (SAA) and ERA II, and
has improved reporting mechanisms. To pursue reforms more effectively, it is essential that the
government builds on existing achievements, ensures cross-party support for reforms, and
decentralises the decision-making process by delegating more responsabilities to the line
ministries. Kosovo should use the period without any regular elections to fulfil its obligations
under the SAA and ERA II.
In August 2021, the government adopted an Action Plan to implement the second phase of the
ERA, which was subsequently endorsed by the Assembly in October 2021. In March 2022, the
government approved the NIPSAA for the period 2022-2026, which was endorsed by the
Assembly in April 2022.
During the reporting period, the government made efforts to further strengthen the inter-
institutional coordination of EU-related affairs. The Office of the Prime Minister (OPM)
coordinates and monitors the EU integration process through the First Deputy Prime Minister for
European Integration, Dialogue and Development, as the highest-level political appointee in
charge of this process, and the Office of Coordination of the Stabilisation and Association
process. Although inter-institutional coordination structures for the European integration process
are in place, coordination between line Ministries faces challenges.
In early 2022, Kosovo prepared a detailed calendar of activities relating to the implementation of
SAA and ERA II to set a clear timeline to fulfil the commitments. More efforts are expected to
increase the trust, and in turn, to strengthen coordination between the political and technical-
level staff. Coordination, planning and monitoring of donor assistance, as well as project
preparation, needs to be further strengthened for Kosovo to benefit from opportunities under the
Instrument for pre-Accession and the EU Economic and Investment Plan.
As regards local government, disparities between municipalities in their performance and
delivery of services continued. Kosovo legislated for the decentralisation of a set of social
welfare and social protection competences, but municipalities have still not received funding for
the implementation of these services. Moreover, municipalities have a very low own-source
revenue base and there is room for improved collection of property taxes in particular. Municipal
fiscal autonomy and accountability could also be improved with increasing the size of the
general grant or introducing revenue-sharing mechanisms. In terms of governance, municipal
assemblies do not play a strong oversight function over the municipal executive.
Civil society
Overall, civil society continues to operate in an enabling environment. Cooperation with the
government needs to improve further through a higher level of engagement and transparency.
Efforts remain necessary to enhance the transparency of public funding for civil society
organisations (CSOs), as well as to ensure that legal requirements stemming from the Law on the
Prevention of Money Laundering and Terrorist Financing do not put undue limitations on the
financial viability of low-risk CSOs.
11
An empowered civil society is a key component of any democratic system and continues to be
recognised as such by public institutions.
Civil society in Kosovo continues to foster democracy and pluralism, participating in decision
making processes, monitoring policies and promoting good governance and social progress.
They also actively contribute to the design, implementation and monitoring of EU-related
reforms, and regularly participate in the policy dialogue platfom foreseen by the Stabilisation and
Association Agreement (SAA). Civil society organisations are generally free to exercise their
rights of association, assembly and to critically express their views without undue pressure from
public authorities, including those promoting civil, political, economic, social and cultural rights.
Limited progress has been achieved with the implementation of the strategy for cooperation with
civil society 2019-2023. The Government Council for Cooperation with Civil Society met only
once in 2021. The work of the Council needs to become more effective and accessible, including
through the regular publication of key activities.
Public consultations are organised by central-level institutions. The online platform the
government uses for this purpose has been improved with features allowing visualisation of key
statistics. At municipal level, the number of online consultations has slightly increased but it
remains significantly lower than those organised at a central level by relevant ministries. Public
participation in the legislative process is still limited and inputs provided by civil society are not
systematically reflected in public consultation reports.
Public funding for non-profit organisations is reported annually and made publicly accessible
through an online database. The government appointed public funds coordinators in each public
central institution with the aim of boosting the effectiveness of the process. The regulation on
public funding to NGOs requires regular monitoring and follow up by the Ministry of Finance.
The existing platform for public financing of CSOs has been upgraded, but public officials have
limited capacity to implement public calls. A technical working group was created to review the
current regulation.
An updated sectoral risk assessment of the civil society sector remains necessary in order to
allow for a flexible approach to lower-risk CSOs. No progress was noted regarding the
implementation of the 2019 Law on Freedom of Association that would ease organisations’
registration process.
The environment for volunteering needs to be improved, including by putting in place an
appropriate legislative framework, aligned with international standards, as well as allocating
financial and human resources for youth volunteering programmes.
2.1.2 Public administration reform
Kosovo remains at some level of preparation and made limited progress in public
administration reform (PAR). Notably, some key positive steps were taken by developing
overarching strategies on PAR and public finance management (PFM) 2022-2026, while
maintaining the implementation of PFM strategy on track, adopting the law on the first wave of
streamlining of agencies and launching the development of a draft salary law that needs to be
finalised and adopted. While the legislative framework on various aspects of PAR is partially in
place, progress is lacking as regards implementation. Following the 2019 rulings of the
Constitutional Court, ongoing amendments to the Law on Public Officials need to be aligned
with PAR principles prior to adoption. The delay in implementing the Law on Public Officials
12
has undermined the organisation of centralised recruitments. The finalisation of job
classifications and the systematisation of positions have been slow, and this has created
significant discrepancies in administrative capacity. Insufficient implementation of the Law on
the Organisation and Functioning of the State Administration and Independent Agencies
(LOFSAIA) has led to an unsatisfactory level of improvement in the administration’s
performance and accountability. The process of streamlining agencies has been delayed and, to
be successful, needs clearer leadership and strengthened capacities to ensure the delivery of
quality results. Strengthening capacities in the Ministry of Internal Affairs, to ensure effective
implementation of the Law on General Administrative Procedures, is also required.
As last year’s recommendations have not been sufficiently implemented, they remain broadly
valid. In the coming year, Kosovo should in particular:
 improve the functioning of the civil service by expediting the implementation of the Law on
Public Officials in line with the relevant Constitutional Court ruling and with PAR principles,
while organising centralised recruitments;
 develop a coherent wage scheme in line with the principles of merit, fairness and equal
treatment in the civil service, while finalising the internal organisation of the ministries, by
putting in place job classifications and job systematisation in the civil service, which are
enabling conditions for a coherent wage scheme;
 improve the legal certainty and reduce the administrative burden of the public administration
towards businesses and citizens, by implementing the Administrative Prevention and Burden
Reduction Programme and the Law on General Administrative Procedures;
 improve accountability in the public sector by: (1) effectively implementing the Law on
Organisation and Functioning of the State Administration and Independent Agencies and (2)
expediting the ongoing streamlining of agencies by setting up a steering body and adopting a
revised action plan for rationalisation.
Strategic framework for public administration reform
A new overarching public administration reform (PAR) strategy is under preparation, merging
the previous public administration reform strategies on modernisation of the public
administration, on policy planning and coordination and on better regulation into one umbrella
framework. The Public Administration Modernisation Strategy 2015-2020 expired, but its action
plan continued to be implemented in 2021 with an improved but still relatively low
implementation rate (37%) in the reporting period. A new monitoring platform is being prepared,
to enhance implementation of the strategic indicators and targets and to provide transparent
information on progress to the public. Monitoring of reforms has not been systematic as PAR
and public finance management (PFM) annual and bi-annual reports for the year 2021 have not
been approved. The Ministerial Council on PAR is in charge of internal coordination of the PAR
strategic framework at the political level, but more political support is needed in order to make
this a functioning body and provide regular monitoring and reporting on PAR. At the technical
level, the Ministry of Internal Affairs is in the lead, but its limited capacities prevent it from
effectively supervising and leading PAR. A functional analysis of the Ministry has been prepared
to serve as a basis for a regulation on its organisational structure.
Policy development and coordination
13
As regards policy-making, Kosovo made some progress on further building some foundations
for strategic planning. It developed a strategic management framework that, once implemented,
should (i) provide a clear hierarchy of objectives; (ii) improve performance measurement with
clear targets linked to the medium-term policy planning and budgeting framework and increase
managerial accountability. The National Development Strategy 2022-2030 (NDS) is still being
developed. Maintaining the hierarchy between priorities of this strategy and sectoral ones
requires political support across line ministries. Budgeting and policy planning need to be better
integrated, by linking overall policy planning and sectoral strategies’ objectives and medium-
term expenditure framework (MTEF) and budget documents. The capacities of the Strategic
Planning Office, under the Office of the Prime Minister, responsible for overall coordination of
planning, monitoring and reporting and for regulatory impact assessments, need to be further
strengthened.
Limited progress was made in further strengthening inclusive and evidence-based policy and
legislative development. Upgraded administrative capacities are needed, in the Office of the
Prime Minister, to ensure quality control of regulatory and budget impact assessments and of
public consultations. The capacity of line ministries also needs to improve in order to increase
the use of these tools for policy making and to make the conduct of public consultation and
regulatory impact assessments more effective. Public consultations on various draft legislation
are organised very late in the process and inputs provided by civil society are not systematically
reflected. The government should ensure that the legislative process complies with principles and
standards on legislative drafting, including by systematically issuing concept documents as a
basis for reform.
Public finance management
A new public finance management (PFM) reform strategy (2022-2026), including public
procurement and public internal financial control, has been drafted but not yet adopted.
Reporting on the 2021 transitional action plan was delayed. Despite the negative effects of the
pandemic, the implementation rate of the 2017-2021 PFM strategy has remained on track,
maintaining the pace of reform albeit better in some areas than others. Building on this, the focus
now needs to be on two main elements: strengthening fiscal discipline, notably by improving
revenue collection and tax compliance in line with international standards as well as improving
the accuracy and credibility of budget planning and execution annually and in the medium-term.
Improving public investment management will be key in this respect as well as ensuring
coherence between the medium-term expenditure framework (MTEF) and the national
development strategy (NDS) 2030, as well as between the MTEF and sectoral strategies. Overall,
the Ministry of Finance, Labour and Transfers should improve ownership of the new PFM
strategy and new organic public finance management law, not least as they affect the
implementation of the Economic Reform Programme for 2022-2024.
In the area of public procurement, expansion of the e-procurement modules progressed and
increased linkages between this system and the Kosovan financial management information
system support commitment control and proper budget implementation.
As regards budget transparency, citizen-friendly budgets continued to be published but updated
information on budget implementation is no longer available on the fiscal transparency portal.
(See also chapters on public procurement, taxation, customs and financial control)
Public service and human resource management
14
The Law on Public Officials (LPO), adopted in 2020, determines the scope of the civil service
and the legal basis for merit-based recruitment, promotion and dismissal. However, the
Constitutional Court ruled in 2019 that the current LPO was partly unconstitutional. The draft
amendments to the law are broader than requested in the ruling, and need to be aligned with
merit principles prior to adoption. Irrespective of such amendments, implementation of the
current LPO, has been seriously delayed, causing various constraints and gaps in administrative
capacities across the public administration. This is due to the Ministry of Internal Affairs’ (MIA)
poor ability to steer those processes and organise centralised recruitment for entry positions. An
annual recruitment plan has yet to be adopted.
The MIA is in charge of implementing the human resources management (HRM) policy
throughout the public administration, but its capacities are insufficient to effectively steer public
administration reform. Each institution, at both central and local level, has human resources
management units, but capacities need to be upgraded. While an information system for human
resources management (HRMIS) is functional, but relevant civil service data is lacking, which
hampers reporting on the implementation of LPO and coordination of HRM between central and
local level and it reduces public transparency. The functioning of the Independent Body for
Oversight and Civil Service needs to be ensured, and its capacities improved to better monitor
and supervise efficiently civil service procedures and deal with appeals. Kosovo should
strengthen the human resource management system by improving job classification and
standardisation of positions and by creating an interconnection with the electronic payroll
system. Compliance of appointments and dismissals of civil servants with the formal
procedures laid down in the LPO still needs to be improved and a consistent rule-based system of
selection and merit–based recruitment must be ensured in practice. The representation of non-
majority communities in the central administration, as well as the number of women in senior
positions, remains insufficient.
The legal basis of the remuneration system remains fragmented, resulting in a system that fails
to ensure the principles of transparency, merit and equal treatment. Such fragmentation
contributes to significant differences in the basic salary for equal positions in public institutions.
Following the ruling of the Constitutional Court, a new draft Law on Salaries is currently being
developed and should address unfair salary structures, abuse of allowances and discretionary
decision-making. However, before adopting a new wage scheme, key reforms on civil service
and human resource management need to be done in parallel, in order to ensure a fair and
transparent system of equal pay for equal qualifications in the civil service. Those reforms entail
finalising the internal organisation of ministries, including definition of job classifications in line
with the Law on Public officials and finalising job systematisation. The situation is aggravated
by the lack of data, such as an official analysis of civil service salaries.
There is no systematic approach to the professional development of civil servants. The Kosovo
Institute for Public Administration, which provides training for civil servants, is largely
dependent on donor support. The LPO lays down rules and criteria for the development of civil
servants, including performance appraisal, mobility and promotion. However, those provisions
are not implemented in practice and an effective performance management system still needs to
be put in place.
Integrity plans to promote integrity in the public service exist, but implementation remains
limited. Implementation of the Law on protection of whistle-blowers has started and related
crucial secondary legislation developed. However, whistle-blowing mechanisms and protection
15
requirements still need to be strengthened and effectively implemented. Reports on disciplinary
measures against civil servants are published regularly. (See section on the fight against
corruption)
Accountability of the administration
The Law on the organisation and functioning of state administration and independent agencies
(LOFSAIA), covering performance and accountability, is not sufficiently implemented. The
rationalisation process is delayed because the review of agencies was not done by the end of the
transitional period provided for in the law. Generally, reviews of restructuring agencies and
establishing new ones, in line with LOFSAIA standards, remain limited due to the weak
capacities of the Ministry of Internal Affairs to control the quality of these processes. Although
the Assembly adopted the Law on the first wave of rationalisation in agencies, there is no
strategic and comprehensive approach to steer and monitor the delivery of quality results.
Consequently, the lines of accountability in public administration remain blurred, with too many
independent agencies sharing executive functions and reporting to the Assembly and many
subordinated agencies reporting, inefficiently, to line ministries. The government should take
forward the rationalisation process more strategically, by reviewing the action plan on
rationalisation of agencies, setting up an inter-governmental working body to steer and upgrade
oversight capacities to monitor the process and by providing more guidance - developing the
related LOFSAIA methodological framework - to line ministries. In addition, reforming
delegation chains in the civil service is key to establishing a system in line with principles of
managerial accountability: Rules are needed on the financial and administrative aspects of
delegating managerial responsibilities, and middle and high-level managers need to be
empowered to take decisions (See Chapter 32).
Public scrutiny of the work of government is still limited. The Assembly’s oversight of the
government must be strengthened, and a more systematic review of the Assembly’s bills by the
government must be put in place. Efficient implementation of the Law on access to public
documents remains a challenge. Despite the appointment of a new Commissioner for
Information and Privacy, he does not have enough supervisory powers to ensure an independent
appeal mechanism if public bodies deny or ignore requests. Public bodies continue to not
proactively disclose, on their websites, annual plans, reports, budgets and financial plans.
The Kosovo National Audit Office and the Ombudsperson are the key institutions ensuring
citizens’ right to good administration. However, their recommendations are not always
efficiently implemented by public bodies. The judiciary needs to increase its efficiency in
handling administrative disputes to ensure citizens’ rights and access to administrative justice.
The Basic Court of Pristina still struggles with a large backlog of administrative cases, with
many incoming minor offence cases. Fragmented legislation affects the liability of public
authorities in cases of wrongdoing and the right to seek compensation.
Service delivery to citizen and businesses
The government has been addressing reforms in this area in a piecemeal manner, through
progress in individual institutions, rather than comprehensively transforming service delivery.
Implementation of the Law on general administrative procedures has been slow. The
Administrative Burden Prevention and Reduction Programme 2022-2027, still to be adopted,
aims to provide a more comprehensive approach, by both reducing administrative requirements
for permits and licenses, by means of legislative simplification and digitalisation, and ensuring
16
better compliance with the Law on General Administrative Procedures (LGAP). Services are
also available to citizens and businesses through the e-Kosova digital portal, but this does not
address issues with over-the-counter service delivery. Data quality and reliability remain a
challenge; the Ministry of Internal Affairs is responsible institution for service delivery but lacks
a specialised unit to manage and monitor public service delivery policy. Service delivery to
groups in socially vulnerable situations, including persons with disabilities, remains inefficient.
Chapter 23 - Judiciary and fundamental rights
The EU’s founding values include the rule of law and respect for human rights. An effective
(independent, high-quality and efficient) judicial system and an effective fight against corruption
are of paramount importance, as is the respect for fundamental rights in law and in practice.
Kosovo is at an early stage in/has some level of preparation for applying the EU acquis and
the European standards in the area of the judiciary and fundamental rights. Limited progress
was made, including some progress on the functioning of the judiciary and on investigation and
prosecution in certain organised crime and high-level corruption cases. The capacity of the
judiciary and prosecution, including for handling cases in a timely manner, remains weak. On
fundamental rights, the government needs to: (i) ensure oversight of the legislation’s
implementation; (ii) streamline strategies; and (iii) better coordinate policies.
Functioning of the judiciary
Kosovo is at an early stage in developing a well-functioning judicial system. The overall
administration of justice continues to be slow, inefficient and vulnerable to undue influence.
During the reporting period, some progress was achieved. Steps were taken to start
implementing the rule of law strategy and action plan and initiating the reform of the legislative
framework governing the prosecutorial system by amending the Law on the Kosovo
Prosecutorial Council. Kosovo completed the roll-out of an electronic Case Management
Information System across all courts and prosecution offices and continued to strengthen the
central criminal records system, although challenges remain. Kosovo made efforts to implement
the Law on Mediation. The Kosovo Judicial Council adopted a protocol to ensure a more
effective and efficient implementation of mediation services, and each prosecution office
throughout Kosovo has officials handling mediation cases. The government has adopted a
concept document setting out its proposal to carry out a comprehensive vetting of judges and
prosecutors. A comprehensive approach to justice reform, which is based on a holistic view of
the gaps and weaknesses of the judicial system, is necessary to ensure long-term impact. Justice
reform should be addressed first and foremost by improving the implementation of existing tools
to safeguard the integrity, the independence and the efficiency of the judicial system, including
through appropriate legislative changes. These mechanisms include, among other things, an
asset-declaration system, disciplinary procedures and consistent performance evaluation, in line
with the recommendations of the Venice Commission Opinion of 17 June 2022 on the concept
document on vetting and relevant European standards. The government has stated its
commitment to follow the Venice Commission’s recommendations on justice reform and to
cooperate with the EU.
In the coming year, Kosovo should in particular:
 improve the integrity and professionalism in the judicial system by improving the existing
tools (asset declaration system, disciplinary proceedings, performance evaluations and
17
integrity checks limited to high judicial institutions), including through appropriate
legislative changes. Ensure that any justice reform is carried out in line with relevant Venice
Commission recommendations and European standards.
 continue to effectively implement the rule of law strategy and action plan without delay, by
means of a regular and structured process that includes proper inter-institutional
coordination;
 step up efforts to reduce the backlog of cases based on a revised plan supported by a
digitalisation strategy; to that end, ensure the systemic use of the Case Management
Information System by judges, prosecutors and support staff for automatic case assignment,
and further promote and properly finance the use of alternative dispute resolution tools, such
as mediation, supported by a monitoring and evaluation system to follow up on the impact of
mediation services. Ensure reliable statistical data, in line with the European Commission for
the Efficiency of Justice (CEPEJ) methodology.
The COVID-19 pandemic affected the functioning of rule of law institutions and overall
performance of the judicial system. There is a need to improve the overall use of digital
technologies and adopt necessary legal amendments to facilitate remote court hearings. Efforts
were undertaken to address the issue of criminal trials affected by the three-month rule,
according to which a trial has to re-start after three months pass without any hearing. This
affected prominent corruption and organised crime cases. As the Criminal Procedure Code
(CPC) does not address this matter, the uncertainty should be urgently addressed.
Strategic documents
The functional review of the rule of law sector led to a rule of law strategy and action plan,
which were adopted by the government in August 2021. The Strategy sets out specific measures
that aim to increase the integrity and performance of anti-corruption mechanisms in Kosovo,
strengthening the judiciary and prosecution, improving access to justice for all, protecting human
rights, ensuring gender equality and reforming the Ministry of Justice to increase its capacities to
implement the EU acquis and European standards. While implementation is ongoing, actions
already taken under the Strategy include the establishment and bringing into operation of the
Commercial Court, the adoption of amendments to the Law on the Kosovo Prosecutorial
Council, the adoption of laws in the field of anti-corruption, the advancement of the performance
evaluation systems within the Kosovo Judicial and Prosecutorial Councils and Council strategic
plans. The Strategy calls for the setting-up of a Steering Committee and an inter-institutional
body to monitor its implementation, which includes the involvement of both Councils. The
Steering Committee, including judicial system stakeholders and civil society, has been set-up,
but it needs to ensure consistent monitoring and tracking of progress in implementing the
measures set out in the Strategy. In April 2022, the President set up the Council for Democracy
and Human Rights, with the Rule of Law Strategy as one of its key components. This high-level
coordination forum aims to serve as another layer of oversight and to support the implementation
of the Strategy.
The Kosovo Prosecutorial and Judicial Councils regularly update strategic plans setting the
objectives for the judiciary and prosecution system. Both Councils adopted annual action plans.
During the reporting period, the Judicial Council adopted a strategic plan for the efficient solving
of cases of corruption and organised crime, a communication strategy for 2022-2024 as well as
the Strategic Plan for Access to Justice for 2022-2025. However, these plans do not always
18
contain clear links to the respective strategies. The implementation of the strategies should be
effectively monitored. While both Councils initiated coordination with donors and international
partners, the Kosovo institutions should set up an effective central mechanism to ensure proper
donor coordination to avoid inefficiencies, inconsistencies and duplication of efforts.
Management bodies
The Kosovo Judicial and the Prosecutorial Councils are the main bodies responsible for
ensuring the independence and impartiality of the judiciary and for managing the judicial system
and careers of judges and prosecutors. Their composition and appointment procedures are
broadly in line with European standards.
In March 2022, the government adopted amendments to the Law on Kosovo Prosecutorial
Council with the aim of reducing a trend of corporatism within the Council. These amendments,
inter alia, reform the composition of the Kosovo Prosecutorial Council by reducing the number
of members (from 13 to 7) and changing the balance between the three lay members (appointed
by the Assembly) and ten prosecutorial members (elected by their peers) – thus reducing the
number of prosecutors to four, including the Chief State Prosecutor. The Venice Commission
issued two opinions on these amendments, in December 2021 and March 2022. The second
opinion assessed that the revised draft addresses the key issues identified in the December
opinion, and provided further recommendations to finalise the draft amendments. The Assembly
has addressed the additional Venice Commission recommendations and adopted the amendments
in June 2022. A number of MPs submitted the adopted amendments for review by the
Constitutional Court. There is a consistent delay from the Assembly of Kosovo in appointing the
members of the Councils. The Assembly should regularly ensure the full constitution of both
Councils, without any delay. The budget allocated to both Councils was decreased for 2022,
compared to 2021. This has further limited the number of positions of professional support staff
for courts and prosecution offices. The Councils should make use of statistics made available to
the public for policy analysis and development.
Since 2017, Kosovo Serb judges and prosecutors are formally integrated in the judicial system.
While the integration was a success overall, Kosovo consistently fails to ensure implementation
of the provisions on the composition of panels for cases coming from Serb-majority
municipalities, especially in the Court of Appeal. Kosovo must also ensure that judicial
proceedings can be accessed in all official languages across Kosovo, in line with the
Constitution. Immediate action is necessary to address the issue of lack of qualified translators,
also to reduce the backlog of cases. Access to judgments and decisions rendered by the Serbian
courts in Kosovo between 1999 and up until the integration of Serbian judges in October 2017
remains problematic. More importantly, Kosovo has not yet implemented the agreement
providing for the recognition of such judgements and decisions. According to the Constitution of
Kosovo, judges may not become involved in any political activity. The same principle is
reflected in the Law on Courts and the Code of Ethics of judges. In April, the Kosovo Judicial
Council imposed a disciplinary sanction on the President of the Mitrovica Basic Court for
participating in a meeting with the President of Serbia, which it considered a political activity.
Independence and impartiality
The Constitution and the legal framework provide for clear safeguards for the independence
and impartiality of the judiciary. Continuous efforts are necessary to ensure this in practice and
19
effectively shield the judicial system from undue pressure and interference. The Councils should
promptly react in all cases of alleged political interference in the prosecution and the judiciary.
The regulatory framework provides for the random allocation of cases through a case
management information system. In practice, a significant number of cases remain manually
assigned, especially when a judge is unavailable, which is a concern. Any deviation from the
random allocation of cases needs to be explicitly justified and transparently documented. High
profile and sensitive cases are not always processed in a timely manner.
During the reporting period, there was one request for close protection made by prosecutors,
which was granted. There was no request for close protection made by judges.
Accountability
While codes of ethics are in place for judges, prosecutors and attorneys, continuous efforts and
awareness raising are necessary to ensure their effective implementation.
The Kosovo Judicial Council has established an Advisory Committee on Judicial Ethics. Both
Councils continue to conduct disciplinary procedures against judges and prosecutors. There is a
slight shift towards imposing less lenient disciplinary sanctions, compared to previous years. The
number of imposed suspensions and demotions for judges and prosecutors is higher. The
Councils should ensure strict and efficient proceedings in full compliance with the applicable
legislation and the necessary procedural safeguards. While there are efforts in ensuring proper
implementation of the legal framework regarding disciplinary proceedings, more willingness,
diligence and work are needed to ensure consistent and effective application of disciplinary
proceedings against judges and prosecutors. During the reporting period, the Kosovo Judicial
Council established an electronic database to register all complaints and requests for initiation of
disciplinary investigations as required by law.
Judges and prosecutors are obliged by law to declare their assets and gifts received, and to
report any possible conflict of interest to the Anti-Corruption Agency. In 2021, one prosecutor
and two judges failed to submit the asset declaration within the deadline of annual regular
declaration.
The Kosovo government continued work on setting up a vetting system of the judiciary, in
particular by adopting a concept document on vetting. The Venice Commission adopted, at its
plenary session of 17-18th
June 2022, an Opinion on this concept document. While the Venice
Commission acknowledges the challenges facing the current judicial system, it concluded that
the time is not ripe for the introduction of a large-scale vetting of all judges and prosecutors since
“an important part of the problem is related to inefficient application of and gaps in the
legislation on existing bodies”. Kosovo should fully align with the Venice Commission
recommendations by first exploring other avenues, including through legislative changes, such as
ensuring a proper legal and regulatory basis for verification units within the Councils, making a
more active use of asset declarations of judges and prosecutors, ensuring that irregularities in the
asset declarations trigger disciplinary action and the set-up of integrity checks for high-level
judicial institutions (in particular the Councils). Such concrete measures would represent an
effective way to strengthen independence and accountability of the judicial system through
legislative changes. Continued dialogue with the Venice Commission and the European
Commission on the next stages of designing and implementing the envisaged justice reform
should be ensured. Consultations with all relevant stakeholders, including the Councils, should
20
continue. Finally, any reform aimed at improving the quality and independence of the system
should not further deteriorate the efficiency of the judicial system.
Professionalism and competence
The Councils independently organise recruitment processes for judges and prosecutors on the
basis of merit-based criteria, after which successful candidates are appointed by the President for
an initial three-year term. During the reporting period, the Kosovo Judicial Council initiated the
recruitment process for 54 new judges, among which eight positions for the Serb community in
Kosovo. The President decreed 48 judges, out of which three are Kosovo Serb and one is
Bosnian. The recruitment process was conducted in accordance with the legislative framework.
The Kosovo Judicial Council has appointed the President of the Court of Appeals and the Basic
Courts of Prizren and Gjilan. The Kosovo Judicial Council recruited a significant number of
legal associates to support the work in the Basic Courts . In addition, the Council is in the
process of certifying judicial experts. Any initiative in this regard should be properly coordinated
amongst the relevant institutions.
The Kosovo Prosecutorial Council conducted the selection of the new Chief State Prosecutor as
the term of office of the previous one expired in April. The EU, other international actors
including the USA and German embassies in Kosovo, and civil society, publicly expressed
disappointment over lack of fairness, transparency and merit principles in the process carried out
by the Kosovo Prosecutorial Council. During the reporting period, the Council initiated the
recruitment process for 16 new prosecutors, which resulted in 7 candidates being decreed by the
the President. The process of appointment and reappointment after the initial term of office of
judges and prosecutors must fully respect the principle of independent functioning of the
judiciary and prosecution system, in line with the Constitution.
The Councils are required to carry out performance evaluations of prosecutors and judges with
a permanent mandate every 3 years. While both Councils have revised the regulatory framework
governing the performance evaluation of judges and prosecutors in the previous years, the impact
is yet to be seen. Councils must ensure rightful and objective application of these regulations,
leading to performance evaluations based on clear criteria and indicators.
Quality of justice
The Academy of Justice is responsible for delivering initial and in-service training for all legal
professionals. In response to the pandemic, the Academy continued to provide online training.
Since July 2021, the Academy has allowed participation to hybrid-type trainings. The curriculum
for initial training is being revised. A new approach of trainings, supported by an EU-funded
project, was adopted in November 2021 and is now implemented, in line with the requirements
of the Rule of Law Strategy. Further in-service training is needed as regards ethics and integrity
and professional skills, in particular in the field of management and administration. Oversight
and reporting lines of the Academy should be strengthened in line with European best practices.
Overall, the level of professionalism and competence, especially of prosecutors, remains a
matter of concern, despite efforts to increase the available training.
On jurisprudence, some progress has been made regarding the legal obligation for all courts to
publish their judgments on an accessible and searchable web portal within 60 days, in all official
languages. While there are improvements in the publication of judgments, timely and consistent
publication has to be ensured. The prosecution offices publish relevant information on
21
indictments on the website of the State Prosecutor within 24 hours. The Academy of Justice
maintains a database of legislation, commentaries and other legal material accessible to all
judges and prosecutors.
Kosovo had 432 judges (148 women and 284 men), 24 per 100 000 inhabitants, and 183
prosecutors (78 women and 105 men), 10 per 100 000 inhabitants in 2021. According to the
European Commission for the Efficiency of Justice (CEPEJ), the European averages are 21
judges/12 prosecutors per 100 000 inhabitants. Kosovo still has a low percentage of female
judges and prosecutors in comparison with most other European countries.
Although the number of professional associates in all Kosovo courts has increased in 2021, the
number of legal staff directly assisting judges and prosecutors remains insufficient. A number of
vacancies remain open as the Assembly did not approve the full request of the judiciary budget
for 2022.
The budget approved for the judiciary for 2021 and 2022 is slightly higher than in 2020, rising
from EUR 61.9 million in 2021 to EUR 67.2 million for 2022 (EUR 59.5 million in 2020), or
respectively 2.46% and 2.45% of the general budget (2.27% in 2020).
For e-justice tools, the implementation of the case management information system (CMIS) is in
an advanced phase. The roll out of CMIS in the Supreme Court marks the implementation of the
automatic case assignment in all courts, instead of manual allocation. At the level of the
prosecution, the implementation of CMIS remains a challenge. While formally, all Basic
prosecution offices are using the CMIS, certain cases are still handled manually. The Appeals
Prosecution and Chief State Prosecutor Offices are working towards full connectivity with
CMIS. The police system is connected to the CMIS for exchange of data in criminal cases. The
connection with the Civil Registration Agency and the Business Registration Agency is
functioning well. Consistent use of the system is needed and should be encouraged by the
management to ensure that the system is applied systematically and that the data entered is
accurate and complete, in particular so that the automatically obtained statistical data on the
performance of the judiciary and prosecution is reliable (in line with CEPEJ recommendations
and methodology). Administrative staff require further training. Work on a National Centralised
Criminal Records Registry (NCCR) is progressing, with nearly all cases and convicted persons
entered into the system. However, the Kosovo Judicial Council and the courts need to ensure the
systems’ sustainability, including the proper use of CMIS, so that the data is properly inserted in
the NCCR. The two IT systems still need to be made inter-operable. Legislation concerning
procedures and responsibility over the NCCR still needs to be developed.
There is a tracking mechanism for high-level corruption and organised crime cases, which
currently includes 82 cases. (See section on fight against corruption)
The mediation system has been operational since 2008. A mediation mechanism, in place since
2018, is implemented by both the Judicial and Prosecutorial Councils. There is a need for a
monitoring and evaluation system to assess the overall impact of mediation services, the
allocation and acceptance procedures, and the impact on the reduction of pending and backlog of
cases. Both Councils have adopted internal regulations and protocols to support the mediation
system. Proper budget allocation is seen as a challenge for both Councils. In 2021, the courts
referred 3 119 cases to mediation, marking a slight decrease compared to 2020 (3 135 cases).
The State Prosecutor and the prosecution offices solved 2,153 cases by employing alternative
procedures, a decrease compared to 2020 (2 902). The number of licensed mediators remained
22
the same, at 190 (67 women, 123 men), of whom 14 were from the Serb-majority municipalities.
Public awareness of and familiarity with alternative dispute resolution tools remains low. The
mediation system needs further strengthening, and this can be achieved through full
implementation of the Law on Mediation and allocation of a sufficient budget. The Ministry of
Justice has adopted two administrative instructions aiming at further improving free professions
system and increasing the overall efficiency of the judicial system. The Kosovo Judicial Council
published a protocol for referring appropriate civil cases to mediation.
Efficiency
The efficiency of the judicial system remains of concern. The clearance rate is particularly low
for civil and commercial cases at first instance - 53% in 2021 (85% in 2019 and 70% in 2020) -
and second instance - 66% in 2021 ((123% in 2019 and 115% in 2020) - and for administrative
cases at second instance - 74% in 2021 (80% in 2019 and 78% in 2020). While the clearance rate
for severe criminal cases at first instance was 105% in 2021 (107% in 2020), several factors
hamper the efficiency of criminal justice. The capacity of judges to manage court proceedings
efficiently needs to be significantly improved to avoid unproductive hearings, unreasonably
protracted proceedings and ultimately low-quality decisions. In all case categories, there is a
backlog with a sizeable number of pending cases older than two years. The newly established
Commercial Court is functional as of August 2022.
Also, the time taken for judgements (i.e. the average time from filing a court case to receiving
a judgment) remains a cause for concern as they are overall far too long. In 2021, the disposition
time stands at 1 339 days for civil/commercial cases in first instance and 798 days for
administrative cases in first instance. At second instance, that is 646 for civil/commercial cases
and 426 days for administrative cases. Severe criminal cases take 613 days in first instance and
99 days in second instance. These delays in proceedings, in combination with a preference for
detention over other restrictive measures, have led again to overly long detention cases. During
the reporting period, the Ombudsperson continued to receive complaints against courts and
prosecutors with allegations of unjustifiable delays in judicial proceedings. The authorities need
to consider introducing an effective judicial legal remedy to address such delays, including
compensation. The authorities also need to ensure proper managerial follow up on the deadlines,
including reacting to delays with proper and timely managerial actions.
To further improve the quality and efficiency of the judicial system in Kosovo, judges,
prosecutors and support staff should make full use of CMIS and related trainings. In addition,
monitoring and evaluation of courts’ activities and giving judicial systems adequate funding and
human resources needs to be prioritised. The revised Criminal Procedure Code, pending in the
Assembly for adoption, would address shortcomings in the criminal proceedings. The
sentencing policy in relation to organised crime and corruption remains erratic, with courts not
systematically implementing the Supreme Court’s 2018 sentencing guidelines, despite the fact
that the Court has established a committee to monitor its implementation.
Finally, continuous efforts are needed to introduce reliable statistical systems for the judiciary
based on CEPEJ indicators, and to use the findings for the management and policy-making
purposes.
Domestic handling of war crime cases
23
The government has put forward measures to strengthen domestic institutional mechanisms
dealing with war crimes. The amendments to the Criminal Procedure Code on the applicable
procedure of trial in absentia of war crimes adopted in the Assembly have not been
implemented. Despite recent amendments, meeting certain criteria defined by the law remains a
challenge, in particular when suspects reside in Serbia.
The implementation of the strategy on war crimes adopted by the Kosovo Prosecutorial Council
in 2019 continues to be hampered by the political context, lack of resources and the lack of
international and regional cooperation. In the reporting period, the Kosovo Police arrested 3
persons suspected of war crimes and initiated 35 new investigations. Following the first
conviction for a war crime at first instance since the end of EULEX’s executive judicial mandate,
in the reporting period, two other convictions were handed down by the Basic Courts. However,
these judgements were later either sent back for re-trial or significantly modified in appeal.
Significant obstacles remain in the proper adjudication of war crime cases. More broadly,
concerns remain about the willingness to hold former Kosovo Liberation Army members
accountable in war crimes cases.
In 2021, the Special Prosecution Office of Kosovo indicted one person for war crimes. In 3
cases, 4 persons were convicted. Despite the increase of assigned prosecutors (from three to
four), the war crimes department of the Special Prosecution Office continues to struggle in
processing the workload, which has constantly increased since 2018. There are over 1000 war
crimes cases pending, mainly inherited from EULEX in 2018. There is a need for continuous
training and support staff, in particular on police-prosecution cooperation. A number of requests
for assistance transmitted through the Office of the EU Special Representative (EUSR) in
Kosovo to Serbia were not addressed. Mutual legal assistance between Kosovo and Serbia in war
crimes cases remains difficult. Cooperation with the UN International Residual Mechanism for
Criminal Tribunals (IRMCT) in The Hague has resumed during the reporting period.
The Kosovo Specialist Chambers and Specialist Prosecutor's Office (SPO) have continued to
investigate and prosecute violations of international law. In the reporting period, pre-trial
preparations were ongoing in 2 cases, including against the then President of Kosovo, and 2
cases are in the trial phase. In one case, the Chambers found the chairman and his deputy of the
Kosovo Liberation Army War Veterans Association guilty of obstructing official persons in
performing official duties, intimidation during criminal proceedings and violating the secrecy of
proceedings. Each accused was sentenced to 4.5 years of imprisonment. It is essential that
Kosovo institutions provide full cooperation with the Specialist Prosecutor’s Office and
Specialist Chambers, enabling them to fulfil their mandate in full independence, without any
outside interference.
The Government Commission on Recognition and Verification of the Status of Survivors of
Sexual Violence during the Conflict continues its work. Still, the aspect of societal stigma that
the survivors face and the limited number of cases approved for recognition and compensation
might deter future applicants. Since the beginning of the process in February 2018, this
Commission received 1 728 applications. So far, 1 274 persons have recognised status of
survivors of sexual violence during the conflict. During 2022, this Commission received 107
applications and recognised the status of survivors of sexual violence during the conflict to 224
applicants. The timeframe of the law still excludes those who suffered conflict-related sexual
violence after 20 June 1999.
24
Kosovo should develop an overarching strategy for transitional justice, including a
comprehensive approach to addressing its past. The Ministry of Justice is in the process of
drafting the Transitional Justice Strategy. The same Ministry has started the work on the Draft
law for establishment of an Institute for documentation of crimes committed during the war in
Kosovo. The Government Commission on Missing Persons, within the Office of the Prime
Minister, took over the leading role in the working group for the amendment to the Law on
missing persons. The future of an initiative to establish a Truth and Reconciliation Commission
remains unclear. Civil society remains actively engaged in reconciliation initiatives.
In 2021, excavation works allowed the identification of the remains of nine victims in Kizevak,
Raška municipality in Serbia, and three in Sid in Serbia. The remains of nine victims from the
conflict in Kosovo exhumed in Kizevak were handed over to their families in 2021. Three sets of
human remains were also repatriated from Kosovo to Serbia. The Pristina delegation to the
ICRC-chaired Working Group on the Missing Persons remained engaged during the reporting
period. There was no session of the Working Group after April 2021 as the Pristina delegation
refused to hold new meetings until the Belgrade delegation changed its head. Nonetheless, lower
levels of the mechanism (Sub-Working Group on Forensic Issues and Analytical Team)
continued to work on concrete cases and sites and held 13 meetings after April 2021 (of which,
11 in 2021 and 2 in 2022). In May 2022, Serbian authorities conducted excavations in Stavalj in
the presence of the Kosovo Commission on Missing Persons, in line with the commitments made
in the framework of the ICRC-chaired Working Group. No human remains were found.
Fight against corruption
Kosovo is at an early stage/has some level of preparation. In the reporting period, some
progress was made with the adoption of significant anti-corruption legislation: the Assembly
approved the new Criminal Procedure Code, the Law on the Agency for Prevention of
Corruption, the new Law on Asset Declaration and legislation on political party financing. Yet
there is a need to improve the implementation of the overall legal framework. In spite of the fact
that the the Corruption and Financial Crime Department was established during the reporting
period, the Special Prosecution Office filed few indictments in high profile cases. The Special
Departments in courts handling high-level corruption and organised crime cases would benefit
from additional and specialised support staff. Sustained efforts are needed to have more
proactive investigations, final court decisions and final confiscation of assets. The legal
framework on confiscation continues to be largely unimplemented and the value of finally
confiscated assets remains low. The main problem remains the lack of implementation of
existing legislation. Overall, corruption is widespread and remains an issue of serious concern.
Despite efforts made, there is a need for strong political will to continue to effectively address
systemic corruption risks and a robust criminal justice response to high-level corruption. Sectors
most vulnerable to corruption require targeted risk assessments and dedicated actions.
In the coming year, Kosovo should in particular:
 further strengthen the capacity of the Anti-Corruption Agency, in terms of staff and
expertise, to ensure it can effectively carry out its mandate;
 further strengthen the efficiency of confiscation regime by promoting systematic use of both
extended and ‘regular’ confiscation by criminal prosecution and police; increase the level of
specialisation and expertise in seizure and confiscation of assets; establish a confiscation fund;
25
 further strengthen law enforcement-prosecution cooperation and encourage multidisciplinary
cooperation and the target-based approach to ensure proactive investigations and effectively
combat high-level corruption cases; systematically conduct financial investigations during
the criminal investigations; ensure the security of judges and prosecutors;
 effectively implement the new legislation on political party financing.
Track record
Efforts continued with regards to the track record of investigations, prosecutions and
convictions in the fight against corruption. However, more political will and resources remain
necessary, in particular to tackle high-level corruption. In July 2018, the European Commission
confirmed that Kosovo had met the benchmark in its visa liberalisation roadmap to strengthen
the track record in the fight against organised crime and corruption. These efforts should
continue to improve and the Commission will continue to actively monitor the further
development of this specific track record. By the end of the reporting period the track record
mechanism for visa liberalisation, established in 2015 to monitor and coordinate high-level
corruption and organised crime cases, included 82 cases. By that time, there had been 72
indictments: 31 organised crime cases and 41 corruption cases, out of which 17 cases ended with
convictions/partial acquittals, leading to the conviction of 15 individuals for corruption-related
offences and 46 individuals convicted for organised crime-related offences.
At present, the track record mechanism includes only the cases selected in the specific context of
visa liberalisation benchmarks. However, in the future it is expected that the track record will
cover all high-level cases relating to organised crime and corruption. To this end, rules governing
inclusion of cases in this mechanism should be revised with a view of creating a single and
comprehensive track record, including all cases against high-level officials, which should be
prioritised and handled with the highest level of scrutiny.
The Anti-Corruption Agency handled some 375 cases (similar as in 2020) under preliminary
investigation for suspicion of corruption related offenses (314 pending from 2021 and 61 from
2020) out of which 150 reports (involving 142 persons) were submitted to the prosecution and
police to initiate criminal proceedings and 71 cases were terminated. The position of the
Director of the Anti-Corruption Agency remained vacant for three months. After the expiration
of the mandate of the former Director end September 2021, the Assembly appointed the new
leadership only in December 2021. Thus far, the new leadership managed to process swiftly the
backlog of cases.
In 2021, 4 783 officials (97.7%) of the 4 892 officials obliged to submit regular annual
declarations of assets did so on time, while 56 officials did so after the deadline and 25 officials
did not submit any declaration of assets. The Anti-Corruption Agency included 966 officials
under the full assets control procedure, which was completed for 741 officials. More than 200
cases are being investigated due to a false declaration of assets and also for the non-declaration
of assets. 190 cases were referred to the prosecution and police for further investigation (50 on
suspicion of false declaration carried over from 2020 and 190 for failure to declare assets). There
were 26 court decisions in 2021, out of which 25 convictions and one acquittal. Shortcomings
persist in the system for declaring and assessing the origin of property belonging to senior public
officials. The capacities of the Agency, in terms of number of staff, IT resources and training,
should be increased. An electronic declaration system is coming into force in order to simplify
the process of declaration and submission as well as increase transparency and accuracy in
26
monitoring and verification. Cooperation and exchange of data with the police, the tax
administration, the Financial Intelligence Unit, the cadastral registry and municipal authorities
should be strengthened.
In 2021, the Agency handled 101 cases of conflicts of interest. The number of requests of
institutions submitted to the Agency for advice and opinion on conflicts of interest has increased.
The Agency provided its opinion in 63 cases, 1 case was forwarded for investigation, 1 case for a
minor offence procedure and in 10 cases, a conflict of interest was avoided.
In 2021, the Agency handled 108 cases of corruption in the field of prevention of corruption in
public procurement, out of which 18 opinions were issued, 64 recommendations have been
respected and 19 not, and 7 cases were terminated.
A new law on the Anti-Corruption Agency aimed at better defining the scope of the Agency’s
competencies was adopted (see below on prevention measures). The capacity of the Agency
needs to be strengthened, in terms of staff and expertise, considering the new competences of the
Agency and to ensure an effective implementation of the applicable legislation.
Despite a fairly advanced legal framework in place, criminal asset confiscation remains low.
The 2019 Law on Extended Powers of confiscation is in force but is not being consistently
applied. Local coordinators for confiscation matters in the Prosecution Offices were appointed.
Confiscation as a means of targeting the economic interests of criminal organisations remains
underutilised by prosecutors, who remain the weakest link in this regard. Overall, the willingness
to confiscate assets remains low. The confiscation of criminal assets should become a strategic
priority in the fight against organised crime, terrorism and high-level corruption in the country.
In 2021, the value of preliminary confiscated assets amounted to about EUR 14 million (EUR 19
million in 2020) while the value of final confiscated property amounted to about EUR 770,000.
Between July 2021 and March 2022, the prosecution offices confiscated assets in the total
amount of about EUR 92,000 in three cases related with drugs, tax evasion and organized crime.
The Agency for the Management of Sequestrated and Confiscated Assets (handling more than
EUR 1.6 million in various assets in 2021) continues to struggle in managing the assets in its
portfolio, partially due to the courts not allowing the anticipated sale of assets pending
proceedings and partially due to the set-up of the Agency. The value of assets sold in 2021 was
about EUR 52,000. The government approved the concept document on the establishment of a
Confiscation Fund, which would allocate confiscated funds in part to law enforcement,
prosecution and courts and in part to social projects.
Kosovo adopted a new regulatory framework on funding for political parties and campaign
financing. Overall, it establishes a legal framework to ensure complete reporting, timely
disclosure, meaningful oversight and accountability for irregularities. Kosovo should effectively
implement the new law. There is lack of regular auditing by the Assembly and selective
application of sanctions by the Central Election Commission, which results in an incomplete
oversight of campaign finance. There is limited awareness and compliance with campaign
finance rules. Most political entities did not establish internal financial control rules. Numerous
sources of income and expenditures remain unreported. The process of auditing has failed for
two years due to the low budget allocated to hire auditors.
Institutional framework
27
Inter-institutional coordination and cooperation between preventive anti-corruption institutions
and law enforcement entities is key to effectively implement anti-corruption legislation.
Prevention measures
The competences of the Anti-Corruption Agency include the verification and control of asset
declarations and gifts, dealing with whistle-blowing and the prevention of conflict of interest. A
law reorganizing the competences of the Anti-Corruption Agency has been adopted in view of
strengthening the Agency’s mandate in the field of prevention of corruption. Specifically, the
Agency will be entitled to implement tools such as corruption proofing, corruption risk
assessment, and integrity plans in the institutions. Furthermore, the Agency will have the
competence to initiate administrative investigations and impose sanctions. It is essential to
strengthen the capacity of the Agency, in terms of staff and expertise, and its budget needs to
increase, in order to fully and effectively fulfil its mandate and new competences, including the
verification of asset declarations and the implementation of the new anti-corruption prevention
tools. The Auditor-General, the tax authorities, the customs authorities and the Financial
Intelligence Unit also have inspecting and auditing powers.
More joint training must be provided for staff of the main anti-corruption bodies (which
includes all entities responsible for the investigation, prosecution and adjudication of high-level
corruption cases), in particular on financial investigations, asset confiscation, money laundering
and cybercrime aiming also to strengthen inter-institutional cooperation and coordination.
There is a continuous need to promote the elaboration and adoption of integrity plans in the
public service as a tool for preventing corruption and ensuring discipline, including at municipal
level.
Law enforcement
Kosovo has functional specialised institutions to fight corruption, including the National
Coordinator for Combating Economic Crimes within the prosecutorial system, the Corruption
and Financial Crime Department in the Special Prosecution Office and the relevant Police
Directorate. Law enforcement authorities would benefit from additional resources to improve
their operational capacity to conduct complex investigations. Police-Prosecution cooperation
must be strengthened to ensure proactive investigations and to implement a joint target-based
approach to combat high-level corruption cases. Financial investigations need to be launched
systematically and in parallel. The use of special investigative measures, when applicable, should
be strengthened. Measures and mechanisms to ensure the protection to judges and prosecutors
from interference and pressure should be effectively implemented.
The Special Investigation Unit within the Kosovo Police, as the successor of the Special Anti-
Corruption Task Force abolished in 2020, continued to operate with the same chain of command
and under a temporary legal mandate. The government needs to ensure its sound legal and
organisational structure, also to cooperate effectively with the Prosecution. The ongoing reform
of the Kosovo Police organisational structure should ensure that the Special Investigation Unit
maintains sufficient investigation capacity to efficiently fulfil its functions.
Following the re-structuring of the Special Prosecution Office in 2020, its capacity increased
with the recruitment of prosecutors, professional associates and translators. It is essential to
increase the level of specialisation and expertise on prosecuting high-level corruption and
28
financial crimes. In 2021, the total number of indictments was 147 (146 in 2019), while the total
number of sentencing decisions was 122 (36 in 2019).
The Special Departments in the Basic Court of Pristina and the Court of Appeals, which handle
all cases of the Special Prosecution Office, have continued to function albeit with shortages in
professional support staff. Additional support staff for the Special Departments are being
recruited. Despite the establishment of the Special Department with exclusive jurisdiction on
cases of the Special Prosecution Office, the average of time to conclude the proceedings in first
instance is lengthy. There is a need to step up efforts to reduce the length of proceedings in these
cases.
Legal framework
Despite not being a party to international anti-corruption conventions (such as the United
Nations Convention against Corruption and the Council of Europe’s Criminal Law Convention
on Corruption) due to status-related issues, Kosovo’s legislation is generally aligned with these
instruments and in line with relevant European standards.
In July 2022, Kosovo adopted new anti-corruption legislation consisting of the Law on the
New Criminal Procedure Code, the Law on the Agency for Prevention of Corruption and the
Law on Asset Declaration. These are included in the European Reform Agenda II and
incorporate recommendations from the Rule of Law Strategy. The new law on the Criminal
Procedure Code aims at strengthening the criminal proceedings. The anti-corruption legal
framework introduces, among other novelties, the preventive measure of suspension of officials
from duty in case of obstruction of proceedings. The new Law on the Agency for Prevention of
Corruption strengthens the mandate of the Agency in the field of prevention of corruption and in
the implementation of the asset declaration law, protection of whistle-blowers law and
prevention of conflict of interest law. New tools to prevent corruption are added to the
competence of the Agency such as corruption proofing, corruption risk assessments and
monitoring of integrity plans in the institutions. The new Law on Asset Declaration adds
categories of public officials obliged to declare assets; it includes more complete asset
information and data to be declared by officials, increases the number of officials under full
control by the Agency and introduces an online system of declaration of assets.
The legal framework on criminal confiscation remains fairly advanced, including through the
2019 Law on Extended Powers of Confiscation. These advanced tools need to be better utilised.
The Draft Law on the State Bureau for Verification and Confiscation of Unjustified Assets,
which aims to introduce in Kosovo a system of non-conviction-based confiscation, is pending in
Parliament. The new Law will incorporate recommendations of the Venice Commission
Opinion. Such an advanced system requires clear safeguards against possible misuse and abuse
and should respect the principles enshrined in the Constitution and the fundamental rights of
individuals. Moreover, such a system should not replace or undermine the application of the
existing legal framework on criminal confiscation, including the Law on Extended Powers of
Confiscation.
The legal framework on money laundering is still not properly implemented. Although the law
does not require the proof of a predicate offence to retain a conviction, many prosecutors and
judges continue to consider a predicate offence as an essential part of money laundering
offences. As a result, many stand-alone money laundering cases are dismissed either by the
prosecutor or by the court. The government is reviewing the legislation on prevention of money
29
laundering and combating terrorist financing to fully harmonise it with the 4th
and 5th
EU
Directives and recommendations of the Financial Action Task Force (FATF) (See also chapter 4
on the free movement of capital and the section on organised crime).
The legal framework on the prevention of conflict of interest is in place since 2018 but still
needs to be fully implemented. A number of senior public officials still occupy two or more
posts, in direct violation of the law. Kosovo has no specific legislation on lobbying.
The Law on the Protection of whistle-blowers is in line with the latest EU legislation in this
area. Secondary legislation determining the procedure for receiving and handling the cases of
whistleblowing is in place. Strengthened whistle-blowing mechanisms and protection
requirements still need to be implemented.
The Assembly adopted the legal framework on political parties and election campaign
finances in line with the Venice Commission Opinion. Kosovo still needs better functioning,
more accountable, more transparent and enforceable party finance and campaign finance
legislation.
Strategic framework
The Rule of Law Strategy and Action Plan (see section on Judiciary) include specific measures
aiming to improve the institutional framework against corruption, as well as the assets
declaration system and regulations on acceptance of gifts. Since 2018, Kosovo does not have an
Anti-Corruption Strategy in force. The Judicial Council adopted a strategic plan for the efficient
resolution of cases of corruption and organised crime (2022-2025).
Fundamental rights
The legal framework guarantees the protection of fundamental rights and is in line with
European standards. Kosovo showed commitment to addressing gender equality issues by further
implementing the Law on Gender Equality in the public administration recruitment process and
by improving inter-institutional coordination on fighting gender-based violence, including by
adopting a new strategy and action plan against domestic violence and violence against women.
Moreover, additional efforts are needed to effectively enforce fundamental rights. The
government’s capacity to streamline and oversee fundamental rights policies and legislation
requires improvement, including in coordinating the mechanisms to protect human rights, gender
equality and non-majority communities, at both central and local levels. Fundamental rights
issues need to feature higher on the political agenda. Human and financial resources are still
lacking and relevant authorities are still dependent on donor support and guidance and need to
assume greater ownership.
More efforts are needed to address the recommendations of the 2021 report, which are still
applicable. In the coming year, Kosovo should in particular:
 Set up a sustainable mechanism of coordination and oversight legislation, strategies and
policies of fundamental rights; strengthen the implementation of existing instruments; adopt
a functional system of measuring and reporting on the implementation of the Human Rights
Program and Action Plan; adopt the sub-legal acts deriving from the new Law on Child
Protection; adopt the Civil Code;
 strengthen the implementation of the Law on Gender Equality; adopt the Law on Domestic
Violence and Violence Against Women; continue efforts to ensure proper functioning of the
30
system of protection, prevention and adjudication of all forms of gender-based violence by
implementing the relevant strategy and action plan;
 adopt the Strategy for Return and Communities, the Law on Kosovo Property Comparison
Verification Agency addressing the Ombudsperson’s recommendations, appoint a Director
and Deputy Director of the Agency; implement the Strategy for the Advancement of the
Rights of the Roma and Ashkali communities 2022-2026;
 strengthen child protection and child-friendly justice, including for children belonging to
minorities and children with disabilities;
 adopt the Law on Cultural Heritage and the Law on Religious Freedom; advance the
protection of cultural heritage by fully enforcing legislation on special protective zones and
illegal construction; implement the 2016 Constitutional Court Decision on the Visoki Dečani
monastery; re-establish relations with the Serbian Orthodox Church and reconvene the
Implementation and Monitoring Council.
International human rights instruments form an integral part of Kosovo's legal framework
and are directly applicable, as provided for in the Constitution. Kosovo continued to align its
legislation with these instruments and maintained its practice of ad hoc reporting.
The institutional set-up for the promotion and protection of human rights is in place; however, it
does not function well due to conflicting mandates and diluted responsibilities. The government
should ensure that the Programme for the Protection and Promotion of Human Rights and
Fundamental Freedoms (2021-2025) and the related Action Plan (2021-2023) are implemented
and monitored in a coordinated manner. Implementing human rights legislation, and overseeing
and coordinating existing human rights mechanisms remain a challenge. In general, human rights
issues still do not feature high enough on the government’s political agenda. The Office of Good
Governance within the Office of the Prime Minister still lacks appropriate human, financial and
administrative resources to fulfil its broad mandate, including on drafting, implementing and
overseeing policies in the areas of human rights, good governance and anti-discrimination. This
Office needs to establish synergies with the Deputy Prime Minister for Minority Issues and
Human Rights, the Ombudsperson, and the Assembly’s Committee on Human Rights and the
recently established Council for Democracy and Human Rights under the Presidency, to
effecively implement and streamline human rights policies and legislation. The Assembly needs
to take a more proactive role in overseeing the implementation of human rights legislation.
The Ombudsperson’s Institution continues to play an important role in the promotion and
protection of human rights at central and local level. The new Human Rights Programme and
Action Plan approved in March 2021 strengthened the role of the Ombudsperson’s office in
protecting and promoting human rights and fundamental freedoms. The Office has further
strengthened its capacity to review cases. Although there is an increase in the responsiveness of
institutions to the recommendations of the Ombudsperson, consistent implementation remains a
challenge. Out of 157 recommendations, 43 have been implemented, 4 have not implemented
and 110 are awaiting implementation. In 2021, the Ombudsperson received 1 612 complaints,
out of which 692 were open for investigations (against 1 419 in 2020, of which 720 were opened
for investigation). Between 1 January and 27 June, the Ombudsperson received 819 complaints,
out of which 356 were opened for investigations. The selection of four Ombudsperson deputies
was finalized in June, although the vacancy needs to be re-advertised for the fifth deputy
Ombudsperson from non-Albanian communities. The selection process was transparent and
31
inclusive, with a panel consisting of representatives of civil society, activists and public
institutions.
On the prevention of torture and ill treatment, the situation remains satisfactory and the
Kosovo authorities continue to show commitment to preventing these practices in all
circumstances. The National Preventive Mechanism operates under the umbrella of the
Ombudsperson Institution. During 2021, it carried out 62 visits (against 52 in 2020) to the places
of deprivation of liberty and 22 visits during the first part of 2022. The number of incidents of
inhumane and ill-treatment and torture in relation to police officers stands at five cases during
2021 (against 6 cases in 2020) and three cases between January-June 2022..
The Police
Inspectorate of Kosovo registered 11 cases with suspicion of ill-treatment: 16 police officers
were investigated as suspects. For these cases, the Police Inspectorate forwarded six criminal
reports and five separate reports to the competent prosecutions and issued recommendation for
the suspension of three police officers. In 2021, the National Preventive Mechanism issued 11
recommendations, three of them were partially implemented and eight are pending
implementation. The Assembly adopted the Law on Execution of Criminal Sanctions, the Law
on the Correctional Service and the Law on the Probation Service. Kosovo should further
strengthen ongoing efforts to provide adequate medical and psychological support and
rehabilitation to all victims of torture and other ill-treatment in Kosovo. The Committee for the
Prevention of Torture (CPT) published its latest report on Kosovo in September 2021 following a
visit the previous year. Among other recommendations, the CPT encouraged the authorities to
pursue their efforts in combatting ill-treatment by the police.
While the prison system continues to comply broadly with the UN Standard Minimum Rules for
the Treatment of Prisoners and with the European Prison Rules, there are several challenges.
Equal treatment and equal rights of prisoners, especially among women and minority groups,
remains an issue. Standardised individual assessment and sentence planning procedures are yet
to be finalised. The Kosovo Correctional Service should strengthen efforts to provide adequate
rehabilitation and psychological support to all prisoners and detainees to meet the minimum
standards for treatment. Several senior management posts in the Correctional Service remained
vacant, hampering its effective functioning. Progress could be observed in preventing and
dealing with self-harm and suicide cases and the treatment of inmates with mental problems.
Preferential treatment of high-profile prisoners has diminished, together with political pressure
on the Correctional Service. According to the National Preventive Mechanism, there was no
overcrowding. The efforts to improve the drug addiction treatment programmes and prison
medical facilities in light of CPT recommendations are ongoing. The CPT 2021 report
recommended to improve detention conditions, including with regards to healthcare access, the
fight against corruption in detention facilities, and staffing and legal safeguards, among others.
During the reporting period, the Ombudsperson received 33 complaints against Correctional
Centres, Prisons and Detention Centre, and 75 complaints against Kosovo Police. While new
legislation was adopted on the execution of criminal sanction, on the correctional service and on
the probation service, this did not significantly change the execution of alternatives to detention
and imprisonment.
On personal data protection, the law remains broadly in line with the EU General Data
Protection Regulation and the Law Enforcement Directive. The long-awaited appointment of the
Information and Privacy Commissioner in June 2021 has made a positive impact on the
32
implementation of the law on data protection and the internal organisation of the Information and
Privacy Agency. The Commissioner adopted the internal organisation and systematization of
positions in the Agency in December 2021. Although restrained by limited human resources, the
Agency started processing complaints on access to public documents and on data protection in an
independent and efficient manner. Further, the Commissioner issued the list of countries and
international organisations considered to have an adequate level of personal data protection.
During the reporting period, the Agency treated 35 complaints with regard to personal data
protection and issued 22 legal advisory opinions to public and private institutions. It also issued
81 decisions for public and private institutions regarding to violations of the Law on Personal
Data Protection. From January until August 2022, the Agency received 243 complaints, out of
which 180 are closed and 63 are in the process. The Agency issued 55 decisions and five fines to
public institutions.
Concerning freedom of thought, conscience and religion, there are legal provisions in place
which promote tolerance among religions and foresees that religious communities shall be
separated from public authorities. However, the Kosovo Assembly still needs to adopt the long
outstanding draft Law on religious freedom, incorporating the recommendations of the Venice
Commission from 2014 to ensure full respect of this freedom. The law was not yet put forth in
the Assembly by the current government. In September 2021, the Constitutional Court notified
Kosovo’s Chief Prosecutor of a lack of implementation of its 2016 decision whereby it had
confirmed the ownership rights of the Visoki Dečani Monastery of the Serbian Orthodox Church
over a portion of land surrounding the Monastery. The decision has still not been implemented.
----------------------------------------------------------------------------------------------------------------
Freedom of expression
Kosovo has some level of preparation regarding freedom of expression. The media
environment is lively and pluralistic. The legal framework is mostly in line with European
standards. Limited progress was made in addressing the recommendations of the previous
report.
The Kosovo Assembly elected an independent board of the public broadcaster (RTK) while the
board elected a new General Director for a three-year mandate. The process was assessed as
merit-based by the monitoring local and international organisations process. Due to legal
changes, journalist can now benefit from free legal aid. Kosovo will host a number of Ukrainian
journalists, providing them with shelter, financial support and working conditions. Concerns
remain regarding public smear campaigns, threats, and hate speech on social media, some of
which were specifically directed against journalists. Not all threats against journalists and media
are reported to the authorities. There continue to be particular concerns regarding freedom of
expression in the north of Kosovo, including self-censorship. There was no progress in amending
the Law on the Radio and Television of Kosovo. The government took the initiative to amend
the Law on Independent Media Commission to align it with the EU’s Audiovisual Media
Services Directive. This process needs to be inclusive, with involvement of civil society and
media actors. The lack of financial self-sustainability leaves media vulnerable to political and
business interests. This is further amplified by the lack of information and data on the final
beneficiary of media ownership – provisions on this are still not enshrined into law.
33
There was no significant progress in the implementation of last year’s recommendations.
Therefore, in the coming year, Kosovo should in particular:
 improve the institutional cooperation and response of the key institutions to attacks against
journalists and other forms of pressure that hinders their work;
 review the Law on Radio and Television, among others, to ensure sustainable funding
preserving its independence; review the Law on the Independent Media Commission to
update its competences, including regarding audio-visual media in line with the Audio-visual
Media Services Directive;
 increase availability of data on the audio-visual market, especially when it comes to media
ownership.
Intimidation of journalists
According to the Association of Journalists in Kosovo (AJK), during 2021 there were 29 cases of
attacks, threats and public smearing of journalists (in 2020, there were eleven
cases of non-physical threats and harassments and four cases of physical assault against
journalists). In 2022 and until 27 June, five cases of public smearing of journalists, mostly by
high -level public officials, were reported. Threats and assaults vary from those of
businesspersons towards journalists and other media workers, to those of state or political party
officials. The case of the attack on journalist Visar Duriqi from 2021 is not resolved.
Adjudication of cases remains slow. According to the Association, there has been an increase in
derogatory statements and smears made by politicians aimed at the media, publicly undermining
trust in journalistic reporting and the safety of journalists. During the reporting period, AJK has
registered at least two cases of Strategic Litigation against Public Participation Lawsuits filed by
public figures against journalists.
Legislative environment
The Constitution and legislation provide for freedom of expression and media freedom. In
general, media laws, including on defamation and access to information are in line with
standards of the Council of Europe and the case law of the European Court on Human Rights.
The Assembly has not yet adopted the Law on the Public Broadcaster and on the Independent
Media Commission.
The Law on the Protection of Journalistic Sources requires amendments to clarify provisions
related to court decisions obliging journalists to declare a source, ensuring they are in line with
European standards. The legal framework on the protection of whistle-blowers needs to be
completed through the adoption of secondary legislation. The new legislation on Free Legal Aid
strengthens the protection of journalists’ sources.
The Law on Free Legal Aid was amended and as a result it now includes civil society activists,
journalists, photo-reporters, camera operators and editors as a beneficiaries. Based on this law,
they will receive free legal assistance and will be represented at court by the Free Legal Aid
Agency if they are dismissed, sued for defamation, prosecuted or faced with Strategic Lawsuits
against Public Participation.
Implementation of legislation/institutions
34
The implementation of existing legislation continues to be insufficient. The Kosovo Press
Council acts as an independent self-regulatory body for print and online media, mainly by
reacting to complaints. The number of online media not registered with the Press Council
continued to grow. The council’s financial sustainability and adequate resources are crucial for
its effective functioning.
The Independent Media Commission still does not have the power to licence and monitor audio-
visual media services online, although these were covered by the Audio-Visual Media Services
Directive. The 2016 Code of Ethics for Media Service Providers, legally binding secondary
legislation, sets provisions for broadcasting in relation to content, such as the need for balanced
and unbiased news coverage. However, the Independent Media Commission monitors content
only during election campaigns. The Commission needs to ensure it is transparent and inclusive
in its decision-making. In part due to a lack of information on media ownership and the
distribution of advertising funds, the Independent Media Commission does not impose effective
sanctions on broadcasters and no significant enforcement interventions were undertaken. The
Assembly organised the selection process of the Board members of the Commission. The process
was assessed as open and merit-based by the civil society. Two of the persons holding high
decision making positions in the Independent Media Commission were arrested for bribery,
which seriously brought into question the integrity of the Commission.
Public Service Broadcaster
The public broadcaster Radio Television of Kosovo (RTK) has entered a new phase of its
development, with the newly appointed Board in November 2021. The selection process of the
members of the RTK Board was merit-based, transparent and professional, with equal gender
representation. This process was commended by many local and international organisations.
There has been changes in the highest management of the RTK, with the dismissal of key
managerial positions on grounds of mismanagement. A new regulation for the selection of the
Director General of the RTK and senior management was adopted by the Board, based on which
it elected a new General Director in June for a mandate of three years. The RTK has now
extended its coverage to include the northern part of Kosovo. Despite this, Kosovo Serb
communities continue to mostly rely on local and Serbian broadcasters.
Economic factors
Kosovo’s media environment is lively and pluralistic and has been further enriched by new
media and changes in ownership and editorial teams. However, the sector remains heavily
dependent on donors and advertising, including from the government and political parties. Many
media companies struggle to sustain themselves financially through commercial means. Private
broadcasters depend on other sources of funding and remain strongly linked to political and
business interest groups. This poses continuing risks to their editorial independence. There is still
a lack of data on the advertising market, financing remains largely opaque and there is no
audience measurement system. Information on media ownership structures, in particular for
online media, remains unclear and often fictitious, as most media do not provide information on
their finances or real ownership. Greater transparency on media ownership and possible illegal
media concentration is needed. The imbalance between media outlets and available funding
raises concerns as to the financial viability of media outlets and over media integrity and
independence.
Freedom of artistic expression
35
The freedom of artistic creativity is guaranteed by the Constitution. While the COVID-19
pandemic has led to restrictions of public gatherings which to some degree affected artistic also
freedom, these remained proportionate and temporary. There is no instance of limitation on any
form of artistic expression recorded during the reporting period.
Internet
There is no restrictive legislation or environment on the functioning of the media online nor on
freedom of expression online. Kosovo should consider developing a strategy for a better internet
for kids, including facilitating the detection of and response to online child sexual abuse.
Professional organisations and working conditions
The effects of the COVID-19 pandemic continued to impact working conditions. The switch to
online editions means that no printed newspapers remain in Kosovo. Associations of journalists
have been active in condemning cases of threats and attacks against journalists. They have kept
up a constructive dialogue with the police and have been vocal in defending journalists against
political pressures. The working conditions of media professionals and the implementation of
labour laws remain a concern. There are very few women in decision-making positions in the
media. Many journalists work either with no contracts or only with service contracts. This
situation makes journalists vulnerable to pressure.
(See also Chapter 10 on digital transformation and media)
----------------------------------------------------------------------------------------------------------------
Freedom of assembly and association is guaranteed by the Constitution and generally
respected. No major security incident related to public gatherings has been reported but the
Kosovo Inspectorate has initiated disciplinary procedures towards police officers that were
allegedly involved in incidents during a few protests. Individuals and legal entities have the right
to establish an association without having to register it, but most organisations decide to register
in order to secure legal personality.
Issues of labour and trade union rights are further covered in Chapter 19 on Social Rights and
Employment.
On property rights, the draft law on the Kosovo Property Comparison and Verification Agency
(KPCVA) remains pending before the Assembly. Implementation of the judicial decisions,
including Constitutional Court decisions, remains an issue in particular in conflict-related
property cases.
Ownership of property by women increased. The affirmative measure that assists implementation
of property legislation favouring women remains in place. This measure, introduced in 2016, has
led to a noticeable increase in the registration of women as property owners, from only 104 in
2016 to 7 417 in 2020 and an additional 1 505 registered properties in 2021.
In 2021, institutions took some positive measures towards the protection of the property rights of
communities in vulnerable situations, displaced persons and women. The Property Comparison
and Verification Agency performed 29 evictions. The legal remedy of demolition of illegal
structures was not used during the reporting period, as parties could not fulfil the criteria required
by Administrative Instruction on Demolition of Illegal Structures. The Agency mediated in 82
cases. In 11 cases a mediation agreement was reached within the Agency, in 15 cases parties
reached an agreement outside the Agency, 38 cases were unsuccessful and one case resulted in
36
demolition of unlawful structure. The Agency is operating with an Acting Director, while the
posts of Deputy Director and Executive Director are vacant.
Concerns about fraudulent property transactions and illegal transfers of ownership of properties
mainly belonging to displaced persons remain. There has been limited progress on the issue of
350 052 buildings constructed without a permit as only 925 applications for legalization were
received. Local institutions issued 3 649 decisions on legalization of constructions built without
permit. The regularisation of large-scale informal settlements whose residents mainly belong to
marginalised vulnerable communities continues to be hampered by lack of political will to
address the issue.
The 2015 Law on protection from discrimination is broadly in line with European and
international standards, but its implementation remains limited. During the reporting period, the
indicator framework for monitoring was finalised. This framework will allow to assess the
enforcement of rights in practice and to identify areas that require improvement. Training
courses are planned to facilitate the application of mechanisms for the protection against
discrimination. The role of non-discrimination officers in the municipalities and ministries needs
to be strengthened, with clear reporting lines and description of duties in order to be actively
engaged in policy drafting. Domestic case law on non-discrimination is poor, partly due to
victims often being discouraged to file cases due to the lengths of court proceedings. Among the
cases opened for investigation by the Ombudsperson in 2022, 48 related to discrimination.
Discrimination cases are frequently not taken seriously and processed slowly by the police,
prosecution and courts.
The Kosovo Prosecutorial Council continues to maintain a tracking mechanism on hate crimes.
However, overall, data collection on hate crimes remains insufficient. Hate speech against those
in vulnerable situations, including the LGBTIQ and non-majority communities persists,
especially on social media.
Legislation and institutional mechanisms on gender equality are in line with international and
European standards. Women continue to face discrimination in the labour market, access to
finance, ownership of property and access to justice. Kosovo has strengthened the application of
the law on Gender Equality in the recruitment process within public administration. The Law on
Gender Equality has set a parity rule aiming for 50:50 percent of representation of men and
women at any level of decision-making in the political and public life. Nevertheless, women are
still under-represented in decision-making positions in private and public institutions. The
participation of women in politics has continued to increase but remains low (see section 2.1.1
on Democracy).
Civil society continues to play a critical role in advancing gender equality, contributing to the
improvement of legislation, monitoring the implementation of policies, providing services,
assisting victims of violence and raising awareness, which reflects the need for the authorities to
step up their engagement in these areas. Women continue to face discrimination in the labour
market; their participation rate remains very low. This is attributed to low salaries, limited access
to child and elderly care, and lack of family-friendly workplaces. The Labour Law needs to be
harmonised with the EU Work-life Balance Directive. The government made efforts to mitigate
the impact of the pandemic on the living conditions of women. The Economic recovery Fund
distributed 2 million EUR among women’s civil society organisations, women-led business and
child-care facilities. The government increased its efforts to ensure the implementation of the
37
Law on Gender Equality, especially in relation to equality in recruitment in the public
administration but women remain under-represented in the highest ranks of the public service.
The Agency for Gender Equality continues to play a central role in advancing gender equality,
including in legislation and policy, promoting the mainstreaming of gender in institutions'
policies/actions, and training civil servants. The coordination with gender equality officers in the
ministries and municipalities has improved, but their role needs to be harmonised. More human
resources and capacity building is required.
Domestic violence continues to be the most prominent form of gender-based violence in Kosovo.
The government is showing determination to improve policies and public responses. The
Ministry of Justice set the fight against domestic violence and other forms of gender-based
violence as one of its five priorities, and extended free legal aid to all victims. The legal and
institutional framework in this area is largely in line with European and international standards.
However, the Law on Domestic Violence still needs to be aligned with the revised Criminal
Code and the Council of Europe Convention on preventing and combating violence against
women and domestic violence (Istanbul Convention). A new Strategy and Action Plan against
Domestic Violence and Violence against Women (2022-2026) was adopted in February 2022.
The Ministry of Justice funds the integrated database for cases of domestic and gender-based
violence. Despite these positive developments, there has been overall limited progress on the
ground in preventing and combating domestic violence, and protecting and reintegrating victims.
The functioning of the municipal coordination mechanisms for domestic violence as well as
shelters for victims of domestic violence and trafficking in human beings is uneven and need
improvements.
Reporting of domestic violence has increased but cases are still not handled adequately. The total
number of reported cases during the reporting period was 2 710 (2 456 cases were reported in
2021 against 1 632 in 2020). This is a significant increase, which may be explained by a variety
of factors, including increased violence induced by COVID-19-related restrictions, higher
awareness of their rights by victims and improved reporting channels. The prosecution and
adjudication of cases is still inappropriate, with lenient sentences for perpetrators, leading to
recidivism. Specialised prosecutors and judges have been appointed, but the prioritisation of
cases is slow. Judges put pressure on victims to reconcile with perpetrators. Judges, prosecutors,
police and victims’ advocates need further training to better understand their role under the
current legislation. Other forms of violence against women continued. Women in public life
continue to be judged and stereotyped. Body-shaming and other verbal attacks continue, but
reactions from public officials, institutions, civil society and women rights’ organisations,
contribute to making sexism less acceptable.
On the rights of the child, Kosovo’s legal framework is largely in line with international
standards but implementation remains limited. The new Law on Child Protection, which protects
children from all forms of physical and mental violence, needs to be effectively implemented.
Out of the 17 administrative instructions foreseen in the law, only one is registered in the Official
Gazette as adopted. The Cybercrime Investigation Section of the Kosovo Police includes a unit
for the investigation of criminal offense in relation to child pornography, including the
downloading, possession and distribution of material with child sexual abuse content. The new
Civil Code aims at regulating legal concepts and clear provisions related to the treatment of the
children in the most vulnerable situations, especially children without parental care. Law on
Local Government Finances, consulted in September 2021, is not yet adopted. This Law has a
38
specific grant for social services, that will allow for a better implementation of the Law on Child
Protection. This process needs to be expedited by the relevant authorities together with the
awareness raising campaign to promote the Law and inform authorities on their duties and
responsibilities.
Children with disabilities lack proper access to education facilities as well as necessary
assistance. To address this problem, the government has pledged to hire 100 assistants to help
children with special needs, but the process has not been finalized. The authorities should
increase financial support to scale up community-based social and health services for children
with disabilities, and increase efforts to integrate them effectively into educational institutions.
Girls face more challenges than boys as regards access to education. Violence in schools,
including bullying, is increasing. Sustainable financing schemes for service providers, inlcuding
for children’s rights, needs to be established.
Foster care for children without parental care has not been extended in all municipalities of
Kosovo. Civil society organisations advocated that the new Civil Code includes the form of
protection called semi-independent supervised living, which would enable support to persons in
foster care up to 26 years of age instead of 18. There is a lack of quality services and dedicated
programmes for the prevention and reintegration of child victims of drug abuse. Municipalities
need to provide sustainable funding for pre-school learning centres for children of Roma
community in order to keep them in service. The new Law on Early Childhood Education is in
the preparation, and will aim to contribute towards integration of services in early childhood
development. Over the years, the authorities have failed to address problems related to street
children, including child begging. Child, early and forced marriages remains an issue particularly
among Roma and Ashkali communites.
Persons with disabilities remain among the most discriminated, as they lack access to physical
infrastructure, quality education, proper medical care and healthcare services, and employment
opportunities. There is a lack of provision of quality institutionalised services for people with
disabilities. There is also a clear gap in harmonising the legislation and policies with the relevant
UN Conventions and the EU acquis on the rights of persons with disabilities. Some laws are not
effectively implemented, such as the Law on Paraplegic and Tetraplegic or the Law on Blind and
the Law on Employment. The legal framework on mental health is also incomplete. A
comprehensive law for all persons with disabilities would improve provision of service and
quality of life.The administrative instruction on the Acces of Persons with Disabilities is not
being implemented. The government should finalise and approve the draft Law on Evaluation,
Status, Benefits and Services for Persons with Disabilities. Current political commitment on the
disability inclusion agenda is positive, but should be associated with more substantial budget
planing and allocations across sectors to improve the availability of inclusive services for
persons and children with disabilities. The Strategy for Persons with Disabilities and the new
Action Plan 2020-2023 are in place.
On the rights of lesbian, gay, bisexual, transgender, intersex and queer (LGBTIQ) persons,
the Constitution protects against discrimination based on sexual orientation or gender.
Nevertheless, public awareness on the rights of the LGBTIQ persons and their acceptance
remains low. The draft Civil Code , which includes provisions for civil partnerships for same-sex
partners, was not approved by the Assembly. The discussions on the Civil Code gave rise to use
of homophobic language, including from MPs and the Chairperson of the Committee on Human
Rights, Gender Equality and Missing Persons. This has exacerbated the discrimination and
39
prejudice toward LGBTIQ persons. During the pandemic, the number of LGBTIQ individuals
seeking psychological support increased, both online and in-person. All social services are
offered by NGOs, which also report an increase in domestic violence cases towards LGBTIQ
persons. The process of buidling a shelter by the municipality of Prishtina for LGBTIQ people
who are survivors of domestic violence or became homeless due to family rejection is still
underway. As for the legal gender recognition, the government accepted a concept document on
Civil Status law, incorporating suggestions of civil society. New procedures need to be quick,
transparent and accessible. Further training for law enforcement agents is needed, especially with
regard to transgender rights, qualification of hate crimes, and secondary victimisation.
The procedural rights of suspects and accused persons in criminal proceedings and the rights of
victims of crime are stipulated in the constitution and the law. In particular, the new Criminal
Procedural Code is aligned with the EU acquis to guarantee, namely, the right to information,
right to interpretation and translation, right to have a lawyer, right to be presumed innocent and
be present at trial and right to legal aid. Victims of crime, however, often continue to lack the
capacity to protect and pursue their legal interests in criminal proceedings, tend to receive
insufficient legal information on their rights and are rarely assisted during criminal proceedings
by professional legal representatives. The budget allocated for legal aid in 2021 amounted to
EUR 1 702 676, in slight decrease of 2% compared to the previous year. The budget
implemented for legal aid in 2021 amounted to EUR 1 686 056 (EUR 1 398 442 in 2020). The
level of legal aid provision, although improved, still remains inadequate due to conflicting
legislation, lack of public awareness and different systems in place for providing free legal aid.
In addition, there is no system of quality assurance in the provision of legal aid. Out of 1 612
complaints received by the Ombudsperson in 2021, 261 concerned the right to a fair trial within
a reasonable time. Between January-June 2022, 356 cases were opened for investigation: 137
related to the right to a fair and impartial trial within a reasonable time. The Law on
compensation for victims of crime is broadly aligned with the EU acquis. Nevertheless, the
quality of service provided to victims by Protection and Assistance Officers should improve. A
compensation programme for victims of crime exists and, compared to previous years, the
number of requests for compensation is slightly increasing. In 2021, the total number of requests
for compensation was 58 (56 in 2020). The Committee for Crime Victims Compensation
approved 28 of these requests, for a total value of EUR 102 554 (EUR 91 935 in 2020).
Kosovo has well established mechanisms and structures at the central and local level as well as
an adequate legal framework to protect non-majority communities and their rights. Better
institutional coordination and communication between the different levels of government would
further improve their effectiveness. However, the conditions for a truly multi-ethnic and
integrated society throughout Kosovo are not fully in place. Gaps remain in ensuring a secure
environment for all non-majority communities - especially in areas where returnees live - and in
ensuring access to property, personal documentation, language rights, quality education,
employment, and social welfare.
Increased coordination between the relevant departments within the Office of the Prime Minister
– the Office for Community Affairs (OCA) and the Advisory Office for Good Governance –
remains necessary. The position of the Director of the Office for Community Affairs (OCA)
within the OPM remains vacant since February 2021. The functioning of the OCA improved
with the appointment of an international advisor on community affairs in December 2021. The
Advisor initiated a number of activities, aiming primarily at revamping the functioning of the
40
Office. These included organising a meeting of the Prime Minister with the municipal
community rights protection mechanisms, announcing internship programmes for students from
the non-majority communities, and grants for NGOs representing these communities.
The Consultative Council for Communities (CCC), placed under the President’s Office, has been
able to carry its functions well, mainly vis-à-vis relevant government institution. In comparison
to the previous reporting period, government institutions addressed some of the CCC
recommendations. The international advisor to the Prime Minister on community affairs is also a
government representative to the Council. The CCC has two other government representatives
who do not however hold any formal position in the Council. The government should be
considering the appointment of new members, to strengthen the link of this advisory mechanism
with the executive. The Technical Working Group for the implementation of the
recommendations of the Council of Europe’s Framework Convention on National Minorities has
not met during the reporting period, and there has been limited progress with the implementation
of its recommendations.
A more consistent implementation of the Law on the Use of languages is necessary. Being a
crosscutting and collective obligation, its implementation remains a responsibility for all
institutions. The Office of the Language Commissioner continues to protect and promote
community languages and oversee the language compliance in Kosovo. The government has
taken further steps to establish the translation unit tasked with improving translation of
legislation has been pending since 2019. There is a need for increased efforts in developing and
introducing programmes for curricular and extracurricular learning of official and other
languages. This will in turn contribute towards better social, economic and public inclusion for
all communities in Kosovo. Stronger support by the government to consolidate language policies
remains necessary.
The establishment of the Balkanology study programme in October 2021, along with the
Language learning centre at the Faculty of Philology, of the University of Pristina improved
opportunities for Kosovo majority and non-majority students to learn regional official and
foreign languages. However, its success in promoting inter-community relations will depend on
the resumption of the works of the Commission for verification of university diplomas obtained
in the (Serbia-run) University of Mitrovica North; the Commission ceased working on 31
December 2021. The discontinuation of the verification of these diplomas prevents those with
such qualifications from accessing higher education in the Kosovo education system and
accessing Kosovo’s labour market. The government should ensure that the Commission re-starts
its work and consider broadening its mandate to include the verification of secondary school
certificates. This is important to enable students’ enrolment in Kosovo’s educational system and
labour market. The employment of persons belonging to non-majority communities in the public
sector falls below the 10% threshold provided by the relevant legislation. These persons remain
generally underrepresented in the civil service at all levels.
While the overall security situation of non-majority communities remains stable, incidents
continue to take place. These incidents included cases of physical attacks. Moreover, vandalism
and burglaries of religious objects, including churches and mosques, also occur with some
frequency. The Kosovo Police has acted swiftly in most cases, but there is an urgent need to
improve follow-up and investigation to contribute to the identification and punishment of
perpetrators. Condemnation of the most serious incidents by the Kosovo leadership would also
contribute to improve the security situation. In processing and categorizing security incidents
41
having the potential to be ethnically motivated, Kosovo authorities and the prosecution should
apply the existing legislation, including the hate component as an aggravating factor. Security
incidents taking place in return areas have also presented at times a deterrent to the return
process.
In 2021, the voluntary return and reintegration of refugees and displaced persons witnessed a
slight decrease. According to the UNHCR the return of 368 individuals took place in 2021,
compared to the 394 in 2020. To ensure a lasting and sustainable return of refugees and
displaced persons, it is necessary to create an enabling environment that includes inter-alia,
dialogue with the local community, security and safety provisions, resolution of long-standing
property related issues, access to education, employment opportunities and freely accessing
language rights in the native language. In an effort to strengthen policy development and
implementation of the voluntary return, the Ministry for Communities and Return should (i)
finalize and adopt the Strategy for Protection and Promotion of the Rights of the Communities
and their Members (2022-2026) and its Action Plan; (ii) fully functionalise returns case
management system (returns database); (iii) establish an appeals commission as per the
Regulation on returns (No. 01/2018).
The situation of the Kosovo Roma and Ashkali and other communities in vulnerable situations,
like the Kosovo Egyptians, remains challenging. Women remain underrepresented in political
parties representing Roma, Egyptian and Ashkali communities, and as a results, women’s voices
are rarely heard in policy discussion. The government adopted the Strategy for the Advancement
of the Rights of the Roma and Ashkali communities 2022-2026, and its Action Plan 2022-2024.
The strategy aims to advance the rights of Roma and Ashkali communities in the fields of
education, health, housing, employment and economic empowerment, and the fight against
discrimination, among others. Kosovo should ensure effective implementation of the Strategy
and the Action Plan 2022-2024. The Technical Working Group for the Protection from
Discrimination of the Roma Ashkali and Egyptian communities met several times during the
reporting period.
Members of these communities face limited access to clean water and sanitation, protective
equipment and healthcare, while access to education and formal employment remain difficult.
The Roma, Ashkali and other communities in vulnerable situations, like the Kosovo Egyptians,
face difficult living conditions further compounded by the pandemic. These communities are
often discriminated and subjected to hate speech or derogatory terms in different contexts, and
victims often do not report cases as they do not trust the institutions. Women belonging to these
communities are subject to multiple discrimination; also the percentages of early, child, forced
marriages and domestic violence cases is more prevalent than within other communities.
The need to provide housing exceeds the budgetary possibilities. This should be addressed
within the process of registering housing needs in the database of the Ministry of Environment,
Spatial Planning and Infrastructure. Furthermore, the Roma and Ashkali communities should be
more involved in solving the housing problem, starting from the requirements of housing needs,
to the regulation of property documentation. The mapping of informal settlements has been
completed and the authorities initiated the process of legalization. No significant progress was
made in developing a methodology for data collection, nor in developing a policy for
transforming informal economy among the Roma. Despite some progress in increasing the
access to and participation in quality education for children from the Roma and Ashkali
communities, challenges remain, especially for girls. The challenges relate to low awareness on
42
the importance of education, poverty, unemployment, low standards of living and low
participation in preschool education. In spite of the limited support provided by Ministry of
Environment, Spatial Planning and Infrastructure to the Learning Centre’s, more efforts are
needed to support pre-school children from these communities. The Ministry of Education
adopted administrative instructions to strengthen the social network responding to the lack of
participation in school. The employment situation for persons belonging to Roma and Ashkali
communities is more challenging compared to other communities. Their jobs are often
temporary, mostly physical, not highly skilled and poorly paid. Very few women are employed
due to traditional stereotypes, early marriages and lack of education and skills. More efforts are
needed to assist Roma and Ashkali communities in accessing the job market. Roma, Ashkali and
Egyptian are under-represented in public administration falling far below the 10% quota
guaranteed by the Law on Public Servants. With limited access to preventive, curative, and other
health services, members of the Roma and Ashkali communities continue to suffer from poor
health. Among the main barriers to accessing health services are: poverty and an inability to pay
for treatment and the purchase of medicines as well as lack of medical staff and mobile teams,
public transport, and identification documents needed to receive public services. This affects
women and girls in a differentiated way: lack of access to specific women health care contributes
to the high number of unwanted and child pregnancies. The lack of civil documentation further
affects access to rights for Roma and Ashkali communities. The authorities have initiated efforts
in partnership with international partners to collect data on civil status and to provide free legal
aid.
Concerning cultural rights, there is no progress on the adoption of the new Law on Cultural
Heritage. The Implementation and Monitoring Council remains the only existing mechanism for
the dialogue between the government and the Serbian Orthodox Church and the Kosovo
authorities. Conditions for communication and for a more effective functioning of this
mechanism should be in place in order for the Implementation and Monitoring Council to
continue its work. The protection and promotion of cultural heritage in Kosovo still remains
weak and donor driven.
Chapter 24 - Justice, freedom and security
The EU has common rules for border control, visas, residence and work permits, external
migration and asylum. Schengen cooperation entails lifting border controls inside the EU.
Member States also cooperate with Kosovo in the fight against organised crime and terrorism,
and on judicial, police and custom matters, all with the support of the EU justice and home
affairs agencies.
Kosovo is at an early stage/has some level of preparation in this area. Some progress was
made, in particular on counter-terrorism and the fight against and prevention of violent
extremism, as well as managing migration. The entry into force of several laws important to
combatting organised crime has not led to tangible results. The adoption of the Standard
Operating Procedure for financial investigations in line with Financial Action Task Force
(FATF) recommendations, is a positive development. Sustained efforts are needed to ensure
more proactive investigations, final court decisions and the final confiscation of assets. Kosovo
continued to make progress in managing both regular migration and mixed migration flows in
the difficult context of the COVID-19 pandemic. Although not affected by large migrant
movements, Kosovo further increased its accommodation capacity and stepped up preparedness
to handle a potential migration influx.
43
As Kosovo has partly followed the recommendations of the 2021 report, they remain valid. In
the coming year, Kosovo should in particular:
 continue to reinforce the capacity of the Special Prosecution Office to investigate and
prosecute high-profile organised crime cases;
 establish a Joint Threat Assessment Centre, including a threat level grading system on
terrorism and related links;
 further enhance migration governance, coordination and monitoring of policies; reinforce
capacities for data collection and analysis; further strengthen asylum.
Fight against organised crime
Kosovo is at an early stage in the fight against organised crime and limited progress was made
in investigating and prosecuting organised crime cases. Limited results were achieved, despite
the existence of proper legal and institutional frameworks. Powerful tools envisaged by the
Criminal Code and the Law on Extended Powers of Confiscation are not yet fully utilised.
During the reporting period, a number of successful operations targeting organised crime
continued, also involving international and cross-border cooperation. Sustained efforts are
needed to ensure proactive investigations, final court decisions and confiscations of proceeds of
crime. The operational independence of law enforcement agencies must be ensured. Fighting
organised crime in the northern part of Kosovo continues to be challenging.
Kosovo has partly implemented the 2021 recommendations: mostly regarding trainings and
awareness raising on new legislation, as well as on the need to restructure the Kosovo Police
Directorate for Intelligence and Analysis and by adopting of the standard operating procedure to
run financial investigations in line with Financial Action Task Force (FATF) recommendations.
There is a well-established cooperation with Interpol and Europol. In addition, Kosovo has
appointed Eurojust Contact Points. In addition to recommendations to strengthen confiscation of
criminal assets (see chapter 23 section on fight against corruption), in the coming year, Kosovo
should in particular:
 within the police, effectively implement the intelligence-led and community policing
approaches, by establishing intelligence structures, continuing to train analysts in the Police
Directorate for Intelligence Analysis and appointing dedicated community police officers for
confidence-building and proactive policing;
 further reinforce the capacity of the Special Prosecution Office to investigate and prosecute
high-profile organised crime cases; provide training to strengthen police-prosecutor
cooperation, the capacity to conduct financial investigations, confiscate assets and effectively
protect witnesses;
 implement the strategy and action plan against trafficking in human beings 2022-2026,
adopting a victim-centred approach; enhance efforts on prevention; improve early proactive
identification of victims of trafficking, in particular those belonging to vulnerable
communities, as well as their referral to appropriate assistance and support services.
Institutional set-up and legal alignment
44
The Kosovo Police has 465 police officers per 100 000 inhabitants, compared with an average of
333 per 100 000 inhabitants (Eurostat, 2018-2020). A working group has proposed amendments
to the Law on Police.
Key institutions involved in the fight against organised crime include the Special Prosecution
Office and the Special Department of the Basic Court and the Court of Appeals in Pristina.
During the reporting period, additional prosecutors and support staff in the Special Prosecution
Office were engaged. Additional staff was assigned to the Special Departments. A further
increase in staff should be based on a needs assessment.
The Kosovo Police’s Investigation Department, responsible for the prevention, detection and
investigation of organised crime and corruption related offenses, consists of nine specialised
central-level directorates and cooperating units at regional level. In its present structure, the
Department reached its limits in terms of efficiency. Deeper structural reforms are needed. The
proposed new draft structure of the Department, pending final approval by competent authorities,
contains two main pillars: investigation and support. The police is undergoing a necessary
reform programme. Thus far, there has been some progress concerning the restructuring and the
training of personnel of the Directorate for Intelligence and Analysis.
Separate working groups are monitoring the implementation of the Strategic Development Plan
2021-2025, as well as Integrated Intelligence-Led Policing and Community Policing Strategy
and Action Plan 2021-2025, through annual implementation reports. In June 2022, the first
strategic level Tasking and Coordination Group identified key priorities based on annual
strategic crime assessment report. The government should take into account the findings of the
police risk assessment analysis of the government buildings, and accordingly, refrain from
utilising police officers from conducting tasks that are not core police service tasks. The Kosovo
Academy for Public Safety provides good quality education.
Kosovo Border Police, Kosovo Customs, the Financial Intelligence Unit and the Tax
Administration remain responsible for monitoring and controlling the internal and cross-
border/boundary flow of goods, materials and capital that might be involved in any form of
organised crime. Kosovo Customs and the Financial Intelligence Unit performed well. While the
Asset Recovery Office within the police is operational, it still receives limited requests. An
initiative to transfer the Office to the State Prosecution Office, and assign dedicated staff from
Prosecution, Police, the Financial Intelligence Unit, the Customs and Tax Admistration, is
underway. The Police Information System is linked to other law enforcement databases.
Standard operating procedures to improve utilisation of the Police Information System, in
particular regarding case management in criminal investigations, were adopted. The adopted
standard operating procedures regulate access levels to the Police Information System and
ensures full harmonisation between the various databases.
The process of internal reorganisation of the Civil Registration Agency has stalled during the
reporting period. No progress has been made with regard to the drafting of the Civil Registration
Agency strategy. The Agency staff has insufficient capacities to implement their tasks
efficiently. The procedure for the recruitment of a General Director has been cancelled, leaving
the post vacant for over a year. Interoperability of the Civil Registration Agency’s IT system
with the Kosovo Cadastral Agency, law enforcement agencies and other institutions is a
challenge, due to insufficient human resources, budget and technical capacity. The Civil
Registration Agency should continue to improve the quality and increase the reliability of data
45
processed and registered in the Central Civil Status Registry System, including the database
structure and design. The Civil Registration Agency should establish a framework to improve
governance of the IT systems, including procedures and policies.
The main strategic framework the Rule of Law Sector Strategy consists of the 2018-2022
Strategy and Action Plan against organised crime, the Kosovo Judicial Council Strategic Plan for
efficient solving of cases of corruption and organised crime, as well as other relevant strategies
and action plans, including on arms control; informal economy, money laundering and terrorist
financing; counter-terrorism; trafficking in human beings and narcotics. All relevant institutions
must cooperate to effectively implement these strategic documents. In addition to the annual
strategic crime assessment reports, in May 2022, Kosovo Police adopted the fourth serious and
organised crime threat assessment (SOCTA) report, based on Europol’s methodology, which
covers the period 2019-2021.
The legal framework on the fight against organised crime was further aligned with the EU
acquis. Despite not being a party to international conventions on the fight against organised
crime, such as the United Nations Convention on Transnational and Organised Crime (Palermo
convention), due to status-related issues, Kosovo unilaterally applies these international
principles in its criminal legislation. Moreover, it is generally aligned with relevant European
standards.
The Criminal Code and the Law on Extended Powers of Confiscation has been in force since
2019 (see section on the fight against corruption). In July 2022, the Assembly adpted the new
Criminal Procedure Code.
The Law on Money Laundering and Terrorism Financing should be amended, to be fully in
line with with the 4th
and 5th
EU directives on anti-money laundering and countering financing of
terrorism. The government initiated the drafting of the concept document to review the
legislation on prevention of money laundering and combating terrorist financing, to ensure its
full compliance with EU Directives and the Financial Action Task Force (FATF)
recommendations. The draft law on the implementation of targeted international financial
sanctions has been adopted by the government, and is currently in the Assembly. The
Administrative Instruction for the Beneficial Owner for Reporting Subjects has been adopted.
The Financial Intelligence Unit published the general money laundering typologies.
With regard to implementation of the Law on Interception of Electronic Communications,
interception capacities were upgraded, allowing decentralisation of monitoring centres to other
police units as well as other law enforcement agencies. The police is still in the process of
finalising procurement of necessary technical equipment and set up respective monitoring
centres. Legislation on cybercrime is generally in line with the EU acquis. Legislation on
trafficking in human beings is broadly aligned with the current relevant EU acquis, but
implementation could be improved. The new Strategy and Action Plan against trafficking in
human beings 2022-2026 has been adopted in June 2022.
Implementation and enforcement capacity
Kosovo authorities continue to report on the total number of indictments and convictions for the
charge of ‘organised crime’ as defined in the United Nations Convention on Transnational and
Organised Crime. During 2021, 19 new cases involving 148 persons were initiated (five new
46
cases involving 63 persons in 2020). For 29 persons, indictments were issued. For 17 persons,
the investigation was terminated. During 2021, three persons were convicted.
For the visa liberalisation-related track record in the fight against high level corruption and
organised crime, see the section on the fight against corruption.
As for organised crime-related cases currently not included in the aforementioned track record,
during 2021, 46 cases relating to trafficking in human beings involving 70 persons were initiated
(19 in 2020), and the prosecution presented indictments against 45 persons (36 indictments were
presented in 2020). In 2021, four persons were convicted (two in 2020). In addition, in 2021,
three persons were indicted (23 in 2020) for illicit trafficking of firearms and the court convicted
three persons (three in 2020). For money laundering, 9 persons were indicted in 2021 (33 in
2020) and one person was convicted (3 in 2020).
The police and the prosecution should continue to actively use all powers at their disposal to
target criminal networks and their economic support base.
Sentencing policy remains erratic (see section on judiciary). The low number of confiscated
criminal assets is still a key concern (see the section on the fight against corruption). The
institutions involved in the fight against organised crime need to set up and use multi-
disciplinary, joint investigation teams, where possible.
The Kosovo Police has adequate basic capacity and capability to combat organised crime in
Kosovo. However, investigations of organised crime remain vulnerable to corruption and
unlawful interference. The operational independence of the police must be ensured. The police
needs to reform and restructure its processes, inter-agency and multidisciplinary investigative
cooperation in order to raise levels to EU standard core business models for policing. The police
needs to enforce its integrity plan, improve ethics and conduct profesional criminal
investigations. The work of the Police Inspectorate is important. As envisaged by the Law on
Police Inspectorate, the Ministry of Internal Affairs should review and develop a plan for the
implementation of Police Inspectorate recommendations, which thus far, has not been done. A
positive trend of successful police operations targeting organised crime continued during the
reporting period, also involving international and cross-border cooperation. In 2021, the police
dismantled 49 organised crime groups, involving 317 suspects. These operations resulted in a
number of arrests and the preliminary confiscation of assets, which now needs to be followed up
by the prosecution and judiciary. However, the fight against organised criminal structures should
be intensified. Investigations should be more proactive and and criminal groups should be
adequately mapped. There should be a shift of focus from investigating commodity to targeting
criminal groups and structures. The government should ensure a sound legal and organisational
structure to the Special Investigative Unit within the Kosovo Police as the successor of the
abolished Anti-Corruption Task Force (see section on the fight against corruption).
The implementation of the intelligence-led policing and community policing remains weak. A
positive step is noted with respect to community policing, through the anticipated new overall
organisational police structure dedicating two community police officers per sector in each
police region. The police needs to continue to establish adequate intelligence structures at
regional and central levels. Most importantly, a change of mindset throughout the police
organisation is crucial for an effective implementation of the intelligence-led and community
policing models. There is a need for more specialised and on the job training for all institutions
involved in fighting the more complex occurrences of organised crime. Closer day-to-day
47
cooperation in view of developing strategies to better conduct investigations and clear division of
responsibilities between the police and the special prosecution is still needed. The police should
establish a verification office for Special Investigative Measures, which are key, to review
requests of investigators for special measures from the prosecutors. This would enable a joint
target-based approach from the police and the Prosecution Service to improve the pro-active
finding of illicit and ill-gained wealth.
There is well-established cooperation with Interpol and Europol. Kosovo regularly exchanges
information with Interpol via the United Nations Interim Administration Mission in Kosovo
(UNMIK). Since 1 June 2021, the police sent 1,824 messages through Interpol-channel. The
Kosovo Police and Europol have strengthened their cooperation. The 2020 Working
Arrangement on strategic cooperation was followed up by additional implementing agreements,
allowing for access to the Secure Information Exchange Network Application (SIENA), the
deployment of Kosovo Liaison Officer(s) to Europol and the exchange and protection of
classified information. During the reporting period, the SIENA connection in Kosovo has been
successfully brought into operation. The police has finalised the recruitment of the liaison officer
to Europol and notified Europol about the appointment. The Ministry of Foreign Affairs should
now finalise protocol-related matters. The police cooperates well with police services in EU
Member States, including through joint investigation teams and exchange of information on civil
and criminal cases. The police has signed 100 international police cooperation agreements,
including with 11 EU Member States, five EU agencies and other countries and international
organisations. The Kosovo Police mutually exchanges liaison officers with seven partner
countries. Since December 2020, Kosovo and Eurojust have established cooperation through the
appointment of the two Contact Points.
Effective implementation of witness protection mechanisms continues to face challenges, as few
potential witnesses have sufficient trust in Kosovo institutions’ ability to keep them safe. Kosovo
police participate in Europol’s Platform for Witness Protection. Prosecutors and judges need
training on how to protect witnesses effectively.
The fight against money laundering and terrorist financing is not yet producing expected
results. In 2021, there was one conviction for money laundering. Money laundering and terrorist
financing are often not prosecuted as a standalone crime, which slows down the overall criminal
procedure. There is a pressing need to foster prosecutors’ and judges’ enhanced understanding of
the concept of money laundering and terrorist financing and to improve specialisation in this
field. There is still insufficient awareness of reporting entities and relevant stakeholders. In 2021,
the Financial Intelligence Unit received a total of 920 suspicious transaction reports (an increase
of 2% compared to 2020). The Financial Intelligence Unit has exchanged a total of 127 requests
for international information exchange through the Egmont Group (19% increase compared to
2020). The Financial Intelligence Unit has issued 46 freezing orders for the total amount of EUR
8 975 202, and carried out 31 inspections of reporting entities. The number of disseminated
intelligence reports to law enforcement agencies increased by 27% in 2021 compared to 2020.
During the reporting period, the Basic Court in Pristina confirmed the conviction of two
suspects, and the confiscation of nearly EUR 1 million, following the order for a retrial by the
Supreme Court. The Special Prosecution Office filed a money laundering indictment in the case
of treasury, initiated by the Financial Intelligence Unit. Overall, although the efficacy of
financial investigations has improved at the police level, they are still not systematically
conducted in parallel with the criminal investigations/proceedings. Inter-agency cooperation and
48
coordination needs to improve significantly (see also chapter 4 on the free of movement of
capital). In February 2020, the police adopted the standard operating procedure to centralise all
aspects of financial investigations in line with Financial Action Task Force (FATF)
recommendations.
Despite progress achieved, the involvement of organised and armed groups in arms trafficking
remains a serious concern. Kosovo is implementing its strategy in this area and the Law on the
Legalisation and Surrender of Weapons, Ammunition and Explosive Devices. During 2021, the
Kosovo Police seized 1 280 firearms and 42 031 pieces of ammunition of various calibers. The
authorities are amending the Law on Weapons in line with the latest EU Firearms Directive, and
the strategy on Small Arms and Light Weapons, although they should accelarate the efforts
towards drafting amendments to the key laws and bylaws on firearms, ammunition and
explosives towards harmonisation with main EU firearms directives and regulations. The
firearms focal point in the police is fully operational and works well. The firearms focal point
reports are prepared regularly, ongoing activities on daily data collection and firearms tracing, as
well as participation in trainings and meetings at regional or international level reported.
Kosovo’s firearms focal point continues to function as good practice in the region.
Ballistics laboratory is well equipped. Kosovo has the highest level of harmonisation in the
region with the provisions of the UN Firearms Protocol.
Kosovo remains a country of origin, transit and destination of victims of trafficking in human
beings, notably for sexual exploitation. During the reporting period (15 June 2021 – 15 June
2022), the Kosovo Police has identified a total of 26 victims of trafficking, out of which 21 were
girls and women and 5 men, with 15 victims under the age of 18 and 11 over the age of 18. More
efforts are needed, especially regarding prevention, the pro-active identification of victims,
assistance and support to victims and increasing prosecution and conviction of perpetrators
Cigarette and tobacco smuggling is of growing concern. Kosovo is a key transit country for the
smuggling of counterfeit cigarettes as well as for legally produced tobacco products shipped
illicitly via neighbouring countries in the Western Balkans.
During 2021, the reporting period, while there were 37 cases (53 in 2020) of cyber-crime. There
were no indictments and no final judgements, and one investigation was terminated. The Kosovo
Police Sector for the Investigation of Cybercrime has initiated 4 cases for the offence of Child
Abuse in Pornography and 3 criminal charges were filed against 17 persons. Kosovo needs to
address several issues, such as the limited availability of cyber-crime training for newly
appointed judges and prosecutors and those handling electrofic evidence.
Following the 2017 working arrangement with the EU Agency for Law Enforcement Training
(CEPOL), Kosovo actively takes part in a number of its activities. Kosovo has full access to the
CEPOL Exchange Programme and its electronic learning system.
Kosovo stepped up its participation in the European Multidisciplinary Platform Against Criminal
Threats (EMPACT). In 2022, Kosovo committed to participate in 23 operational actions in 3 of
the 15 EMPACT operational action plans, compared to its participation in 5 operational actions
in 2021. Kosovo has yet to appoint a National EMPACT Coordinator. Kosovo continued to
cooperate with EU police services through the European Network of Fugitive Active Search
Teams (ENFAST), in which it has an observer’s status.
49
Kosovo continued to participate actively in EMPACT Joint Action Days, such as the one for
South-East Europe 2021 (promoting closer cooperation in the work against firearms trafficking,
the smuggling of migrants and drugs trafficking) and the Mobile 4 one (targeting various
modalities of motor vehicle crime, including smuggling of stolen vehicles via the external
borders, parts of vehicles, as well as associated document fraud).
The Serious and Organised Crime Threat Assessment (SOCTA) needs to be shared with the
public or other institutions in order to translate the threats identified into operational priorities
backed up with adequate resources.
Cooperation in the field of drugs
Institutional set-up and legal alignment
The legislative framework to combat illicit handling of and trafficking in narcotic drugs is based
on the 2007 Law on Narcotic Drugs, Psychotropic Substances and Precursors. A more
comprehensive, revised draft law that in turn is aligned with more recent EU legislation is yet to
be adopted. The Criminal Code addresses drugs and trafficking-related crimes. A coordination
mechanism has been established to prevent and combat drug trafficking and the illicit use of
precursors. To this end, and in accordance with the current strategy and action plan (2018-2022),
a national drug observatory is established within the Ministry of Internal Affairs. There is no
head of the observatory since December 2018. In March 2022, the Ministry of Internal Affairs
assigned an officer to carry out the function at the observatory. While a decision was taken to
increase the number of personnel, this has partly been implemented. Difficulties also remain
regarding the sustainable and routine collection of drug-related data throughout Kosovo, also
given the lack of a functional Health Information System. The early warning system is not yet
established nor operational. The Ministry of Internal Affairs approved an internal regulation on
the organisation of the national drug observatory and the early warning system, which ensures
adequate human and financial support. Two new positions have been approved to reinforce the
secretariat and the drug observatory; however, the recruitment process is yet to start. Cooperation
with the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) has improved
thanks to the support from ad hoc expertise outside the national drug observatory. The
EMCDDA signed a working arrangement with the Ministry of Internal Affairs and with the
Ministry of Health in September 2019.
Implementation and enforcement capacity
Kosovo continues to be both a storage and a transit country for narcotic drugs and their
derivatives. Overall, drug seizures are increasing: around 500kg of marijuana, 3.6kg of heroin,
and 414kg of cocaine were seized in 2021. In March 2022, the Kosovo Police seized 83.5kg of
heroin and arrested seven suspects. Further, in May 2022, succesful police operations targeted a
major Cannabis Sativa cultivation plot in North Mitrovica and succesfuly seized 68kg of heroin
in Ferizaj. During 2021, the Kosovo Police registered 726 new drug-related cases (1 006 in
2020). Out of the total number of cases, 218 were charged as drug trafficking, 478 as illegal
possession of drugs, 29 were related to cultivation and one was initiated for other drugs. In 2021,
1 117 persons were indicted for drug-related offences and 390 persons were found guilty by the
courts (seven were acquitted). Provisions are in place for the secure storage of seized drugs
awaiting destruction. However, a protocol for the handling, storage and destruction of drug
precursors is still not in place.
50
Organised crime groups continue to play a dominant role in large-scale drug trafficking and
subsequent distribution in the EU. The Western Balkans drug trafficking routes constitute a
major challenge. During the reporting period, a number of successful drug targeting operations
was carried out, and cooperation with EU Member States was effective. Law enforcement
agencies and prosecution need to further increase the understanding of the drug market through
analytical work, by examining the intelligence picture and identifying intelligence gaps. Inter-
agency cooperation and exchange of information in the fight against drug trafficking among
relevant actors in the chain of justice sector should further improve. The prosecution service
continues to remain understaffed and insufficiently trained to efficiently deal with drug-related
offences. Increased cooperation and coordination among law enforcement agencies in the
Western Balkan region is paramount. This can only take place through vastly improved inter-
agency cooperation and exchange of information at all levels. A 24-hours drug abuse hotline is
available, and addiction treatment and methadone therapy is being offered.
Fight against terrorism
Institutional set-up and legal alignment
A range of institutions remain active and involved in combating terrorism and violent
extremism, and in dealing with reintegration of returning foreign terrorist fighters and their
families. In April 2021, the government of Kosovo appointed the Minister of Internal Affairs as
the National Coordinator for the Prevention of Violent Extremism and the Fight against
Terrorism. This position is to improve inter-institutional coordination on those issues, monitor
and report on the implementation of policies, activities and other actions, and serve as a point of
contact for all related issues. In 2021, the Ministry of Internal Affairs established the working
group to design the structure of the National Centre for Violent Extremism and Terrorism or to
reinforce the Office of the National Coordinator. Thus far, no concrete outcomes can be reported.
The EU is ready to provide support through the Radicalisation Awareness Network in designing
such new structure. The main challenges regarding counter-terrorism and preventing and
countering violent extremism are the lack of horizontal and vertical coordination,
communication, information sharing, and of multidisciplinary, inter-office and holistic approach.
Social workers and other professionals working at the local levels should be better informed
about relevant actions undertaken at central levels.
Kosovo’s legal framework remains to be fully aligned with the EU acquis and international
instruments on anti-terrorism. The Law on Combating Money Laundering and the Financing of
Terrorism needs to be amended in order to be fully in line with EU and international standards
(see section on the fight against organised crime and chapter 4 on the free movement of capital).
The draft law on implementation of Targeted International Financial Sanctions has been adopted
by the government and is currently in the Assembly. Legislation on critical infrastructure
protection was adopted in 2018, but the adoption of bylaws is still pending.
Kosovo has a strategy and action plan against terrorism (2018-2023) in line with the EU’s
counter terrorism strategy. A strategy and action plan against violent extremism (2015-2020)
expired at the end of 2020. The National Coordinator decided to merge the two strategies and a
Working group is preparing a new draft strategy. The EU is supporting Kosovo in such revision
process through the Radicalisation Awareness Network Policy Support. The authorities should
set up a Joint Threat Assessment Centre, including a threat level grading system, to facilitate a
greater understanding among all agencies of the current operational situation, keep the public
51
informed and improve responses, including on the protection of critical infrastructure. In July
2021, Kosovo Police and Kosovo Intelligence Agency produced the first joint threat assessment
analysis document.
There is a need to ensure donors’ coordination, and to establish a more structured mechanism, as
previously existing coordination mechanism is not functioning anymore.
Kosovo authorities continue to implement the bilateral Implementing Arrangement with the EU
for the Joint Action Plan on counter-terrorism for the Western Balkans, whose validity and
continuation has been reaffirmed by the EU-Western Balkans Ministerial forum in October 2020.
Kosovo submitted its second implementation report in January 2021. During the reporting
period, Kosovo submitted its third and fourth implementation reports the Kosovo Police has
taken part in three separate CT/PVCE trainings, benefiting some 279 officers.
Implementation and enforcement capacity
Kosovo continued to fight the threat of terrorism. In 2021, ten indictments were filed, four
persons were convicted and one was acquitted. Investigations were completed in three cases
against 15 suspects. Between 1 January and 30 June 2022, ten indictments were filed, nine
persons were convicted and one was acquitted. In three cases, the investigation was terminated.
The total number of pending terrorism-related cases is 76. Greater consistency of sentencing
practices, for offences related to terrorism and violent extremism, is necessary. The functioning
of the Special Department within the Basic Court of Pristina and within the Court of Appeals
have contributed to a more effective handling of terrorism cases compared to the past. In April
2022, 23 persons sentenced (19) or detained (4) for terrorism related crimes were in prisons in
Kosovo, 17 at the High Security Prison and 6 at the Dubrava Correctional Centre. Between
January-April 2022, four prisoners sentenced for terrorism related crimes were released. The
majority of the releases was based on decisions of the Parole Panel. Sentences for terrorism
crimes for foreign terrorism fighters were relatively mild (average sentence 3.6 years). The
Ministry of Internal Affairs took measures related to conditional release to ensure that the
conditional release panel, in addition to social matters, pays more attention to security aspects
when dealing with inmates leaving the prison, when the level of radicalisation is higher.
Despite significant efforts, challenges in countering terrorism and preventing and countering
violent extremism and radicalisation remain. Militant Salafist ideology and ethnonational
movements continue to be present in the region, including Kosovo, and remain a threat. The new
strategy and action plan should address all forms of radicalisation and violent extremism,
including political, ethno-nationalist and religious ones. It is important that the existing
strategies, action plans and reintegration and rehabilitation programmes are continuously revised
in order to implement a risk-based approach.
Progress was made on the rehabilitation and reintegration of foreign terrorist fighters (FTFs) and
their families that returned from Syria/Iraq. Since the start of the civil war in Syria in 2012, 253
Kosovo citizens have returned (130 men, 39 women, 84 children), 100 have died, and 82 remain
in the Middle East (35 men, eight women, 39 children). With international assistance, in May
2022, Kosovo authorities carried out its fourth controlled return operation of two Kosovo foreign
terrorist fighters from the conflict zone in Syria. The Reintegration Division of the Ministry of
Internal Affairs needs appropriate financial and human resources. Municipal authorities need to
be more involved in planning and implementation of rehabilitation and reintegration process.
There is the need to focus more on preparedness of local practitioners dealing with returnees.
52
The National Coordinator on CT/CVE should play an enhanced role in overseeing the
rehabilitation and reintegration process including by linking up with municipalities. Civil society
organisations should be given a greater role in rehabilitation and reintegration efforts in local
communities. The focal point for counterterrorism and countering violent extremism and
established Intelligence Unit within the Kosovo Correctional Service contributed in improving
coordination of pre- and post-release processes, but de-radicalisation and disengagement
programmes within the correctional system need to be significantly intensified. Authorities need
to ensure specific training, also for the Kosovo Probation Service, which must develop
programmes for terrorism convicts. During the reporting period, seven such offenders were
released from custody. Kosovo continues to participate in the implementation of the Western
Balkan Counter Terrorism initiative.
Judicial cooperation in civil and criminal matters
While Kosovo is not party to most multilateral treaties governing mutual judicial cooperation, for
status-related reasons, it unilaterally applies internationally recognised treaty standards. Since
December 2020, Kosovo and Eurojust established cooperation through the appointment of two
contact points.
The legal framework for judicial cooperation in civil matters has been consolidated into one
comprehensive law, which is fully aligned with EU acquis. Cooperation with countries with
which Kosovo does not have bilateral agreements is based on the principle of reciprocity. From
June 2021 to March 2022, Kosovo addressed 80 requests on civil matters to EU Member States
and received 131 responses. It received 166 requests from EU Member States and provided 240
responses.
Kosovo’s international legal cooperation in criminal matters is based on the Law on Legal
Cooperation in Criminal Matters of 2013, which was recently amended by the Assembly, as well
as on 38 bilateral treaties. In 2020, Kosovo issued 101 requests in criminal matters and received
127 responses. It received 341 requests and provided 224 responses.
During the reporting period, cooperative relations with the European Public Prosecutor’s Office
(EPPO) have not been established.
The 2015 Procedures on Mutual Legal Cooperation agreed between Belgrade and Pristina form
the basis for judicial cooperation between their judicial authorities. Most other countries that do
not recognise Kosovo have voluntarily accepted the facilitating role of the EU Special
Representative in Kosovo in the transmission of judicial requests (including those concerning
extradition). However, the lack of cooperation by some non-recognising states has in practice
resulted in cases of impunity.
Legal and irregular migration
Despite the COVID-19 pandemic and related travel restrictions, Kosovo did not report any major
outbreaks in the asylum centres. Kosovo has mobilised additional resources to develop or revise
existing responses and contingency plan to manage mixed migration flows. It also incorporated
migrants and refugees in the COVID-19 response, including in the vaccination programme.
Stranded migrants outside reception centres faced particular challenges, as they remain
unregistered. IOM launched the Displaced Tracking Matrix Programme to reflect migration
trends better as well as to monitor and to collect data for stranded migrants outside the centres.
53
Institutional set-up and legal alignment
The relevant institutions dealing with migration in the Ministry of Internal Affairs and the
Border Police remain effective. Capacity of the Department for Citizenship, Asylum and
Migration, within the Ministry, should be increased. The Department currently employs 35
officers while the 2021 Regulation on Internal Organisation of the Ministry of Internal Affairs
prescribes the employment of 57 officers. In October 2021, one of the Deputy Ministers of
Internal Affairs was appointed as the National Anti-Trafficking Coordinator and the National
Migration Coordinator. The authorities should reflect on creating a permanent position in order
to bring more stability to this role. The legal framework is largely in line with the EU acquis.
Kosovo has signed readmission agreements with 24 countries, including 20 EU Member States
and members of the Schengen area. No new readmission agreements were signed in the reporting
period. There is no readmission agreement with the EU as a whole.
Overall, the Law on Foreigners is somewhat aligned with EU acquis and international standards.
In 2022, Kosovo has initiated the revision of the Law on Foreigners and the Law on
Readmission. It is recommended to align legislation with the provisions of Directive
2008/115/EC (the Return Directive), include a humanitarian protection category, extending the
voluntary return period and reflect on the existence of the new reception centre. In December
2021, the government adopted the concept document that aims to harmonise the Law on
Foreigners with the relevant EU Directives.
In November 2021, the government adopted the migration strategy and action plan 2021-2025.
The Strategy reflects the priorities included in the government programme 2021-2025. It takes
into account obligations deriving from the SAA as well as recent European and global initiatives,
such as the EU Pact on Migration and Asylum, and Global Compact on Safe, Regular and
Orderly Migration. The diaspora is not included in the migration strategy, as it will instead be
included in the future diaspora strategy. The new strategy meets all requirements, including in
defining baselines, clear budgeting and setting target values. It is only the first step towards
developing a comprehensive strategy based on cross-sectorial approach. The government should
review current policies and shift from current responsive and fragmented approach towards full
cross-sector strategic planning, to a more comprehensive strategy covering all relevant policy
areas, coordination and implementation.
The 2020 Migration Profile, which provides an overview of developments and recommendations
in the field of migration, was published by the authorities in November 2021. The Regulation on
the Management of the Reception Centre for Migrants is pending approval. The Guidelines on
assessing and determining the best interest of refugees and migrants children were adopted in
September 2021.
The Government Authority on Migration should take a more proactive role in migration
governance, coordination as well as in improving the monitoring mechanism for implementing
migration policies. A statute which sets the duties, roles and responsibilities of this authority has
not yet been adopted.
Implementation and enforcement capacity
Mixed migration flow decreased comparing to the numbers registered in 2020. From January to
December 2021, 1 487 new migrants were registered. 578 persons applied for international
protection, whereas 909 persons used the 72 hours scheme without finally applying for asylum.
54
There were 614 non-registered migrants in the period August 2021-July 2022, and 148 in 2022
until May. Capacities of the authorities to provide solutions for mixed migration flows,
especially irregular migrants outside the official centre, should be enhanced. Most of the
migrants are single men, with a limited number of single women, families and children (88%
male, 12% female; 90% adults and 10% minors). 92% of the migrants entered Kosovo
irregularly from Albania, 3.5% from North Macedonia, 3% from Serbia, 1.5% from Montenegro.
The top eight countries of origin are Syria, Morocco, Bangladesh, Afghanistan, Algeria, Iraq,
Libya and Palestine.
Providing proper care and security for the most vulnerable groups of migrants remains a
challenge. Due to a lack of biometric equipment, registering migrants at the borders or police
stations continues to be a challenge.
The number of persons held at the detention centre remained high: 46 persons were
accommodated from January to December 2021 with an average stay of 100 days, which more
than doubled since last year (average stay of 40 days in 2020). The detention centre has a limited
capacity and does not meet all the necessary standards. IOM, funded by the EU, provided
essential support to migrants at the detention centre for foreigners. A health clinic was
established and medical equipment delivered, where 50 migrants received counselling services,
basic psychological, psychotherapeutic sessions and psychiatric consultations. It is of utmost
importance to establish alternative measures to detention for migrants subject to return.
In 2021, 144 persons were returned (21 forced, 102 voluntary returns and 23 deportations). There
is a decrease in the number of returns from Kosovo by about 50% compared to 2020. 18
migrants have been assisted to voluntarily return to their countries of origin. Overall, for those
migrants who do not need international protection, assisted voluntary return remains the only
viable option. Non-voluntary returns have been limited due to status-related issues and the lack
of readmission cooperation with most countries of origin.
In December 2021, the government revised and adopted the contingency plan for the
management of the potential influx of migrants, refugees and asylum seekers. The authorities
expanded accommodation capacities, which are currently sufficient, but limited in case of
potential large inflow. There are three asylum centres with a current capacity of up to 600
persons (Magure, 100 persons; Vranidoll, 200 persons; Belvedere Camp, 300 persons, although
the latter could accommodate up to 2 200 persons in total based on the revised Contingency
Plan). In November 2021, the reconstruction of an ex-military building in Vranidoll, Pristina, has
been completed. The centre, which has opened, serves as a temporary reception and registration
centre for migrants, offering 55 beds for stranded migrants. Many of them have lived in
overcrowded apartments or on the streets facing a high risk of exploitation and abuse by
smuggling networks. Its sustainability and an adequate budget beyond 2022 will need to be
ensured. It will be important to provide adequate interpretation services, basic psychosocial,
medical and other specific services related to the vulnerable groups. The Regulation for the
management of the new centre needs to be adopted and its existence reflected in the existing
legal framework.
Gaps in enforcement remain, in particular due to a lack of coordination between government
agencies. The border police needs further capacity building in the area of protection-sensitive
migration. Qualified interpreters are needed to service both the asylum and detention centres and
55
the border police. The lack of biometric equipment and interoperability of data affects the
efficiency of the initial registration and further processing.
While fundamental rights are generally upheld, the centres are facing structural issues, mainly
relating to improper housing units, a lack of secure areas, a lack of in-house medical facilities
and adequate specialised supervisory staffing, especially for psychosocial support. Instances of
security incidents in asylum centres continue to raise concerns. An immediate response, in terms
of increasing the level of safety for asylum seekers in facilities, is necessary. During the
pandemic, due to confinement measures, gender-based violence has also been on the rise in the
centres.
Kosovo has strengthened its inter- and intra-institutional systems for migration management,
including on migration statistics. This should allow comparative and regional analyses of
migration trends. A Permanent Working Group on Migration Statistics was established by the
Migration, Asylum, Refugees Regional Initiative (MARRI) exclusively for the purpose of
collecting, processing and disseminating of relevant migration data through the Regional
Platform for Migration Data Exchange in the Western Balkans.
Transnational smuggling networks, that include Kosovo nationals, facilitated secondary
movements of irregular migrants from entry points along the Western Balkan route in 2021. The
police initiated 27 criminal offenses of smuggling of migrants that resulted in 57 suspected and
54 persons arrested and identified 326 victims.
The readmission agreements with EU Member States and Schengen-associated countries are
being implemented satisfactorily. The number of asylum requests made by Kosovo citizens in
both EU and Schengen associated countries has fallen steadily, from the peak of 73,210 in 2015
to 2,315 in 2020 and 2,400 in 2021. Mirroring the trend in asylum requests, the overall number
of Kosovo citizens readmitted has dropped from 18 789 in 2015 to 625 (512 forced and 113
voluntary) in 2020 and 849 (710 forced and 139 voluntary) in 2021. Out of 942 readmission
requests in 2020, 635 requests were accepted (67.5%), 263 rejected (28%) and 44 (4.7%) are still
underway. The return rate of Kosovo citizens ordered to leave EU territory was 58% in 2018,
41% in 2019, 29% in 2020 and 39% in 2021. While statistics show a drop in the return rate
between 2018 and 2020, EU Member States have confirmed that Kosovo authorities continue to
cooperate well on readmission.
A sustainable reintegration process remains complex. Overall, there is a need for better inter-
institutional coordination, including with municipalities, as well as improved systemic
monitoring and evaluation. Further efforts are needed to put in place a gender-responsive system.
A referral mechanism was established and functions through the Reception Centre for
Repatriated Persons. A manual identifying and advancing the referral of vulnerable cases and
training on needs assessment were provided to central and local reintegration officials.
In August 2021, Kosovo began temporarily hosting US-affiliated and NATO-contracted
evacuees/refugees from Afghanistan, based on the decision by the government to grant them
temporary protection for one year, which may be extended. They were hosted in two camp
facilities in Kosovo, with the understanding that they will be further resettled in the US under a
specific visa regime or in NATO member states. Since August 2021, 639 arrivals and 547
departures were registered at the Bondsteel camp with 39 persons still present in Bondsteel
Camp. It is uncertain what will happen to the Afghans still in Kosovo, who did not pass the
verification process and have been denied entry to the USA. The earlier agreement between
56
Kosovo and USA stipulates that they should not remain in Kosovo. NATO Bechtel-Enka camp
closed as of 31 March 2022. 812 Afghan citizens have been evacuated from the NATO Camp
and resettled in EU countries, the United Kingdom, Iceland, Norway and Canada. Kosovo
accommodation of Afghan evacuees showed not only solidarity with the Afghan refugees but
also Kosovo’s commitment to NATO. Following the Russian invasion of Ukraine, Kosovo lifted
visa requirements for Ukrainians and offered temporary protection status for 20 Ukrainian
journalists and their family members. In March 2022, Kosovo expressed readiness to host up to
5 000 refugees.
Asylum
Institutional set-up and legal alignment
Kosovo’s asylum legal and institutional framework is mostly in line with EU acquis. Refugees
should be included in social protection schemes to support their inclusion into society. Prolonged
stay of asylum seekers during the COVID pandemic has revealed capacity gaps and
shortcomings in the effective implementation of the legislation. Certain sectors of the system
require further strengthening in line with the EU Asylum Agency and Kosovo Roadmap.
Implementation and enforcement capacity
In 2021, Kosovo recorded 578 asylum applications (2 081 in 2019). Compared to 2020 (1 409),
the number has decreased. Until 14 March, 82 asylum claims were registered. The Kosovo legal
framework provides for access to territory and respects the principle of non-refoulement. Kosovo
is a transit route. Most asylum requests are suspended, as applicants disappear without
completing the procedure. During 2021, 14 persons (Turkish nationals) received refugee status,
while 17 persons (12 from Syria) received subsidiary protection. While in 2022 so far, one
refugee and one subsidiary protection status were granted. Due to the pandemic, certain delays
have been observed in the processing of Refugee Status Determination, even though virtual
interview platforms were operationalised. Although the legislation foresees the provision of
social assistance, several asylum seekers experienced delays in accessing it. These delays are
often linked to the inadequate capacities of the centres for Social Work, and the delays caused by
the existing referral mechanism. The assessment of claims based on merit, analytical approach
utilising the country of origin information, detailed justification of the decisions, and assessment
of material elements of the claim needs further strengthening.
The establishment of a fully effective and protection-sensitive entry system is of utmost
importance. The capacities of first-contact officials for identification, screening, and referrals of
persons seeking international protection and persons with specific needs within the mixed
migration flow should improve further. Cases of gender-based violence remained institutionally
unattended due to the lack of appropriate response systems. The authorities continued to issue
the certificate confirming expression of intention to apply for international protection, which
continues to pose difficulties in accessing services and asylum procedures. With donor support,
the authorities worked on the refurbishment of facilities and improving services in asylum
centres. Detained foreigners, who seek asylum, are given the opportunity to be transferred to the
asylum centre. There are challenges in providing interpretation services and legal aid to
applicants. Although detention is considered as a last resort administrative measure, in the
absence of alternatives authorities continue to use it as a temporary measure for different
categories of migrants (e.g. those who do not request asylum or are not considered asylum
seekers). Alternative solutions to detention need to be established.
57
The integration system is at an early stage of development and some progress has been
achieved in reinforcing the staffing and capacity building through training at both central and
local levels and through new procedural and strategic guidance. The Guidelines on Integration of
Foreigners have been adopted in December 2021. Authorities issue biometric ID cards and travel
documents for refugees, although delays and technical errors have been observed. Challenges for
financial integration persists, as refugees and stateless persons continue to face challenges in
accessing bank accounts. Regarding child protection, strengthening of procedures concerning
unaccompanied minors, including age determination, legal guardianship and communication,
remains crucial. Authorities should consider accelerating the process of hiring new staff in the
asylum area, in accordance with new secondary legislation. In March 2022, the EU Agency for
Asylum and Kosovo adopted and started to implement a bilateral Roadmap for cooperation
(2022-2024).
Visa policy
Kosovo has yet to fully align its legislation with the EU visa policy. In December 2020, revised
Administrative Instructions on Conditions and Procedures for the Issuance of the Visas at the
Border Crossing Point by the Ministry of Internal Affairs was adopted, which aim to align
Kosovo with the EU Visa Code.
Kosovo currently imposes visa requirements on nationals of 88 countries, based on a 2013
government decision. The visa-issuing authorities have the capacity to digitally collect biometric
identifiers from visa applicants, although the equipment needs upgrading. All granted visas and
rejections are registered in Kosovo’s visa information system. 16 Kosovo consulates issue visas.
For the year 2021, all visas issued at the border crossing points were for official visits.
The citizens of Kosovo need a visa to travel to the Schengen area. A visa liberalisation dialogue
started in 2012. In July 2018, the Commission confirmed that Kosovo had fulfilled all the
benchmarks of the visa liberalisation roadmap and recommended that the Council and European
Parliament move forward with the proposal for visa liberalisation. The Commission continues to
stand behind its assessment of July 2018 and will provide a technical update to support decision-
making by EU Member States. The European Parliament, in both the previous and current
legislature, has voted in favour of the Commission’s proposal, but the latter is still pending in the
Council.
Schengen and external borders
Institutional set-up and legal alignment
The National Centre for Border Management is one of the most important tools of Kosovo to
effectively manage the security of its border/boundary. The centre hosts an operational and
coordination room that monitors all activities at the border and common crossing points through
closed-circuit television, coordinates the real-time exchange of information between the border
authorities at all levels, and handles calls from the public. It has a Joint Intelligence Risk
Analysis and Threat Assessment Unit, which collects, analyses, and disseminates information
from and to the border authorities. There has been limited progress in implementing the revised
National Centre for Border Management Development Plan (2020-2025) approved in January
2021. There is a need for better strategic assessment and analyses of border-related risks,
including security, and for better cooperation with other border authorities. The lack of
58
connection to important international networks such as Interpol’s I-24/7, due to status-related
issues, affects its effectiveness.
The legislative framework for managing Kosovo’s borders/boundary is mostly in line with the
EU and international standards. Kosovo has an Integrated Border Management (IBM) Strategy
(2020 – 2025) and Action Plan (2020 – 2023), which was recently revised. The relevant
Executive Board will review the process of implementation quarterly.
The Passenger Information Unit became operational on 1 June 2022. The Kosovo Police is
scanning both, advance passenger information and passenger name records. Standard operational
procedures need to be developed and the coverage of received data from carriers needs to be
enhanced.
Implementation and enforcement capacity
The Border Department of the police is well staffed, with a total of around 1 350 officers (1 250
in 2021), and generally meets EU minimum standards for border controls. The performance of
the Border Police working at the border/boundary crossing points and their knowledge of the
border procedures has improved. Development of the infrastructure, equipment and tactical
methods, especially at the green border areas, will enhance the capacity of the whole border
security system and bring it closer to EU-standards. The Kosovo Police Information System is
linked to all border/boundary crossing points. The infrastructure at border/boundary crossing
points has improved and the Border Management System continues to operate satisfactorily.
However, the lack of access to international databases is a hindrance to effective crime
prevention work.
The Ministry of Internal Affairs of Kosovo’s working arrangement with the European Border
and Coast Guard Agency (Frontex) enables close cooperation on irregular migration, cross-
border crimes, border security and overall border management. Kosovo participates in the
Western Balkan risk analysis network (WB RAN) and in several other regional exercises
organised by Frontex. Inter-agency cooperation is good, but it could be further improved in
regards to information exchange and joint risk analysis.
The Interim IBM common crossing-points with Serbia continue to be operational. Only two of
the six permanent Common Crossing Points (CCPs) have been established (Merdare and
Mutivodë/Mutivode) (See section 5 on the normalisation of relations between Kosovo and
Serbia). In March 2022, Serbia agreed to open both entry and exit lanes at CCP Merdare and
move their authorities into the new premises at CCP Mutivode. Both EU-funded CCPs are now
fully operational. Serbia still has not established permanent CCPs to be hosted by their side
(Jarinje /Rudnica, Končulj-Dheu i Bardhë and Depce /Muçibabë), which led to a suspension of
EU funds for this project in July 2018. In addition, Serbia needs to engage constructively to
enable the construction of the third CCP hosted by Pristina in the north of Kosovo at Tabavije
/Bërnjak- Tabalije/Brnjak. Additional measures need to be taken to combat irregular crossings
and related criminal activities (including corruption), particularly along the border/boundary with
Serbia. Since last year, several corruption cases have been initiated, revealing the involvement of
IBM authorities, especially Kosovo Border Police. In March 2022, 48 officers were charged for
bribery.
All aspects of customs cooperation are now covered in chapter 29 on the Customs Union.
59
Counterfeiting of the euro (criminal law aspects)
The Kosovo Criminal Code is broadly in line with the EU acquis on the suppression of
counterfeit currency. Kosovo has established competent authorities and procedures for dealing
with counterfeit money. However, the Criminal Code is only partially aligned with the EU
Directive on the Protection of the Euro and Other Currencies against Counterfeiting, and further
alignment is necessary including on altering money and import and export. The Forensics
Agency within the Ministry of Internal Affairs caries out technical analysis of counterfeit money
(including euro banknotes and coins) that is in line with international standards. The Agency has
concluded an agreement with the European Commission on further cooperation on exchange,
assistance and training for the protection of the euro against counterfeiting (the Pericles 2020
programme). During the period of July 2021-March 2022, the police initiated 577 cases related
to euro counterfeiting. Additionally during April-June 2022, it initiated two cases for Euro
counterfeiting, arrested one person and transmitted four criminal reports against four suspects to
the prosecution. (See chapter 32 on financial control).
2.3. ECONOMIC DEVELOPMENT AND COMPETITIVENESS
In line with the conclusions of the European Council in Copenhagen in June 1993, EU accession
requires the existence of a functioning market economy and the capacity to cope with competitive
pressure and market forces within the Union.
Economic governance has become even more central in the enlargement process in recent years.
The Commission’s monitoring takes place in two processes: the Economic Reform Programme
exercise and the assessment (see below) of compliance with the economic criteria for accession.
Every year, each enlargement country prepares an economic reform programme (ERP), which
sets out a medium-term macro-fiscal policy framework and a structural reform agenda aimed at
ensuring competitiveness and inclusive growth. The ERPs are the basis for country-specific
Table 7.1: 2019 2020 2021
Kosovo - Key economic figures
GDP per capita (% of EU-27 in PPS) 24 26 26
Real GDP growth 4.7 4.8 -5.3 10.5
Economic activity rate of the population aged 15-64 (%), total 40.4 40.5 38.3 39.5
female 19.6 21.1 20.8 22.7
male 60.9 59.7 56.0 56.5
Unemployment rate of the population aged 15-64 (%), total 31.0 25.7 25.9 25.8
female 36.5 34.4 32.3 29.7
male 25.0 22.6 23.5 24.2
Employment of the population aged 15-64 (annual growth %) 2.5 5.2 -4.0 1.3
Nominal wages (annual growth %) 2.8 5.3 -2.3 3.9
Consumer price index (annual growth %) 0.7 2.7 0.2 3.3
Exchange rate against EUR 1.0 1.0 1.0 1.0
Current account balance (% of GDP) -6.8 -5.7 -7.0 -8.6
Net foreign direct investment, FDI (% of GDP) 3.6 2.7 4.2 4.0
General government balance (% of GDP) -2.1 -2.9 -7.6 -1.3
General government debt (% of GDP) 13.4 17.6 22.4 21.9
Source: Kosovo statistics, World Bank and IMF
2013-18
average
60
policy guidance jointly adopted by the EU and the Western Balkans and Türkiye at ministerial
level in May each year.
2.3.1. The existence of a functioning market economy
Kosovo is at an early stage and has made some progress in developing a functioning market
economy.
The loosening of COVID-19-related mobility restrictions and the resumption of travel and
related financial inflows by the diaspora led to a very strong economic rebound in 2021,
which moderated in the first quarter of 2022. Notwithstanding the resilience the economy has
demonstrated during the pandemic, long-standing structural challenges, such as a widespread
informal economy, a high prevalence of corruption and the overall weak rule of law, continue
to hinder the private sector. While the fiscal rule was suspended for three years in 2020, the
economic recovery resulted in a strong increase in tax revenue and a low public deficit in
2021. Driven by surging commodity prices, inflation increased substantially. Inflationary
pressures were reinforced by the fallout of Russia’s war against Ukraine. Higher prices for
imported commodities widened external imbalances. The financial sector remained stable and
lending continued to expand. The business environment saw low improvement. The economic
recovery created jobs but lack of data hinders a proper assessment of the labour market
situation. Last year’s recommendations were partly addressed.
In order to improve the functioning of the market economy, Kosovo should in particular:
 cushion the impact of adverse shocks by well-targeted support measures when needed
while planning the return to the deficit ceiling of 2% of GDP in the medium term;
 prepare a review of the social security system, including war veteran pensions, with a
view to improving the cost-efficiency and fairness of the social security schemes, and a
review of tax expenditure, quantifying the size of the revenue forgone from all exemptions
and reduced rates;
 improve the quality of public spending by reforming the public wage system and
addressing bottlenecks in the management of capital investment;
 implement relevant business environment measures, in particular the simplification,
merging and abolishment of licences and permits as well as the implementation of laws on
inspection and electronic identification;
 implement active labour market measures to support employment, resume publishing of
the labour force survey data and continue to implement measures aiming to formalise
informal employment.
Economic governance
Kosovo’s economic policies focused on providing policy support to cushion the impact of
the pandemic and of high energy prices for the most affected households and firms, but
there was little progress with structural reforms. Pandemic-related support amounted to 3.9%
of GDP in 2021, targeting vulnerable households and firms, formal and informal employment,
and the health sector. The 2022 budget included a blanket allocation for the economic recovery
programme amounting to 2% of GDP, which was mostly reallocated to cover energy subsidies at
the beginning of 2022, compensating the increase in electricity tariffs. The disbursement of these
61
subsidies was delayed until August. The 2022 budget was based on overly optimistic assumption
for economic growth, despite rising global energy prices since autumn 2021. High import costs,
increased electricity consumption and insufficient domestic power generation resulted in an
energy crisis with daily energy cuts in winter. In response to the fallout of Russia’s war against
Ukraine, the government decided to provide a further EUR 150 million in April to support low-
income groups. The government finalised an agreement with Serbia as part of the EU-facilitated
Dialogue to address electricity billing issues in four municipalities in the north of Kosovo. When
fully implemented, this agreement should substantially reduce losses of publicly owned
enterprises and government subsidies to the sector (See also Chapter 15 Energy). The
government took fiscally prudent positions in opposing further withdrawals from the Kosovo
Pension Savings Trust (KPST) and proposing legislation to decouple the level of war veterans’
pensions from the minimum wage despite strong political opposition.
The policy guidance, jointly agreed at the July 2021 Economic and Financial Dialogue between
the EU and the Western Balkans and Türkiye has been partially implemented. The 2022-2024
Economic Reform Programme focuses on supporting the economic recovery, but is very vague
on the initiatives stemming from the government programme.
Macroeconomic stability
Following a very strong rebound in 2021, Kosovo’s economic growth moderated in the first
quarter of 2022. Before the pandemics, i.e. in
2016-2019, the average rate of GDP growth
was well over 4%. Real GDP surged by
10.5% in 2021, on the back of the revival of
diaspora travelling, increasing remittances and
investment as well as a strong growth in
household loans. Further support came from
the pandemic-related government measures.
Robust growth in 2021 brought Kosovo’s
economy above the pre-pandemic level in real
terms. Economic growth slowed down to
4.8% in the first quarter of 2022, in line with historical trend. Rapidly rising energy and food
prices in the first half of 2022 started to erode the disposable income of households. Slowly
advancing economic diversification, high import dependency and an unreliable energy supply
make Kosovo vulnerable to adverse external shocks. Kosovo’s per capita GDP remains the
lowest in the region. It stood at 26 % of the EU average in 2021. Due to a large informal sector
and high inactivity rates, especially among women, Kosovo has high income inequalities.
Despite a strong tourism season, the current account deficit widened to 8.6% of GDP in
2021. The extraordinary performance of exports, with exports of services and goods expanding
by 91% and 51% year-on-year, respectively, was outweighed by the robust growth of imports
(42%), resulting in a practically unchanged trade deficit at 31.8% of GDP in 2021. As usual, the
most important offsetting factor was remittances which increased by 18% in 2021 and reached
14.4% of GDP. Further unofficial remittances (2.5% of GDP) were reflected by larger errors and
omissions in 2021. In the first quarter of 2022, the current account deficit more than doubled due
to the deteriorating balance of goods trade.
62
Net FDI inflows increased by 10% in 2021
and stood at 4% of GDP, covering less
than half of the current account deficit.
Key drivers were continued investment by
the diaspora into the real estate sector and
reinvested earnings in the financial sector
partly due to the ban on dividend distribution,
which was lifted in late 2021. For the first
time, Kosovo registered portfolio investment
inflows of EUR 10 million in the third
quarter of 2021, stemming from the issuance
of so-called “diaspora bonds” which are treasury bonds designed for the diaspora, but other than
that Kosovo remains absent from international debt markets. In the first quarter of 2022, net FDI
inflows stood stable at 4.9% of GDP while official reserve assets amounted to 3 months of
imports of goods and services.
Higher commodity prices and a robust economic recovery led to increasing inflation in
2021. Annual inflation rose over the course of 2021 from 0.6% in the first quarter to 6.7%in
December. Upward price pressures continued in 2022, with consumer prices increasing by
14.2% year-on-year in July. The main drivers were rising food and energy prices, which were
amplified by Russia’s war against Ukraine. Most energy prices are regulated in Kosovo. In
response to rising energy prices in late 2021, the Electricity Regulation Office decided to bring in
a two-tier tariff structure for household consumers, maintaining electricity prices for households
consuming less than 800kWh unchanged and doubling them for households consuming more
than 800kW.
The 2021 budgetary outcome improved considerably, due to surging revenue and
conservative spending. The headline budget deficit narrowed to 1.3% of GDP, which
corresponds to a deficit of 0.6% of GDP under the fiscal rule definition3
. This outcome would
comply with the fiscal rule prescribing a deficit ceiling of 2% of GDP, though the rule has been
suspended since 2020. Government
deposits recovered to 3.9% of GDP, up
from 3.5% in 2020. The fall in the
government deficit resulted primarily from
an extraordinary increase in government
tax revenue, which rose by 29% year-on-
year. Higher revenues from indirect taxes
were key, but there were also gains in
personal income taxes partly due to
formalisation measures associated with the
COVID-19 recovery package. Tax and non-
tax budget revenue exceeded the projections of the revised 2021 budget. By contrast, public
3
The fiscal rule places a cap on the fiscal deficit of 2% of forecast GDP, excluding capital projects financed by
privatisation proceeds and donors (‘investment clause’). This exemption for donor-financed investments can be
invoked until 2025, provided the public debt ratio remains below 30% of GDP. A further rule provides that the
increase in the public wage bill cannot exceed nominal GDP growth. Government deposits used as fiscal buffers
are legally required to stay at 4.5% of GDP as long as the government uses privatisation proceeds. The debt rule
provides that public and publicly guaranteed debt cannot exceed 40% of GDP.
0
5
10
15
20
25
-8
-6
-4
-2
0
2
4
2016 2017 2018 2019 2020 2021
Graph 7.3: Kosovo - Fiscal developments
Primary balance (lhs) Interest (lhs)
GG balance (lhs) Public Debt (rhs)
Source: IMF and MoF
% of GDP
-9
-6
-3
0
3
6
-40
-30
-20
-10
0
10
20
2017 2018 2019 2020 2021
Graph 7.2: Kosovo - Current account selected
components and FDI
Goods and services trade balance Workers' Remittances balance
Current account balance (rhs) Net FDI (rhs)
% of GDP
Source: IMF and Central Bank of Kosovo
63
spending increased by 2.8% year-on-year, compared to the planned 12.6%. Capital spending
reached only 75.8% of the revised budget allocation (although this is still an improvement over
previous years), while the execution of current expenditure was roughly in line with the initial
plan. The largest increase in current spending was in the category of goods and services (9.6%)
driven by the purchase of vaccines. Spending on social transfers and subsidies fell by 2.9% due
to the high base in 2020. The 2021 economic support programme amounted to 3.2% of GDP,
which compares to a crisis-related stimulus of 4.2% of GDP provided in 2020. In 2022, the
government responded to high inflation and in particular to high energy prices, with subsidies for
agricultural inputs, wage bonuses, temporary increases in pension benefits and social transfers.
The latter involves electricity price subsidies for around 20% of households, aiming to target the
poorest households with low energy consumption, but taking no account of disposable income.
The government resisted pressure to reduce excise the excise and VAT rates on fuel. In June, the
Assembly approved the revised 2022 budget, which targets a headline deficit of 5.3% of GDP
instead of initially planned 4.5%. As per the fiscal rule definition, the deficit is projected at 3.8%
of GDP as compared to the originally planned 2.9%. The government cash reserve is expected to
decline to 3% of GDP, which is below the initial projection of 3.9%.
On the back of strong economic and fiscal performance in 2021, the public debt-to-GDP
ratio has declined but the investor base for government debt remains narrow. The public
debt ratio stood at 21.9% at the end of 2021 and fell to 20.3% of GDP in the first quarter of 2022.
These figures do not include the liability stemming from tax-free withdrawals of 10% of pension
savings from the Kosovo Pension Saving Trust (KPST), which the government promised to
reimburse from 2023.4
Domestic debt, which is held by a narrow investor base, increased by
15% in nominal terms in 2021. In March 2022, the KPST’s share of domestic debt reached 48%
as compared to 38% in 2019, while the Central Bank of Kosovo and commercial banks hold a
further 19% and 27% of domestic debt respectively. In the absence of a sovereign credit rating
and very limited access to international bond markets, foreign financing has been largely
provided by international donors. Foreign debt rose by 9.6% in 2021. This includes EU macro-
financial assistance (the second and final instalment of EUR 50 million was disbursed in June
2021), World Bank loans (EUR 32.2 million) and Council of Europe Bank lending (EUR 17
million).
Progress with fiscal governance has been mixed. The 2022 budget, as adopted in December
2021, assumed unrealistically high GDP growth (7.8%) and a very large increase (67%) in public
investment. While higher public investment is a welcome aim, such a large increase is not
supported by the track record of capital spending over the last years, although the budget
included additional funds for expropriation of properties to help unlock capital investment. At
the same time the absence of a functioning board at the Procurement Review Body since March
2021 has impeded the execution of capital spending. A blanket allocation of 2% of GDP for the
economic recovery programme in the 2022 budget undermines fiscal transparency and
accountability. To contain social spending, the government adopted an administrative instruction
requiring a medium to long-term costing of any pension or social spending initiative before its
adoption. Despite this progress, there is no cost estimate for the draft law on salaries for public
employees. The revised budget law of 2021 and the budget of 2022 include the assessment of
high-risk publicly owned enterprises while excluding others. The full implementation of the
agreement reached on 21 June 2022 between Kosovo and Serbia as part of the EU-facilitated
4
The IMF estimates the liability to KPST at 1.8% of 2020 GDP.
64
Dialogue to address electricity billing issues in four municipalities in the north of Kosovo should
eliminate a substantial fiscal risk. As in 2021, the cost of electricity losses reached nearly EUR
42 million. The cost of war veteran pensions continues to breach the 0.7% of GDP legal ceiling.
Supporting the most vulnerable while improving the budget balance in 2021 was
appropriate, but stronger contingency planning is needed. The pandemic-related fiscal
support, which mainly took the form of subsidies and transfers to vulnerable families,
employment and affected businesses was broadly well-targeted and helped to cushion the impact
of the shock. However, the economic support programme included in the 2022 budget, does not
clearly reflect the priorities set in the government programme. Risks related to upbeat GDP
projections and rising energy prices in autumn were not sufficiently considered in the initial
budget. The tax base remains narrow and weakened by tax exemptions and preferential tax rates,
while public spending is burdened by category-based specific transfers. .
Functioning of product markets
Business environment
In line with economic recovery in 2021, business creation was more dynamic with higher
numbers of registered and terminated firms. The total number of new businesses in 2021 was
10,659, which is 8.7 % higher compared to 2020. The number of closed businesses in 2021 was
1,602, an increase of 19 % compared to the same period of the previous year (1345). The
numbers of firms with female and foreign owners also increased.
Some progress was made in improving the business environment. The Law on Inspections,
aiming to reduce the number of parallel and overlapping inspection bodies and streamline the
procedures, was approved by the Assembly in December 2021. The draft Law on the
Commercial Court, which is critical to improve the efficiency of the justice system, was
approved by the Assembly in March 2022. Kosovo started the process of amending the
Administrative Burden Reduction Programme, which should deliver a two-year action plan with
measurable results. The Kosovo Investment and Enterprise Support Agency (KIESA), whose
task is to help businesses and investors, lacks capacity and resources to execute its wide
mandate. The lack of a coherent policy for industry development throughout the supply chain, a
large informal sector and incomplete implementation of the Law on business organisations
undermine the business environment and competitiveness of SMEs.
Despite some success in fighting the informal economy, it still accounts for more than a
third of total employment.5
There was some improvement in voluntary compliance, as the
number of registered workers increased due to financial incentives to join formal employment
that were, included in the pandemic-related package. The impact of the potential minimum wage
increase on informality warrants close monitoring. According to the corruption perceptions index
by Transparency International, Kosovo improved its index score in 2021, ranking 87 out of 180
countries, which is 17 positions higher than in 2020.
State influence on product markets
Despite some progress made in 2021, Kosovo’s State aid policy framework needs further
alignment with EU rules and principles. The current framework lacks a coherent approach to
State aid as well as a comprehensive strategy and cost-benefit evaluations for aid and subsidies
5
IMF 2021 Article 4 consultation.
65
granted. There is an inventory of aid schemes, as provided in the Stabilisation and Association
Agreement (SAA), but their alignment with the existing legislation on State aid is at an early
stage. The government has made some progress on enforcement of competition and State aid
rules and on training the staff of the State aid department. The State aid Commission had no
decision-making quorum since mid-September 2021 and is unable to function formally until the
Assembly appoints a new Commission. According to the official data, State aid is estimated at
1.7% of GDP in 2020, with the largest item being agricultural subsidies. In the context of high
energy and crop prices due to Russia’s war against Ukraine, further subsidies to agriculture were
allocated in 2022, aiming to increase self-sufficiency.
Privatisation and restructuring
Kosovo undertook steps to dissolve the privatisation agency and to set up a sovereign
wealth fund. At end-2021 the Privatisation Agency of Kosovo (PAK) approved its exit strategy.
In early 2022 the government issued a decision forbidding PAK to sell assets under its
administration, which are envisaged to be transferred to a sovereign wealth fund. In June 2022,
the government adopted a concept document on the sovereign fund. The sovereign fund is
expected to take over socially-owned enterprises6
(SOEs) and assets managed by PAK and some
publicly owned enterprises managed by the Ministry of the Economy after improving their
financial performance. During the reporting period the PAK continued liquidation procedures of
SOEs. The process of dismissal and appointment of new board members of publicly owned
enterprises continued. Changes are needed in the rules and procedures on governance and
oversight of publicly owned enterprises in order to address issues of poor performance and
maladministration. Some improvements were made in reducing overemployment in Kosovo
Telecom and adopting a new performance framework for regional water companies.
Functioning of the financial market
Financial stability
Supported by robust economic growth, the financial sector remained stable. In the second
half of 2021, as the economic recovery gained pace, the Central Bank of Kosovo gradually lifted
the pandemic-related forbearance measures, without a negative impact on bank asset quality so
far. The predominantly foreign-owned banking sector accounts for 66% of financial system
assets, followed by pension funds, insurance and microfinance institutions with 26.5%, 2.8% and
4%, respectively. The banking sector’s return on average equity (RAE) remained high at 19.5%
in 2021, as compered to the pre-pandemic level of 18.9% in 2019, and increased further to 22.3%
in Q2 2022. The ratio of bank non-performing loans (NPLs) declined from 2.7% in 2020 to 2.1%
in 2021 and stayed at this level in the first half of 2022, partially supported by the denominator
effect of high credit growth. Although overall the credit risks remain contained, challenges
remain in evaluating risks from the rapid credit expansion in the household segment. The ratio of
banks’ regulatory capital to risk-weighted assets stood above 15% in 2021 and the first half of
2022, comfortably exceeding the regulatory minimum of 12%. Banks continued to be financed
by deposits, predominantly from households. The loan-to-deposit ratio increased to 85.2% in
June 2022 from 77% in mid-2021. In 2021, profitability recovered for micro-financial
institutions after a sharp drop in 2020. The insurance sector’s performance remained positive in
2021, with its net profit increasing by 50% on an annual basis.
6
The ownership of socially-owned enterprises was considered as shared social property in former Yugoslavia.
66
Access to finance
Financial intermediation continues to expand. Credit growth accelerated from 7.1% in 2020 to
15.5% in 2021 and further to over 17% year-on-year in the first half of 2022. Loan growth was
facilitated by low interest rates, a continued increase of deposits, improved contract enforcement,
and increased guarantees extended by the Kosovo Credit Guarantee Fund (KCGF) for lending to
micro, small and medium-size enterprises to cushion the impact of the crisis. In 2021, lending to
both firms and households continued to grow on annual basis, by 13.6% and 18.6%, respectively.
The amount of credit compared to the size of the economy remained moderate, at around 40%.
The lack of easily accessible and affordable credit constitued a barrier to the growth of SMEs.
This is partly due to the existing disparity between the market value of collaterals and their
legally assigned value taken into account by banks. The capital market remains at an early stage
of development. A first-ever ‘diaspora bond’ issuance was made during the summer of 2021
through commercial banks and in collaboration with the Ministry of Finance. This issuance
managed to raise EUR 10 million of the EUR 20 million initially offered. Microfinance has
gained momentum in recent years, but shortcomings in the legal framework regulating
microfinance institutions hinder the industry’s long-term growth and sustainability.
Functioning of the labour market
Kosovo has large delays in publishing labour force survey (LFS) data for 2021. The latest
available LFS data refer to the second quarter
of 2021, i.e. before the recovery came into full
swing. The labour force participation ratio
stood at 37.7% in line with its long-term
trend. Employment rates of men and female
were at 44% and 16%, respectively.
Unemployment stood at 20.5%. Tax
administration data suggest that official
employment in the private and public sector
increased by 10% in 2021. A number of
registered jobseekers dropped by almost a
third in 2021 compared to 2020, which might be partially due to financial incentives included in
the pandemic-related support measures, but their level still remains 10% higher than in 2019,7
.
Despite some formalisation gains, the labour market is hindered by an inadequate system
of social assistance, a large gender gap and a lack of job opportunities for young people. In
2021, spending on transfers and subsidies reached nearly 11 % of GDP while within this amount
expenditure on poverty-targeting social assistance was around 0.5 %. Category-based social
transfers, e.g. war veteran pension scheme, are costly and undermine the soundness and fairness
of the social benefit system while motivating other specific groups to request similarly generous
allowances. In September 2021, within the recovery package the government introduced
maternity leave for women unemployed for longer than 12 months. By excluding women in
shorter spells of unemployment, this could act as a disincentive for women planning motherhood
to take on (formal) work. The lack of affordable transport options, child and elderly care
facilities constitute long-term challenges, hindering female employment. High reservation wages,
partially supported by remittances, and the lack of jobs are considered to be a key factors fuelling
7
World Bank 2022 Regular Economic Report
10
20
30
40
50
2016 2017 2018 2019 2020 2021
Graph 7.4: Kosovo - Labour market trends
(15-64 age group)
Participation rate Unemployment rate
Employment rate
Source: Kosovo Agency of Statistics
67
the emigration of young people. Further issue relates to skills mismatch, as Kosovo’s labour
market generates little demand for academic qualifications, more so for hands-on vocational
skills.
2.3.2. The capacity to cope with competitive pressure and market forces within the Union
Kosovo is at an early stage and has made limited progress in terms of capacity to cope
with competitive pressure and market forces in the EU. Insufficient quality of education and
skills mismatches lead to a difficult transition from school to the labour market. Some
progress was made in improving road infrastructure. The recent energy crisis underlined the
urgency of ensuring a reliable and clean energy supply and diversifying energy sources.
Kosovo made some progress as regards the digitalisation of the economy. Structural
changes are advancing slowly as the economy remains highly reliant on small and very
small firms which cannot compete internationally. The export structure remains dominated
by base metals with slightly increasing shares of mineral, plastic and textile products. The
recommendations from 2021 were not fully implemented and remain valid.
In order to support the economic recovery, improve competitiveness and sustain long-term
growth, Kosovo should in particular:
 improve the quality of vocational training and education at all levels, with the view of
narrowing the skills mismatch;
 strengthen energy security and energy efficiency incentives in the residential and private
sectors;
 increase the share of renewables in power generation in a cost-efficient way;
 advance tailored financial and non-financial support for SMEs to improve their
competitiveness and export capacity.
Education and innovation
Improving the quality of education and its alignment with labour market needs remain a
key challenge. Public spending on education (4.7% of GDP in 2020) and the enrolment of
children in early school (36%), primary (100%), lower (91%) and higher (81%) secondary
education followed historical trends in the school year 2020/2021. A participation of children in
early school education and care (3-5 years) is still far below the EU average of over 80 %.
Following the pandemic-related disruptions to learning in the previous year, which affected all
pupils, but especially the marginalised groups, the government prepared new distance learning
solutions for the school year 2021/2022. The new law on textbooks and educational material,
aiming to improve the quality of learning material, is pending approval. Learning materials were
adapted for the Programme for International Student Assessment (PISA) 2022 test, following
Kosovo’s lowest ranking in 2018. Kosovo students’ scores are the equivalent to five years of
schooling behind the OECD average in reading, and a little over four years behind in
mathematics. Many graduates remain unemployed as their training does not provide them with
the necessary skills required by the labour market. A recent skills mismatch measurement
indicates that over 40% of young workers with a tertiary education are employed in jobs below
their level of education. To improve training programmes, Kosovo finalised a quantitative
analysis on future needs with the support of the Joint Research Centre. Following the expulsion
from the European Association for Quality Assurance in Higher Education, Kosovo
68
Accreditation Agency (KAA) has implemented the recommendations, related to institutional and
financial independence, and an increase in the number of staff. The Law on KAA has yet to be
adopted by the Assembly.
Little progress has been achieved in improving Kosovo’s research, development and
innovation system. Despite legal provision to allocate 0.7% of GDP for science and innovation,
the allocated budget for 2022 was less than 0.1% of GDP, due to the lack of funding. In
November 2021 Kosovo appointed members of the Council of Science that should develop
scientific research activity. Kosovo has successfully completed negotiation with EU to become a
fully associated member of the Horizon Europe programme, but it still needs to improve its
performance in accessing grants.
Physical capital and quality of infrastructure
Slow progress in improving road and railway infrastructure delays the implementation of
major projects. There was no progress on Route 7 Peace highway, despite the increase of EU
grant for its implementation. The rehabilitation works for the Railway Route 10 continued at a
slow pace, with the first segment expected to be completed by the end of 2022. The related
signalling and telecom works have not started yet. Transport system still faces a number of
challenges in terms of safety, inadequate maintenance, and weak administrative capacity of
regulatory institutions.
Kosovo remains heavily reliant on coal. Over 90% of electricity is produced by two highly
unreliable and polluting lignite power plants, which the government plans to upgrade. A partial
shutdown of the ‘Kosovo B’ power plant, together with an unprecedented increase in import
prices and high electricity consumption in winter 2021, led to an energy crisis with rotating
power outages. Renewable energy sources, account for just over 5% of electricity supply. By the
end of 2021, Kosovo registered a total of 249.2 MW of renewable electricity generation, 101
MW small hydropower, 137 MW of wind, 10 MW of solar, and 1.2 MW of biomass. The
increase is due to an additional 21 MW of hydropower.
Further options should be explored in order to diversify energy supply. The government is
exploring cooperation options with neighbouring countries (Albania and North Macedonia) on
joint gas projects. The Assembly adopted the Millennium Challenge Compact and the Program
Implementation Agreement between Kosovo and Millennium Challenge Corporation for
developing battery storage to provide electricity balancing reserve. To establish a sustainable
market in Kosovo and Albania, Kosovo signed two agreements with Albania: the Electricity
Markets Cooperation Framework Agreement and a Memorandum of Understanding aiming to
recognise each other’s electricity and supply licenses (See also chapter 15 – Energy).
The digitalisation of the economy is in progress. With 96% of households having access to a
broadband internet connection, Kosovo has reduced the infrastructure gap between urban and
rural areas. Kosovo is engaged constructively in high-level regional dialogue on digital
transformation. Following the implementation of the Regional Agreement of 2019, Kosovo is
working on the digital agenda covering the period up to 2030. The policy document should
provide a comprehensive framework for the digital transformation, including 5G technologies,
digital transformation of businesses and public services. the next step is to focus on further
development of broadband and 5G. Kosovo needs to continue to develop the legal framework
and necessary infrastructure to stimulate e-commerce and allow for international electronic
69
payments. This lack of relevant infrastructure was exacerbated by the COVID-19, meaning that
physical commercial transactions were largely impossible for several months.
Sectoral and enterprise structure
The economic rebound was mainly driven by the sectors, which suffered heavy losses
during the pandemic. Most notably, the annual output in the wholesale and retail trade sector
rebounded by around 21% in real terms in 2021, as compared to 2020 levels. Construction
output, which contracted in 2020 due to the pandemic, increased by 6.6%, while industry
expanded by nearly 4%. The service sector continues to dominate the economy, making up
around 46% of GDP and providing 65% of total employment. Within the service sector,
wholesale and retail trade, real estate, transport and storage are the largest in terms of
employment and output. The share of industry sector amounted to some 26% of GDP in 2021,
while the contribution of agriculture in GDP stood at around its long-term average of close to
7%.
The enterprise structure of private sector in Kosovo continues to be heavily dominated by
micro and small enterprises with difficult access to finance. By the end of 2021, similarly to
the previous years, almost 99% of registered enterprises are those employing 1-9 employees and
the remaining 1% are enterprises that employ 10-249 employees. Although credit growth has
been strong over the past decade, due to bank’s stringent loan requirements affecting mostly
smaller enterprises, access to finance remains still an impediment to growth. Further obstacles to
access to finance relate to a limited access to reliable information in the cadastre, lack of formal
dispute processes and limited enforcement of collateral execution. Given the structure and the
difficulties in access to finance, the benefit from economies of scale remains limited.
Economic integration with the EU and price competitiveness
The balance of goods trade has deteriorated due to a large increase in imports while
exports also increased strongly. The merchandise deficit reached 46.1% of GDP in 2021 as
compared to 42% in 2020. The rebound in consumption and investment led to substantial
increase in good imports (41%), driven by mineral products and prepared foodstuffs. In 2021, the
EU accounted for some 44% of the total imports of goods, CEFTA’s share stayed roughly stable
at 19%. The surge in goods exports (57%) was mainly driven by base metals8
, which accounts
for one third of merchandise exports, followed by mineral, plastic and textile products. The
improved performance was partially driven by enhanced support for exporting SMEs through
8
Although Ferronikeli, the largest exporter of Kosovo, halted its production due to the rise in energy prices in the
last quarter of 2021, its exports nevertheless increased in the whole year of 2021.
0
20
40
60
2014 2015 2016 2017 2018 2019 2020 2021
Graph 7.5a: Kosovo - Exports of goods
EU CEFTA Other
Source: WiiW
% of GDP
0
20
40
60
2014 2015 2016 2017 2018 2019 2020 2021
Graph 7.5b: Kosovo - Imports of goods
EU CEFTA Other
Source: WiiW
% of GDP
70
digitalisation of support services and improved export promotion.The share of goods exports to
the EU and CEFTA contries declined to 31% and 37 % respectively, due to a noticeable increase
of textile and furniture exports to the USA. The adoption of the EU standards remains low in
Kosovo.
In line with robust performance of trade, the indicator for trade openness improved
significantly in 2021. Overall trade openness increased to 101% of GDP in 2021 from 75.6% in
the previous year. The improvement took place on both sides. Strong growth of merchandise
trade was complemented by a surge in service exports. Following the lift of lockdown and
travelling restrictions, exports of services almost doubled in nominal terms in 2021 compared to
2020. In addition to travelling services, currently amounting to 76% of service exports, there are
positive developments in exports of IT and communication services.
The EU remains the main investor in Kosovo. Net FDI inflows are estimated to have increased
by 20% in 2021, on the back of massive investment of the diaspora into real estate and reinvested
earnings in the financial sector due to the ban on dividend distribution. Heavy concentration in
these sectors (around 90% of FDI inflows) contribute little to enhance export capacity. The EU
share in net FDI stock reached 38% while the shares of Germany and Switzerland (two countries
with large diasporas from Kosovo) increased from the previous year to over 15% each.
2.4. PUBLIC PROCUREMENT, STATISTICS AND FINANCIAL CONTROL
Chapter 5 - Public procurement
EU rules ensure that the public procurement of goods, services and works in any Member State
is transparent and open to all EU companies on the basis of non-discrimination and equal
treatment.
Kosovo has some level of preparation/is moderately prepared in public procurement. Limited
progress was made. The Procurement Review Body board members were appointed in June
2022. However, the new legislation on public procurement and on concessions, intended to be
aligned with the EU acquis, has not yet been finalised. Two e-procurement modules have been
introduced to increase transparency and monitor contract implementation. Public procurement
remains prone to irregularities and vulnerable to corruption during the procurement process and
contract implementation.
As most of last year’s recommendations remain valid, in the coming year Kosovo should in
particular:
 adopt laws on public procurement and concessions in line with the respective EU acquis, and
ensure their proper implementation; prepare the corresponding implementing legislation;
 increase the capacity of all public procurement institutions and the cooperation among them
to ensure consistent implementation of the public procurement regulatory framework;
 ensure that the Procurement Review Body is fully operational and independent, that its
capacity limitations are addressed and that its review process is timely, effective and
transparent.
Institutional set-up and legal alignment
71
Kosovo's legal framework on public procurement and concessions is partly aligned with the
2014 EU public procurement acquis. No progress has been made for defence and security
procurement legislation, which remains partially aligned with the EU acquis.
A new Public Procurement Law aiming to align with the EU acquis is still under preparation.
The authorities have not started to draft relevant implementing legislation. A new law on public-
private partnerships is also under preparation. All legal and financial instruments used for public
procurement and concessions, including intergovernmental agreements concluded with third
countries, should comply with the principles of transparency, competition, equal treatment and
non-discrimination.
A new strategy and action plan on public procurement will become part of the new Public
Finance Management Strategy 2022-2026.
The Central Procurement Agency, under the Ministry of Finance, Labour and Transfers,
carries out centralised purchases. The Public Procurement Regulatory Commission is
responsible for the overall coordination and supervision of the public procurement system. The
Procurement Review Body examines all allegations of breaches of the public procurement law
and reviews bidders’ complaints. It is important to ensure better coordination and cooperation
among these institutions as well as with other institutions, such as the Kosovo National Audit
Office and the Kosovo Competition Authority. This helps detect any bid-rigging and reduces this
risk through careful planning and design of the tenders.
Implementation and enforcement capacity
Kosovo's public procurement market was estimated at 5.65% of GDP in 2021, compared to
7.5% in 2020. At the end of 2021, approximately (9 576 in 2020) economic operators and around
(25 000 in 2020) active users were registered in the e-procurement system. In 2021, 9 892 public
contracts were signed compared to 10 935 in 2020, and in terms of value, contracts of a total of
EUR 429.62 million were signed in 2021, compared to EUR 499.31 million in 2020. Due to the
pandemic in 2021, a significant amount of public procurement activities (11.36%) have been
carried out via negotiated procedure. The total value of contracts signed under negotiated
procedure without publication is approx. EUR 52 million.
On monitoring of contract awards and implementation, in 2021 86.2% of contracts were
awarded through open procedure. 99.02% of public contracts were awarded according to the
lowest-price criterion, with only 0.98% using the best-price-quality ratio. The use of best-price-
quality ratios should be further encouraged in line with the EU Directives on public procurement.
More efforts are needed to ensure the interoperability between the e-procurement system and
other relevant government IT systems to increase transparency, including through tracking of
payments.
The capacity to manage public procurement processes varies between contracting authorities.
The tender evaluation process, market research, as well as implementation and monitoring of
contracts, need improvement. Better drafting of technical specifications would support the
quality, efficiency and transparency of procurements. Limited enforcement, insufficient
managerial accountability and quality control, combined with limited contract management
capacity, however, entail risks of mismanagement and corruption.
Centralised procurement is mandatory for agencies with fewer than 50 employees and for 14
listed categories of goods and services. The Central Procurement Agency continues to be
72
understaffed and its capacities need to be strengthened as it lags in implementation. Market
research should be used as a pre-award assessment. Due to the pandemic, the use of negotiated
procurement procedures has increased significantly. To mitigate the risks of misuse and fraud, it
is especially important to ensure full transparency and solid justification and to maintain audit
trails.
In 2021, the backlog of complaint cases before the Procurement Review Body increased and
cases were not reviewed, as no functional board was in place. The institution would benefit from
more qualified human resources, particularly review experts and legal experts. The legislation on
economic recovery, introducing temporary domestic preferential treatment, expired at the end of
2021.
There were no developments as regards integrity and conflicts of interest. Kosovo has a code
of ethics for public procurement but its compliance is not monitored. Further efforts are
underway to strengthen local government procurement systems and audit oversight. More
municipalities are publishing procurement contracts.
Efficient remedy system
The legislation on the right to legal remedy is broadly in line with the EU acquis. Appeals can
be lodged through the e-procurement platform. The Procurement Review Body is a quasi-judicial
body reviewing complaints from bidders, but it was not operational between March 2021, when
the board members’ mandates expired, and June 2022, when the new members were selected.
The mandate of this new board is for five years. The lack of a functioning Review Body for such
a long time has created substantial shortcomings in the review process.
Chapter 18 - Statistics
EU rules require that Member States are able to produce good quality statistics in line with the
principles of European statistics Code of Practice and based on professional independence,
impartiality, reliability, transparency, and confidentiality. Common rules govern the
methodology, production and dissemination of statistical information.
Kosovo has some level of preparation in the area of statistics. Some progress was made,
notably in improving data collection methodology and data transmission to Eurostat. Kosovo’s
Agency of Statistics (KAS) needs to intensify its efforts to implement the recommendations of
the Eurostat peer review. Communication between the statistical institutions has somewhat
improved but the coordination at the technical level and the use of available administrative data
remains insufficient. During the reporting period, there has been little improvement in the
alignment of sectorial statistics with European standards or the provision of new statistical
products. The planned population census was not conducted.
Last year’s recommendations were partially met and remain valid. In the coming year, Kosovo
should in particular:
 increase the number of statistical products and their transmission to Eurostat;
 improve statistical governance and coordination between the main statistical institutions and
ensure better access to and use of available administrative data sources;
 intensify preparations for the next population census by ensuring adequate resources and full
coverage of the territory.
73
On statistical infrastructure, the legal framework is broadly in line with the European Statistics
Code of Practice; however, its implementation needs to be enforced by preserving the lead role
of the Kosovo Agency for Statistics, improving statistical governance and coordination between
main statistical institutions and ensuring better access to administrative data sources. The
Agency needs to intensify the implementation of the Eurostat peer review recommendations
particularly by increasing its cost-effectiveness, strengthening quality management and relations
with data users. In addition, the Agency is still in need of additional human resources. Efficiency
of internal systems, processes and delegated management remains a challenge. Data transmission
to Eurostat continues to improve. Despite improvements with its web-based dissemination of
statistics, the Agency needs to strengthen its active relations with data users and academia.
Kosovo continues to use the European classification of economic activities (NACE Rev.2) but
has not improved the use of other European classifications. Likewise, the existing registers
(agriculture, business and schools/education) are updated regularly but the population register
still needs significant improvements in order to provide adequate basis for census related
activities. In the period, KAS has signed some new MoU to strengthen cooperation with other
institutions and established a quality board with a quality manager to strengthen the quality work
within the NSI.
On macroeconomic statistics, Kosovo has made some slight improvements from last year;
further alignment with the European System of Accounts (ESA) 2010 is ongoing. The Agency
compiles annual and quarterly national accounts included seasonally adjusted, however
methodological inconsistencies need to be addressed. Some improvements have however been
achieved in the period, like the experimental compilation of GDP by income approach (for 2011-
2019), compilation of Non-Financial Sector Accounts (2016-2019) and Supply and Use Tables
(SUT; 2013-2015). Some progress has also been made in the area of informal economy.
Quarterly sector accounts, and the regional accounts are not regularly compiled. Fiscal
notifications are not yet available. The number of ESA 2010 transmission tables to Eurostat has
seen some improvements during the reported period, for example in regional accounts, where
table 10 in the ESA transmission programme has now been compiled for 2018 and 2019. KAS
has continued to send some EDP tables within the required deadlines but is not fully compliant.
Monthly statistics for international trade in goods are submitted to Eurostat. Balance of payments
data are compiled by the Central Bank and are broadly in line with the EU acquis; annual and
quarterly data are submitted to Eurostat. Government finance statistics are published quarterly by
KAS. The Harmonised Index of Consumer Prices is regularly published on the KAS webpage
and transmitted to Eurostat where publication is planned for later this year. It is being further
developed in line with EU Standards (ECOICOP classification). There has been no progress in
the broadening of the work with Purchasing Power Parities (PPP).
Structural business statistics and some short-term statistics (STS) are partially in line with the
EU acquis however their availability is limited and they lack distinction between public and
private investments or by sectors, and only one STS (building permits) has so far been
transmitted to Eurostat. Industry statistics are produced broadly in line with the relevant
regulation. Short-term service sector statistics are produced quarterly. Construction sector
statistics are largely not available; only the construction cost index is produced on a quarterly
basis (Q4 2021 statistics published in March 2022). Industry statistics (PRODCOM survey) for
the year 2020 were published in December 2021. Foreign Affiliates Statistics (FATS) are not
available. Tourism statistics and transport statistics are still not aligned with the EU acquis, while
74
statistics on development and innovation are not produced on a regular basis. The information
and communication technologies (ICT) statistics for households started in 2018 and are now
published regularly (the results for 2021 have been published in November 2021) whereas the
ICT statistics for enterprises were collected for the reference year of 2019 and results have been
published in December 2020 but due to technical problems not transmitted to Eurostat.
In the area of social statistics, only demographic statistics are broadly in line with the EU
acquis. The preparations for the forthcoming population census are ongoing with the draft law on
population and housing census ratified by the Assembly in July 2022. The actual dates for
conducting the census have not yet been decided. The government should allocate adequate
resources in order to conduct the general census in 2023, which has been postponed several times
since 2021. Statistics on Income and Living Conditions (regular EU-SILC Survey) are produced
annually; most recently for 2019 was published in June 2022 and data have been collected for
2020 round. KAS are however facing problem with the analysis and completion of this important
survey due to limited internal resources. The Statistical Office seems to depend on external
assistance to maintain regular running of the SILC. Social protection and labour market statistics
are only partially produced. An annual and quarterly labour force survey is carried out regularly
and its publication timeframe has improved. The labour cost index, structure of earnings data and
job vacancy statistics, as well as vocational training are still not produced. Education statistics
are partially produced but are still not classified according to international education
classification standards (ISCED 2011), but progress on this has been achieved and full
implementation is foreseen for 2022. Public health and crime statistics are not yet in line with
EU standards.
For agricultural statistics, the Agency published data on annual agricultural crops, livestock
production and orchard statistics. The agricultural holding survey is regularly produced and
aligned with acquis standards. The last farm structure survey was conducted in 2014 and the new
one is not planned until 2024. Agricultural price indices and economic accounts for agriculture
are produced on a regular basis. Supply balance sheets and the agriculture labour index are not
yet produced on regular basis. Transmission of available agriculture statistics to Eurostat is done
through Electronic Data files Administration and Management Information System (EDAMIS).
Energy and environment statistics are partially in line with the acquis. During the reporting
period, the Agency shortened the deadlines for publishing energy balance results and has
increased the number of statistical products sent to Eurostat, but further improvements are
needed in this field. Energy consumption statistics for residential, services and transport sectors
are collected but the results are not published regularly. Monthly data and the monthly share of
renewables are not provided to Eurostat. The lack of energy efficiency indicators continues to be
an obstacle to reporting on energy savings. Waste and water statistics are produced regularly.
Greenhouse gas emission statistics are being collected but the information is not published
regularly. Other environmental statistics such as air emissions accounts, environmentally related
taxes by economic activity, environmental protection expenditure and material flow balances are
not yet produced.
Chapter 32 - Financial control
The EU promotes the reform of Kosovo governance systems to improve managerial
accountability, sound financial management of income and expenditure, and external audit of
75
public funds. The financial control rules further protect the EU’s financial interests against
fraud in the management of EU funds and the euro against counterfeiting.
Kosovo has some level of preparation in the area of financial control. Some progress was
made in addressing last year’s recommendation with some efforts undertaken mainly in closing
the remaining gaps in the implementation of primary and implementing legislation on public
internal financial control, improved implementation of the recommendations on external audit,
and providing a reform direction by integrating all key elements of the public internal financial
control strategy in the new public finance management strategy 2022-2026.
High-level political support is needed for the appropriate functioning of internal controls at all
levels of the administration and further improvement in implementation of internal and external
audit recommendations.
As last year’s recommendations were partially implemented, they remain largely valid. In the
coming year, Kosovo should:
 start with implementation of the new public finance management strategy 2022-2026 and
related the public internal financial control elements, within the time frame determined in the
related public finance management action plan;
 improve managerial accountability by aligning special laws with the overarching Law on the
Organisation and Functioning of the State Administration and Independent Agencies, and
clarify the accountability lines within and between public institutions;
 ensure systematic and timely implementation of external audit recommendations, especially
with regard to performance audits that have been undertaken in recent years.
Public internal financial control
Kosovo has integrated all elements of the PIFC strategy while developing the new public finance
management strategy 2022-2026, that is pending adoption, together with the corresponding
action plan. Coherence with the new public administration reform strategy 2022-2026 needs to
be ensured. At this policy level, a stronger connection between the strategic and operational
objectives needs to be included together with indicators that measure not only administrative but
also managerial accountability. The Central Harmonisation Unit has produced a transitory
strategy to cover the gap until new PFM Strategy 2022-2026 is finalised.
Kosovo needs to include managerial accountability principles more coherently in the legal
basis and administrative practices guiding administrative culture at central and local level. The
regulation on financial management and control spelled out the rules for delegating
responsibilities, but there is no coherence between PIFC legislation and other horizontal
legislative frameworks such as on public finance and public administration; implementation is
incomplete and managerial accountability is focusing mainly on compliance rather than
performance. Basic accountability and performance mechanisms between ministries and
subordinated agencies remain weak, and effective management of subordinate bodies needs to be
ensured. There is little progress on rationalising agencies. Non-aligned budget and management
structures persist, impeding delegation of budgets and programme activities to the relevant
sectors and senior managers within budget users. (See also Public Administration Reform).
While the legal framework on internal control is largely harmonised with international standards,
and the financial control manual is in force since 2020, Kosovo needs to further revise its
76
internal control functions in line with the Commission of Sponsoring Organizations of the
Treadway Commission (COSO) principles. The financial control manual is being updated and
needs to extend beyond financial to more internal control issues as well. Risk management needs
to be included into management and governance processes and reinforced in order for risks to be
assessed as they evolve and not only be an annual exercise. Public sector managers needs to
continue the process on establishing risk registers and defining risk mitigation measures. A risk-
based approach to the selection of cases for controls not yet adopted.
The administrative capacities of internal audit units at central and local level are still lacking.
The internal audit practice concentrates mainly on observing rules and procedures. Challenges
remain with the effective establishment of internal audit committees in all budget organisations,
including at municipal level. Procedures on quality assurance need still to be developed together
and a professional development programme put in place.
The Central Harmonisation Unit (CHU) prepares an annual report on the implementation of
PIFC on the basis of replies to self-assessment questionnaires and its own quality reviews.
However, there is a need for more evidence-based recommendations and more systematic
implementation of follow up recommendations. Despite electoral year, CHU has maintained on
track the implementation of recommendations to 41,4% in comparison to previous year.
The update of the Administrative Instruction on the National Training Programme and
Certification of Internal Auditors in the public sector is ongoing. This Instruction aims to define
the organisation, structure, and content of the national programme for certification of internal
auditors in the public sector, as well as the evaluation and certification procedures together with
the requirements for continuous professional development.
External audit
In line with the standards of the International Organisation of Supreme Audit Institutions,
Kosovo’s constitutional and legal framework provides for the functional, organisational and
financial independence of the National Audit Office (NAO). The Law on the Auditor General
and the National Audit Office of Kosovo should be modified to remove the obligation to conduct
regularity audits annually on all budget organisations, regardless among others of their size,
complexity and risk and audits should be selected based on risk level assessment of public
finance. These changes would increase the number of audits of publicly owned enterprises and
performance audits.
The Office’s institutional capacity remained largely stable with 165 staff by the end of 2021, of
whom 82% are audit staff including management positions and 18% of other professional staff.
A new Strategic Development Plan 2022-2025 was drafted based on International Organisation
of Supreme Audit Institutions (INTOSAI) methodology and is pending adoption. It includes
objectives, performance indicators and a monitoring framework, as well as introduces audit
quality control and assurance procedures, and continues to implement a certification programme
for auditors.
The Office finalised 14 performance audit reports, compared to 11 in 2020. It worked with civil
society organisations, especially at local level, to improve the impact of audit work;
municipality-level public debates on the audit recommendations took place. Government should
ensure a better follow-up and review of performance audits. The percentage of fully
implemented recommendations remained is 50 % compared to 45% last year. During reporting
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period, the Committee for Oversight of Public Finance (COPF) reviewed 25 audit reports, of
which 6 reports of the ministries, 9 performance audit reports and 7 reports of publicly owned
enterprises.
Protection of the EU’s financial interests
Kosovo has not yet taken the necessary steps to advance the process of legislative alignment
with the acquis on the fight against fraud to the Union's financial interests by means of criminal
law. Kosovo has also not yet set up an anti-fraud coordination service (AFCOS) and adopted an
anti-fraud strategy. While there is not yet a solid track-record on cooperation with the
Commission during investigations, Kosovo Police ensures cooperation on an ad-hoc basis
Protection of the euro against counterfeiting
Kosovo has established competent authorities and procedures for dealing with counterfeit
money, but alignment with the acquis in this area still needs to be assessed. The Law on the
Central Bank prohibits the circulation of counterfeit money. The central bank has issued a
regulation on cash operations to strengthen rules and procedures for financial institutions
operating in Kosovo. The independence of central bank of Kosovo needs to be ensured by
improved professionalism and overcoming political influences in appointments. The
Commission has a cooperation agreement on coins with the Kosovo Agency on Forensics.
Kosovo takes part in the Pericles 2020 programme.
3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION
Good neighbourly relations and regional cooperation form an essential part of Kosovo’s
European integration process and contribute to stability, reconciliation and a climate conducive
to addressing open bilateral issues and the legacies of the past.
Kosovo maintained its engagement in a number of regional cooperation initiatives, such as the
Central European Free Trade Agreement (CEFTA), Energy Community, Transport Community,
the South-East European Cooperation Process (SEECP) and the Regional Cooperation Council.9
Following the May 2022 Foreign Affairs Council, EU foreign ministers held, for the first time,
an informal exchange of views with Western Balkans counterparts. The EU and Western Balkans
Leaders meeting on 23 June 2022 reaffirmed the EU perspective of the partners in the region and
gave impulse to intensify the cooperation and integration agenda. Particular focus was placed on
the integration of the Western Balkans into EU measures to reduce the negative impact of the
Russian aggression on Ukraine in terms of food and energy supplies and independence, as well
as to support capacity building for cyber security and the social agenda, notably involving youth
in the economy. The meeting was also an opportunity to discuss closer political cooperation,
including foreign policy alignment of the Western Balkans with EU positions and restrictive
measures.
At the EU-Western Balkans summit in Brdo pri Kranju in October 2021, the six Western
Balkans leaders reaffirmed their commitment to inclusive regional cooperation, strengthening
good neighbourly relations and investing more decisive efforts in establishing the Common
Regional Market. The summit announced a range of concrete deliverables benefiting the Western
9
Kosovo is a member of the Central European Free Trade Agreement (CEFTA). Kosovo has Free-Trade
Agreements (FTA) with Albania, North Macedonia, Croatia, Bosnia-Herzegovina and Türkiye. Kosovo has several
Generalized System of Preferences (GSP) Programmes with US, Japan and Norway.
78
Balkans, including: the first tranche of actions under the EUR 30 billion Economic and
Investment Plan; the pledge to boost COVID-19 vaccination rates; the path towards lower
roaming costs; an Innovation Agenda for the Western Balkans; Green Lanes to reduce border
waiting times and Transport Community Action Plans for smart transport and sustainable
connectivity.
The Common Regional Market, as agreed by the leaders of the Western Balkans at the 2020
Berlin process summit in Sofia, will be critical in increasing the attractiveness and
competitiveness of the region. It will help Kosovo to speed up the recovery from the aftermath of
the pandemic, notably to attract investors looking for diversification of supply and shorter value
chains and to maximise the benefits of the infrastructure investments under the Economic and
Investment Plan. A number of important decisions to facilitate the movement of workers remain
blocked. It is important that Kosovo plays a constructive role in building the Common Regional
Market and that all parties deliver on their joint commitments set out in the Common Regional
Market action plan.
In October 2021, Kosovo along with other Western Balkan partners endorsed the action plan for
the Green Agenda for the Western Balkans, which aims at reflecting the European Green Deal10
and contributing to the sustainable socio-economic development and the green recovery of the
region after the pandemic. Kosovo should contribute to successfully implement this joint
regional vision, with high level of ambition, putting sustainable development, resource
efficiency, nature protection and climate action at the centre of all economic activities.
The unresolved fate of missing persons who disappeared during the conflicts of the 1990s
remains a key issue to be solved in the Western Balkans. The authorities of Kosovo conducted 9
exhumations and officially identified 21 persons in 2021, there are still 1,621 persons missing by
April 2022 as a result of the conflict.
Kosovo generally maintains good bilateral relations with other enlargement countries and
neighbouring EU Member States.
Kosovo maintained overall good relations with Albania. During the reporting period, two inter-
governmental meetings were held (November 2021 and June 2022). In November 2022, 19
agreements were signed, covering a wide range of issues. With the establishment of an
intergovernmental coordination secretariat, the overall implementation of agreements has
improved. Trade volumes are also increasing.
There has been no change in Kosovo’s formal relations with Bosnia and Herzegovina, which
does not recognise Kosovo’s independence. The two maintain a strict visa regime. An initiative
to simplify the visa procedure for all citizens of Kosovo has not been pursued.
Kosovo has maintained good relations with Montenegro. In June 2021, Kosovo and Montenegro
signed an agreement removing vehicle insurance tax for entry into their respective territories.
Kosovo continues to enjoy overall good relations with North Macedonia.
Kosovo has maintained good relations with Türkiye, including in the political, economic and
cultural sectors. High-level bilateral meetings took place in the margins of the South-East
European Cooperation Process (SEECP) Summit in June 2022 in Antalya.
10
COM(2019) 640.
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4. NORMALISATION OF RELATIONS BETWEEN KOSOVO AND SERBIA
The EU-facilitated Dialogue on normalisation of relations between Kosovo and Serbia continued
throughout the reporting period with regular monthly meetings on the level of Chief Negotiators
and a High-level meeting in Brussels on 18 August 2022. No further concrete progress was
achieved in the negotiations on the comprehensive and legally-binding normalisation agreement,
while in the High-level meeting President Vučić and Prime Minister Kurti agreed to regular
meetings at the level of Leaders to take the negotiations forward. Kosovo and Serbia are urged to
engage constructively and advance the negotiations on the comprehensive, legally-binding
normalisation agreement with no further delay. Reaching such an agreement is urgent and crucial
so that Kosovo and Serbia can advance on their respective European paths.
During the reporting period, the Parties adopted an Energy Agreements’ Implementation
Roadmap in June 2022, which enables full implementation of the 2013 and 2015 Dialogue
Agreements on energy. Following the agreement reached an electricity supply licence was issued
to Elektrosever, a Serbian-owned company established under Kosovo law, which will supply
electricity to consumers in four Serb-majority municipalities in the north. Finalisation of the
necessary technical agreements are under way to make the company fully operational. The
Parties are expected to quickly implement all provisions of the Roadmap.
Following tensions in the north of Kosovo at the end of July 2022, an agreement was reached on
27 August 2022 regarding the use of entry-exit documents, whereby Serbia agreed to abolish
these documents for Kosovo ID holders and Kosovo not to introduce them for Serbian ID
holders. The Parties are expected to urgently reach an agreement on licence plates after they
failed to find a permanent solution within the dedicated licence plate Working Group led by the
EU, whose six-month mandate expired in April 2022.
During the reporting the period, the Parties also engaged in negotiations on a political declaration
on Missing Persons. No agreements were reached, but the Parties are encouraged to continue
their negotiations all these topics.
The Kosovo government did not to permit the facilitation of voting by the OSCE, as per past
practice, to enable the Kosovo Serb community to cast their ballots in the Serbian constitutional
referendum and general elections in 2022. A constructive approach by Kosovo is needed for the
Kosovo Serbs to exercise their democratic rights.
When it comes to the state of play on implementation of past Dialogue agreements:
- The full implementation of the justice agreement drawn from the April 2013 ‘First agreement
of principles governing the normalisation of relations’ continues to require further efforts by the
Kosovo authorities as Kosovo does not respect certain provisions of the agreement;
- There has been no further progress on the implementation of the 25 August 2015 Agreements.
Kosovo authorities have failed to take action to establish the Association/Community of Serb
majority municipalities in Kosovo and Kosovo is urged to engage constructively in its
establishment with no further delay or obstruction;
- The works on the Mitrovica bridge have long been completed and Serbia is expected to engage
constructive to allow the bridge to be opened to vehicle traffic without obstruction;
- As regards the technical dialogue agreements (2011-2012), some are not or only partially being
implemented. Both Parties need to remain committed to the continued implementation of the
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agreement on representation and participation of Kosovo in regional forums and not block the
work of regional forums over bilateral disputes. The implementation of the cadastre and
university diplomas recognition agreements is still pending. Serbia has yet to address the issue of
re-located Serbian administrative customs structures with Kosovo denomination that operate
from within Serbia, and to cease the issuance of documentation or affixing of stamps with
denomination that contravenes the related agreement;
On IBM, the Interim Common Crossing-Points (CCPs) between Kosovo and Serbia continue to
be operational. Only two of the six permanent CCPs have been established (Merdare and
Mutivodë/Mutivode). In March 2022, Serbia agreed to open both entry and exit lanes at CCP
Merdare and move their authorities into the new premises at CCP Mutivode. Both EU-funded
CCPs are now fully operational. Serbia still has not established permanent CCPs to be hosted by
their side (Jarinje /Rudnica, Končulj-Dheu i Bardhë and Depce /Muçibabë), which led to a
suspension of EU funds for this project in July 2018. In addition, Serbia needs to engage
constructively to enable the construction of the third CCP hosted by Kosovo in the north of
Kosovo at Tabavije /Bërnjak- Tabalije/Brnjak. Additional efforts are needed from Serbia to close
illegal roads and by-passes to ensure exclusive use of official crossing points for goods and
persons entering into or leaving Kosovo.
- The parties have continued to comply with their respective obligations under the telecoms
agreement during the reporting period;
- Requests for mutual legal assistance are in principle being processed;
- Kosovo needs to respect the Arrangements for Official Visits more consistently.
Overall, Kosovo has remained engaged in the Dialogue. However, the Kosovo government needs
to uphold its previous commitments and commit to the full implementation of all past Dialogue
agreements. Moving forward, Kosovo also needs to make further substantial efforts to avoid
actions that undermine stability and rhetoric that is not conducive to dialogue. Kosovo should
contribute to a conducive environment for the conclusion of a legally-binding normalisation
agreement with Serbia, including in its international relations. Kosovo is expected to engage
more constructively in the negotiations on the legally-binding normalisation agreement in the
coming period and show flexibility in order to make rapid and concrete progress.
5. EUROPEAN STANDARDS
CLUSTER 2: INTERNAL MARKET
Kosovo has some level of preparation in most of the areas of the internal market, namely the free
movement of goods, workers, capital, company law, intellectual property and competition,
whereas it is moderately prepared on free movement of services and right of establishment and
on financial services. It is at an early stage of preparation on consumer policy and health
protection. During the reporting period, Kosovo made some progress in all areas, except on
consumer policy and health protection, where only limited progress was made.
Chapter 1 - Free movement of goods
The free movement of goods ensures that many products can be traded freely across the EU
based on common rules and procedures. Where products are governed by national rules, the
principle of the free movement of goods prevents these from creating unjustified barriers to
trade.
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Kosovo has some level of preparation for the free movement of goods. Some progress was
made during the reporting period with the adoption of the Law on Inspections, the adoption of
amendments to the Law on Chemicals and the implementation of the Programme for the
Elimination of Trade Barriers. Further alignment with EU acquis is needed in this area and the
administrative and human resources capacity of quality infrastructure institutions needs to be
strengthened.
As some recommendations from the previous report remain valid, Kosovo should, in particular:
 increase the enforcement capacity of quality infrastructure, in particular of conformity
assessment and market surveillance bodies;
 adopt the new law on general product safety to further align legislation with the EU acquis;
 start implementing requirements of the European Regulation on Registration, Evaluation,
Authorisation and Restriction of Chemicals (REACH).
General principles
As regards production, distribution and marketing of industrial products, Kosovo needs to
adopt a new law on general product safety that unifies provisions in the area of market
surveillance, including implementing legislation on technical requirements for products. The law
on general inspections was adopted in January 2022 and needs to be implemented.
Non-harmonised area
Kosovo has started implementing its programme to eliminate barriers to trade and to ensure
alignment with the obligations under Articles 34-36 of the Treaty on the Functioning of the
European Union (TFEU). An electronic “intranet” register of Kosovo’s technical regulations is
in place, designed to implement existing obligations related to trade under the CEFTA
Agreement and EU acquis.
Harmonised area: quality infrastructure
Kosovo’s standardisation Management Information System is used to manage standardisation
processes and exchange data with the European Committee for Standardisation (CEN) the
European Committee for Electro-technical Standardisation (CENELEC) and other international
standardisation bodies. Kosovo needs to render its e-standard system user-friendly to businesses
and compatible with the CEN/CENELEC system to allow for updated and accelerated adoption
of new standards. Kosovo Standardisation Agency’s affiliate membership of CEN/CENELEC is
still pending.
The Kosovo Accreditation Directorate completed accreditation for medical laboratories. There
are 58 accredited conformity assessment bodies in Kosovo (37 test laboratories and 21 inspection
bodies), but their capacity still needs to increase.
In the area of metrology, Kosovo’s recently adopted law on inspections transferred metrological
supervision to the market inspectorate. The legislative framework in the area of petroleum that
aims to align with the EU acquis on the testing and quality control of petroleum fuels has been
adopted. The Kosovo Metrology Agency is preparing for its internal reorganisation to help
ensure further EU acquis alignment. In May 2021, the Kosovo Metrology Agency sent its
application for associated membership to the European Association of National Metrology
Institutes (EURAMET).
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As regards market surveillance, in January 2022, Kosovo adopted a law on general inspections
that increased the market inspectorate’s responsibilities and completed the unification of non-
food product inspection rules. The law on general product safety has not yet been adopted and
should be based on the law on technical requirements for products and conformity assessment.
During the reporting period, 385 product safety inspections were conducted with 19 cases of
harmful goods confiscated.
Harmonised area: sectoral legislation
On “new and global approach” product legislation, Kosovo adopted legislation designed to be
aligned with the EU acquis on simple pressure vessels, construction products and precious metal
works. Further alignment is needed on aerosol dispensers and transportable pressure equipment.
As regards “old approach” product legislation, Kosovo amended its law on chemicals to be
designed to align with EU Regulation on Registration, Evaluation, Authorisation and Restriction
of Chemicals (REACH) and Classification, Labelling and Packaging (CLP).
There was no progress on procedural measures. Kosovo’s legislation remains partly aligned
with the EU acquis in the areas of cultural goods, textile labelling and defence products.
Chapter 2 - Freedom of movements for workers
Citizens of one EU Member State have the right to work in another Member State and must be
given the same working and social conditions as other workers.
Kosovo has some level of preparation in the field of free movement of workers. Some progress
was made during the reporting period, notably as regards the conclusion of bilateral agreements
on social security. In the coming year, Kosovo should in particular:
 continue negotiating and concluding new bilateral agreements on social security, notably
with EU Member States.
On the free movement of workers, EU nationals and their family members are not eligible to
work in Kosovo without a work permit. During the reporting period, the Employment Agency
issued 209 short-term work permits, of which 157 for EU nationals. In November 2021 a
bilateral social security agreement was signed with Albania. Kosovo has already in place
bilateral social security agreements with two EU Member States (Belgium and the Netherlands)
and Switzerland. These agreements ensure that periods of activity will be taken into account for
entitlement to social security benefits. Negotiations for a similar agreement are ongoing with
Slovenia.
Chapter 3 - Right of establishment and freedom to provide services
Citizens of one EU Member State have the right to work in another Member State and must be
given the same working and social conditions as other workers. EU natural and legal persons
have the right to establish themselves in any Member State and to provide cross-border services.
For certain regulated professions, there are rules on mutual recognition of qualifications. Postal
services are gradually being opened up to competition.
Kosovo remains moderately prepared in this area. During the reporting period, Kosovo made
some progress. The Point of Single Contact was established in March. Kosovo has a monitoring
mechanism to implement the five-year action plan to make sectoral laws compliant with the EU
83
Services Directive but needs to further intensify it. The postal market has been liberalised since
1st
January 2022, but the legal framework needs further alignment with the EU postal acquis.
Kosovo needs to align legislation with the EU acquis on the mutual recognition of professional
qualifications.
As most of the last report’s recommendations have not been addressed, in the coming year
Kosovo should, in particular:
 remove the identified barriers to the right of establishment and freedom to provide services
by rolling out the action plan for the full implementation of the law on services;
 complete the alignment with the EU postal acquis as regards the Regulation on Cross-Border
Parcel Delivery Services;
 align with the EU acquis on mutual recognition of professional qualifications.
On the right of establishment and freedom to provide services, Kosovo is partially aligned
with the EU acquis on services. The 54 domestic laws and by-laws considered incompatible with
the EU Service Directive are still not harmonised and need further revision. The 5-year action
plan needs to be implemented and awareness raised on the simplification of administrative
procedures, once rolled out. At present, foreign companies are still required to establish an office
in Kosovo. Increased inter-institutional coordination between legal departments of relevant line
ministries, agencies and other public and professional bodies, and enhanced capacity, would help
improve harmonisation with the Services Directive.
The Point of Single Contact has been established in March 2022 within the e-Kosova platform
for the sector of licensing auditors and audit companies. The Contact Point for Services platform
contains some 400 laws and bylaws that cover trade in services and is linked to the Point of
Single Contact (e-Kosova). The citizens/business community can access the link of CPS,
however, it consists only of general information on how to start a business, with no
interoperability options.
The legal framework regulating postal services is aligned with the EU Postal Services Directive.
The reserved area for the provision of universal postal services was abolished on the 1st of
January 2022. Furthermore, the Regulatory Authority of Electronic and Postal Communications
(RAEPC) has adopted implementing legislation on the system for cost accounting and net cost
calculation of universal postal services. The activities of the postal service providers are
supervised, monitored and inspected by the Regulatory Authority in the event of regulatory
violations and customers’ complaints. Kosovo still needs to align its legislation with the
Regulation on cross-border parcel delivery services.
The Law on regulated professions broadly defines the requirements, conditions, and criteria for
the exercise of a regulated profession. The division for regulated professions within the Ministry
of Education needs to be properly staffed and become operational. Kosovo has in place the
implementing legislation, on criteria and procedures of regulated professions. What is still
overdue is the mapping of all regulated professions and the establishment of a list of regulated
professions.
Chapter 4 - Free movement of capital
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In the EU, capital and investments must be able to move without restriction and there are
common rules for cross-border payments. Banks and other economic operators apply certain
rules to support the fight against money laundering and terrorist financing.
Kosovo has some level of preparation in this area. Some progress was made with the
adoption of the Law on Property Rights of Foreign Citizens, which addresses the issue of real
estate acquisition by foreigners in Kosovo.
Although initial steps were taken, the recommendations of the previous report remain valid. In
the coming year, Kosovo should, in particular:
 further align Kosovo’s legal framework with the EU Payment Service Directive 2;
 increase efforts to fight economic and financial crime and align the Law on the Prevention
of Money Laundering and Terrorist Financing with the EU acquis;
 strengthen inter-institutional cooperation in the fight against economic and financial
crime.
The movement of capital is largely liberalised and aligned with the EU acquis. The execution of
payments and money transfers is limited to banking and non-banking financial institutions
licensed by the Central Bank of Kosovo. The law on property rights, which addresses the issue of
real estate acquisition by foreigners, has been adopted by the Assembly. In terms of payment
systems, Kosovo needs to further align its legislation with the EU Payment Service Directive 2.
An administrative instruction on beneficial ownership has been adopted, followed by a series of
capacity building efforts for reporting entities and law enforcement officials.
The current framework on e-commerce suffers from regulatory shortcomings, such as a weak
electronic payment system. The Assembly passed the Law on Electronic Identification on
Trusted Services in Electronic Transactions in December 2021.
The law on the prevention of money laundering and combating terrorism financing needs
further alignment with EU standards, specifically Directives 2015/847 and 2018/843 on money
laundering. A new Law on targeted international financial sanctions has been adopted by the
government on 13 May 2022. The law is awaiting approval by the Assembly.
On the fight against money laundering, the number of suspicious transaction reports increased
to 920 in 2021, 2 % from 2020. The number of seized assets rose in 2021, reaching EUR
8,975,202. The cooperation between the Financial Investigation Unit (FIU) and Law
Enforcement Agencies (LEA) improved with the establishment of an electronic information
exchange system. The overall exchange of information at the domestic level with taxation and
customs authorities increased 8% compared to 2020. The Unit was instrumental in advising the
Special Prosecutor in indicting a stand-alone money laundering offence, which, for the first time
ever in Kosovo, resulted in convictions by the courts, upheld on appeal.
Kosovo has marked some progress in the fight against financial crimes with the support of the
joint EU/Council of Europe PECK III Project. Strengthening inter-institutional cooperation in the
fight against economic and financial crime is still needed (See also Chapter 24 - Justice, freedom
and security).
Chapter 6 - Company law
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The EU has common rules on the formation, registration and disclosure requirements of a
company, with complementary rules for accounting and financial reporting, and statutory
audit.
Kosovo has some level of preparation in the area of company law. Some progress was
achieved by aligning further with the EU acquis on business registration. In June 2021
Kosovo adopted a Corporate Governance Code, in line with OECD principles.
As recommendations from the previous report have been partially addressed, in the coming
year, Kosovo should in particular:
 further align company law legislation with the EU company law acquis, also in the area of
shareholders’ rights, including the promotion of long-term shareholder engagement;
 further align with the acquis on corporate accounting and statutory audit, and strengthen
the institutional audit oversight structures and the professional independence and
objectivity of auditors and audit firms.
On Company Law Kosovo started filling the gaps of partial alignment with the Law on
Business Organisation by adopting two implementing acts: the registration of business
organisations and the registration of the representative offices of foreign business
organisations. The Corporate Governance Code, adopted in June 2021, is consistent with
international standards reflected in the OECD Principles of Corporate Governance. Further
alignment with the EU company law acquis is needed, particularly concerning minimal capital
requirements, shareholders’ rights, including the promotion of long-term shareholder
engagement, company takeovers, aspects of disclosure of information about companies and
their branches, and the 2019 EU Directives on the use of digital tools and cross-border
operations.
The assessment of technical requirements to ensure the interoperability of the Kosovo
Business Registration Agency with the Business Register Interconnection System (BRIS) is
pending. Insufficient coordination and data sharing between Kosovo Business Registration
Agency and the Kosovo Council for Financial Reporting (KCFR) still affect the timely
reporting and publication of accounting documents. Also, the Agency does not yet publish
information on companies in some legal situations (e.g. under insolvency proceedings) and
there is no legal obligation to publish accounting documents in the business register.
On company reporting, the Law on accounting, financial reporting and audit is only partly
implemented, and further alignment is required with the EU acquis in all these areas, including
on non-financial reporting. The same law prescribes that statutory audits are performed
following relevant International Standards on Auditing. Large companies must submit and
publish their audited financial statements with the KCFR; non-compliance risks legal sanction.
All submitted financial statements are published on the KCFR website. In 2021, no punitive
measures in the form of administrative fines were published on the KCFR website. Kosovo
needs to ensure sufficient funding for the Public Audit Oversight Board to function as the
competent authority for oversight in this sector.
Chapter 7 - Intellectual property law
The EU has harmonised rules for the legal protection of intellectual property rights (IPR), and
for the legal protection of copyright and related rights. Rules for the legal protection of IPR
86
cover, for instance, patents and trademarks, designs, biotechnological inventions and
pharmaceuticals. Rules for the legal protection of copyright and related rights cover, for
instance, books, films, computer programmes and broadcasting.
Kosovo has some level of preparation on intellectual property rights. Some progress was made
to align with the EU acquis in the area by adopting the Laws on Patents, Trade Secrets,
Trademarks, Industrial Design and Topographies of Semi-conductors. Kosovo needs to further
align its legal framework on intellectual property rights, notably on copyright and allocate
resources for its effective implementation and enforcement, including training on law
enforcement and prosecution. It needs to ensure that appropriate collective licensing agreements
are enforced to guarantee remuneration for right holders.
Last year’s recommendations have been partially implemented. In the coming year, Kosovo
should in particular:
 adopt the Law on Copyright and Related Rights and finalise alignment of related secondary
legislation;
 take concrete and sustainable steps to increase the capacity and coordination of policy-
making institutions and law-enforcement agencies to ensure the enforcement of intellectual,
industrial and commercial property rights;
 establish a functioning collective management system by strengthening its existing one in
the fields of music and audio-visual and by creating an additional Collective Management
Organisation in the fields of literary and visual works.
In the area of copyright and related rights, Kosovo’s body responsible for supervising IPRs is
the Office of Copyright and related rights, operating within the Ministry of Culture. Kosovo has
made some progress to guarantee a level of protection of intellectual, industrial and commercial
property rights equivalent to that applied in the EU, and as per SAA, by further aligning with the
EU acquis; however more efforts are needed. In January 2022, the Assembly adopted legislation
on Topographies of Semi-conductors, Patents and Industrial Design, in May 2022 on Trade
Secrets and in June 2022 on Trademarks. Some steps were taken to draft new legislation on
copyright and related rights in line with the latest EU Directive on collective management of
copyright and related rights and copyright and related rights in the Digital Single Market.
Kosovo is preparing an Industrial Property Strategy 2022-2026. No steps were taken to
strengthen and enforce the existing collective management system to function properly, as the
two Collective Management Organisations are not licensing, collecting remuneration or licensing
fees nor distributing money to the rights holders. Many of the rights provided in the law for
literary works and works of visual arts cannot be implemented in practice due to the absence of a
relevant Collective Management Organisation in these fields. The National Strategy to
Strengthen the Copyright System 2019–2023 foresaw the establishment of two divisions: one for
the promotion and education and one for the collective management and supervision of
copyright; both are yet to be established.
On industrial property rights, Kosovo needs to allocate sufficient resources to effectively
implement its recently adopted legislation. The Industrial Property Agency needs restructuring
and additional staff. In 2021, the Agency received 1 950 applications for trademarks, 16
applications for patents and 30 applications for industrial design. The number of applications for
trademarks has decreased by 8.2% compared to the previous year. The number of registered
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trademarks, however, increased from 29% of applications in 2020 to 36% of applications in
2021. The Agency has carried out only limited activities to raise awareness of businesses and
citizens on the importance of industrial property rights. The State Intellectual Property Council
and the Task Force against Piracy and Counterfeiting are the main bodies tasked with
coordinating enforcement. During the reporting period, the Task Force met frequently, whereas
the Council did not hold any meetings due to unavailability of members in 2021.
To effectively enforce intellectual property rights, Kosovo needs to increase the cooperation
between the policy-making and enforcement institutions. Furthermore, lengthy procedures for
the treatment of applications and the lack of enforcement of decisions taken, are major
constraints to effectively implementing the IPR legal framework.
There was a progress in the area of inspections against piracy and counterfeiting compared to
2020 which saw considerably fewer inspections due the pandemic. In 2021, Kosovo Customs
initiated 355 investigation cases, seizing 623 271 pieces of fake goods for a total value of EUR 6
315 402, compared to 2020 (185 cases amounting to EUR 2 019 790).
Chapter 8 - Competition policy
EU rules protect free competition. These include antitrust rules against restrictive agreements
between companies and abuse of dominant position. They also include rules on concentrations
between companies which would significantly impede competition. EU rules also set out a system
of State aid control. Governments are only allowed to grant State aid if restrictive conditions are
met, with a view to prevent distortion of competition.
Kosovo has some level of preparation in the area of competition policy. Some progress was
made by revising the legislative framework and aligning it with the EU acquis in the area of
competition. Further efforts are needed to adopt implementing legislation and enforce its rules.
On antitrust and mergers and on state aid Kosovo needs to continue aligning its legislative
framework and ensure its enforcement.
As recommendations from the last report remain valid, Kosovo should in particular:
 adopt the Law on State Aid and finalise alignment of related secondary legislation;
 ensure the functional capacity and operational independence of the competition and state aid
authorities and increase cooperation and coordination between all stakeholders, including
ministries, regulators and the judiciary;
 fulfil Stabilisation and Association Agreement (SAA) obligations by aligning state aid
schemes with EU State aid rules.
Antitrust and mergers
The legislative framework is partly in line with the EU competition acquis. The legislation on
the protection of competition that further aligns with the EU acquis has been adopted in June
2022. Its implementing legislation needs to be revised accordingly.
On the institutional framework, the Kosovo Competition Authority is responsible for
implementing the legal framework and the Kosovo Competition Commission acts as the
decision-making body. However, the latter was not functional for most of the reporting period, as
its mandate expired in June 2021, and its members have only been appointed in June 2022. Some
progress was made by strengthening cooperation between the Kosovo Competition Authority
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and certain sector regulators. A Memorandum of Understanding was signed with the Tax
Administration and training sessions were organised with the Central Bank, the Energy
Regulatory Office and the Regulatory Authority for Electronic and Postal Communications.
In its capacity to enforce competition, Kosovo needs to improve enforcement by imposing
fines or remedies following decisions taken by the competition authority. The disruption in the
functioning of the Kosovo Competition Commission led to a piling-up of unresolved cases.
As regards implementation, in 2021 the Kosovo Competition Authority has not issued any
decision, recommendation or professional opinion due to the non-functional Kosovo
Competition Commission. To date, the Authority has not carried out any dawn raids and the
leniency programme has never been used. The Authority has conducted a Market Study of the
Banking and Financial Services sector.
Some training for judges and prosecutors on essential aspects of competition law has started
during the reporting period. As delays and contradictory judgments in different court instances
persist, raising awareness among judges on enforcement in the area of competition remains
crucial.
State aid
The legislative framework on State aid is broadly aligned with the EU acquis. The Regulation
on Services of General Economic Interest was adopted in September 2021. The draft Regulation
on Horizontal Aid including the Block Exemptions and Regional Aid is not yet adopted. The
draft Law on State Aid was further amended, but its adoption is delayed.
On the institutional framework, the State Aid Department of the Ministry of Finance assesses
proposals for State aid, drafts assessment reports for the State Aid Commission and updates the
State aid inventory. The State Aid Commission is the decision-making body in this area.
However, as it has been lacking a quorum since mid-September 2021, it has lost the capacity to
enforce State aid rules during most of the reporting period. The remaining mandates in the
Commission expired in March 2022. The Assembly has failed to appoint the new State Aid
Commission.
As regards implementation, only four decisions were adopted, due to lack of quorum; one led to
formal investigations, two decisions were assessed as not constituting State aid and the fourth
was on the interest rate for discount and recovery of State aid. The State Aid Department has
received 12 notifications of possible state aid measures, of which 10 are still under evaluation.
The work on State aid inventory continues as four potential State aid schemes are being aligned,
one related to the energy sector and three to economic zones. The regional map of State aid in
Kosovo for the period 2021-2026 was reviewed by the European Commission during the
reporting period.
Liberalisation
Public undertakings in Kosovo are subject to the Law on Competition and the Law on State Aid.
Kosovo has monopolies of a commercial nature within the meaning of Article 37 TFEU. There
needs to be raised awareness to apply State aid rules to the activities of central institutions and
publicly owned enterprises.
Chapter 9 - Financial services
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EU rules on banking, insurance, supplementary pensions, investment services and securities
markets aim to ensure fair competition among financial institutions and their stability. They
include rules on their authorisation, operation and supervision.
Kosovo is moderately prepared in the area of financial services. Some progress was made
regarding the functioning of the Supervisory Board of the Central Bank and in addressing the
issue of uninsured and unregistered vehicles. As recommendations in the previous report have
not been fully addressed, in the coming year Kosovo should in particular:
 continue to implement the roadmap for implementation of Solvency II measures and enhance
the supervisory role on the insurance sector;
 further advance in implementation of the Basel III framework and adopt amendments to
Kosovo's legal framework governing microfinance institutions and non-bank financial
institutions, in accordance with best practices;
On banks and financial conglomerates, the Central Bank of Kosovo continued to harmonise its
legal framework with Basel III requirements on capital and risk management. The financial
sector remains resilient despite global economic challenges due to the high capitalisation levels
of the predominantly foreign-owned banking sector. Overall, banks’ capitalisation ratio remained
stable and well above the required minimum capital adequacy ratio of 12%. Although credit risk
remains contained, focus should be paid to evaluating risks from the rapid credit expansion in the
household segment in particular mortgage lending. During the reporting period, the Central Bank
rolled over the existing EUR 100 million re-purchasing line of credit from the European Central
Bank to maintain bank liquidity buffers against any possible shocks until 2023. To safeguard
banks’ capital position, dividend payments were suspended in 2020. That measure was lifted in
October 2021
The Bank’s Supervisory Governing Board was rendered operational once again by the
appointment of two new members, allowing for the reestablishment of a quorum. A fifth non-
executive member was later appointed to enhance the board’s functioning. More efforts are
needed to ensure that principles of transparency and merit-based selection processes apply. Any
political influence on the appointments within the Bank undermines the confidence of the public
in this service.
Kosovo has not yet established an independent recovery and resolution authority. Amendments
to the Law on banks, to assign this function to the Central Bank, must ensure that the authority
has functional independence. The Central Bank is working on updating regulations to harmonise
them with BRRD I and II, which have not yet been fully transposed. The Kosovo Deposit
Insurance Fund (DIFK) has set up the working group on amending the Law on deposit guarantee.
Amendments to this law should seek to approximate the Deposit Guarantee Scheme Directive.
Gaps in the legislation on micro-finance and non-bank financial institutions should be addressed
to ensure alignment with international best practices. The Central Bank must ensure that
consumers are adequately protected to prevent unfair banking practices.
Kosovo continued to implement Solvency I measures and has developed and started gradual
implementation of a 5-year roadmap on implementation of Solvency II measures. Regarding
Insurance and Occupational Pensions, the Central Bank should enhance the supervisory and
surveillance role in the insurance industry. Despite the opinion presented by the Kosovo
Competition Authority, the prices on the compulsory motor liability insurance market remain
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fixed. The Motor Third Party Liabilities price liberalisation process has yet to commence. Any
liberalisation should be done in a gradual and phased manner to avoid disruption to the market.
Progress has been made on the the issue of uninsured and unregistered vehicles. Authorities
have started a one-year plan for the application of window stickers on registered vehicles, that
aims to facilitate the identification of non-registered vehicles. Due to the high number of
unregistered vehicles, Kosovo is the only country in Europe that is not part of the green card
system which addresses the issue of cross-border motor accidents. As a result, insurance is
required for foreign-registered vehicles entering Kosovo and vehicles with Kosovo plates leaving
Kosovo. This continues to represent a financial burden for travellers.
No further progress was made with the adoption and operationalisation of the manual on the on-
site supervision of pension funds; further alignment with the EU acquis is needed.
On securities markets and investment services, most activity centres on the market for
government bonds, which are auctioned by the Central Bank. The Regulation on the repurchase
of securities with the Central Bank enables securities trading between commercial banks on the
secondary market. It aims to help eligible banks to manage their liquidity efficiently in the short
term.
Chapter 28 - Consumer and Health Protection
EU rules protect consumers’ economic interests and in relation to product safety, dangerous
imitations and liability for defective products. The EU also ensures high common standards for
tobacco control, blood, tissues, cells and organs, as well as medicines for human and veterinary
use. The EU also ensures high common standards for upholding patients’ rights in cross-border
healthcare and tackling serious cross-border health threats including communicable diseases.
Kosovo is at an early stage of preparation in this area. There was limited progress overall,
with some progress on consumer protection, and the government’s recognition of independent
consumer rights organisations. Kosovo made significant progress in improving surveillance, case
investigation, contact tracing, case management and vaccination during the COVID-19 pandemic
and achieved compliance with the EU Digital COVID Certificate. However, last year’s
recommendations were not fully addressed, so they remain valid.
In the coming year, Kosovo should:
 amend the law on consumer protection to remove problematic articles and increase
awareness on consumers’ rights and traders’ obligations, particularly regarding online
buying;
 increase human and financial resources necessary to implement health sector reforms and to
strengthen the health care system including further roll-out of the electronic public health
information system, notably for Roma and Ashkali communities;
 ensure the rigorous implementation of tobacco control in line with the relevant EU acquis
and international obligations.
Consumer protection
Regarding the legislative framework for consumer protection, Kosovo’s legislation is partly
aligned with the EU acquis on consumer protection, and adopted a consumer protection
programme for the period 2021-2025. It is not aligned with the EU acquis on mortgage credit,
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alternative consumer dispute resolution, better enforcement, modernisation of consumer
protection rules, or the EU acquis on consumer rights, unfair commercial practices and package
travel. Kosovo still requires products to be labelled with the flag of the country of origin, which
is not in line with the EU acquis.
Enforcement of consumer rights protection remains limited, pending a reform of the market
inspectorate. An integrated platform to harmonise the complaints process remains to be created.
The Division of Appeals of the Financial Services Users within the Central Bank handles most of
the complaints regarding financial services.
Regarding product safety related issues, Kosovo adopted a law on general inspections that
increased the market inspectorate’s responsibilities and completed the unification of non-food
product inspection rules. The law on general product safety has not yet been adopted. In the
reporting period, 361 product safety inspections were conducted with 5 cases of harmful goods
confiscated (366 market general surveillance inspections seizing harmful goods in 3 cases and
711 inspections).
As regards non-safety issues, the law on consumer protection addresses consumers’ economic
interests, but it cannot be properly enforced pending reform of the market inspectorate. The
weakness of consumer rights organisations remains a challenge.
Public Health
During the reporting period, health authorities in Kosovo continued to focus on the management
of the COVID-19 pandemic. While it put Kosovo’s health system under significant strain,
significant progress was made on surveillance, case investigation, contact tracing and case
management. Thanks to a well-organised vaccination campaign, Kosovo achieved a relatively
high vaccination rate, even though it did not reach the goal defined by the National Deployment
and Vaccination Plan. New facilities and equipment were established in Pristina and regional
centres to support efforts of the Ministry of Health to manage the pandemic.
Alongside all the other Western Balkans, Kosovo is a member of the EU Joint Procurement
Agreement on medical counter measures, and an observer in the EU Health Security Committee.
Kosovo provides information to the Commission’s data collection system on COVID-19 and
regularly reports to the European Centre for Disease Prevention and Control (ECDC) on
COVID-15 and, since 2015, on several other communicable diseases. By June 2022 EU Member
States provided over 400 000 COVID-19 vaccine doses to Kosovo, and the COVAX facility,
which receives significant EU funding, provided over 2 million doses free of charge. Kosovo
achieved compliance with the EU Digital COVID Certificate.
On public health policy, the quality of healthcare remains of concern. There was no progress on
the introduction of a universal health coverage scheme, and public health information system is
still not functional. Although several dozen doctors and over 200 nurses were hired, health
workers continue to emigrate, which has a detrimental impact on the health system. New laws on
health and on health insurance were adopted on 19 Aril 2022, along with other health sector. The
2022 health budget decreased by 14.6%, compared to 2021, though the primary healthcare
budget was 1.5% higher than 2020, and the budget for hospital and university clinical services
(129.7 million EUR) was 10 % higher than 2021.
There was no progress on the health sector strategy. While access to basic healthcare is free,
spending on diagnostic services and medications is not reimbursed and around 20 % of the
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population have very limited access to healthcare. The high out-of-pocket cost of health (about
40% of total medical costs) limits access for vulnerable groups, only about 65% of annual public
health needs are covered by public spending, mostly on fixed costs. Kosovo still does not have a
reliable methodology in place as to estimate medical expenses. On mental health there were no
notable developments in the reporting period with services continuing to be integrated services.
The comprehensive law on tobacco control (in force since 2013) is not enforced, due to both
lack of political will and failure by enforcement authorities to apply the rules.
The legislation on blood, tissues, cells and organs and on patients’ rights in cross-border
healthcare is partly aligned with the EU acquis. In December 2021, the Assembly adopted the
new law on blood and blood components, which is partly aligned with the EU acquis,
predominantly on the quality and safety standards during the collection, testing, processing and
distribution of blood and blood components. On serious cross-border health threats, including
communicable diseases, immunisation coverage remains high, with mandatory vaccination rates
between 87-89% reported among school-age children. Kosovo is still developing an action plan
to address recommendations from the 2018 European Centre for Disease Prevention and Control
technical assessment report. Legislation on patients’ rights in cross-border healthcare is
partially aligned with the acquis. For specialised health services that are not available in Kosovo,
patients can benefit from the health insurance fund for health services in several neighbouring
countries, but the available funding only covers 45% of the needs.
Kosovo has an e-health information system, based on the European core health indicators, that
enables virtual communication between users/patients and general practitioners, provides
counselling services, and captures data on patient admissions, discharges and transfers. However,
it is not used by all health institutions and further functionalities (covering pathology, radiology,
blood transfusion, vaccination and other interventions) remain to be added.
The revised cancer-screening programme is not yet prepared. The number of women screened
for cervical cancer is low.
There has been no progress with the implementation of the health promotion action plan, or the
strategic plans on mother and child healthcare. The prevention of non-communicable diseases
remains weak. Kosovo has not made any progress in adopting the nutrition action plan on
nutrition and physical activity. Legislation of medicines for human use and medicines for
veterinary use are partially aligned with the EU acquis. The list of essential medicines for which
the costs are covered by the government needs to be updated. The supply of medicines from the
essential list for primary healthcare, procured by the Ministry of Health, has improved in 2021-
2022. Currently, the level of coverage for drugs from the essential list is 75% and for
consumables in primary healthcare is 90%.
As regards health care inequalities, access to quality health care services for children remains a
concern - there has been no improvement of the neonatal, infant and child mortality rates, which
are three times the EU average, the highest in the region. The situation of children in Roma,
Ashkali and Egyptian communities is of particular concern - only 38% of children in these
communities have been fully vaccinated.
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CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH
Kosovo is moderately prepared in the area of customs, as well as on entreprise and industrial
policy. It has some level of preparation in the area of taxation, digital transformation and media,
as well as social policy and employment, and is at an early stage of preparation in the areas of
science and research, and in the field of education and culture. During the reporting period, some
progress was achieved in most areas of this cluster, but only limited progress on research.
Chapter 10 – Digital transformation and media
The EU supports the smooth functioning of the internal market for electronic communications,
electronic commerce and audio-visual services. The rules protect consumers and support
universal availability of modern services.
Kosovo has some level of preparation in the area of digital transformation and media. There
was some progress with further aligning the legislative framework with the acquis and with
implementation. Kosovo advanced with the implementation of the Digital Agenda 2013-2021
and the Regional Roaming Agreement, providing consumers with roaming free services as of
July 2021. A sustainable solution for the funding of the public broadcaster and ensuring its
editorial independence still needs to be found. The draft e-government strategy has not been
approved, as it is still under the revision of the Strategic Planning Office. The budgetary
resources for cyber security remain insufficient. The process of digital switchover from analogue
to digital television has not advanced.
Last report’s recommendations were mostly not addressed and remain valid. In the coming year,
Kosovo should in particular:
 conclude the alignment of Kosovo’s legislation with the European Electronic
Communications Code, the EU Network and Information Security Directive and the EU’s
Toolbox for 5G cybersecurity, and revise the Law on the Independent Media Commission in
line with the Audio-visual Media Service Directive;
 ensure that telecoms and media regulators are given adequate resources to fulfil their
mandates independently and develop a solution for the sustainable funding of the public
service broadcaster;
 implement number portability to ensure effective use of numbering resources and foster
competition.
As regards electronic communications and information and communication technologies
(ICT), the existing resources of the Electronic and Postal Communications Regulatory Authority
remain limited and not proportional to their responsibilities. According to the Kosovo Agency
for Statistics, in 2021, 96.1% of households had access to the Internet (compared to 96.4% in
2020), 94 % access the Internet through fixed connections (compared to 95.1% in 2020) and
62.3% through mobile connections (up from 54.7% in 2020). In 2021, the share of individuals
purchasing or ordering goods and services online (within the last three months) was 23.1%,
compared to 35.4% 2020.
The authorities should ensure that markets are genuinely competitive including through number
portability, without which numbering resources cannot be used effectively. On broadband,
Kosovo has made some progress. In November 2021, the Assembly adopted a law on measures
to reduce the cost of deploying high-speed electronic communications networks, aligning it to
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the EU Broadband Cost Reduction Directive. Further efforts are needed for alignment to the
European Electronic Communications Code to ensure freedom to provide electronic
communications networks and services. Kosovo 2030 Digital Agenda has not been finalised yet.
Kosovo made progress in the area of digital transformation with the adoption of the Law on
Electronic Identification and Trust Services for Electronic Transactions in December 2021. This
law aligns Kosovo’s legislation to the EU Electronic Identification, Authentication and Trust
Services Regulation. The Law on Network Security Measures and Information Systems is not
adopted. The e-government portal is operational; the platform offers over 30 fully digitalised
services. (see also Public Administration Reform).
Kosovo developed basic capabilities in cybersecurity. However, it lacks a comprehensive
legislative framework, operational mechanisms, technical capacities and human resources to
effectively operate in cyberspace context. A Law on Cybersecurity and the Strategy and Action
Plan on Cybersecurity remain to be adopted.
On audio-visual policy, the amendment of the Law on Independent Media Commission (IMC) is
not yet finalized. This process should be conducted in an inclusive and transparent manner, with
meaningful consultation with key stakeholders. The IMC failed to make any progress on the
digital switchover to align with EU standards. Currently, the IMC lacks adequate staffing and
resources to exercise its powers independently. It should also ensure it is transparent and
inclusive in its decision-making, including through more consistent public consultation. In part
due to a lack of information on media ownership and the distribution of advertising funds, the
IMC does not impose effective sanctions on broadcasters and no significant enforcement
interventions were undertaken. The current Law on the IMC provides broadly for sufficient
regulatory, enforcement and monitoring powers to ensure pluralism and competitiveness in the
market. However, the amendment of the Law on the IMC, which is currently under way, should
further align the Law with the Audio-visual Media Service Directive to extend its powers to
online audio-visual media. The Assembly finalised the selection of the Commission Board
members and the board is fully staffed for the first time in several years. Civil society assessed
the selection process as open and merit-based.
A review of the current Law on Radio Television of Kosovo (RTK) was launched in 2019 but
the process is slow. The new draft law includes a realistic and sustainable funding model for
RTK. The Assembly dismissed the RTK board in July 2021, citing the RTK’s management
refusal to be audited, and its failure to comply with procurement procedures and compile a
legally required long-term strategy. At the end of 2021, the new RTK board was elected in a
process that was considered as open, transparent and merit-based. The Board has in the
meantime dismissed the General Director and few of the key management positions, due to
alleged mismanagement and has appointed new General Director of this institution. The board is
currently undertaking changes in the RTK in order to make it more efficient in offering services
to the public.
Chapter 16 - Taxation
EU rules on taxation cover value-added tax, excise duties and aspects of corporate taxation.
They also deal with cooperation between tax administrations, including the exchange of
information to prevent tax evasion.
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Kosovo has some level of preparation in the area of taxation. There was some progress with
implementation of risk-based tax inspections on some high-risk sectors. In June 2022, the
Assembly adopted the amendments to the law on excise on tobacco.
The recommendations in the previous report have not been fully addressed. In the coming
year, Kosovo should in particular:
 pursue further alignment of tax legislation including the personal income tax (PIT), and
value added tax (VAT) with the EU acquis;
 ensure more systematic implementation of risk-based tax audits and continue
implementing the strategy for combating the informal economy, money laundering,
financing of terrorism and financial crime (2019-2023);
 increase cooperation with law enforcement and judicial institutions to ensure timely
adjudication of tax evasion and fraud cases, with emphasis on high-risk sectors.
Good progress was made during the reporting period with regard to tax collection, with overall
revenue for fiscal year 2021 was 19% higher than in 2020. Total tax collected for the first six
months of 2022 are higher by 16% compared to same period in 2021. This is due to robust
economic activity following the easing of the COVID-19 pandemic restrictions and improved tax
compliance but offset by high inflation rates.
On indirect taxation, the VAT system is broadly aligned with the EU acquis. Kosovo applies a
standard 18% rate and a reduced 8% rate. The Law on VAT needs to be further harmonised with
the EU acquis. The legal framework and procedures on e-commerce taxation need to be
established Kosovo has reduced the average time of VAT refunds to 19 days, down from the 30-
day legal maximum. The law on excise on tobacco products was amended, changing the basis
for calculating excise taxation in tobacco products and increasing monitoring measures. The
price remains relatively low compared to the EU, although the government continues to
progressively raise excise on tobacco to align it to EU levels. The authorities should develop a
plan for the tax treatment of material loss during the transportation, production or storage of
excise goods.
On direct taxation, no progress was made on amending the Law on personal income tax to
remove contradictory provisions and further align it with EU acquis.
On administrative cooperation and mutual assistance, Kosovo has not been able to join the
inclusive framework of the OECD Base Erosion and Profit Shifting (BEPS) due to recognition
issues. However, in relation to double taxation agreements, Kosovo has introduced some of the
minimum standards of OECD BEPS such as implementation of BEPS measures on transfer
pricing during the reporting period. Kosovo should consider adopting the standards enshrined in
the OECD-Council of Europe Convention on Mutual Administrative Assistance in Tax Matters.
A preliminary legal initiative has been launched to enable automatic exchange financial account
information with other jurisdictions. Kosovo currently has double taxation treaties in
application with Albania, Austria, Croatia, Luxembourg, Hungary, Saudi Arabia, Malta, North
Macedonia, Slovenia, Switzerland, Türkiye, the United Arab Emirates, and the United Kingdom.
Treaties with Germany, Finland and Belgium from the time of the former Yugoslavia remain in
application. During the reporting period, an additional treaty with Latvia entered into force.
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On operational capacity and computerisation, the Kosovo Tax Administration has developed
a good service quality, in particular with the widespread use of e-filing and e-payment. The
improved and simplified e-solutions have supported swift tax-filing processes during the
COVID-19 pandemic. In terms of streamlining and improving its service delivery, the tax
administration needs to adopt a new organisational structure and further strengthen professional
capacities, especially in the tax inspection/audit area.
The tax administration has adopted a four-year strategic plan to improve tax collection, reduce
the tax gap, and improve its institutional capacity which is currently being implemented. During
the reporting period, the tax administration intensified its actions on risk-based approach tax
compliance. Despite higher revenues registered from tax audit processes, Kosovo still needs to
strengthen enforcement of the risk-based approach on tax inspection/audit processes, particularly
on regional level. Data quality and exchange of data across different agencies for the
administration of taxes remain a challenge. Between 2021 and March 2022, tax evasion to the
value of around EUR 3 million was detected, compared to EUR 7 million during same period
2020-2021. The volume of tax evasion detected can varies greatly from year to year due to
individual cases. Further efforts are needed, in particular on risk-based field inspections and
inter-institutional cooperation. As domestic revenue mobilisation is relatively low, Kosovo
should review its tax policy and intensify efforts to broaden the tax base by further formalisation
of the economy.
Chapter 17 - Economic and monetary policy
EU rules require the independence of central banks and prohibit them from directly financing
the public sector. EU Member States coordinate their economic policies and are subject to fiscal,
economic and financial surveillance.
Kosovo is moderately prepared in the area of economic and monetary policy. Some
progress was made with some data collection and transmission to Eurostat, however, further
efforts are needed to address the methodological inconsistencies on national accounts. In the
coming year, Kosovo should in particular:
 increase reporting capacities for governmental financial statistics according to the EU
(ESA 2010) and ensure regular monitoring of standards;
 develop new draft law on public finance management and accountability addressing
current regulatory weaknesses for an effective public finance management (PFM) system,
while ensuring coherence with the reform priorities in the new PFM strategy 2022-2026.
 improve the quality of macroeconomic forecast in the budgetary process and advance
work on the establishment of an independent body for fiscal oversight.
Kosovo does not have an independent monetary policy with standard monetary policy tools at
its disposal, as it uses the euro as legal tender, leaving fiscal policy as the main macroeconomic
policy instrument. Kosovo`s use of the euro, which was decided by the authorities under
exceptional circumstances, is fully distinct from membership of the euro area.
The Central Bank of Kosovo is Kosovo’s sole authority to foster and maintain the stability of the
financial system and to contribute to maintaining price stability. The Law on the Central Bank of
Kosovo and the Kosovo Constitution establishes the functional and institutional independence of
the Central Bank. The Law on the Central Bank provides independence and prohibits the
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decision-making bodies of the Central Bank on giving and receiving instructions and seeking
influence by the public authorities. The Assembly of Kosovo appoints members of the Board of the
Bank based on their merits, professionalism, and ability to carry on their tasks in an independent
manner and free from political interference. The Bank still needs to implement reforms with
regard to its corporate governance structure in order to improve its accountability and
transparency in the longer-term.
The Bank’s Supervisory Governing Board was rendered operational once again by the
appointment of two new members, allowing for the reestablishment of a quorum. A fifth non-
executive member was later appointed to enhance the functioning of the board. The principles of
transparency and merit-based selection processes are important for the integrity of the institution
and any political influence on the appointments within the Bank undermines the confidence of
the public in this institution. The Central Bank needs to ensure that its core functions, including
financial stability and banking supervision, are adequately staffed. Amendments to the Law on
the Central Bank are required to ensure alignment with EU legislation. According to the Law on
the Central Bank, monetary financing of the public sector is prohibited and the public sector does
not have privileged access to financial institutions.
On economic policy, further alignment with the EU Directive on requirements for budgetary
frameworks is needed. Fiscal rules are well entrenched in the legislation, however, further effort
is required for compliance with the legislated fiscal rules, particularly in relation to the fiscal
ceiling provisioned for in the Law on war veteran pensions. To address the pandemic-related
budgetary shocks, in 2020 the budget deficit rule was relaxed for a 3-year term and is envisaged
to be reinstated for 2023 budget. Kosovo has made some progress in terms of conducting fiscal
risk assessments for high-risk publicly owned enterprises (POE). However there are still
shortcomings in this area and more efforts are needed to improve the quality and exchange of
financial data of POEs, expand the fiscal risk assessment and to strengthen institutional
capacities to carry out financial oversight. Kosovo has yet to establish an independent fiscal
council, but authorities have produced an options paper on the establishment of such a body.
Since the Law on public finance management and accountability is being amended, before its
adoption, legal provisions around the independent fiscal council should be incorporated into the
amended law to pave the way for the establishment of such a council in the future. Kosovo is at
the early stages of introduction of the programme-based budgeting. Some steps have been taken
with the endorsement of a new overarching strategic management framework, which aims at
better linking the medium-term policy with budget planning processes. However, authorities
need to ensure strong political will and inter-institutional cooperation to transform the budget
into a policy-planning tool and strengthen the medium-term budgetary framework.
Kosovo has made slight improvements with regard to the further alignment with the European
System of Accounts 2010. The Kosovo Statistics Agency compiles annual and quarterly national
accounts and has managed to shorten the period of time it takes to produce these accounts,
however methodological inconsistencies need to be addressed. Fiscal notifications are not
available yet. The alignment of fiscal reporting with the European system of national and
regional accounts (ESA 2010) is at an initial stage and needs further improvement. During the
reporting period, Kosovo took some steps with regard to the transmission to the Eurostat partial
compilation of the excessive deficit procedure tables for the years 2017-2019.
The 2022-2024 Economic Reform Programme (ERP) was submitted on time. The
macroeconomic and fiscal framework is subject to high levels of uncertainties. The ERP projects
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real GDP to grow by 7.8% in 2022, well above the historic trend and not accounting for risks
stemming from high energy and food prices, which had been on the rise already before the
outbreak of Russia’s invasion of Ukraine. The structural reforms represent the government plan
to boost economic recovery in the medium-term. However, implementation of the structural
measures have often been delayed and improvements have not materialized. Similarly, further
efforts are needed to improve macro-fiscal forecasts underpinning the budget and the linkage
between the macro-fiscal framework and the structural reform planning (see section 2.3
Economic Criteria).
Chapter 19 - Social policy and employment
EU social rules include minimum standards for labour law, equality, health and safety at work
and non-discrimination. They also promote social dialogue at European Union level.
Kosovo is at an early stage of preparation in the area of social policy and employment. Some
progress was made during the reporting period, in particular on the preparations for
implementation of the Youth Guarantee and in securing funding for social services. The rate of
fatal occupational incidents remains concerningly high.
Last year’s recommendations were partially implemented and remain valid. In the coming
period, Kosovo should in particular:
 ensure implementation of the Youth Guarantee Implementation Plan to prepare for the
piloting of the scheme; adopt the new Law on Labour in line with relevant EU acquis, in
particular in relation to non-discrimination in employment and parental leave;
 intensify inspections in work sectors with higher risk, and enforce rules on health and safety
at work to ensure a decrease in workplace accidents;
 pursue thorough reforms in the area of the social assistance schemes to ensure better
targeting and impact on poverty and improve delivery of social services in municipalities.
Kosovo is working on a new Law on Labour to ensure further alignment with the EU acquis,
including with the EU Directive on Work Life Balance. The new draft law includes provisions
on the labour inspectorate and the Social and Economic Council; both are currently regulated
through separate laws.
During the reporting period, Kosovo has continued to revise legislation on Health and Safety at
Work, to ensure further alignment with the acquis. Implementation of this law remains a
concern, particularly in the private sector. The Law on Health Insurance providing for the right
and obligation to have mandatory basic package health insurance for all citizens, has not been
implemented. The Labour Inspectorate has intensified inspections, but with limited impact on
prevention of accidents.
On social dialogue, Kosovo is updating legislation on the Socio-Economic Council that now
constitutes an integral part of the new draft Law on Labour. During 2021, the Council held two
meetings to discuss a new Collective Agreement and the increase of the minimum wage.
Regarding the latter, on 14th
June 2022 the Assembly approved in the first reading an increase in
the minimum wage at EUR 264 (from EUR 170). This is the first time that the minimum wage
has increased since 2011.
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The capacity of social partners remains limited. Kosovo needs to engage more in tripartite,
dialogue and authorities should support trade unions to increase their capacities.
On employment policy, Kosovo is drafting a new Sectoral Strategy covering a five-year period.
The last sectoral strategy (2018-2020), albeit with modest targets, had a very low implementation
rate.
Kosovo continues to face structural labour market challenges stemming from the skills
mismatch, the rapid growth of the working-age population and job creation, and the persistently
low participation of women and generally precarious employment opportunities (fewer than half
of employees have permanent work contracts).
The overall activity rate stood at 37.7% in Q2 2021, a slight decrease compared to 38.3% in
2020. Unemployment rates in Q2 2021 were 20.5% (25.9% in 2020). The rates are higher among
women, 22.1% (32.3% in 2020), than among men, 19.9% (23.5% in 2020). Some 44% of
employees had long-term contracts (42.3% 2020), while 56% worked under temporary ones
(57.7% in 2020). The indicators that still give rise to most concerns are the high inactivity rate,
62.3% (61.7% in 2020) and youth unemployment 38.9% (49.1% in 2020). Unemployment is
even higher (over 90%) in the Roma and Ashkali communities. Members of these communities
usually work in the informal sector, holding insecure, low-skilled and low-status jobs and few of
them are registered as unemployed.
Youth unemployment remains high (38.9%), particularly among women. Demographic
pressures, joblessness growth pattern, a propensity towards emigration and poor education are
key factors in the precarious position of young people. A recent mapping shows that since 2018
there have been remarkable shifts in the categories of young people not in employment,
education or training, as regards educational attainment. The rates for those with primary
education had levelled at below 30%, the rates of secondary educated youth increased, at a
moderate pace, to just over 40%, while the rates for university educated young people increased
from around 30% to over 50%.
Kosovo has taken steps to prepare for the implementation the Youth Guarantee Scheme.
Currently authorities are working to ensure conditions for piloting the Youth Guarantee, such as
amending five pieces of legislation, restructuring the key delivery mechanisms (public
employment services), and fast-tracking some long-due reforms in vocational education training.
The restructuring of the Employment Agency is underway and planned to be finalised by the
end of 2023. Yet, there is a long list of necessary actions to be able to deliver as per the youth
guarantee implementation plan; most notably, they need to increase the portfolio of services and
active labour market measures, and to cater for a larger number of jobseekers. The public
employment services need to vastly improve their management and operational procedures, as
well as data management. They should also upgrade the labour market information system to
support evidence-based policy making and planning. Further improvements are needed also in its
operational capacity, particularly on monitoring, evaluation, as well as employment counselling,
prioritising women, youth and long-term unemployed.
There were no developments as regards preparations for the European Social Fund. (See
Chapter 22 - Regional policy and coordination of structural instruments).
On social inclusion and protection, Kosovo’s spending on social protection amounts to 6% of
GDP, but less than 0.5% of GDP is allocated for the social assistance scheme as most of the
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amount is spent on old-age and war veterans’ pensions. Kosovo has yet to materialise its plans
for a thorough reform of its social assistance, pension scheme and the social services. A proposal
by the government to reform the Social Assistance Scheme for more efficient poverty targeting
that can respond to crises and modify the equivalence scale to compensate larger households
failed to be ratified in the Assembly.
Some progress was made in providing funding allocation for social services. The authorities have
introduced amendments to the Law on Local Finances to earmark funding from the general grant
for municipalities, but these have yet to be voted on in the Assembly. Municipalities should
regardless make effort to improve service planning and delivery, data collection and integrated
care. Care for the elderly remains a serious issue. Shelters for domestic violence remain poorly
funded and stretched to their limits. Around 18% of Kosovo's population lives below the poverty
line (EUR 45 per month as defined by the World Bank), with 5.1% percent of the population
below the extreme poverty line. Children from poor households, socially vulnerable communities
and those with special needs lack equal access to vital health and education services due to
financial barriers.
Children represent half of those benefiting from social assistance, but less than 10% of them are
with special needs. Around 9% of children are involved in work, of whom 5.6% working under
hazardous conditions, an issue being particularly evident among the Roma and Ashkali
communities.
On non-discrimination in employment and social policy, Kosovo has to intensify efforts to
address discrimination against women, among else by adopting implementing legislation for the
Law on Protection from Discrimination. The authorities must address discrimination against
women, particularly those belonging to non-majority communities During the reporting period,
the Ombudsperson received 94 individual complaints on discrimination: 70 investigations were
opened and 24 declared inadmissible. The Ombudsperson has opened four cases for investigation
on its own-initiative.
On equality between women and men in employment and social policy, gender-based
discrimination continued to be widespread in recruitment, promotion, pay, contract length. In Q2
2021, the employment rate for the population aged 15-64 was 16% for women and 44% for men,
resulting in a very high gender employment gap of 28 percentage points. Limited access to
childcare and flexible working arrangements, as well as regulations which discourage the
recruitment of women (e.g. length of maternity leave) remain important barriers. The current
draft Law on Labour anticipates to shift the burden of paying maternity leave from businesses to
government, however it has yet to be adopted by the Assembly. Other challenges faced by
women, especially in rural areas, are the lack of care for the elderly, discrimination when it
comes to access to property and gender-based violence.
Chapter 20 - Enterprise and industrial policy
EU enterprise and industrial policy strengthens competitiveness, facilitates structural change and
encourages a business-friendly environment that stimulates small and medium-sized enterprises
(SMEs).
Kosovo remains moderately prepared in this area. Some progress was made. In January 2022,
the Assembly adopted a law establishing a commercial court for resolving trade disputes of
businesses and foreign investors, as well as a law on property rights of foreign citizens. A
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working group on industrial development strategy (industrial policy) and business support was
established in 2021.
In the coming year Kosovo should:
 adopt and start implementing a strategy for industrial development and business and the
sustainable economic growth pillar of the National Development Strategy 2021-2030;
 improve the capacities of the Ministry of Industry, Entrepreneurship and Trade (MIET) and
the Kosovo Investment and Enterprise Support Agency (KIESA).
As regards enterprise and industrial policy, Kosovo’s Ministry of Industry Entrepreneurship
and Trade has established a working group for the development of the Strategy for Industry
Development and Business Support, tasked to improve the business environment and promote
industrial development, as well as resource efficiency and a more circular economy. Incentives
for the use of renewable energy sources in industry are foreseen in view of the expansion of solar
energy in the carbon emissions policy, whose approval is expected in 2022. The government has
launched a dialogue with stakeholders and held consultative meetings with a view to drafting the
National Development Strategy 2021-2030, where one of four pillars relates to the sustainable
economic growth, and envisages the development of a Smart Specialisation Strategy.
The law on strategic investments remains to be adopted and the pending applications to be
recognised as strategic investor to be evaluated, which will occur in accordance with the current
law. Although the current legislation on foreign investment foresees equal treatment of foreign
nationals and companies, in practice, this is not always the case (see chapter 4). The formulation
of a strategy to reform the corporate governance of state-owned enterprise has not yet begun,
even though part of the European Reform Agenda, while state-owned enterprises of strategic
importance shall be transferred to a sovereign fund, whose concept has been set out.
In the area of enterprise and industry policy instruments, despite some positive steps to
increase the administrative capacity of the Kosovo Investment and Enterprise Support Agency,
the Agency faces organisational and capacity challenges. Further steps are needed to enable the
agency to fulfil its objectives, and in particular, to enable the implementation of before- and
after-care services and programmes and promote links between multinational enterprises and
SMEs.
Kosovo should establish a streamlined process to handle investors’ grievances and retain
investments, which would implement the principles of the Systemic Investment Response
Mechanism as proposed by the World Bank. Courts continue to struggle to ensure a timely and
coherent adjudication of cases, with cases stalled for years. This situation has a negative impact
on the productivity of local businesses and desire for foreign investors to do business in Kosovo.
In January 2022, Assembly passed Law establishing the legal framework for a Commercial
Court. Further effort is required to ensure effective operation of the court.
Although the legislation on foreign investment foresees equal treatment of foreign nationals and
companies, in practice, they encounter challenges registering property rights. To address this
issue, the Assembly passed the Law on property rights of foreign citizens (EU and non-EU
citizens) in January 2022.
Some progress has been made regarding the elimination of unnecessarily permits and
reorganisation of licenses on the e-government platform but progress on implementation is
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needed. Coordination between central institutions responsible for licenses and permits remains
limited. Effectively lowering administrative burden contributes to reducing informal business
activities. The action plan 2022-2023 is in force, yet the design of the new strategy has not yet
begun.
The lack of easily accessible and affordable credit serves as a substantial barrier to the growth of
SMEs in Kosovo. In addition, the SME and corporate sector in Kosovo suffers from a low
capacity to prepare bankable projects due to informality in accounting practices, weak corporate
governance and management quality in addition to integrity issues. During 2021, the Kosovo
Credit Guarantee Fund (KCGF) was expanded and enabled loans worth EUR 105.5 million to
1720 Micro- Small and Medium-sized Enterprises (MSMEs) in the sectors of production,
services, agriculture and trade, including start-up firms and female owned businesses.
Kosovo has applied to participate in the Single Market Programme (SMP), formal negotiations
for an Association Agreement started in March 2022 and are at an advanced stage.
On sectoral policies, the approach in policy-making is not sector-specific, resulting in the lack of
specific sector policies and programmes.
Chapter 25 - Science and research
The EU provides significant support for research and innovation. All Member States can benefit
from the EU’s research programmes, especially where there is scientific excellence and solid
investment in research.
Kosovo is at an early stage of preparation in the area of science and research. Limited
progress was made during the reporting period. Kosovo further improved its performance in
European Union Framework Programmes on Research and Innovation.
Since the recommendations of the previous report were not fully addressed, Kosovo should in
particular:
 develop a strategic approach to the development, prioritisation and promotion of scientific
research and innovation and ensure higher government spending on research; seek to
stimulate investment from the private sector by completing a Smart Specialisation Strategy;
 continue efforts to increase participation in the Horizon Europe programme;
 provide statistical data on numbers of researchers, percentage of GDP spent on research and
innovation, and performance related to the European Research Area priorities.
Kosovo’s research and innovation policy remains nascent. It lacks a strategic approach to
develop, prioritise and promote research activities. The Ministry for Education, Science,
Technology and Innovation (MESTI) made efforts to develop implementing instructions in line
with the mentioned laws, but they are not yet implemented. The legal system envisages the
connections and cooperation between the academia and private sector/businesses. However, in
reality, both sectors remain distant. Kosovo established the National Science Council: its role is
to contribute towards the advancement of the quality of research capacities and the
internationalisation of the research and innovation system.
Work is ongoing to establish a Kosovo register of researchers and to collect statistics on research
and development, including in higher education institutions. A Smart Specialisation Strategy is
under development since 2019. A Current Research Information System (CRIS) is under
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development since 2020. It aims to ensure systematic data collection with regard to research,
science and innovation, that would be used to support the research information system as
evidence-base for strategic decision. The final preparations are ongoing to first pilot the system
in September 2022.
The sector continues to be severely underfunded, with public research spending amounting to
only 0.01% of GDP, despite a 0.7% target mandated by law. An increased budget in this area is
key for the economic recovery, also given the relevance of innovation for the implementation of
the Economic and Investment Plan for the Western Balkans. The quality of programmes
preparing postgraduates for research careers remains unsatisfactory (see 6.13 Education and
culture).
There was limited progress on integration into the European Research Area with the
completion of a Research Infrastructure roadmap under the guidance of the RCC.
In December 2021, Kosovo has joined the Horizon Europe as an associate member (the
agreement entered into force in March 2022). There is a new National Contact Point (NCP)
platform in place operating under new NCP regulation. MESTI has developed new incentives to
boost the absorbtion capacities of the research entities in Kosovo, including by reimbursing the
costs of each Horizon Europe application with a lump sum. A new Horizon Europe dedicated
web portal provides a single entry point for all participants, including SMEs, and every
information related to the Horizon Europe opportunities. In 2021 Kosovo’s performance in
Horizon Europe remined limited with only two proposals receiving a total EU funding of EUR
0.2 million. First figures for 2022 indicate already a much better performance.
Chapter 26 - Education and culture
The EU supports cooperation in education and culture through funding programmes and the
coordination of Member State policy through the open method of coordination. The EU and the
Member States must also prevent discrimination and ensure quality education for children of
migrant workers, including those from disadvantaged backgrounds.
Kosovo is at an early stage of preparation in the field of education and culture. While there has
been some progress, the quality of education needs to be improved and key legislation
(including on pre-school education, higher education and accreditation agency) should be
adopted by the Assembly. The COVID-19 pandemic further constrained the quality of teaching
at all levels of education.
As last year’s recommendations were partially implemented, in the coming year Kosovo should
in particular:
 systematically apply quality assurance mechanisms at all education levels, particularly in the
pre-university and professional education; in the area of higher education, continue post-
accreditation monitoring of programmes;
 finalise the implementation of the new curricular framework for basic education with quality
textbooks and by providing sustainable training to teachers;
 increase the provision of quality vocational education and training for professions in demand
in view of the Youth Guarantee.
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Kosovo’s public spending on education in 2021 remained unchanged, at 4.6% of GDP (14% of
the total budget). Similarly, there were no changes with regard to the structure of expenditure,
with over 80% of the budget spent in teacher salaries, leaving very little funds for students per
capita and for investment in quality education. Kosovo should consider a detailed assessment of
the existing per capita allocation formulas, focusing on adequacy and equity, especially given the
demographic changes and new policies. During 2021, classes were mainly organised with
physical presence in schools. Schools in urban areas, which are overcrowded, had to organise
lessons in more shifts in order to comply with recommendations for COVID prevention. The
Ministry of Education, Science, Technology and Innovation (MESTI) also obliged schools to
organise additional classes and lessons to compensate for the lost learning hours. All these put an
additional pressure on the education sector. Authorities should continue efforts to increase
financial support to scale up community-based social and health services for children with
disabilities and to integrate them effectively into educational institutions.
In recent years Kosovo has made considerable progress in increasing access to pre-primary
and primary education, but more needs to be done to equitably increase coverage of pre-school
and secondary education. Enrolment of children in compulsory education - primary, lower and
upper secondary education - is universal (100% attending grades 1-5, 90.5% 5-9 and 86.6% 9-
12). Participation of children in pre-school education and care (age 0<5) remains low, well below
the OECD average (over 87%) or the 2020 education and training targets (95%). A persistent
problem remains the small number and uneven distribution of pre-school institutions in Kosovo
(44 public kindergartens in 23 out of 38 municipalities), lack of appropriate infrastructure and
lack of didactic materials. The new Law on Pre-school Education is yet to be approved, and the
curriculum for levels of education 0-2 has been developed. The number of students in higher
education is decreasing (from over 133 000 students in 2017 to over 95 300 in 2021); yet more
concerning are the low graduation rates.
Kosovo has prepared a new Education Strategy 2022 - 2027, which for the first time includes
plans for digitalisation of schools. The strategy is pending formal adoption by the government.
The quality of education remains poor, as evidenced by the last two OECD Programme for
International Student Assessment (PISA) evaluations, with Kosovo ranking third from bottom.
Kosovo participated in the 2019 Trends in International Mathematics and Science Study
(TIMSS), and in participating in the in the 2021 Progress in International Reading Literacy Study
(PIRLS) and PISA 2022. In TIMSS 2019, Kosovo was among the ten poorest performers.
Reforms are still lagging behind due to the lack of suitable textbooks, teaching materials and
sustainable professional development schemes for teachers. Another major issue is the mismatch
between education outcome and skill requirements. The ministry needs to not only consider
legislative changes, but also to increase capacities of education inspectorate.
Higher education institutions should invest more in research and appraise the scientific
achievements, publications and performance of teachers. Academic integrity remains an issue,
despite improvements as a result of public scrutiny. The Ministry has adopted a decision on the
compatibility of scientific works and publications of the academic staff with ethics in research,
obliging programme holders to upload their research in indexed platforms ahead of accreditation
of their programmes. The contracts of the academic staff are based on teaching hours, not taking
into account the additional work on research, science and innovation. Provisions of the Law on
Performance-based Funding for Public Higher Education Institutions are not implemented. The
ministry needs to have a clear policy guidance on how to increase accountability of the public
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universities based on the above-mentioned provision. Apart from the University of Pristina, all
public universities depend financially on the state budget. Progress was made in meeting
minimum transparency criteria (according to international norms) of higher education
institutions. During the reporting period, the Assembly adopted the pending statutes of remaining
public universities, and the affected institutions harmonised their existing regulations with the
new provisions of the new statutes, and in some cases, developed new regulations. All of the
public universities have now in place strategic documents that will boost their future
development.
Kosovo should adopt the new Law on Higher Education that would strengthen the autonomy and
academic integrity of higher education institutions and improve quality assurance.
The Kosovo Accreditation Agency (KAA) continued efforts to regain membership of the
European Association for Quality Assurance in Higher Education and the European Quality
Assurance Register for Higher Education. Kosovo should adopt the Law on Accreditation
Agency, to increase its operational independence and transparency of appointments of the KAA
management. The new draft law addresses the issue of declaration of wealth by international
members of the board, which has pushed international members to withdraw from their posts.
Over half of upper secondary schools students enroll in vocational education and training
(VET), however, they are often a second choice for those unable to enrol in gymnasiums, since
VET schools do not have entry criteria. The statistics for the 2021/2022 academic year show that
out of 70 850 students enrolled in upper secondary education, 37 585 students are enrolled in
vocational education schools, compared to 33 265 students enrolled in gymnasiums. VET
profiles offered by vocational schools are not based on occupational standards, thus not aligned
to labour market demands. Progression from VET to university education remains very high.
Funding for vocational education has not increased over the last few years, and is insufficient to
provide the necessary materials for students. The legal framework is fragmented and needs to be
revised and consolidated to regulate all VET aspects as well as to capture latest developments
(e.g., the recent regulations governing practice in enterprises, the new VET profiles piloted and
the establishment of career guidance centres). The development of the core curriculum for VET
has been initiated and its implementation is under way.
Work-based learning, integrated in the current VET curriculum, is not systematically delivered.
To a large extent, teaching in the workplace is organized in the form of a block system only for
students in the 12th grade, while for lower grades, there is only practical teaching in school. In
recent years, there has been progress in the establishment of partnerships between VET schools
and employers, but work-based learning remains too limited to substantially improve students’
prospects in the labour market. Acceleration of thorough reform in VET is crucial also to
implementation of important aspects of the Youth Guarantee. For the first time, the Ministry has
introduced dual education for a limited number of profiles, with the aim to expand it further in
academic year 2022/23.
Kosovo needs to continue efforts to provide children with disabilities access to quality
education. A positive development is the decision to increase the number of assistants for
children with special needs for 100 per year, at least until 2024 (the recruitment for 100
assistants in 2021 is finalised and budget for recruitment of 100 assistants is allocated for 2022).
With the help of an EU funded project, the Ministry for Education organised trainings on
inclusion and treatment of children with special needs for teachers and principals of six regional
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resource centres. Kosovo has engaged 11 civil society organisations to help with children with
special needs (age 0-6) by providing training for educators and preschool institutions’ staff.
The dropout rate remains higher among Roma and Ashkali children though statistics are
unreliable. During reporting period, trainings were organised for dropout prevention teams and
municipal departments to increase their capacities for implementing child protection policies,
also to prevent dropouts.
Kosovo benefits from the international dimension of Erasmus+. During 2021, one project was
selected for Erasmus Mundus Design Measures, and ninetudents received scolarships.
On culture, Kosovo should maintain efforts to meet the standards of the 2005 UNESCO
Convention on the Protection and Promotion of the Diversity of Cultural Expressions. There has
been no progress on drafting the Law on cultural heritage, reflecting its commitments under
Annex V of the Ahtisaari Plan. The Implementation and Monitoring Council needs to resume
meetings and identify joint solutions to be reached between Kosovo and the Serbian Orthodox
Church.
Kosovo currently participates in the Creative Europe programme, as a partner. In December
2021, Kosovo signed the Agreement to participate in the Creative Europe programme 2021-2027
as an associated country in all actions of the Culture Strand and in the action to support the
establishment of Programme desks contained in cross-sectoral Strand. Kosovo is to apply for the
MEDIA sub-programme and initiate efforts to apply for full membership, once legislation is
aligned with the EU audio-visual media service directive.
Chapter 29 - Customs Union
All Member States are part of the EU customs union and follow the same customs rules and
procedures. This requires legislative alignment, adequate implementation and enforcement
capacity and access to common computerised customs systems.
Kosovo is moderately prepared in the area of customs. It made some progress during the
reporting period by continuing to improve systematic exchange of excise data with other
customs jurisdictions and by enforcing customs measures, such as for the protection of
intellectual property rights (IPRs). Working jointly with other law enforcement agencies,
Kosovo Customs has intensified the fight against narcotics and other smuggling activities. As
the recommendations in the previous report have been addressed to a limited extent, in the
coming year Kosovo should in particular:
 pursue further alignment with the Union customs code and the excise acquis, including
the Customs and Excise Code;
 increase the number of field inspections and coordinated actions between Kosovo
Customs and other law enforcement agencies in the fight against customs fraud and tax
evasion;
 reduce fees charged to exporters/importers at inland customs terminals
In the area of customs legislation, progress is yet to be achieved in alignment of the Customs
and Excise Code with that of the Union customs code, as recommended in the previous report. A
draft of the updated Customs and Excise Code is still pending approval. Due to recognition
issues, there was no progress on Kosovo’s application to become an observer under the Common
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Transit Convention. Regarding the rules of origin, Kosovo continues to apply the Pan-Euro
Mediterranean (PEM) Convention. Kosovo Customs continues to systematically exchange data
on the cross-border movement of goods among Western Balkan economies. Kosovo has signed
an agreement with the Union to participate in the CUSTOMS programme which supports
cooperation between customs authorities across Europe, particularly in the area of IT. Kosovo
signed an agreement with North Macedonia on the joint use of railway crossing points.
The legislation on customs measures governing intellectual property rights (IPRs) and export
controls for cultural goods is aligned with the EU acquis.
Kosovo Customs continued to progress on trade facilitation by approving a fifth authorised
economic operator and continued to improve its systems, procedures and administrative
capacities in this area. A publicly owned inland customs terminal was established and is fully
operational. The publicly owned terminal charges significantly lower fees to discharge customs
obligations than the existing private terminals. However, these fees are not in line with the SAA
provisions and EU acquis and should be abolished entirely.
Kosovo Customs should strengthen its administrative and professional capacity, and ensure that
merit-based and transparent transfers and selection processes apply. The new Customs and
Excise Code aims to increase the efficiency of the administration based on best practice. Kosovo
Customs should continue to implement its medium-term strategic plan (2019-2023) aimed at
strengthening its capacity, modernising revenue collection and facilitating trade and the fight
against tax evasion, organised crime and other illicit activities.
While Kosovo Customs work on the fight against illegal cross-border activities, including the
smuggling of goods such as narcotics and hazardous materials, including that of IPR
infringements, additional measures are needed to improve its effectiveness and efficiency.
Among these, the need to step up the implementation of its anti-corruption plan, conduct more
investigations and asset declarations checks filled by customs officials. During the reporting
period, Kosovo customs jointly with other law enforcement agencies has made progress in
combating different types of smuggling activities, including prevention, repression, and pursue
narcotics smuggling has sized 213.3 kilograms of various narcotics (151 kilograms of heroin,
52.8 kilograms of marihuana and 9.5 kilograms of cocaine. The anti-fraud activities have
resulted in 10 customs officers being dismissed from service and 12 customs officers suspended.
The legal framework should be developed in order to enable thorough investigation of asset
declarations checks filled by customs officials. There is a significant increase of activities
directed towards fighting of informal economy and tax evasion. Kosovo Customs, other law
enforcement authorities and line institutions cooperate well to fight against the informal
economy and customs fraud.
There has been no development related to Common Crossing Points (CCPs). Two of the six
permanent CCPs have been established (Merdare and Mutivodë/Mutivode). Facilities of two EU-
funded crossing points Merdare and Mutivodë/Mutivode in use as of March 2022.
CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY
Kosovo has some level of preparation on areas related to the Green Agenda and sustainable
connectivity. Kosovo continues to actively participate in the Transport Community and Energy
Community meetings. During the reporting period, limited progress was made in the energy
sector. Kosovo drafted an ambitious energy strategy, which includes an increased share in
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renewable energy sources; however, due to the energy crisis, its approval has been delayed.
Following the agreement reached on 21 June 2022 between Kosovo and Serbia as part of the EU-
facilitated Dialogue, the Energy Regulatory Office (ERO) Board approved on 24 June 2022 the
request for issuance of the electricity supply license to Elektrosever, a Serbian-owned company
established under Kosovo law, to supply electricity to consumers in four Serb-majority
municipalities in the north. Finalisation of the necessary technical agreements between
Elektrosever, Kosovo’s Transmission System Operator KOSTT and Distribution System
Operator KEDS are underway to make the company fully operational. Kosovo remains heavily
reliant on coal. Some progress was made in the transport sector, whereas limited progress was
made in the areas of environment and climate change. Kosovo needs to significantly increase its
ambition and administrative capacities to properly implement EU standards on transport, energy
and environment. Strategies, action plans and legislation in these sectors need to be more
consistent and in line with the principles and objectives of the Green Agenda for the Western
Balkans and the Economic and Investment Plan.
Chapter 14 - Transport policy
The EU has common rules for technical and safety standards, security, social standards, State
aid and market liberalisation in road transport, railways, inland waterways, combined transport,
aviation and maritime transport.
Kosovo remains at an early stage in the area of transport policy. It has made some progress,
notably on rail transport, where Kosovo has established the national investigation body.
As most of the recommendations from the previous report are still pending, in the coming year
Kosovo should :
 invest in road maintenance and inspections, organise prevention campaigns and establish a
systematic monitoring mechanism for the collection of crash data;
 transpose the EU rail market acquis and adopt the new rail safety and interoperability law;
 adopt the strategy on multimodal transport, which should include inter alia the civil aviation
strategy; continue efforts to align Kosovo’s aviation regulation with the European Common
Aviation Area Agreement;
 adopt the intelligent transport system (ITS) strategy and its action plan, ensure sufficient
capacity and resources for its implementation and continue efforts to harmonise with the EU
passenger rights acquis across all modes of transport.
Generally, on transport matters, Kosovo proactively participates in the Transport Community.
However, key strategic documents for the sector are still missing and further efforts are needed
in aligning and implementing existing legislation. Direct concrete measures need to be taken to
implement actions as defined in the Transport Community action plans on transport facilitation;
rail, road, road safety, and waterborne transport and multimodality. The 2021-2025 sectorial
strategy and multimodal transport needs to be revised, as to reflect requirements deriving from
European strategic documents related to environment, climate resilience, civil aviation and the
intelligent transport system (ITS). The operational and administrative capacities of the
independent investigative bodies for air and railway accidents remain insufficient and need to be
strengthened. Kosovo should also begin to enhance transport climate resilience and the use of
alternative fuels, in line with the Green Agenda for the Western Balkans and the Smart and
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Sustainable Mobility Strategy for the Western Balkans.
On road transport, Kosovo remains to make further efforts to prepare the strategic framework
and begin transposing the EU road transport acquis. Further work is needed to develop and set
up road asset management systems. Work should start to establish a Road Safety Agency and to
develop a comprehensive Road Safety Strategy for 2022-2030, including the setting of targets
and collection of more reliable crash data. Kosovo still needs to align its legislation on road
transport, including for example legislation related to the inspections of motor vehicles.
The total number of fatal accidents was 94 in 2021. Kosovo has made positive progress but must
continue harmonising its legislation with the EU acquis., as well as carry out activities in the
fields of education, awareness campaigns, enforcements to achieve better results in line with the
United Nations and European Union goal to halve the number of road deaths and injuries by
2030. In addition, Kosovo should implement CONNECTA report recommendations to improve
the quality of the road network and actions, as set out in the road safety Transport Community
Treaty regional action plan.
Kosovo has made some progress on rail transport, by establishing the national investigation
body. The railway regulatory authority published several by-laws on safety issues, but more
efforts are needed to finalise and adopt the new rail safety and interoperability law. The
extension and rehabilitation of the rail network and the adoption of a multiannual maintenance
plan are a solid basis for ensuring better, more reliable and more sustainable services for
passengers and freight transported. Some progress was achieved on regional cooperation, with
the signature of a memorandum of understanding by all infrastructure managers of the Western
Balkan region and of a Dedication to Rails declaration at ministerial level. Moreover, the
implementation agreements for joint controls on the rail border crossing between Kosovo and
North Macedonia were completed.
Kosovo should ensure the signature and implementation of the 2020-2024 financial agreement
with INFRAKOS, the railway infrastructure manager.
On air transport, Kosovo is part of the European Common Aviation Area (ECAA) and covered
by the single European sky arrangements. The sector continues to face a number of challenges
arising from Kosovo’s non-membership in several international civil aviation organisations. The
institutional shortcoming of the air navigation service agency and the civil aviation authority, as
well as the lack of revenue from upper airspace management are also issues. The upcoming civil
aviation authority reorganisation and administrative reforms should reflect the public
administration reform principles as well as the specific circumstances and requirements of the
aviation sector. Kosovo continued to align with the EU acquis of the ECAA agreement. It is
encouraged to continue work to harmonise with the remaining ECAA first phase items. The
extension of the runway at Pristina airport and the installation of new landing systems,
navigation, metrology, and radio communications is expected to raise the level of safety of air
operations.
Chapter 15 - Energy
EU energy policy covers energy supply, infrastructure, the internal energy market, consumers,
renewable energy, energy efficiency, nuclear energy and safety, and radiation protection.
Kosovo has some level of preparation in the field of energy. Kosovo has made limited
progress, notably by increasing its share of renewable energy and its investments in the energy
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efficiency of public buildings.
Kosovo remains heavily reliant on coal, which in addition to being a dominant source of
greenhouse gases, causes serious health and environmental hazards. The Kosovo government
drafted an ambitious energy strategy, which includes an increased share in renewable energy
sources; however, due to the energy crisis, its approval has been delayed. The strategy will have
to be aligned with the National Energy and Climate Plan.
Since recommendations from the previous report were only partially addressed, in the coming
year, Kosovo should in particular:
 continue the environmental upgrade of the Kosovo B thermal power plant and the works for
decommissioning of the non-working parts of Kosovo A thermal power plant;
 continue the rollout of the energy efficiency fund and extend it to residential buildings and
small and medium enterprises;
 adopt the law on renewable energy sources and introduce a competitive bidding process for
renewable energy projects in compliance with the state aid legislation, and sign direct
agreement with the service provider to use national electronic register for issuance,
cancellation and trade of guarantees of origin;
 prepare the programme for protection of vulnerable consumers and prepare a plan and
mitigation measures to support these consumers.
Some progress was made on security of supply. To establish a sustainable market in Kosovo
and Albania, Kosovo signed two agreements with Albania: the Electricity Markets Cooperation
Framework Agreement and a Memorandum of Understanding aiming to recognise each other’s
electricity and supply licenses. In the future, the current Bulk Supply Agreement between
Kosovo Electricity Supply Company (KESCO) and the Kosovo Electricity Corporation (KEK)
would need restructuring, as the current agreement prevents Kosovo from material contribution
to ALPEX, and affects its liquidity. Following the separation of the Kosovo transmission system
operator KOSTT from the Serbia control block, the Serbian electricity transmission system
operator EMS has so far not determined net transmission capacities and capacity allocation with
the Kosovo control block. Following the agreement reached on 21 June 2022 between Kosovo
and Serbia as part of the EU-facilitated Dialogue, the Energy Regulatory Office (ERO) Board
approved on 24 June 2022 the request for issuance of the electricity supply license to
Elektrosever, a Serbian-owned company established in Kosovo and under Kosovo law, which
will start supplying electricity to consumers in four Serb-majority municipalities in the north.
The Distribution System Operator (KEDS) has significant financial problems due to high
electricity market prices, while the regulated tariff does not reflect its costs. On petroleum trade
and compulsory oil stocks, as well as biofuels and bioliquids, Kosovo made some steps in
implementing the EU acquis.
The Kosovo government drafted an ambitious energy strategy, which includes an increased share
in renewable energy sources; however, due to the energy crisis, its approval has been delayed.
The strategy will have to be aligned with the National Energy and Climate Plan. Kosovo’s
electricity system remains highly dependent on two aging and highly polluting lignite fired
thermal power plants, which, in addition to being a dominant greenhouse gases emission source,
cause serious health and environmental hazards. Kosovo should work on decommissioning the
non-working parts of the Kosovo A thermal power plant. Works to enhance the environmental
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performance of the Kosovo B thermal power plant and reduce dust and nitrogen oxide emission,
expected to bring levels of gaseous emissions for dust and NOx into line with the EU acquis, are
postponed to 2024-2025. Kosovo is in breach of the Energy Community requirements for
reducing greenhouse gas emissions; the legal framework needs to be aligned with the EU
Directives on large combustion plants and industrial emissions.
Kosovo’s new energy strategy does not determine the development of gas infrastructure. The
feasibility study for the Kosovo-North Macedonia pipeline and the gas master plan are
completed. However, there is no decision yet to embark on any gas infrastructure-related
investments due to developments given gas supply options. In June, the Assembly adopted the
Millennium Challenge Compact and the Program Implementation Agreement between Kosovo
and Millennium Challenge Corporation for developing battery storage to provide electricity
balancing reserve.
Concerning the internal energy market, there is no progress with the further opening of the
retail market. To ensure compliance with the Third Energy Package and other requirements of
the Energy Community, the Energy Regulatory Office of Kosovo still needs to implement the
liberalisation of the retail electricity market in Kosovo. The Energy Regulatory Office adopted a
new block tariff structure to reduce energy demand and reflect the additional costs in the power
system. The plan for the protection of consumers in vulnerable situations is not yet in place.
In the area of hydrocarbons, the law on trade in petroleum products and renewable fuels has been
adopted by the Assembly in February 2022.
On renewable sources, by the end of 2021, Kosovo registered a total of 249.2 MW of
renewable electricity generation, 101 MW of small hydropower, 137 MW of wind, 10 MW of
solar, and 1.2 MW of biomass. The increase is due to an additional 21 MW of hydropower. To
achieve the ambitious targets of the Green Agenda for the Western Balkans, new investments in
renewable energy sources need to be mobilised. The assessment of alternative sustainable energy
sources carried in 2021, confirmed the potential for development of renewables in Kosovo; a
second assessment carried out in 2022 will define available land for the initial phases of
development. The adoption of a National Energy and Climate Plan will present the 2030
renewable energy targets and establish policies and measures to reach them in the most cost-
effective way.
The biomass supply chain for the cogeneration plant in Gjakova/Đakovica should become
operational for the next heating season. Due to concerns over their environmental impact, the
development of small hydropower plants faced strong public resistance. In line with EU acquis
on concessions and the environment, the development of new hydropower plants, should always
be accompanied by proper environmental and social impact assessments. The law on renewable
energy and the procedures for competitive bidding for renewable energy projects needs to be
completed shortly. Kosovo should also sign direct agreement with the service provider to use
national electronic register for issuance, cancellation and trade of guarantees of origin as
provided in the regional project for guarantees of origin implemented in the Energy Community
and in line with the EU standards.
The implementation of the energy efficiency fund has shown some progress with investments in
public buildings. However, progress remains to be made concerning residential buildings and the
private sector, increasing efforts to monitor and verify energy savings. The new energy strategy
includes specific indicators and targets to increase energy efficiency in this area. In addition, the
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online platform for energy efficiency monitoring and verification needs to be operational.
Kosovo should provide additional financial resources for the replenishment of the fund and
should enforce implementing legislation related to the energy performance of buildings. It is
crucial to design a revolving mechanism for the residential and private sectors to ensure the long-
term sustainability of the fund. Kosovo continued the training of experts for energy audits and
certification of buildings. Administrative Instructions on the General Reporting Framework for
Energy Efficiency and ESCOs were adopted in December 2021. Implementation of the Energy
Efficiency Law requires adoption of remaining by-laws.
The capacities of the Nuclear Safety and Radiation Protection Agency remain weak, and
Kosovo has still not found a solution for the temporary storage of radioactive waste.
Chapter 21 - Trans-European Networks
The EU promotes trans-European networks in the areas of transport, telecommunication and
energy to strengthen the internal market and contribute to growth and employment.
In the area of trans-European networks (TENs), Kosovo has some level of preparation. Some
progress was made, notably with the implementation of five action plans of the Transport
Community Treaty, i.e. transport facilitation, rail, road, road safety, waterborne and
multimodality, and the operationalisation of the electrical interconnection with Albania. Kosovo
should continue to align its legal framework with the TEN-T and TEN-E acquis. As
recommendations from the previous report were only partially addressed, in the coming year,
Kosovo should:
 implement the pending connectivity projects and strengthen institutional and administrative
capacities for the implementation of strategic infrastructure projects;
 improve the capacity of the regulatory authority of electronic and postal communications to
enforce telecommunications market regulations.
On transport networks, Kosovo continued to be actively involved in the meetings of the
various bodies established under the Transport Community Treaty. Progress in the development
of the trans-European Transport Network (TEN-T) was limited, due to the COVID-19 pandemic
and the lack of inter-institutional capacities to implement infrastructure projects. All transport
infrastructure investments need to be based on realistic cost/benefit analyses and should comply
with EU standards on public procurement, state aid and environmental impact assessments. A
revision of the indicative TEN-T core and comprehensive network is under discussion.
In 2021, the segment of the “Peace Highway” (part of route 7) received additional EU financing
and Kosovo authorities should secure the remaining financing from IFIs and start construction
promptly. The railway works on the Orient/East-Med Corridor (rail route 10) connecting Fushë
Kosovë/Kosovo Polje and Mitrovicë/Mitrovica to North Macedonia continued at a slow pace.
The preparatory works for signalling and telecom should follow in order to meet the
requirements of the TEN-T.
Kosovo achieved some progress on rail market opening, with the TCT Secretariat assessing a
67% implementation rate, which is an increase of 7 percentage points compared to last year’s
reporting period. Obstacles remain, such as the mutual recognition of train driver licenses,
institutional framework and recognition of safety certificates and authorisations. Further efforts
are needed to revise the railway law and finalise the new rail safety and interoperability law by
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incorporating the market and technical pillars deriving from the fourth railway package (2016).
On energy networks, an assessment of the gas interconnection between Kosovo and Albania has
been completed and the feasibility study for the Kosovo-North Macedonia pipeline is ongoing.
Both projects can contribute to the diversification of energy sources from coal and to the stability
of the energy grid. The gas master plan is also under development. However, the use of gas in
the new energy strategy remains unclear.
On telecommunications networks, the institutional capacity of the electronic and postal
communications regulatory authority remains to be reinforced.
Chapter 27 - Environment and climate change
The EU promotes strong climate action, sustainable development and protection of the
environment. EU law contains provisions addressing climate change, water and air quality,
waste management, nature protection, industrial pollution, chemicals, noise and civil protection.
Kosovo is at an early stage of preparation on environment and climate change. Kosovo made
limited progress, notably on environmental reporting and air quality monitoring. Kosovo needs
to increase its political commitment to address environmental degradation and climate change
challenges and substantially improve the implementation of its legislation, to align it with the
Green Agenda for the Western Balkans’ goals. Most of the recommendations from the previous
report are still pending. In the coming year, Kosovo should in particular:
 increase the waste collection coverage, apply widely reduction, separation recycling and
reuse of waste, address effectively the issue of illegal dumpsites, and introduce circular
economy measures to reduce waste, develop and approve inter-municipal integrated waste
management plans, and establish the extended producers responsibility system;
 harmonise with and start implementing legal provisions on environmental liability, damage
and crime; implement the polluter pays principle and raise public awareness on
environmental protection;
 implement the climate change strategy and the action plan on climate change, prepare a
roadmap for alignment with the Green Agenda for the Western Balkans and climate acquis
and adopt a National Energy and Climate Plan, in line with the Energy Community
requirements and finalise the drafting the long-term decarbonisation strategy.
Environment
As regards horizontal issues, Kosovo needs to adopt revised strategies, action plans and
legislation to ensure their coherence with the Green Agenda objectives and ensure their
implementation. The adoption of the Strategy for Environmental Protection and Sustainable
Development 2022-2030 is delayed. The implementation of the current strategic framework is
challenged by the lack of funding and administrative capacity, and heavy reliance on
international donors. Kosovo still needs to align its environmental protection with the
environmental liability directive. Even though the environmental inspections legislation has been
redrafted, it is not yet adopted and the enforcement capacity is still missing. Kosovo also needs
to amend and implement the laws on environmental and strategic impact assessment. Inter-
institutional coordination and civil society involvement needs to be enhanced. Kosovo needs to
take over raising awareness responsibilities from the international community and civil society
organisations.
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Air quality is still a major health threat. Although detailed identification of air pollution sources
is completed, Kosovo failed to implement remedy measures to curb pollution. Because of the
preparation of new strategic documents the adoption of preventive legislations was delayed, such
as on the National Emissions Reduction Plan. Moreover, Kosovo has not initiated the preparation
of the new National Emissions Ceiling Directive. In June 2022, Kosovo adopted the Law on the
Protection of Air from Pollution. Kosovo needs to effectively enforce measures for banning coal
for heating and start introducing subsidies and investments for other forms of heating. The air
quality plans for zones in which pollutant levels clearly exceed limit values still needs to be
adopted. The real time monitoring, identification of air pollution sources and reporting of air
quality has slightly improved.
The unsustainability of the waste management system remains. While the legal framework is
partially aligned with the EU acquis, it still needs to include the extended producer responsibility
and the polluter pays principle. The Assembly adopted the Law on Waste with a delay, in August
2022, aligning Kosovo legislation with the waste framework directive. The implementation of
the hazardous waste management legislation is lagging behind. Most of waste still ends up in
landfills that are not properly managed or are categorised as illegal dumpsites. The only
noticeable progress is on organic waste: some municipalities have implemented pilot measures
for separate collection of waste fractions as well as for the reduction of organic waste. So far, 15
out of 38 municipalities have initiated home-composting systems. The establishment of the
Municipal Performance Grant encouraged removal of illegal landfills. The number of illegal
dumpsites has decreased (from 2 529 in 2019, 1 489 in 2020 and 1 189 in 2021). Kosovo needs
to increase in capacity at all levels and set-up realistic targets and timeframes to ensure the
effective implementation of its integrated waste management and circular economy.
Development, approval and adoption by municipalities of the inter-municipal waste management
plans would allow to plan measures for the establishment of a modern waste management
system. The coal ash deposit lake operated by the Kosovo Electricity Company and the Mirash
landfill in Obiliq/Obilić remained open despite its negative impact on the environment. The
government selected locations for the new landfill for Pristina’s waste management and for the
hazardous waste storage, but the development of environmental impact assessment is still to be
conducted.
Kosovo made some progress to align the water legislation with the EU acquis. The level of
alignment and the monitoring mechanism of the 2017- 2036 water Strategy with the EU acquis
remain insufficient, as well as the implementation of the water law. Monitoring of surface water
quality is satisfactory, while the ground water resource-monitoring network is incomplete. The
monitoring and effective management of Water protection zones still needs to be enhanced. An
effective water monitoring system, with data available to the public, needs to be urgently set-up.
The river basin district authority needs to become operational as a matter of urgency. The
management plan for the White Drin basin has not been completed and progress is slow for the
other river basin management plans. The planning and construction of wastewater treatment
plants in bigger cities showed considerable progress. Improvement is still needed on tariff
collection and reduction of water losses. Any small hydroelectric power plants needs to be built
in full respect of the environmental legislation and to undergo appropriate environmental
assessments, due to potential harmful cumulative impact. Flood risk and hazard maps need to be
completed. Untreated sewage and discharge remain the main sources of water pollution,
particularly rivers. In line with the Urban Waste Water Treatment Directive, agglomerations and
sensitive areas remain to be identified.
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No progress was made in the area of nature protection. The Strategy for Environment and
Sustainable Development 2022-2031 is yet to be adopted. Detailed regulatory plans for the two
national parks have been re-drafted into partial plans covering smaller areas. The 2016-2020
action plan for biodiversity is still partially implemented, the designated areas continue to be
polluted and poorly maintained and illegal activities such as construction, hunting and logging
are not addressed. Effective measures remain necessary to ensure protection of critically
endangered species. Even if Kosovo has taken steps to start inventories of natural habitats and
species, the designation of potential NATURA 2000 sites is still at a very early stage. Kosovo
made some progress on forestry mainly on planning and management, through the adoption of
relevant secondary legislation. The forest Strategy and the forestry Law are yet to be adopted. An
action plan on fighting illegal logging was adopted in December 2021, but deforestation and
illegal logging remain matters of serious concern.
No developments were noted on alignment with the EU acquis on industrial pollution and risk
management, which remain at early stage. The government prepared a new a draft law on
integrated prevention and control of pollution and submitted it to the Assembly beginning of
May 2022. Progress in drafting the legislation on pollution prevention and control and polluter
accountability is very slow. Hazardous mine waste, industrial discharge into rivers and industrial
dumpsites continue to pose serious threats to soil, water and health.
No progress was registered on chemicals, where alignment with the EU acquis and
implementation of existing legislation remains at low level. Kosovo is not party to the Rotterdam
Convention and still needs to implement the regulatory framework on the export and import of
hazardous chemicals. Some progress was achieved in providing information to stakeholders but
further effort are needed to develop a centre for control of chemical poisoning.
There was no significant improvement in the area of noise in the reporting period.
Kosovo is not part of the Union Civil Protection Mechanism, but can benefit from certain
activities of the Union Civil Protection Mechanism that are available to the beneficiaries of the
Instrument for Pre-Accession Assistance (IPA), and benefits from regional civil protection
programmes under the same Instrument. Kosovo is encouraged to participate more actively in the
activities under the Union Civil Protection Mechanism, such as trainings, exchange of experts,
prevention and preparedness projects, exercises, peer reviews and advisory missions. In
improving its disaster management capacities Kosovo should develop legislation, governance
and financial framework related to preparedness, develop comprehensive investment plan for
preparedness and response, improve coordination among responsible authorities in case of large-
scale disasters, and strengthen governance and procedures related to developing national risk
assessment. The coordination between the central level and local level should be improved. No
progress has been made regarding the disaster risk needs assessment, the development of a
recovery strategy, and the preparation of disaster response plans. Kosovo should start the process
of installing the Trans European Services for Telematics between Administrations (TESTA) as a
prerequisite for installing the Common Emergency Communication and Information system
(CECIS) of the European Commission.
Climate change
The implementation of the 2019-2028 climate change strategy and the action plan for the period
2021-2023 is very limited. The law on climate change is not yet adopted. The National Plan for
Energy and Climate is facing serious delays. Kosovo continues to rely heavily on coal and is not
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complying with the emission ceilings established under its National Emission Reduction Plan
(NERP). The newly re-established National Climate Change Council took some few concrete
measures to mainstream climate action or raise public awareness, and there is little evidence of
policies being aligned with climate change objectives. The greenhouse gas emissions inventory
reporting for 2020 is not yet available. The strategic and legislative framework needs to be
adapted to the EU strategic goals stemming from the Green Agenda for the Western Balkans.
Administrative capacity and awareness raising needs to be considerably enhanced. Kosovo is not
a UN member, and de facto not a signatory to the UN Framework Convention on Climate
Change and therefore does not have a nationally determined contribution under the 2015 Paris
Agreement. However, full implementation of its climate change strategy should serve as a guide
to achieve the objectives of the Agreement.
CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION
Kosovo has some level of preparation on cluster 5. The system for the implementation of the
agricultural and rural development policy is in place. In June 2022, the Assembly adopted the
Law on Strong Spirit Drinks and in July 2022, the Law on Food. Legislation on rural
development, genetically modified organisms, plant protection and forestry still needs to be
aligned. In chapter 12, the longstanding issue of transferring the inspectors from municipalities
to the Kosovo Food and Veterinary Agency has been resolved but more progress is needed in
acquis alignment. Kosovo needs to adopt the Agriculture and Rural Development Programme
2022-2027 and adopt the law on agriculture land. The measures encouraging land consolidation
are insufficient. Implementation of the relevant acquis on fisheries also requires additional effort.
Chapter 11 - Agriculture and rural development
The common agricultural policy (CAP) supports farmers and rural development. This requires
strong management and control systems. There are also common EU rules for quality policy and
organic farming.
Kosovo has some level of preparation on agriculture and rural development. Limited progress
was made, in relation to the design and implementation of the agriculture and rural development
programmes. In December 2021 the government adopted the strategy for agriculture and rural
development 2022-2028, while the agriculture and rural development programme 2022-2027 has
not yet been adopted.
In the coming year, Kosovo should in particular:
→ perform a qualitative assessment of the effectiveness of direct payments and rural
development programmes provided under the financial framework 2014-2020, adopt the Law
on Agriculture Land and the programme for agricultural and rural development 2022-2027;
→ take urgent and effective measures to stop the loss of agricultural land and implement the
legislation on spatial planning;
→ take effective action towards developing its organic farming and quality policy sectors.
On horizontal issues, the sector is affected by a predominance of small farms and fragmented
arable land. In 2021, the budget for direct payments and grants, decreased to EUR 34.3 million,
43% lower than in 2020. The agriculture and rural development programme implemented in
2021 included important support for investments in agricultural households, processing and
marketing of agricultural products, farm diversification and business development in rural areas,
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and on farm irrigation. Cross-compliance remains to be addressed.
Kosovo is still in the process of establishing an integrated agricultural information system by
upgrading and improving interconnectivity of the existing elements, which include the integrated
administration and control system (IACS), the agricultural market information system (AMIS)
and the farm accountancy data network (FADN).
The law on the common market organisation (CMO) and related implementing legislation
remain to be prepared. In April 2022, the government approved a concept document for
organising the common market of agricultural products.
On rural development, the strategy for agriculture and rural development 2022-2028 has been
adopted by the government. However, the agriculture and rural development programme 2022-
2027 still needs to be adopted.
On quality policy, little progress was recorded. The registration of a first geographical indication
is ongoing.
Organic farming certification is addressed by four international organisations in the absence of
a dedicated domestic agency.
Kosovo established a Task Force for the Protection of Agricultural Land from Unplanned Urban
Constructions and its Degradation in July 2021, with the purpose to address the issue of loss and
degradation of agricultural land. An action plan, involving the Ministry of Agriculture and Rural
Development, the Ministry of Environment, Spatial Planning and Infrastructure and local
authorities, to address the steady loss and degradation of farmland, is needed.
Chapter 12 - Food safety, veterinary and phytosanitary policy
EU hygiene rules for food production ensure a high level of food safety. The rules ensure animal
health and welfare, the safety of food of animal origin and animal nutrition, the quality of seed,
plant protection material and protection against harmful organisms.
Kosovo has some level of preparation in the area of food safety, veterinary and phytosanitary
policy. Some progress was achieved namely in developing the food control and traceability
system as well as the management of the food safety and veterinary laboratory information.
As most of the previous year’s recommendations were not implemented, in the coming year,
Kosovo should in particular:
→ timely secure the means and resources required for effectively operating the Food Control
and Traceability Management System and the Laboratory Information Management System
developed with EU support as they are instrumental in securing compliance of the foodstuff
produced or marketed by Kosovo with food safety, animal health, animal welfare, and plant
health standards, a prerequisite for a competitive agri-food sector;
→ select the operator for managing the rendering plant and animal by-product collection system
and start operation of the rendering plant;
→ strengthen surveillance and control of the animal diseases through improved planning and
implementation of disease control and surveillance programmes, including by taking over the
responsibility of financing fully oral rabies vaccination campaign to be carried out from
autumn 2023 onwards.
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Kosovo made some progress in developing IT infrastructure for managing food control and
traceability, and the laboratory information management system of the Food and Veterinaty
Agency. Further effort is required to achieve alignment of legislation with the EU acquis. In
2021, the transfer and training of 75 inspectors from municipalities was completed.
Nevertheless, sufficient financial resources need to be ensured for the Kosovo Food and
Veterinary Agency to have an adequate number of inspectors. The food and veterinary laboratory
continued testing and participated in proficiency testing with EU reference laboratories.
However, no progress was made in obtaining international accreditation.
No progress was made on the veterinary policy. The Food and Veterinary Agency is yet to
develop and implement a comprehensive disease monitoring and control system, in line with EU
legislation and World Organisation for Animal Health requirements. The overall 2022 budget of
the Agency increased by 17.8%.
The long-term planning and implementation of programmes to eradicate diseases that are
endemic in Kosovo require improvement. The same applies to animal health controls at farm
level, the transport of animals, and livestock markets. The lack of necessary resources, both
human and financial, as well as the lack of in-service training and education programmes
hampered the adequate implementation of programmes in these areas.
There were no relevant developments regarding animal health. The multi-annual animal disease
control and surveillance programme still needs to be adopted and implemented. With EU
support, Kosovo continued rabies eradication vaccination campaigns. It should take full
ownership of these campaigns in the near future, in line with obligations stemming from the EU
acquis.
No progress was made on the system for collection and disposal of animal by-products, which
is not yet functional despite the existence of a new and equipped rendering plant. The Agency
still needs to select an operator to manage the rendering plant and the collection system.
Limited progress was made on animal identification and registration. The under-reporting of
animal movements remains a challenge. The Agency has yet to adopt measures to enforce the
relevant regulation at the level of livestock markets, slaughterhouses and transport. No progress
was made on identifying basic cross-compliance measures in the areas of food safety, animal
health and welfare.
With regard to phytosanitary matters, no progress was made on the harmonisation of the
relevant legal acts.
Chapter 13 - Fisheries
The common fisheries policy lays down rules on fisheries management, protects living resources
of the sea and limits the environmental impact of fisheries. This includes setting catch quotas,
managing fleet capacity, rules on markets and aquaculture, and support for fisheries and coastal
communities.
Kosovo is still at an early stage of preparation in the area of fisheries. No progress was made in
this area. As none of the recommendations of the previous reports were implemented, in the
coming year Kosovo should:
 further align its market policy with the EU acquis;
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 establish an inventory of fish species.
Kosovo does not have a coastline, therefore the EU acquis on catch quotas, inspection and
control is only partially applicable. Fisheries consists also of aquaculture operations. Kosovo
should focus on establishing a market policy and data collection in line with the EU acquis as
well as an inventory of fish species. Administrative capacity for policy management, inspection
and control should also be reinforced.
Chapter 22 - Regional policy and coordination of structural instruments
Regional policy is the EU’s main investment policy for sustainable and inclusive economic
growth. Member States bear responsibility for implementation, which requires adequate
administrative capacity and sound financial management of project design and execution.
Kosovo is at early stage of preparation regarding regional policy and coordination of structural
instruments. During the reporting period, Kosovo adopted the Law on Regional Development.
In the coming year, Kosovo should in particular:
→ adopt the Regional Development Action Plan 2023-2025, implement the Regional
Development Strategy and adopt the Law on Regional Development;
→ strengthen institutional and administrative capacities across the IPA structures;
→ improve the single project pipeline, including indications of project completeness and
maturity.
The Regional Development Strategy 2020-2030 adopted in February 2021, as well as draft Law
on Regional Development, envisage that Kosovo would have seven regions at NUTS III level,
and hence, seven regional development agencies. However, the legal basis, the law on Regional
Development has not yet been approved by the government, setting out the basic principles of
regional development management, the responsibilities of institutions, financial instruments, and
the rules for balanced regional development.
The amended Law on Regional Development that should be adopted in 2022, will improve
regional development policy. The budget for regional development in 2022 amounts to EUR 4.2
million.
The institutional framework for the management of the EU funds is not yet established.
However, structures for the management of national regional development programmes and
projects are in place and functional. Kosovo should further strengthen capacities and resources
for managing the EU’s IPA financial assistance. Regarding administrative capacities,
significant efforts are required to allocate more human resources and to increase their capacities,
particularly on planning and management of EU funds.
Programming is focused on local development projects and future IPA assistance. Currently,
there are no IPA financed projects on regional development. In the area of monitoring and
evaluation, regular activities continued in the field of regional development programmes and
projects.
During the reporting period, Kosovo implemented cross-border cooperation programmes with
Albania, North Macedonia and Montenegro. Kosovo is not taking part in the transnational and
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interregional cooperation programmes that cover the Western Balkans. Kosovo held the first
international high-level conference on regional development in March 2022.
Kosovo’s Agency of Statistics (KAS) has officially received Eurostat’s approval for the
Classification of Statistical Regions (NUTS) at II and III level.
CLUSTER 6: EXTERNAL RELATIONS
In the area of trade, Kosovo is at an early stage of preparation. Some progress was made during
the reporting period in reducing Kosovo’s trade deficit, however Kosovo has not yet adopted a
comprehensive trade policy, nor ratified the CEFTA Additional Protocols on trade facilitation
and trade in services.
Chapter 30 - External relations
The EU has a common trade and commercial policy towards third countries, based on
multilateral and bilateral agreements, and autonomous measures.
Kosovo is at an early stage of preparation in the area of external relations. Kosovo made
limited progress in this area. The trade deficit increased during the reporting period. Kosovo has
yet to establish a humanitarian and development policy.
Kosovo is at an early stage of preparation as regards its application for WTO observer status and
no progress was made during the reporting period. Kosovo has made some progress in
implementation of Common Regional Market action plan. Kosovo introduced export restrictions
on a number of agricultural food products without presenting sufficient justifications, nor
following the procedures set out in the SAA. These decisions should be lifted, and Kosovo
should abstain from taking unilateral trade measures without justification and prior consultation
with the Commission, in line with its commitments in the SAA.
Not all recommendations from the previous report were implemented. In the coming year,
Kosovo should in particular:
 remove remaining unjustified trade restrictions; implement commitments under the Common
Regional Market Action Plan 2021-2024; ratify and implement CEFTA Additional Protocol
5 on trade facilitation and Additional Protocol 6 on trade in services as soon as possible; and
finalise the negotiations on, and adopt, the Additional Protocol 7 on dispute settlement;
 adopt the new Law on Internal Trade and the Law on External Trade; approve the Regulation
on the establishment of the Trade Facilitation Enquiry Point.
 start the process to establish a development and humanitarian aid policy.
Overall, Kosovo remains highly reliant on imports and suffers from a chronic trade deficit. While
it benefits from a surplus in the trade of services and remittances from abroad overall Kosovo
maintains a persistant current account deficit financed by Foreign Direct Investment and
borrowing. Data from the Kosovo Statistics Agency indicates that the trade deficit increased in
nominal terms from EUR 2.18 billion in 2020 to 2.31 billion in 2021, representing a decrease in
percentage terms from 32% to 30% of GDP.
Kosovo has not yet adopted a comprehensive trade policy, nor ratified the CEFTA Additional
Protocols on trade facilitation and trade in services. Kosovo should make further efforts to
expand export opportunities. It is yet to make a full use of the trade preferences of the
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Stabilisation and Association Agreement (SAA). Kosovo should ensure smooth implementation
of the SAA and abstain from introducing unilateral trade restrictive measures without prior
consultation with the Commission, in line with SAA obligations. In April 2022, Kosovo
introduced an export ban on certain agricultural food products (including wheat, corn, cereal,
flour and edible oil) without justifications or prior consultation with the Commission. These
export restrictions should be lifted without delay unless sufficient justification is presented.
The CEFTA area has remained the main destination for the export of goods while the EU is the
main source of goods imported into Kosovo. In 2021, Kosovo's goods exports to CEFTA
countries amounted to 276.7 million EUR, or 36.9% of total exports meanwhile. goods imports
amounted to 886.9 million EUR, or 19.06% of total imports. Kosovo's goods exports to EU
Member States amounted to 235.1 million EUR, about 31.3% of total exports in 2021 and import
of goods from the EU stood at 2.06 billion EUR, or 444.32% of total imports. Most of Kosovo’s
goods exports consist of basic raw materials and mineral products, reflecting a limited
diversification of the production sector.
Services exports are strongly dependent on travel services, which represented 78.2% of the total
for the period of January to October 2021. While lower than in previous years due to pandemic
travel restrictions, the majority of them were Kosovo diaspora visits, not foreign tourism. This
alongside overall mobility in Kosovo raises concerns over the sector’s long-term sustainability.
As regards bilateral agreements with third countries on economic/trade/technical cooperation,
Kosovo has Free-Trade Agreements (FTAs) with Albania, North Macedonia, Croatia, Bosnia
and Herzegovina and Türkiye. Kosovo has several Generalized System of Preferences (GSP)
Programmes with the US, Japan and Norway. The government supports the Common Regional
Market (CRM) as a basis for a regional free trade agreement. Kosovo continues to make progress
in implementing technical measures of the CRM action plan 2021-2024, notably regarding green
lanes. However, disagreements relating to the representation of Kosovo are hampering progress
in other areas, notably the free movement of workers. Kosovo, along with all participants in the
CRM should play a constructive role and deliver on joint commitments set out in the action plan.
Kosovo is a member of the Central European Free Trade Agreement (CEFTA).
Kosovo has bilateral investment protection agreements with the US, Austria, Türkiye, Albania,
Switzerland, Belgium, Luxemburg, United Arab Emirates, North Macedonia, and Hungary. In
2022, Kosovo exchanged draft agreements for Promotion and Mutual Protection of Investments
with the State of Qatar.
There is a need to enhance the capacity of the trade department to undertake trade defence
related investigations, in line with EU procedures, and to determine protective measures for
imports. Information on the scope and reach of trade defence measures should be better
disseminated to the private sector. Delays in access to the Kosovo Customs trade databases and
to the Kosovo Agency of Statistics statistics negatively affected the efficiency of the trade
department.
The Law on the trade of strategic goods provides a framework for the restriction or prohibition,
export, import, transit, transhipment, and re-export of strategic goods that enter, exit or pass
through the territory of Kosovo.
Kosovo’s law on dual-use goods remains aligned with EU Regulation 2021/821. The EU dual-
use list has been adopted as the national control list, with additions. Each year, the Department
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for Controlling Market of Strategic Goods in the Ministry of Industry, Entrepreneurship and
Trade, amends the List of the Dual-Use Goods and the Military Goods, in accordance with the
EU Lists.
There were few developments in the areas of development policy and humanitarian aid. The
country is a recipient of aid programmes, does not provide humanitarian aid to third countries in
a systematic manner and there is no development aid agency. Kosovo is encouraged to start the
process of establishing a legal framework covering international cooperation and development
policy as well as humanitarian aid towards non-EU countries, in accordance with EU policies
and principles, and to build dedicated administrative structures. In the context of Russia’s war
against Ukraine, Kosovo pledged to host up to 5 000 refugees and 20 journalists from Ukraine.
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ANNEX I – RELATIONS BETWEEN THE EU AND KOSOVO
In April 2016, the EU-Kosovo Stabilisation and Association Agreement (SAA) entered into
force. The SAA constitutes the first contractual relationship between the EU and Kosovo. It is a
comprehensive agreement that provides a framework for political dialogue and covers
cooperation in a wide variety of sectors, including justice and home affairs, trade, education,
employment, energy, environment and a range of other policy areas. Four Stabilisation and
Association Council meetings and five cycles of subcommittee meetings took place since 2016.
Kosovo also participates in the ministerial dialogue between the economic and finance ministers
of the EU and the candidate countries and potential candidates, which aims at helping the latter
to gradually meet the economic accession criteria and be better prepared in terms of economic
reforms, competitiveness and job creation. The most recent meeting was held in June 2022.
To guide reforms under the implementation of the SAA, the Commission and Kosovo adopted in
November 2016 the European Reform Agenda (ERA) for Kosovo. The Agenda outlines priority
actions in the fields of good governance and the rule of law, competitiveness and investment
climate, and employment and education. Kosovo adopted the second phase of the ERA through a
dedicated action plan in August 2021. Since 2012, the Commission has issued five reports on
Kosovo's progress towards visa liberalisation (the most recent in June 2018). In July 2018, the
Commission confirmed that Kosovo has met the two outstanding requirements, thus fulfilling all
benchmarks set out in the Visa Liberalisation Roadmap. The European Parliament has voted in
support of the Commission proposal. The proposal is pending in the Council.
The bilateral EU support for Kosovo under the Instrument for Pre-accession Assistance (IPA II)
in 2014-2020 amounted to EUR 562 million. The 2019 and 2020 action programmes included an
EU contribution of EUR 181 million.
As part of the response to the COVID-19 pandemic, last year Kosovo received 94,770 doses of
vaccines (the deliveries were provided from mid-May 2021 to beginning of Sep 2021). The
vaccines were provided thanks to a re-sale agreement through Austria.
The IPA III Regulation (EU 2021/1529 of 15 September 2021) for the 2021-2027 financial
period11
continues to provide financial support to the region and is also financing the Economic
Investment Plan (EIP) for the Western Balkans. As from 2021, Kosovo benefits from EU
bilateral financial assistance via IPA III, which is based on a performance-based approach and
the fair share principle. An amount of EUR 63.96 million has been allocated to Kosovo for its
first year of implementation (IPA 2021) whereas for 2022, the IPA allocation has been fixed at
EUR 62.25 million, continuing work started in 2021 to support justice reform, institutional
capacity building in the civil administration, gradual transition of the energy sector towards
decarbonisation and further energy efficiency, and socio-economic development through
education and job creation schemes.
The Economic and Investment Plan, accompanied by the Green Agenda for the Western Balkans
offers the opportunity to Kosovo to adjust its economic model and create conditions for
sustainable growth and jobs in line with the green and digital transition. Under the EIP, Kosovo
will be supported with 5 specific flagship projects, which will significantly improve connectivity
and energy supply (in complement to regional projects).
11
Official Journal OJ L 330, 20.9.2021
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Kosovo continues to benefit from support under the IPA multi-country and regional
programmes. These programmes have been also, in part, repurposed to address the response to
the COVID-19 crisis. Additionally, Kosovo participates in three cross-border cooperation
programmes, and also benefits, with IPA support, from participation in some EU programmes.
Since 2018, Kosovo has joined the following Union programmes: Erasmus+, COSME, Europe
for Citizens, Creative Europe, Customs 2020 and Fiscalis 2020.
The Kosovo Specialist Chambers and Specialist Prosecutor's Office, established to investigate
and prosecute allegations stemming from the 2011 Council of Europe Report, which alleges
serious violations of international law, continued their work
In 2008, the EU deployed in Kosovo its largest civilian European Security and Defence Policy
mission. The European Rule of Law Mission in Kosovo (EULEX) assists Kosovo on the rule of
law, notably police, justice and customs. EULEX’s overall mission is to support relevant rule of
law institutions in Kosovo on their path towards increased effectiveness, sustainability, multi-
ethnicity and accountability, free from political interference and in full compliance with
international human rights standards and best European practices.
EULEX’s current mandate has been extended to cover the period until 14 June 2023 based on
Council Decision CFSP 2021/904. Within its current mandate, the Mission undertakes
monitoring activities and has limited executive functions. EULEX continues to support the
Specialist Chambers and Specialist Prosecutor’s Office in line with relevant Kosovo legislation.
To date, according to the government, Kosovo has been recognised by 117 countries, including
22 EU Member States.
During the reporting period, the UN Secretary-General continued to provide regular updates on
the implementation of the UN's mission in Kosovo (UNMIK). The NATO-led Kosovo Force
(KFOR) has continued to help ensure a safe and secure environment in Kosovo. In June 2022, it
had 3 735 personnel.
STATISTICAL DATA (as of 01.09.2022)
Kosovo
Basic data Note 2009 2016 2017 2018 2019 2020
Population (thousand) 2 181 s 1 772 s 1 784 s 1 799 s 1 796 s 1 782 s
Total area of the country (km²) 1) 10 908 w 10 908 w 10 905 w 10 905 w 10 905 w 10 905 w
National accounts Note 2009 2016 2017 2018 2019 2020
Gross domestic product (GDP) (million euro) 3 610 6 037 6 357 6 672 7 056 6 772
GDP (euro per capita) 1 656 s 3 408 s 3 564 s 3 709 s 3 930 s 3 800 s
GDP per capita (in purchasing power standards (PPS)) : : : : : :
GDP per capita (in PPS), relative to the EU average (EU-27 = 100) : : : : : :
Real GDP growth rate: change on previous year of GDP volume (%) 5.0 5.6 4.8 3.4 4.8 - 5.3
Employment growth (national accounts data), relative to the previous year (%) : c c c c :
Labour productivity growth: growth in GDP (in volume) per person employed, relative to the
previous year (%)
: c c c c :
Unit labour cost growth, relative to the previous year (%) : c c c c :
**3 year change (T/T-3) in the nominal unit labour cost growth index (2015 = 100) : c c c c :
Labour productivity per person employed: GDP (in PPS) per person employed relative to EU
average (EU-27 = 100)
: : : : : :
Gross value added by main sectors
Agriculture, forestry and fisheries (%) 10.0 10.2 9.2 8.1 9.0 8.9
Industry (%) 24.9 24.3 24.1 24.2 23.4 24.1
Construction (%) 8.8 9.1 10.1 10.4 10.1 9.3
Services (%) 56.3 s 56.4 s 56.5 s 57.2 s 57.5 s 57.7 s
Final consumption expenditure, as a share of GDP (%) 106.7 93.8 91.1 91.9 92.6 98.8
Gross fixed capital formation, as a share of GDP (%) 30.7 28.0 30.0 31.7 31.0 29.7
Changes in inventories, as a share of GDP (%) 1.9 5.5 4.7 4.6 3.5 3.7
Exports of goods and services, relative to GDP (%) 19.2 23.8 27.3 29.1 29.3 21.7
Imports of goods and services, relative to GDP (%) 58.5 51.2 53.1 57.3 56.4 53.9
Gross fixed capital formation by the general government sector, as a percentage of GDP (%) : : : : : :
Business Note 2009 2016 2017 2018 2019 2020
Industrial production volume index (2015 = 100) : : : : : :
Number of active enterprises (number) : 33 274 w 34 355 w 31 028 pw 32 268 w 40 085 pw
Birth rate: number of enterprise births in the reference period (t) divided by the number of
enterprises active in t (%)
: 9.2 w 8.7 w 4.8 pw : :
Death rate: number of enterprise deaths in the reference period (t) divided by the number of
enterprises active in t (%)
: 7.3 w 4.2 w 3.7 pw 4.2 w 2.6 w
People employed in SMEs as a share of all persons employed (within the non-financial
business economy) (%)
: 78.5 sw 78.8 sw 78.4 psw 78.9 sw 80.8 psw
Value added by SMEs (in the non-financial business economy) (EUR million) : : : : : :
Total value added (in the non-financial business economy) (EUR million) : : : : : :
Inflation rate and house prices Note 2009 2016 2017 2018 2019 2020
Consumer price index (CPI), change relative to the previous year (%) - 2.5 w 0.3 w 1.5 w 1.1 w 2.7 w 0.2 w
**Annual change in the deflated house price index (2015 = 100) : : : : : :
Balance of payments Note 2009 2016 2017 2018 2019 2020
Balance of payments: current account total (million euro) - 373.7 - 499.9 - 348.6 - 508.8 - 399.5 - 472.2
Balance of payments current account: trade balance (million euro) - 1 646.3 - 2 290.7 - 2 464.2 - 2 737.7 - 2 840.2 - 2 573.2
Balance of payments current account: net services (million euro) 227.4 650.7 827.3 855.8 926.0 391.6
Balance of payments current account: net balance for primary income (million euro) 61.8 73.8 127.4 113.1 160.6 164.0
Balance of payments current account: net balance for secondary income (million euro) 983.4 1 066.3 1 161.0 1 260.0 1 354.1 1 545.4
Net balance for primary and secondary income: of which government transfers (million euro) 322.9 173.0 199.7 226.1 236.6 276.6
**3 year backward moving average of the current account balance relative to GDP (%) : - 7.5 - 7.6 - 7.1 - 6.3 - 6.8
**Five year change in share of world exports of goods and services (%) : 6.6 28.4 37.8 37.3 15.3
Net balance (inward - outward) of foreign direct investment (FDI) (million euro) 276.9 w 177.2 w 212.0 w 225.8 w 188.4 w 286.6 w
Foreign direct investment (FDI) abroad (million euro) 10.5 w 42.7 w 43.4 w 46.3 w 66.2 w 59.1 w
of which FDI of the reporting economy in the EU-27 countries (million euro) : 13.2 w 14.1 w 13.0 6.1 16.5 w
Foreign direct investment (FDI) in the reporting economy (million euro) 287.4 w 220.0 w 255.4 w 272.1 w 254.6 w 345.7 w
of which FDI of the EU-27 countries in the reporting economy (million euro) : 16.4 w 86.1 w 58.7 158.6 152.1 w
**Net international investment position, relative to GDP (%) 11.9 w - 1.3 w - 1.8 w - 6.1 w - 5.8 w - 12.3 w
Year on year rate of change in gross inflow of remittances (in national currency) from migrant
workers (%)
16.2 sw 11.3 s 11.9 s 12.0 s 12.1 s 14.5 s
Public finance Note 2009 2016 2017 2018 2019 2020
General government deficit / surplus, relative to GDP (%) : - 0.9 w - 0.8 w - 1.0 w - 0.5 w - 5.2 w
General government gross debt relative to GDP (%) 6.1 ew 14.6 ew 16.6 ew 17.1 ew 17.5 w 21.8 w
Total government revenues, as a percentage of GDP (%) 28.2 w 29.5 w 30.2 w 30.1 w 31.5 w 32.6 w
Total government expenditure, as a percentage of GDP (%) 30.3 w 29.2 w 28.9 w 29.6 w 30.5 w 34.4 w
Financial indicators Note 2009 2016 2017 2018 2019 2020
Gross external debt of the whole economy, relative to GDP (%) 33.0 sw 33.4 sw 32.9 sw 30.5 sw 31.2 sw 37.2 sw
Gross external debt of the whole economy, relative to total exports (%) 171.6 w 140.1 w 120.2 w 105.0 w 106.4 w 171.2 w
Money supply: M1 (banknotes, coins, overnight deposits, million euro) : : : : : :
Money supply: M2 (M1 plus deposits with maturity up to two years, million euro) : : : : : :
Money supply: M3 (M2 plus marketable instruments, million euro) : : : : : :
Total credit by monetary financial institutions to residents (consolidated) (million euro) 1 289.0 w 2 338.9 w 2 629.5 w 2 939.2 w : :
**Annual change in financial sector liabilities (%) : : : : : :
**Private credit flow, consolidated, relative to GDP (%) : : : : : :
**Private debt, consolidated, relative to GDP (%) : : : : : :
Interest rates: day-to-day money rate, per annum (%) : : : : : :
Lending interest rate (one year), per annum (%) 2) 14.08 w 7.47 w 6.83 w 6.65 w 6.51 w 6.21 w
Deposit interest rate (one year), per annum (%) 2) 3.97 w 1.01 w 1.04 w 1.31 w 1.46 w 1.49 w
Euro exchange rates: average of period (1 euro = … national currency) : 1 w 1 w 1 w 1 w :
Trade-weighted effective exchange rate index, 42 countries (2015 = 100) : : : : : :
**3 year change (T/T-3) in the trade-weighted effective exchange rate index, 42 countries
(2015 = 100)
: : : : : :
Value of reserve assets (including gold) (million euro) 576.5 w 605.1 w 683.4 w 769.3 w 863.7 w 900.8 w
External trade in goods Note 2009 2016 2017 2018 2019 2020
Value of imports: all goods, all partners (million euro) 1 936 2 790 3 047 3 347 3 497 3 297
Value of exports: all goods, all partners (million euro) 165 310 378 368 384 475
Trade balance: all goods, all partners (million euro) - 1 770 - 2 480 - 2 669 - 2 980 - 3 114 - 2 822
Terms of trade (export price index / import price index * 100) (number) : 90.6 sw 93.0 sw 91.0 sw 94.2 sw 92.6 sw
Share of exports to EU-27 countries in value of total exports (%) 44.3 s 22.3 s 22.0 s 27.5 s 33.2 s 34.5 s
Share of imports from EU-27 countries in value of total imports (%) 41.3 s 42.4 s 42.3 s 42.7 s 49.1 s 45.8 s
Demography Note 2009 2016 2017 2018 2019 2020
Crude rate of natural change of population (natural growth rate): number of births minus
deaths (per thousand inhabitants)
12.5 8.4 e 8.2 e 7.7 6.9 :
Infant mortality rate deaths of children under one year of age (per thousand live births) 9.9 8.5 9.7 10.6 8.7 :
Life expectancy at birth: male (years) : 75.9 p : : : :
Life expectancy at birth: female (years) : 81.6 p : : : :
Labour market Note 2009 2016 2017 2018 2019 2020
Economic activity rate for persons aged 20–64: proportion of the population aged 20–64 that
is economically active (%)
: 44.0 w 49.0 w 46.6 w 45.2 w 42.9 w
*Employment rate for persons aged 20–64: proportion of the population aged 20–64 that are
in employment (%)
: 32.3 w 34.4 w 33.2 w 34.2 w 32.3 w
Male employment rate for persons aged 20–64 (%) : 49.9 w 54.0 w 52.6 w 53.0 w 48.8 w
Female employment rate for persons aged 20–64 (%) : 14.6 w 14.6 w 14.1 w 15.6 w 16.0 w
Employment rate for persons aged 55–64: proportion of the population aged 55–64 that are
in employment (%)
27.9 w 29.6 w 32.7 w 31.5 w 32.2 w 30.9 w
Employment by main sectors
Agriculture, forestry and fisheries (%) 6.2 w 4.2 w 4.4 w 3.5 w 5.2 w 4.8 w
Industry (%) 15.5 w 18.0 w 17.4 w 14.3 w 15.1 w 16.3 w
Construction (%) 7.9 w 11.5 w 12.9 w 11.9 w 12.6 w 11.1 w
Services (%) 70.5 w 66.3 w 65.3 w 70.3 w 67.1 w 67.9 w
People employed in the public sector as a share of total employment, persons aged 20–64
(%)
: 30.8 w 28.4 w 30.8 w 27.6 w 28.7 w
People employed in the private sector as a share of total employment, persons aged 20–64
(%)
: 69.2 w 71.6 w 69.2 w 72.4 w 71.3 w
Unemployment rate: proportion of the labour force that is unemployed (%) 45.4 w 27.5 w 30.3 w 29.4 w 25.5 w 25.8 w
Male unemployment rate (%) 40.7 w 26.2 w 28.5 w 28.3 w 22.4 w 23.4 w
Female unemployment rate (%) 56.4 w 31.7 w 36.4 w 33.3 w 34.4 w 32.2 w
Youth unemployment rate: proportion of the labour force aged 15–24 that is unemployed (%) 73.0 w 52.4 w 52.7 w 55.4 w 49.4 w 49.1 w
Long-term unemployment rate: proportion of the labour force that has been unemployed for
12 months or more (%)
16.8 w 18.0 w 21.7 w 17.2 w 16.2 w 18.4 w
Unemployment rate for persons (aged 25–64) having completed at most lower secondary
education (ISCED levels 0-2) (%)
: 29.6 w 32.5 w 35.8 w 28.3 w 30.2 w
Unemployment rate for persons (aged 25–64) having completed tertiary education (ISCED
levels 5-8) (%)
: 15.6 w 23.4 w 16.8 w 18.0 w 17.0 w
Social cohesion Note 2009 2016 2017 2018 2019 2020
Average nominal monthly wages and salaries (national currency) : 422 w 431 w 453 w 477 w 466 w
Index of real wages and salaries (index of nominal wages and salaries divided by the
inflation index) (2016 = 100)
: : : : : :
GINI coefficient : : : 44 46 w :
Poverty gap : : : 47.4 55.3 w :
*Early leavers from education and training: proportion of the population aged 18–24 with at
most lower secondary education who are not in further education or training (%)
: 12.7 w 12.2 w 9.6 w 8.2 w 7.8 w
Standard of living Note 2009 2016 2017 2018 2019 2020
Number of passenger cars relative to population size (number per thousand population) 77.0 sw 146.8 sw 153.6 sw 155.9 sw 162.2 sw 164.4 sw
Number of mobile phone subscriptions relative to population size (number per thousand
population)
: : 1 200.7 ew 1 281.1 ew 1 266.4 ew 1 095.0 ew
Mobile broadband penetration (per 100 inhabitants) : : 65.4 ew 73.9 ew 78.4 ew 84.5 ew
Fixed broadband penetration (per 100 inhabitants) : : 15 ew 18 ew 20 ew 21 ew
Infrastructure Note 2009 2016 2017 2018 2019 2020
Density of railway network (lines in operation per thousand km²) 1) 30.5 sw 30.5 sw 30.5 sw 30.5 sw 30.5 sw 30.5 sw
Length of motorways (kilometres) : 98 w 108 w 119 w 137 w 137 w
Innovation and research Note 2009 2016 2017 2018 2019 2020
Public expenditure on education relative to GDP (%) : 4.6 sw 4.4 sw 4.5 sw 4.6 sw 4.6 sw
*Gross domestic expenditure on R&D relative to GDP (%) : : : : : :
Government budget appropriations or outlays on R&D (GBAORD), as a percentage of GDP
(%)
: : : : : :
Percentage of households who have internet access at home (%) : : 89.0 93.0 93.0 96.0
Environment Note 2009 2016 2017 2018 2019 2020
*Index of greenhouse gas emissions, CO2 equivalent (1990 = 100) : : : : : :
Energy intensity of the economy (kg of oil equivalent per 1 000 euro GDP at 2015 constant
prices)
567.0 451.3 409.0 398.1 392.3 413.9
Electricity generated from renewable sources relative to gross electricity consumption (%) 1.1 4.0 3.6 4.2 5.2 5.3
Road share of inland freight transport (based on tonne-km) (%) : : : : : :
Energy Note 2009 2016 2017 2018 2019 2020
Primary production of all energy products (thousand TOE) 1 845 2 016 1 793 1 822 1 849 1 901
Primary production of crude oil (thousand TOE) 0 0 0 0 0 0
Primary production of solid fuels (thousand TOE) 1 601 1 640 1 412 1 428 1 503 1 562
Primary production of gas (thousand TOE) 0 0 0 0 0 0
Net imports of all energy products (thousand TOE) 636 s 638 s 769 s 757 s 815 s 787 s
Gross inland energy consumption (thousand TOE) 2 459 2 704 2 569 2 585 2 669 2 665
Gross electricity generation (GWh) 4 976 5 982 5 918 5 915 6 351 6 711
Agriculture Note 2009 2016 2017 2018 2019 2020
Agricultural production volume index of goods and services (at producer prices) (2010 = 100) 93.5 w 116.9 w 112.4 w 108.3 w 119.0 w 100.0 w
Utilised agricultural area (thousand hectares) 412.4 416.7 417.0 419.5 421.0 421.1
Livestock numbers: live bovine animals (thousand heads, end of period) : 265.0 259.7 259.7 257.7 261.4
Livestock numbers: live swine (thousand heads, end of period) : 42.3 41.1 40.2 40.5 45.4
Livestock numbers: live sheep and live goats (thousand heads, end of period) : 212.0 s 210.7 s 209.8 s 216.3 s 241.7 s
Raw milk available on farms (thousand tonnes) : : 365.1 334.3 : :
Harvested crop production: cereals (including rice) (thousand tonnes) 411.2 562.9 477.9 441.8 459.4 529.1
Harvested crop production: sugar beet (thousand tonnes) : : : : : :
Harvested crop production: vegetables (thousand tonnes) 103.5 151.7 147.8 155.3 177.8 169.4
Source: Eurostat and the statistical authorities in Kosovo
: = not available
c = confidential value
e = estimated value
n = not significant value
p = provisional
s = Eurostat estimate
w= data supplied by and under the responsibility of the national statistical authority and published on an "as is" basis and without any assurance as regards
their quality and adherence to EU statistical methodology
* = Europe 2020 indicator
** = Macroeconomic Imbalance Procedure (MIP) indicator
Footnotes:
1) The change of the area between 2016 and 2017 reflects measurements made by the Kosovo Cadastral Agency.
2) Includes disbursement fee charged by banks.