COMMISSION STAFF WORKING DOCUMENT Kosovo 2023 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 2023 Communication on EU Enlargement policy

EN EN
EUROPEAN
COMMISSION
Brussels, 8.11.2023
SWD(2023) 692 final
COMMISSION STAFF WORKING DOCUMENT
Kosovo* 2023 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
2023 Communication on EU Enlargement policy
{COM(2023) 690 final} - {SWD(2023) 690 final} - {SWD(2023) 691 final} -
{SWD(2023) 693 final} - {SWD(2023) 694 final} - {SWD(2023) 695 final} -
{SWD(2023) 696 final} - {SWD(2023) 697 final} - {SWD(2023) 698 final} -
{SWD(2023) 699 final}
*
MT:Style_footnote reference,Superscript,Style>*</FMT> 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 (2023) 0690 - SWD-dokument
Europaudvalget 2023
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TABLE OF CONTENTS
1. INTRODUCTION............................................................................................................................................3
1.1. CONTEXT ........................................................................................................................................................ 3
1.2. SUMMARY OF THE REPORT ................................................................................................................................. 3
2. 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
2.2. RULE OF LAW AND FUNDAMENTAL RIGHTS........................................................................................................... 15
2.2.1. Chapter 23: Judiciary and fundamental rights.................................................................................. 15
2.2.2 Chapter 24: Justice, freedom and security......................................................................................... 42
2.3. ECONOMIC DEVELOPMENT AND COMPETITIVENESS................................................................................................ 59
2.3.1. The existence of a functioning market economy ............................................................................... 59
2.3.2. The capacity to cope with competitive pressure and market forces within the Union ...................... 67
2.4. PUBLIC PROCUREMENT, STATISTICS, FINANCIAL CONTROL ....................................................................................... 71
Chapter 5: Public procurement ................................................................................................................... 71
Chapter 18: Statistics................................................................................................................................... 73
Chapter 32: Financial control..................................................................................................................... 75
3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION.............................................................77
4. NORMALISATION OF RELATIONS BETWEEN KOSOVO AND SERBIA ............................................................79
5. EUROPEAN STANDARDS ............................................................................................................................82
CLUSTER 2: INTERNAL MARKET ................................................................................................................................ 82
Chapter 1: Free movement of goods............................................................................................................ 83
Chapter 2: Freedom of movement for workers ............................................................................................ 85
Chapter 3: Right of establishment and freedom to provide services............................................................ 85
Chapter 4: Free movement of capital .......................................................................................................... 86
Chapter 6: Company law............................................................................................................................. 87
Chapter 7: Intellectual property law............................................................................................................ 88
Chapter 8: Competition policy..................................................................................................................... 90
Chapter 9: Financial services...................................................................................................................... 91
Chapter 28: Consumer and health protection ............................................................................................. 93
CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH............................................................................................... 95
Chapter 10: Digital transformation and media ........................................................................................... 95
Chapter 16: Taxation................................................................................................................................... 97
Chapter 17: Economic and monetary policy ............................................................................................... 98
Chapter 19: Social policy and employment ................................................................................................. 99
Chapter 20: Enterprise and industrial policy ............................................................................................ 102
Chapter 25: Science and research............................................................................................................. 103
Chapter 26: Education and culture ........................................................................................................... 104
Chapter 29: Customs Union ...................................................................................................................... 107
CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY ............................................................................... 108
Chapter 14: Transport policy..................................................................................................................... 109
Chapter 15: Energy .................................................................................................................................. 110
Chapter 21: Trans-European Networks..................................................................................................... 113
Chapter 27: Environment and climate change........................................................................................... 114
CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION............................................................................................... 117
Chapter 11: Agriculture and rural development....................................................................................... 117
Chapter 12: Food safety, veterinary and phytosanitary policy.................................................................. 118
2
Chapter 13: Fisheries and aquaculture ..................................................................................................... 120
Chapter 22: Regional policy and coordination of structural instruments ................................................. 120
CLUSTER 6: EXTERNAL RELATIONS .......................................................................................................................... 121
Chapter 30: External relations .................................................................................................................. 121
ANNEX I – RELATIONS BETWEEN THE EU AND KOSOVO............................................................................................... 124
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1. INTRODUCTION
1.1. CONTEXT
The EU-Kosovo Stabilisation and Association Agreement has been in force since April 2016.
Kosovo adopted a revised 2023-2027 national programme for EU integration. Kosovo
submitted an application for EU membership in December 2022. The authorities remain
committed to Kosovo’s European path.
The Commission’s proposal to lift the visa requirements for Kosovo citizens was agreed by the
Council and the European Parliament, with adoption of the relevant regulation taking place on
9 March 2023 in the Council and on 18 April 2023 in the European Parliament. Visa
liberalisation for Kosovo citizens is scheduled to enter into force on 1 January 2024.
The EU-facilitated Dialogue on normalisation of relations between Kosovo and Serbia
continued in the reporting period with regular meetings on the level of Chief Negotiators and
Leaders. After months of intense negotiations and with the support of key partners, the Parties
reached an Agreement on the Path to Normalisation in Brussels on 27 February 2023, and
agreed on its Implementation Annex in Ohrid, North Macedonia, on 18 March 2023. Both
Kosovo and Serbia are yet to start implementation of their respective obligations stemming
from the Agreement, which are binding for the Parties and part of their European paths.
Kosovo has continued to condemn Russia’s war of aggression against Ukraine and to support
Ukraine’s independence, sovereignty and territorial integrity. The government has continued
to adopt packages of restrictive measures against Russia and Belarus, mirroring those imposed
by the EU and the US.
1.2. SUMMARY OF THE REPORT1
The government led by Vetëvendosje still holds a solid majority in the Assembly and continued
to push ahead with its ambitious EU reform agenda.
However, the continued lack of cross-party cooperation and disagreements within the majority
proved to be a challenge to reforms. Additionally, Srpska Lista members of the Assembly
boycotted the Assembly’s work. Nevertheless, the reporting period witnessed important
legislative achievements, including electoral reform.
Overall, Kosovo has remained engaged in the EU-facilitated Dialogue on the normalisation
of relations with Serbia, but it needs to demonstrate more serious commitment, invest more
efforts and make compromises to take the process of normalisation of relations with Serbia
forward. Kosovo needs to uphold its Dialogue commitments and commit to the full
implementation of all past Dialogue agreements and the Agreement on the Path to
Normalisation and its Implementation Annex. Kosovo and Serbia are expected to engage more
constructively to enable negotiations on the comprehensive legally binding normalisation
Agreement to start and show flexibility in order to make rapid and concrete progress.
Normalisation of relations is an essential condition on the European path of both Parties and
1
This report covers the period from June 2022 to June 2023. It is based on input from a variety of sources,
including contributions from the government of Kosovo, the EU Member States, European Parliament reports and
information from various international and non-governmental organisations. It also includes the results of
comparative assessments and indices produced by other stakeholders, in particular in the area of rule of law.
The report uses the following assessment scale 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, interim steps have also been used.
4
both risk losing important opportunities in the absence of progress.
The situation in the north of Kosovo has been affected by several crises of varying intensity on
a number of issues, with a violent attack against Kosovo Police on 24 September 2023,
constituting the gravest escalation in recent years. Huge quantities of small arms and light
weapons (SALW) were found in the context of this attack2
. The EU expects the perpetrators to
be apprehended and swiftly brought to justice and Serbia to fully cooperate and take all the
necessary steps in this regard.Other crises during the reporting period were triggered by issues
over the freedom of movement, in particular licence plates, following the Kosovo
government’s decision on 29 June 2022 to enforce the re-registration of all vehicles with
Kosovo-issued licence plates. This led to the tensions in July 2022 and continued through the
erection of roadblocks and the collective resignation of Kosovo Serbs from Kosovo institutions
in November 2022. Following the withdrawal of Kosovo Serbs from Kosovo institutions, local
by-elections were organised in the four municipalities in the north of Kosovo. Scheduled
initially for December 2022 and then postponed to 23 April 2023, the mayoral and municipal
by-elections were held in line with the legal framework of Kosovo and efforts were made for
them to take place in a smooth and orderly manner. However, despite the milestone Agreement
on the path to normalisation reached in Brussels on 27 February and its Implementation Annex
agreed in Ohrid, North Macedonia, on 18 March 2023, and despite Kosovo extending the
deadline for the registration of candidatures for the local by-elections, not all parties and
communities made use of their democratic right to participate and vote. The very low turnout
(3.47% of voters), following the boycott by the Kosovo Serb community, showed that these
elections do not offer a long-term political solution for these municipalities. It remains
imperative to restore a situation where Kosovo Serbs participate actively in local governance,
policing and the judiciary in the north of Kosovo. Early local elections need to be held as soon
as possible in all four municipalities, organised in a fully inclusive manner, and with the
unconditional participation of Kosovo Serbs.
Due to the lack of decisive steps to de-escalate, and in line with the 3 June statement, the EU
is implementing a number of measures vis-à-vis Kosovo, which also impact financial support.
These measures are temporary and fully reversible, depending on the steps taken to de-escalate
the tensions in the north of Kosovo. Kosovo has taken steps in the right direction, but more
remains to be done.
On public administration reform, as last year’s recommendations have not been sufficiently
implemented. New legislation on public officials and salaries was approved by the Assembly
using fast-track procedures. The law on salaries is currently under review by the Constitutional
Court. The amended Law on public officials risks creating and exacerbating existing gaps in
administrative capacities.
Kosovo is still at an early stage in developing a well-functioning judicial system. There was
limited progress during the reporting period. The need remains to strengthen existing tools
safeguarding the integrity, accountability, independence and efficiency of the justice system.
The Minister of Justice and the heads of the main justice system institutions signed a Joint
Commitment Statement and Action Plan on justice reforms. Quick follow-up is needed to
achieve tangible results.
Kosovo is in between an early stage and some level of preparation in the fight against
corruption. Limited progress was made during the reporting period, and corruption remains
an issue of concern. While last year the Assembly adopted significant anti-corruption
2
The EU and Western Balkan partners agreed in May 2023 to prolong beyond 2024 the Roadmap for a
comprehensive small arms and light weapons control in the Western Balkans.
5
legislation and the legal framework on criminal confiscation is advanced, a lot remains to be
done to implement the anti-corruption legislation. Despite improvement in the performance of
the Agency for Prevention of Corruption, the anti-corruption preventive tools laid down in the
legislation are not yet fully used. Kosovo should step up efforts to have more proactive
investigations, final court decisions and final confiscation of assets.
Kosovo is at an early stage in the fight against organised crime. Limited progress was made
on the investigation and prosecution of organised crime cases. Kosovo adopted a new police
organisational structure and upgraded intelligence and analysis capacities. Law enforcement
operations against organised crime continued. Despite this, the powerful tools envisaged by the
Criminal Code and the Law on extended powers of confiscation are yet to be fully utilised.
Fighting organised crime in the north of Kosovo continues to be challenging.
Kosovo remained active in the fight against terrorism and the fight against and prevention of
violent extremism. The legal framework on anti-terrorism is partly aligned with the EU acquis
and international standards. The Law on combating money laundering and the financing of
terrorism is yet to be amended. The authorities need to be more effective in their efforts to
combat money laundering.
The legal framework broadly guarantees the protection of human and fundamental rights in
line with European standards. While the capacity to monitor implementation of policies and
legislation has improved, further efforts are required to effectively enforce fundamental rights.
More human and financial resources should be allocated to relevant institutions. Efforts
continued to improve gender equality but Kosovo needs to further strengthen implementation
of legislation.
Kosovo has a well-established legal framework for the protection of non-majority community
rights. However, further action is needed on long-standing issues such as lack of equal access
to education and employment, lack of language compliance, and low representation in public
institutions, including for the Roma and Ashkali communities3
.
Kosovo has some level of preparation as regards freedom of expression. Limited progress was
made in addressing the recommendations of the previous report. Concerns remain regarding
physical attacks and threats, public smear campaigns and hate speech. The lack of freedom of
expression in the north of Kosovo is particularly concerning.
The Kosovo authorities continued to make progress in managing migration and have engaged
with the EU on the implementation of the EU Action Plan on Western Balkans presented in
December 2022 by the Commission. Accommodation capacity was increased. Steps should be
undertaken to further align legislation, including the Law on foreigners, with the EU acquis
and international standards.
As regards the economic criteria, Kosovo has made some progress and is between an early
stage and some level of preparation of developing a functioning market economy. Kosovo’s
economic rebound moderated significantly in 2022. This was mainly due to decreasing
investment and slowing household consumption growth on the back of high inflation,
especially after the start of Russia’s war of aggression against Ukraine. Despite the resilience
the economy has demonstrated during the recent crises, the private sector continues to be
hindered by long-standing structural challenges such as a widespread informal economy, a high
prevalence of corruption and the overall weak rule of law. High revenue growth due to rising
prices and increasing numbers of people in formal work, and a significant under-execution of
3
In line with the terminology of European institutions the umbrella term ‘Roma’ is used here to refer to a
number of different groups, without denying the specificities of these groups.
6
public capital spending led to an almost balanced budget in 2022, while the public debt ratio
also fell. Inflation surged to double digits due to rising energy, food and transport prices,
leading to an increase in the current account deficit. The financial sector remained well
capitalised and stable and bank lending continued to expand.
Kosovo has made limited progress and is at an early stage in terms of its capacity to cope with
competitive pressure and market forces in the EU. The education system does not sufficiently
teach the necessary key skills and is not adequately aligned with labour market needs. Kosovo
made efforts in improving road infrastructure and increasing investment in renewables, but the
coal-based, outdated and unreliable energy supply remains a concern. Kosovo made some
progress on the digitalisation of the economy.
Limited progress was made during the reporting period in the areas of public procurement and
financial control. On statistics, there was some progress.
As regards good neighbourly relations and regional cooperation, Kosovo continued to
participate in most regional forums. 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, as the country does not recognise Kosovo’s independence.
Georgia, Moldova and Ukraine have no formal relations with Kosovo, as they do not recognise
Kosovo’s independence.
On alignment with European standards, Kosovo made some progress in cluster 2,internal
market with regards to free movement of goods, freedom to provide services, free movement
of capitals and intellectual property law. It made limited progress in the area of freedom of
movement for workers, company law, competition policy, financial services and consumer and
health protection.
In cluster 3, competitiveness and inclusive growth, Kosovo made some progress in most
areas (customs, taxation, social policy and employment, education and culture), except for
digital transformation and media where progress was limited.
In policy areas related to cluster 4, the Green Agenda and sustainable connectivity, Kosovo
made some progress in the energy sector (including by adopting an energy strategy for 2022-
2031). On transport, environment and climate change, it made only limited progress.
In cluster 5, resources and agriculture, Kosovo made limited progress on agriculture and
some progress on food safety, veterinary and phytosanitary policy. On fisheries, it made no
progress.
Concerning external relations, limited progress was made during the reporting period. Kosovo
made progress with implementing the Common Regional Market action plan, notably by
ratifying the three ‘Berlin process agreements’ on free movement and mutual recognition of
qualifications. However, the government continues to block decision-making mechanisms
within CEFTA due to disagreements over Kosovo’s representation. Kosovo has not yet ratified
the CEFTA additional protocols on trade facilitation and trade in services. Additionally, by
imposing a ‘temporary operational security measure’ in June 2023 blocking the entry into
Kosovo of Serbian goods and postal parcels, Kosovo appears not to be in compliance with its
commitments under CEFTA. The measure also goes against the spirit of the Stabilisation and
Association Agreement.
Overall, Kosovo needs to improve its administrative capacity and coordination across all
sectors to achieve effective implementation of the EU acquis.
7
2. THE FUNDAMENTALS OF THE ACCESSION PROCESS
2.1. FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM
2.1.1 Democracy
The government led by Vetëvendosje continued to hold a solid majority in the Assembly and
to push ahead with its ambitious EU reform agenda.
Kosovo’s overall political stability provided the government with an opportunity to implement
EU-related reforms and to adopt overdue legislation. However, the continued lack of cross-
party cooperation and disagreements within the majority proved a challenge to reforms. Despite
this, the reporting period witnessed important legislative achievements. The majority agreed
with the opposition to establish two ad hoc committees in the Assembly, including on electoral
reform. Some 104 pieces of legislation had been adopted as of June 2023; many of these
advanced EU integration priorities.
Opposition parties supported key EU-related laws on some occasions. However, deep
disagreements between majority and opposition remain. The Assembly often failed to vote on
legislative proposals due to a lack of decision-making quorum, despite the government holding
a majority in the Assembly. The Assembly’s committee meetings, presidency sessions and
plenaries continued to suffer from frequent boycotts and lack of quorum.
Female participation at all levels of local governance and decision-making in institutions and
political parties has improved, yet remains low. Kosovo should further implement the Law on
Gender Equality, which calls for gender parity in public life.
Elections
Kosovo made important progress with electoral reform, as it adopted the Law on financing of
political parties and the Law on general elections. The new legal framework addresses long-
standing recommendations of successive EU Election Observation Missions. A new law on
the Independent Media Commission still needs to be adopted. The Central Election
Commission (CEC) needs to implement the new legal framework well in advance of the next
general election. The CEC needs more financial and human resources to be able to carry on
the additional tasks deriving from new legal framework.
Following the withdrawal of Kosovo Serbs from Kosovo institutions in November 2022, local
by-elections were organised in the four municipalities in the north of Kosovo. Scheduled
initially for December 2022 and then postponed to 23 April 2023, these mayoral and municipal
by-elections were held in line with the legal framework of Kosovo and efforts were made for
them to take place in a smooth and orderly manner. However, due to the very low turnout
(3.47% of voters), in particular by Kosovo Serb citizens, these elections do not offer a long-
term political solution for these municipalities. Early local elections need to be held as soon as
possible in all four municipalities, organised in a fully inclusive manner, and with the
unconditional participation of Kosovo Serbs.
Kosovo made important progress on addressing long-standing recommendations of successive
EU Election Observation Missions (EU EOMs). The Assembly’s ad hoc committee on
electoral reform was established on 1 July 2022 and successfully completed its work on 5 April
2023. The Committee, chaired by the biggest opposition party (PDK), in cooperation with the
CEC and other stakeholders, addressed most of the EU EOMs’ recommendations and managed
to present a consensual Law on general elections. It provides an adequate basis for the conduct
of democratic elections, in line with international and regional standards. It introduces
important improvements in several parts of the process, including in relation to suffrage rights,
8
voters’ lists, registration of political parties, independence of the CEC, campaign regulations,
polling and counting, electoral dispute resolution system and provides additional budget for
political parties that exceed the 30% of women quota.
In parallel, the CEC updated electoral rules. However, these will need to be aligned further
with the new Law on general elections. In August 2022, the Assembly adopted the new Law
on political party financing, which established a new Office for Registration, Certification and
Financial Control of Political Entities. In December 2022, the CEC recruited its director within
the legal timelines laid down in the new law.
Following the mass resignation of Kosovo Serbs from Kosovo institutions in November 2022,
local by-elections were organised in the four municipalities in the north. On 10 November
2022, the President of Kosovo set 18 December as the date for extraordinary mayoral elections
in North Mitrovica, Zvecan, Leposavic and Zubin Potok, and 25 December 2022 as the date
for by-elections for the Municipal Assemblies of Zvecan and Leposavic. As in December, the
security situation in the north of Kosovo deteriorated and groups of Kosovo Serbs blocked
CEC staff from entering the two Municipal Election Committee offices. As a result, the
President postponed the elections until 23 April 2023, a decision welcomed by the EU as it
advanced efforts to promote a more secure situation in the north of Kosovo.
The elections were held on 23 April in line with the legal framework of Kosovo and efforts
had been made for them to take place in a smooth and orderly manner. However, despite the
agreement on the Implementation Annex of the Agreement on the Path to Normalisation
reached in Ohrid on 18 March 2023, and Kosovo extending the deadline for the registration of
candidatures for the local by-elections, not all parties and communities made use of their
democratic right to participate and only 3.47% of voters cast their ballot. Kosovo Serb political
parties did not participate and Srpska Lista called for voters not to turn up, with the result that
the Kosovo Serb community largely boycotted the elections. Out of the 45 095 voters, only
1 567 cast their ballot. While Kosovo’s legislation does not stipulate a threshold for voter
participation, the very low turnout, in particular among Kosovo Serbs, clearly indicates that
the elections do not offer a long-term political solution for these municipalities. Early local
elections need to be held as soon as possible in all four municipalities, organised in a fully
inclusive manner, and with the unconditional participation of Kosovo Serbs.
Parliament
During the reporting period, the Assembly’s work continued to be hampered by the lack of a
decision-making quorum and limited efforts to build cross-party consensus. The Assembly was
not able to adopt laws and to make necessary appointments to public bodies for long periods
of time. The boycott by Srpska Lista MPs made adopting laws in the category of vital
legislation impossible. The lack of political consensus for some of the key reforms and
legislative processes continued. The Assembly needs to introduce measures and/or penalties to
ensure it can perform its role. To that end, it would also need to improve its internal
management, adopt an annual work plan, and introduce an electronic voting system and
electronic presence recording system. In addition to its legislative function, the Assembly needs
to strengthen its oversight function. On 8 June 2023, the Assembly adopted the new Law on
general elections. It also achieved cross-party consensus with the swift adoption of the three
Berlin Process agreements on freedom of movement. The Assembly continued using fast-
track/accelerated procedures for the adoption of key legislation. The number of women MPs
remains the same, although for the first time women lead more than half of the Assembly
committees.
Discussions between the ruling majority and opposition in the Assembly were polarised and at
9
times tense. Some MPs used inflammatory language against political opponents, including
stereotyping and non-sensitive gender language.
The Assembly did not reach consensus on many issues, including on energy policy, salary
increases in the public sector, strikes in the education sector, security strategy and economic
policy. While the Assembly remains the main forum for political dialogue between political
parties and non-majority representatives, limited efforts are made to build consensus on issues
of general interest. The political debate should be directed towards substantial discussions that
lead to consensual and sustainable results. The lack of decision-making quorum, despite the
government having a majority in the Assembly, led to a backlog of items on the agenda and
parliamentary sessions dragging on for months, causing delays in adopting EU-related reforms
and in making appointments. Absenteeism, late arrival and early departure from plenary
sessions and committee meetings have become common practice. The new Rules of Procedure
lack measures to impose, financial (or other) penalties for unjustified absence from
parliamentary proceedings.
On 7 November 2022, 10 Srpska Lista MPs resigned from the Assembly as part of the
collective withdrawal of Kosovo Serbs from Kosovo institutions. On 17 November, candidates
next in line took over their mandate. Nine new Srpska Lista MPs, one member of the Kosovo
Serb opposition Civic Initiative ‘Freedom, Justice, Survival’ (SPO) and two Gorani and Roma
MPs attended the plenary session of 6 April 2023 in order to secure the continuation of their
mandates, only to continue their boycott of plenary sessions afterwards. The lack of discipline
and a loose interpretation of parliamentary responsibilities have become a growing obstacle to
the functioning of the Assembly and its bodies.
During the reporting period, the Assembly adopted 104 laws, out of which 25 ratifications of
international agreements. Out of the 104 adopted laws, 21 were adopted using a fast-track
procedure. This included essential laws such as the Law on the 2023 budget, the Law on public
officials and the Law on salaries. There were no efforts to build consensus on key pieces of
legislation, and opposition parties have referred a number of them to the Constitutional Court.
On 23 February 2023, the Assembly promptly adopted three international agreements reached
in the Berlin Process. These enable free movement with identity cards and recognition of higher
education qualifications and professional qualifications in the Western Balkans.
The Assembly did not manage to make timely appointments in most of the key independent
bodies. As a result, there are several vacant posts in various institutions, and the Assembly has
continued to postpone voting on appointments.
The Assembly needs to strengthen its oversight function of the executive and of independent
institutions. The new Rules of Procedure include advanced reporting procedures for handling
annual reports of independent institutions, but this has not resulted in the timely review of these
reports. Most of the 2021 annual reports of the independent institutions were reviewed in the
first months of the 2023 spring session and often without substantial debate.
The Assembly made limited efforts to address the lack of qualified staff, in particular regarding
specialised legal and gender issues. It remains dependent on external experts and international
donor support.
Governance
Kosovo made progress in implementing EU-related reforms: Kosovo adopted the National
Programme for EU integration and continued to implement the European Reform Agenda
(ERA) II action plan. In December 2022, Kosovo submitted an application for EU membership.
To pursue EU-related reforms in a more efficient and sustainable way, it is essential that the
10
government ensures cross-party support, increases coordination across departments, and
decentralises decision-making to line ministries to implement policies under their
responsibility.
On 31 March 2023, the government approved the revised 2023-2027 National Programme
for EU Integration, further endorsed by the Assembly on 15 June 2023. Kosovo continued to
implement the ERA II Action Plan.
Although the interinstitutional coordination structures for European integration are in place,
weak administrative capacity affected the EU reform agenda and integration activities. The
number of key positions in the public sector functioning with staff in an acting capacity is
concerning. The other challenge is the lack of a permanent inter-ministerial coordination body
at expert level. This results in limited political ownership of the EU agenda in line ministries
and a lack of prioritisation and sequencing of reforms. More efforts are needed to increase trust
and to strengthen coordination between the political and technical levels.
As regards local government, disparities remain between municipalities in their performance
and service delivery. With the increase of the overall budget for 2023, the general grant for
municipalities expanded by 15% (EUR 100 million). However, municipalities led by mayors
from opposition parties have raised concerns that the line ministries’ capital investment funds
are not always allocated according to objective criteria. In July 2022, the Assembly adopted
the Law on the Municipal Performance Management System, an important instrument to
promote competitiveness among the municipalities in delivering quality services and to
incentivise transparency. Effective oversight of municipal legislative bodies over the municipal
executive bodies remains a challenge. Communication and cooperation between the
government and the municipalities needs improvement. On audit practices, progress was made
towards more effective oversight and transparent governance. Municipalities do not
sufficiently use the existing inter-municipal cooperation mechanisms.
Women’s representation in senior government positions increased but remains unequal. They
remain under-represented in local decision-making bodies Affirmative measures are needed to
ensure equal representation of women and men in the local executive. Three political parties
(Vetëvendosje, PDK and LDK) have undertaken measures to increase women’s participation
in their parties.
Civil society
In general, civil society operates in an enabling environment. Civil society continues to
actively participate in public consultations and contributes to policy-making and monitoring
processes. Efforts by public authorities to involve the public in decision-making processes are
welcomed and should be further increased. The government should ensure that each public
consultation process fulfills the minimum standards, principles and procedures set by the
relevant regulation. Efforts to increase the transparency and accountability of public funding
to civil society organisations should be sustained.
An empowered civil society is a key component of any democratic system and continues to be
recognised as such by public institutions. Civil society remains an important partner in the
framework of Kosovo’s preparation for EU accession, as it contributes to the design,
implementation and monitoring of EU-related reforms, and participates in the Stabilisation and
Association policy dialogue platforms. Its role in promoting social change, building trust and
promoting multistakeholder cooperation is widely recognised. Civil society also plays a critical
role in advocating for the rights of persons with disabilities, gender equality, and the rights of
persons belonging to non-majority communities.
11
The Council for Government-Civil Society Cooperation has not met since 2022 (when it
endorsed its new Rules of Procedure). Besides some progress on the public consultation process,
there were no significant developments on implementing the 2019-2023 strategy for cooperation
with civil society.
The government has made some efforts to involve civil society in decision-making. In 2022, the
online platform for public consultations was upgraded with features facilitating the participation
of persons with disabilities. Most legislative acts approved by the government were submitted
to public consultation. Civil society organisations (CSOs), interested parties and the public
engaged almost four times more often in public consultations at the central level than in 2021.
At the same time, the implementation of some standards, principles and procedures specified in
the Minimum Standards for Public Consultation continued to lag behind. Public consultations
are generally carried out at central level, in writing and electronically through the online
platform. It is recommended to increase the use of other forms of public consultation. Local
administrations do not use those mechanisms sufficiently.
The implementation of the Regulation on public funding for NGOs is gradually improving.
Despite being included in the legislative agenda of 2022, the amendments to the Regulation were
not initiated. The online platform was upgraded with data visualisation based on providers,
beneficiaries and territory of implementation, and is now linked with the Platform of Donors’
Support to Civil Society. Kosovo would benefit from increased transparency and accountability
on public funding for NGOs. More efforts are needed to update the CSO registry and to ensure
that Kosovo’s electronic system of non-governmental organisations is fully reliable.
In 2022, the government initiated the sectoral terrorist financing risk assessment process on non-
profit organisations, involving civil society. This work should feed into the review of the Law
on the prevention of money laundering and terrorist financing. The aim is to remove unnecessary
reporting burdens on CSOs, alleviate excessive control measures on low-risk CSOs, lift
limitations on cash donations, and remove barriers to access banking or financial services. The
tax regime for CSOs is considered to partially meet relevant standards according to the EU’s
Technical Assistance to Civil Society Organisations (TACSO) 2021 baseline assessment.
The environment for volunteering needs to be improved, including by putting in place an
appropriate legislative framework, aligned with international standards and by allocating
financial and human resources for youth volunteering programmes.
2.1.2 Public administration reform
Kosovo has some level of preparation and made no progress with regard to public
administration reform during the reporting period. Oversight of the implementation of the
legislative framework for public administration reform (PAR) across line ministries is still
ineffective. This is despite the adoption of a new strategic framework for both PAR and public
finance management. New legislation on public officials and salaries was approved by the
Assembly using fast track procedures. Both laws were sent for review to the Constitutional
Court which ruled some articles of the Law on Public Officials unconstitutional. The amended
Law on Public Officials risks creating and exacerbating existing gaps in administrative
capacities. Some progress was made with harmonising sectoral laws with the Law on general
administrative procedures and in digitalising public services. However, the overall pace of
public administration reforms remained insufficient to deliver tangible results in the reporting
period.
As last year’s recommendations have not been sufficiently implemented, they remain broadly
valid. In the coming year, Kosovo should:
12
→ improve the functioning and accountability of the public administration, including through
rationalising agencies and introducing performance management in agencies; to that end,
strengthen administrative capacities, fill open vacancies regularly and in line with the
principle of merit-based recruitments, and amend the new Law on public officials in line
with the principles of a modern public administration;
→ ensure efficient functioning of the new remuneration system by implementing the Law on
organisation and functioning of the state administration and independent agencies and to
finalise the processes of: (i) regulating the internal organisations of public bodies, (ii) job
classification; and (iii) systematising positions at central level according to job
descriptions;
→ improve legal certainty, reduce the administrative burdens and increase the number of e-
services in the public administration for businesses and the public.
Strategic framework for public administration reform
During the past year, Kosovo consolidated the strategic framework for PAR by adopting a new
PAR strategy (2022-2027) and an action plan for its implementation. The Ministerial Council
on PAR, which is the main oversight and coordination mechanism on public administration
reform at political level, generally meets only once a year to approve the annual reports under
the PAR strategic framework. This mechanism is ineffective in ensuring coordination among
key bodies to steer the PAR process. The Ministry of Internal Affairs (MIA) leads reforms at
the technical level. However, both the MIA and line ministries have limited capacities to
effectively supervise, analyse data in an evidence-based manner, and manage the reform
processes. The 2022 monitoring report on PAR implementation was adopted. The internet-
based platform for monitoring PAR has been built and tested but is not yet functioning
efficiently.
Policy development and coordination
On the policy-making system, the government adopted the national development strategy and
-plan 2023-2029 (NDS/NDP), which sets both long-term and short-term priorities, covering
activities on a three-year rolling basis. There are no clear links between the NDP/NDS and the
sector strategies and their respective action plans, or with the medium-term expenditure
framework. The Strategic Planning Office (SPO) is responsible for planning, monitoring, and
reporting on the strategies as well as ex ante impact assessment. The SPO’s capacities need to
be further strengthened.
Kosovo has made limited progress on gender-mainstreaming, as well as on inclusive and
evidence-based policy development. The government’s Rules of Procedures are still under
consultation. Procedures on regulatory impact assessments are in place; however,
implementation remains weak. Public institutions should foster inclusive participation. Despite
the fact that almost all primary draft laws and policy documents are regularly published on the
government web portal, public consultations and public inclusion in reform agendas remains
limited and should be improved. The involvement of civil society, stakeholders and the public
in the government’s policy and legislative development processes remains limited.
Public financial management
A new public finance management (PFM) strategy (2022-2026) was adopted in December
2022. The 2022 monitoring report on PFM was adopted in July 2023. The concept document
of the new law on PFM and accountability has been approved and legislative preparatory work
is ongoing. The new law should foresee a better linkage between the policy planning and
budgeting process in the annual and medium-term. A first step was the integration of medium-
13
term policy priorities in the medium-term expenditure framework adopted in April 2023. In
general, Kosovo’s budget classification system for public finances remains consistent with
international standards.
Fiscal risks contained in contingent liabilities, at both central and local levels, are still a
weakness, and these risks are not identified in a systematic way. Kosovo needs to advance its
planning and spending of capital expenditure by improving execution of multi-year public
investments through a transparent appraisal of costs and benefits as a basis for investment
decisions. Better linkage between the public investment programme and the Kosovo Financial
Management Information System should be ensured, as well as further strengthening of the
credibility and accuracy of medium-term budget revenue and expenditure plans. Budget
systems should include objectives towards gender equality and gender-disaggregated data
indicators with specific targets.
On public procurement, contract management and commitment controls remain weak. The
government’s electronic procurement platform is still not connected to the financial
management information system in the Treasury. On budget transparency, citizen-friendly
budgets and budget implementation reports are regularly published (See chapters on public
procurement, taxation, customs and financial control).
The public service and human-resource management
The Law on public officials from 2020 provides for merit-based recruitment, promotion and
dismissal, but has not been effectively implemented. In particular, a centralised system for
merit-based recruitment for the professional category is lacking. In addition, the public sector
has not managed to fill open vacancies effectively or in a timely manner, resulting in major
weaknesses in administrative capacity. Extensive use of acting positions in the civil service,
especially at senior managerial levels, as well as ineffective external recruitment procedures
for senior management have instead undermined the quality of management in the institutions.
The Law on public officials was amended at the end of 2022, introducing substantive systemic
changes. The revised law was consequently suspended pending review by the Constitutional
Court which found some of the provisions unconstitutional. There are other amendments,
which, if implemented, would risk further weakening the administrative capacities of the civil
service. Particularly the proposed introduction of fixed-term mandates at all managerial levels
potentially puts the stability and professionalisation of the civil service at risk.
Women remain under-represented at senior level positions in the civil. Measures need to be
adopted to increase the number of women in senior positions in line with the Law on gender
equality.
The capacity of the MIA to manage the implementation of a human-resources-management
policy throughout the public administration has not increased. The Department for the
Management of Public Officials (DMPO), together with the human-resources-management
units of institutions, should: (i) improve their coordination; (ii) provide regular training; (iii)
promote the transfer knowledge; and (iv) disseminate/promote methodological tools. The data
collection system through the internal human resource management (HRM) information
system covers modules on civil servants categories, recruitment, remuneration, and promotion.
However, this tool is not effectively used by the civil service to monitor HRM performance
and the system needs further update and improvement. Transparency on HRM needs to be
improved, although the public can have some information through a dedicated website for
applications and appointments. Advancement in finalising the regulations on internal
organisations for state institutions - including ministries- and alignment with the Law on
14
organisation and functioning of state administration and independent agencies (LOFSAIA) has
been slow. This has further weakened human resource management and planning.
The Independent Oversight Board for the Civil Service is effectively exercising its mandate on
ruling on appeals and monitoring the implementation of the legislation regarding the civil
service. The planned amendments to the law governing the board curtail some of the Board’s
powers to review and decide on appeals and do not ensure compliance with all rules and
principles governing the civil service.
A new Law on salaries helped to lay down a clearer and more transparent remuneration
framework for all public employees. However, the Law is currently under review by the
Constitutional Court. Some salary levels are not based on a thorough assessment of the job
requirements due to delays in finalising the job classification and streamlining positions
according to job categories. As a result, without the right conditions on human resource
management, the new law, even if implemented, risks not to ensure a fair remuneration system.
There is no systematic approach to the professional development of civil servants. Training
at both central and local levels largely depends on donor support. Despite practical guidelines
for appraising the performance of civil servants and training delivered to DMPO and HRM
units, the system for managing performance remains ineffective. A mandatory training
programme stipulated by the Law on public officials for all civil servants was developed in
2022, but has still not been implemented.
Integrity in the public service remains a challenge. Some institutions still lack integrity plans,
and the implementation of these plans is ineffective. The Law on conflict of interest and the
Law on protection of whistle-blowers should be applied in a coherent and efficient manner
throughout the public administration.
Accountability of the administration
Implementation of the LOFSAIA remains slow, with the MIA’s capacity to lead and steer the
implementation process still ineffective. There are no clear lines of managerial accountability
and no clear delegation of powers between ministries and sub-ordinated bodies. As a result,
there are many executive agencies subordinated to the Assembly or to line ministries but with
no clear reporting procedures in place. The Law on rationalisation and establishment of
accountability lines of independent agencies (first wave) and the Law on rationalisation and
establishment of accountability lines of executive agencies (second wave) were adopted. In
addition, the government has adopted a methodology for rationalising agencies, which should
support the accountability and supervision of bodies subordinated to the executive. The system
for managing the performance of agencies is not in place due to delayed finalisation of the
organisational set-up of line ministries.
Recommendations from oversight mechanisms are still poorly implemented. The availability
and provision of information and documents from public institutions remains a challenge. At
present the system for gaining access to this information and these documents does not work
well.
The legislative framework regulating access to administrative justice is being reviewed in line
with international practices, and access to justice continued to be inefficient due to delays in
processing cases by the basic court and the appeal court in Pristina. Fragmented legislation
affects the liability of public authorities in cases of wrongdoing and the right to seek
compensation.
Delivering services to businesses and the public
15
The programme to prevent and reduce administrative burden (2022-2027) is being
implemented. A list of public services at central and local level has been drawn up together
with analyses of how these services are to be digitalised. There has been some progress with
the Assembly adopting an omnibus law covering the harmonisation of sector-specific laws with
the Law on general administrative procedures. In addition, the government approved an action
plan to further harmonise and align sector-specific laws with the Law on General
Administrative Procedure.
The government’s e-Kosovo portal further improved the online delivery of services to the
public while including more services in the e-catalogue. However, data quality and reliability
on this portal remains a challenge. The management of the technical structures for e-
government is still dependent on donor support. In order to simplify and digitalise public
services, efficient e-government processes and systems must be set up to ensure consistency in
the design and maintenance of digital solutions, and to ensure the interoperability, safety and
security of these solutions. The draft e-government strategy is not adopted yet. As the reforms
in this area are general and touch on all areas of public administration, there is a need set up an
inter-institutional coordination mechanism under the leadership of the Office of the Prime
Minster.
2.2. RULE OF LAW AND FUNDAMENTAL RIGHTS
2.2.1. 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 in between an early stage and some level of preparation to apply the EU acquis
and European standards on the judiciary and fundamental rights. Limited progress was made
in this area. Some improvements were observed on the functioning of the judiciary, as well as
on investigation and prosecution in organised crime and high-level corruption cases. Further
efforts must be made to reinforce freedom of expression.
Functioning of the judiciary
Kosovo is at an early stage in developing a well-functioning judicial system. During the
reporting period, Kosovo made limited progress, despite an increase in the ratio of productive
court hearings, a faster pace in scheduling court hearings, and improvements in recruitment of
judges and prosecutors. The human resources situation and the organisation of the
administration across the judiciary remains affected by inefficiencies. The National Centralised
Criminal Records System was established and has been accessible online since December
2022, enabling the public to obtain certificates of criminal records online. The government
decision lowering the salaries of judges and prosecutors and the subsequent Law on salaries
raised concerns with regards to the independence of the judiciary. In March 2023, the Minister
of Justice and the heads of the main justice system institutions signed a joint commitment
statement on justice reforms, reflecting the most important reform issues that need to be
tackled. Swift follow-up is needed to achieve tangible results. In September 2022, the
government handed over the file related to integrity checks of judges and prosecutors to the
Assembly, which established an ad hoc committee to finalise the constitutional amendments
and the relevant legislation towards integrity checks of senior positions within the justice
system, in line with the Venice Commission Opinion of June 2022. Kosovo should ensure that
the Venice Commission is re-consulted throughout the process of finalising the draft
constitutional amendments and relevant legislation related to justice reform. It is crucial that
16
the justice reform focuses on strengthening the existing tools to safeguard the integrity,
accountability, independence and efficiency of the justice system, in line with the
recommendations of the Venice Commission Opinion and relevant European standards.
Kosovo should ensure that the guidance of the Venice Commission on the amendments to the
Law on the Kosovo Prosecutorial Council is duly incorporated in the new law. Efforts should
continue to fully use the Case Information Management System, further promote the alternative
dispute resolution tools, and ensure reliable statistical data. The Commission’s
recommendations from last year were only partially met and therefore remain valid. In the
coming year, Kosovo should in particular:
→ take immediate action to implement the obligations deriving from the joint commitment
statement signed by the heads of justice system institutions, with specific focus on
improving the integrity, accountability and efficiency of the judiciary;
→ step up efforts to reduce the backlog of cases, based on a clear action plan with audits and
internal control supported by a digitalisation strategy. To that end, Kosovo should reform
the court and prosecution administration, and strengthen management functions in the
judiciary and prosecution to ensure efficient use of resources;
→ improve the capacity of judges and prosecutors to handle cases of gender-based violence
in accordance with laws, the 2022-2026 strategy against domestic violence and violence
against women and the new State Protocol for the treatment of sexual violence cases.
Strategic documents
The rule of law strategy and action plan continue to be implemented at a slow pace. Nevertheless,
the April 2023 annual implementation report highlighted a number of positive developments,
including: the establishment of the Commercial Court; an increase in the recruitment of judges and
prosecutors; the advancement of the Case Management Information System in accordance with
European Commission for the Efficiency of Justice (CEPEJ) requirements; the automatic
assignment of cases to judges; and the strengthening of free legal aid. In terms of risks, the report
mentions the lack of prioritisation of the implementation of activities, and a lack of capacities,
budget and interinstitutional cooperation.
The Kosovo Prosecutorial Council (KPC) and Kosovo Judicial Council (KJC) regularly update
their strategic plans, setting objectives for the judicial and prosecutorial systems respectively.
Both Councils adopted annual action plans. During the previous reporting period, the KJC adopted
a strategic plan for the efficient solving of cases of corruption and organised crime, a
communication strategy for 2022-2024, and the strategic plan for access to justice for 2022-2025.
It also established a committee aimed at overseeing implementation of its strategy on corruption
cases. The KPC adopted the 2022-2024 strategic plan of the prosecutorial system. The
prosecutorial system requires urgent reform of its administration and management structure.
Kosovo should step up its efforts to ensure proper donor coordination regarding support for the
judicial and prosecutorial systems.
In March 2023, a joint commitment statement and an action plan on justice reforms was signed by
the Minister of Justice, the KJC, the KPC, the Supreme Court and the acting Chief State
Prosecutor. The action plan provides for a series of assessments and legislative revisions to
improve the systems of performance evaluation, disciplinary sanctions, recruitments and
appointments, integrity checks, status, professional development, and asset declarations. Working
groups have been established to cover each of these areas.
Management bodies
The KJC and KPC are the main bodies responsible for ensuring the independence and impartiality
17
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.
On 23 June 2022, the Assembly adopted amendments to the Law on the Kosovo Prosecutorial
Council, aiming to reduce corporatism by, for example, changing the composition of the Council
itself. The Venice Commission issued two opinions on the drafts, which the Assembly addressed
before adopting the amendments to the draft. A number of MPs submitted the adopted amendments
to the Constitutional Court for review in July 2022. On 24 March 2023, the Constitutional Court
announced a judgment declaring the amending law invalid in its entirety. The Court found that the
law infringed the KPC’s constitutional independence on several accounts, as well as the principles
of separation of powers and control and balance among constitutional bodies. Following the
judgment, the law is under revision. Kosovo should ensure that the guidance of the Venice
Commission on the amendments to the KPC Law is duly incorporated.
The appointment of the Chief State Prosecutor has been pending since April 2022 and is overdue.
The EU and other international actors, as well as civil society, publicly expressed disappointment
over the lack of fairness, transparency and merit principles in the selection process. The lengthy
proceedings have caused a state of uncertainty, which detracts from the functioning of the
institutions. The Assembly must increase efforts to ensure timely appointment of Council
members, as there are persistent delays. The Councils should make use of available statistics for
policy analysis and development.
The mass resignations of Kosovo Serb officials from public institutions in November 2022
included the resignations of Kosovo Serb judges, prosecutors and administrative staff working in
the north of Kosovo. The KJC and KPC decided to postpone any decision on such resignations,
pending other developments. At the same time, both Councils arranged to ensure that cases are
processed, especially those requiring urgent action. Kosovo must consistently ensure that judicial
proceedings are accessible in all official languages, as required in the Constitution. Additional
court translators have been recruited, and the KJC is in the process of developing a platform to
centralise translations in courts. However, more efforts are necessary to address the shortage of
qualified translators, also with an aim to reducing 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 challenging.
Independence and impartiality
The Constitution and the applicable legal framework outline the principles of independence and
impartiality. Consistent efforts are necessary to ensure respect of these principles in practice, and
to effectively shield the judicial system from undue pressure and interference. The Councils should
ensure prompt reaction in all cases of alleged undue interference. The government decision of
November 2022 reducing the salaries of judges and prosecutors and the Law on salaries, with a
similar effect, raised concerns about the judiciary’s independence.
The regulatory framework provides for the random allocation of most cases through a case
management information system, except for the cases of the newly established Commercial Court,
which are not yet included. In practice, improvement has been noted. However, a number of cases
remain manually assigned, creating concerns. This happens especially when a judge is unavailable
or when there is a change of court jurisdiction. Court presidents need to follow the rule that any
deviation from the random allocation of cases needs to be explicitly justified and transparently
documented. The timely handling of several high-profile and sensitive cases remains a challenge.
This is due to recourse to long adjournments, inadequate mechanisms to avoid excessive duration
of cases, lack of effective remedy when trials’ duration goes beyond a reasonable time, and
insufficient management of cases.
18
During the reporting period, three prosecutors and one judge requested close protection from the
police. Following the risk assessment, only one prosecutor was granted protection.
Accountability
While codes of ethics for judges, prosecutors and attorneys are in place, authorities must
continuously ensure their effective implementation. Professional ethics is part of the initial training
programme for judges, prosecutors and support staff.
The KJC established an Advisory Committee on Judicial Ethics and adopted a regulation on
disciplinary proceedings against KJC Members. Both Councils continue to conduct disciplinary
procedures against judges and prosecutors. The Councils should ensure strict and efficient
proceedings in full compliance with the applicable legislation and the necessary procedural
safeguards. While efforts are being undertaken, more is needed to ensure consistent and effective
application of disciplinary proceedings against judges and prosecutors. For example, the KPC and
KJC’s communication strategy on proceedings should be further improved, training should be
reinforced and the Law on disciplinary liabilities should be amended, to enable further
specialisation of the investigation bodies. During the reporting period, the KJC established an
electronic database to register all complaints and requests for initiation of disciplinary
investigations as required by law.
By law, judges and prosecutors are obliged to declare their assets and gifts received, and to report
any possible conflict of interest to the Agency for Prevention of Corruption. In 2022, all judges
and prosecutors submitted the annual asset declarations on time (see fight against corruption).
Following the Venice Commission’s June 2022 Opinion on the Concept Document on
Development of the vetting process within the justice system of Kosovo, in September 2022 the
government handed over to the Assembly responsibility for leading the process and the related
file. The file contains, among others, draft constitutional amendments and a draft law on integrity
checks. In December 2022, the Assembly established an ad hoc committee which finalised the
constitutional amendments. Representatives of Srpska Lista do not take part in this committee, as
they continue to boycott the Assembly’s work. In March, the Speaker of the Assembly submitted
the constitutional amendments to the Constitutional Court for review. Kosovo should fully align
with the Venice Commission recommendations, including on the need to explore further
alternative measures instead of a large-scale vetting. These should include, through legislative
changes, the establishment of ‘verification units’ within the Councils, making more active use of
judges’ and prosecutors’ asset declarations, ensuring that proper checks are made and that
irregularities in asset declarations eventually trigger meaningful disciplinary actions. Integrity
checks for high-level judicial institutions (in particular the Councils) could also be established.
These are examples of possible measures that could effectively strengthen independence and
accountability of the judicial system through targeted legislative changes. Kosovo should continue
the dialogue on the next stages of the envisaged justice reform, both with the Venice Commission
(including re-consulting on any constitutional and legislative changes regarding integrity checks),
and with the European Commission. Consultations with all relevant internal stakeholders should
also continue. Finally, any reform aimed at improving the quality and independence of the system
should include mitigating measures to prevent any deterioration of efficiency across the judicial
system.
Professionalism and competence
The Councils independently organise recruitment procedures for judges and prosecutors,
based on merit-based criteria. Successful candidates are appointed by the President of the Republic
for an initial three-year term, based on the proposals of the Councils. During the reporting period,
the KJC initiated the recruitment process for 84 judges, including 12 positions for the Kosovo Serb
19
community. The President decreed 77 judges, out of which 3 are Kosovo Serb and 2 are Bosnian.
Out of the reserved positions for the Serbian community, 5 positions remain unfilled. In June 2023,
the President appointed the President of the Supreme Court. The KJC recruited a significant
number of legal associates to support the work in the Basic Courts and certified 1 401 judicial
experts. Any initiative in this regard should be properly coordinated among the relevant
institutions. During the reporting period, the KPC initiated 2 recruitment processes for new
prosecutors, which resulted in 29 candidates being appointed by the President. The general process
of appointment and reappointment of judges and prosecutors after their initial term of office should
fully respect the constitutional principles of the independent functioning of the judiciary and
prosecution system.
The Councils are required to carry out performance evaluations of prosecutors and judges with
a permanent mandate every 3 years. Both Councils have made efforts to regulate the performance
evaluation process over the years. Despite this, issues remain, including the need to improve the
regulatory framework’s implementation and to increase managerial accountability. Further actions
are needed to address poor performance by judges and prosecutors. Both Councils must ensure
rightful and objective performance evaluations based on clear criteria.
A number of cases of femicide raised questions about the role of judges and prosecutors in the
handling of cases of domestic violence and gender-based violence. As accusations of failing to
protect victims and of justice actors’ lack of accountability were widespread, the Ministry of
Justice proposed changes to the Criminal Code and Criminal Procedure Code. These changes,
however, need to ensure proper safeguards for those suspected or convicted of committing
domestic violence and gender-based violence offences. The handling, prosecution and
adjudication of cases is still inappropriate. Specialised prosecutors and judges have been
appointed, but human resource shortages slow prioritisation. The duration of cases from when they
are committed to when a verdict is reached is still long. In addition, victims are often not
represented. Judges and prosecutors need further training to understand their role and assume
responsibilities. In a landmark decision, in March 2023 the Constitutional Court confirmed the
failure of state institutions to protect a victim of domestic violence.
Quality of justice
The Academy of Justice is responsible for delivering initial and in-service training for all legal
professionals. The Academy’s budget is insufficient, which affects the quality of human resources
management and the quality of training. The total budget allocated to training initiatives at the
Academy in 2022 amounted to EUR 687 156 (the budget per inhabitant was EUR 0.39, increasing
from EUR 0.30 in 2020). The law on the Academy was amended in 2022, addressing the issue of
independence and supervision of the Academy. Further in-service training is needed on ethics and
integrity and professional skills, in particular in management, ICT/administration and the analysis
of jurisprudence/case-law. 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, continued to be
a matter of concern, despite efforts to increase the available training.
On jurisprudence, Kosovo made further progress on the legal obligation for all courts to publish
their judgments on an accessible and searchable web portal within 60 days. While there have been
improvements in the publication of judgments, timely and consistent publication will need
improved audit and internal control. In addition, although the Albanian-language versions are
published, not all courts respect the requirement of the Law on languages to publish them in both
official languages. The KJC has approved the publication of decisions of court presidents
regarding complaints against judges by members of the public, as well as publication of the regular
20
reports on the work of judges. The prosecution offices publish relevant information on 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.
In 2022, Kosovo had 443 full-time judge positions (155 women and 288 men), 24.4 per 100 000
inhabitants and 198 full-time prosecutor positions (82 women and 116 men), 10.9 per 100 000
inhabitants. According to the European Commission for the Efficiency of Justice (CEPEJ), the
European averages are 22.2 judges and 11.8 prosecutors per 100 000 inhabitants. Kosovo still has
a low percentage of female judges and prosecutors in comparison with most other European
countries. The Commercial Court, functional as of August 2022, has now 18 appointed judges, as
planned in total. In July 2022, 6 754 cases were transferred to the chambers of first instance of the
Commercial Court and 1 342 cases to the chamber of second instance.
The number of professional associates in all Kosovo courts increased significantly in 2022,
including a high number of female associates. The number of legal and administrative staff directly
assisting judges and prosecutors remains a challenge in terms of efficiency and quality of staff and
of human resources management. Human resources planning and management need to focus on
the quality of legal and administrative staff rather than sheer numbers. A number of vacancies
remain unfulfilled, as the Assembly did not approve the full request of the judiciary’s budget for
2023.
The budget approved for the judiciary for 2022 was about EUR 48.9 million (an increase of
15.6% from 2021), equivalent to EUR 27 per inhabitant. An additional EUR 17.9 million were
allocated to the probation and correctional services.
For e-justice tools, the Court Management Information System (CMIS) is implemented in almost
all courts, including the Supreme Court, resulting in improved efficiency, accountability and
transparency. In the recently established Commercial Court it is not yet in place4
. Some courts still
apply a manual registry of cases, although only for internal purposes and not as a parallel case
registration system. Manual registration books are no longer allocated and will eventually be
eliminated. The CMIS is planned to remain in a transition phase until May 2025, the ultimate aim
being to ensure the system’s optimal usage in all courts and prosecution offices. The KJC is in the
process of developing an electronic file system for judges.
For the prosecution, implementing the CMIS remains a challenge. While formally all Basic
Prosecution Offices are using the system, certain cases are still handled manually. Based on a
decision of March 2023, the KPC introduced a new ICT/administration methodology to eliminate
the manual handling of cases. Consistent use of the system should be encouraged by the
management to ensure that the system is applied systematically and that the data entered is
accurate. This is of particular importance in ensuring the reliability of the statistical data obtained
automatically on the performance of the judiciary and prosecution (in line with CEPEJ
recommendations and methodology). Administrative staff need further training to ensure
consistent use and accuracy of data.
As a positive step, the National Centralised Criminal Records System (NCCR) was established
and is accessible online since December 2022, enabling the public to apply and obtain certificates
of criminal records online. However, the KJC and the courts need to ensure the system’
sustainability, including the verification of data entered into the CMIS, so that only verified and
4
The CMIS is in use in the three tiers of the court system (Basic Court, Appellate Court and Supreme Court). One
of the system’s main features is the automatic assignment of cases to judges, based on predefined criteria approved
by the Kosovo Judicial Council on 29 January 2020. The KJC amended criteria and introduced new ones, which
have applied since 15 February 2023.
21
complete data about convictions is transferred to the NCCR. Once data quality is improved, the
two IT systems will become interoperable. While the Law on NCCR is still with the Assembly,
NCCR operates based on a regulation deriving from the Law on the Kosovo Judicial Council.
There is a tracking mechanism for high-level corruption and organised crime cases, which
currently includes 88 cases. (See section on the fight against corruption)
The mediation system is implemented by the KJC and KPC and has been operational since 2008.
There is still 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, but they struggle with proper budget allocation. In 2022, the Basic
Courts referred 5 887 cases to mediation and solved 2 426 cases, slightly lower than in 2021 (3 119
cases referred to mediation and 2 472 cases solved).
In 2022, the State Prosecutor and the prosecution offices solved 1 769 cases using alternative
procedures, a decrease compared to 2021 (2 153). The number of licensed mediators remained the
same, at 190 (67 women, 123 men), of whom 14 were from the Serb-majority municipalities. The
mediation system needs strengthening; this can be achieved through full implementation of the
Law on mediation and through the allocation of a sufficient budget. The Ministry of Justice has
adopted two administrative instructions to improve the liberal professions system and increase the
overall efficiency of the judicial system. The KJC published a protocol for referring appropriate
civil cases to mediation.
Efficiency
The efficiency of the judicial system slightly improved. In 2022, the courts of first instance for
civil/commercial, administrative and criminal cases received 63 229 new cases and the clearance
rate was 76.06% (up from 70% in 2021). During 2022, the Supreme Court received 1 425 new
cases, while the court solved 1 630 cases or 114% (99% in 2021). During 2022, the Court of
Appeals received 13 075 new cases and solved 11 588 cases or 88% (71% in 2021). Out of 220
cases filed at the Constitutional Court in 2022 and 145 cases carried over from the last 2 years, the
Court ruled in 184 cases. More challenging are the number of old cases (pending for over three
years). At the beginning of 2022, there were 49 110 such cases, while at the end of 2022 the number
stood at 58 240. As for the number of civil, commercial, administrative and other pending cases
(first instance), during 2022, 144 014 cases, or 8 cases per 100 inhabitants, remained unresolved
(up from 7 per 100 inhabitants in 2021). For the number of civil, commercial, administrative and
other pending cases in appeal per 100 inhabitants, there were 15 050 cases during 2022, or 0.8
cases per 100 inhabitants (similar as in 2021).
In April 2023, the KJC approved a regulation for the work standards of judges, with the aim of
increasing efficiency. The capacity of the judiciary and prosecution to handle cases in a timely
manner remains limited, particularly in high-level corruption cases, with numerous defendants and
complex evidence. Court adjournments could be avoided if the trial panels were more assertive in
using the tools to sanction defendants and other parties for unjustified absences from hearings.
There is, however, a continued increase in the percentage of productive court hearings (hearings
held as scheduled and where progress is made towards adjudication) and an increased pace in the
scheduling of court hearings.
The time taken for judgments (i.e. the average time from filing a court case to receiving a
judgment) remains a cause for concern as this overall takes far too long. In 2022, the disposition
time was 1 396 days for civil cases in first/second instance, and 953 days for administrative cases
in first/second instance (in 2021 the figures were 1 339 and 426 days respectively). The average
time for solving criminal cases in the General Department was 673 days, while for the Penal Crime
22
Department the average time was 740 days. For the Special Department the figure was 1 037 days.
These delays in proceedings, in combination with a preference for detention over alternative
measures, have led again to cases of overly long pre-trial detention. During the reporting period,
the Ombudsperson continued to receive complaints against courts and prosecutors over 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 action.
To further improve the quality and efficiency of the judicial system, judges, prosecutors and
support staff should make full use of the CMIS and related training. In addition, monitoring and
evaluation of courts’ activities and giving judicial systems adequate funding and qualified human
resources need to be a priority. The revised Criminal Procedure Code, which entered into force in
February 2023, addresses shortcomings in criminal proceedings that detracted from the
functioning of the justice system. The Code allows online court hearings under
exceptional/objective circumstances (epidemics and natural disasters) and codifies the practice
allowing parties to agree on considering previous testimonies as read in the records. The
sentencing policy on organised crime and corruption continued to be erratic. Courts are still not
systematically implementing the Supreme Court’s 2018 sentencing guidelines, even though the
Court established a committee to monitor its implementation.
The KJC designed and developed advanced statistical reports using the CMIS. These reports
include CEPEJ indicators for measuring and evaluating judges and court performance. They
provide a wide range of data, including the number of pending cases, age of pending cases, number
of resolved cases, length of procedures and number of sessions held per solved cases. Continuous
efforts are needed to produce and analyse reliable statistical systems and to use the findings for
management and policy-making purposes.
Domestic handling of war crime cases
The government has put forward measures to strengthen domestic institutional mechanisms
dealing with war crimes. The amendments to the new Criminal Procedure Code on the applicable
procedure of trial in absentia for war crimes are in line with Venice Commission
recommendations.
Kosovo continued to implement its war crime strategy, although with limited results given the lack
of resources and lack of effective international and regional cooperation. In 2022, the Kosovo
Police arrested 5 individuals suspected of war crimes and initiated 19 new investigations. The
number of war crime-related cases adjudicated during 2022 was 15. Out of these cases, most
judgments were later either sent back for retrial 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.
During the reporting period, the Kosovo Police arrested five individuals suspected of war crimes.
The relevant court issued a decision ordering detention on remand for all five suspects. The Special
Prosecution Office of Kosovo (SPRK) started investigations against 62 people, expanded
investigations against 39 and re-started investigations against 71. Seven cases were solved. Also,
the SPRK indicted four individuals on war crime charges, while three were convicted based on
indictments filed before 2022.
Despite the increase in assigned prosecutors (from three to four), the War Crimes Department of
the Special Prosecution Office continues to struggle in processing the workload. There are over
23
1 000 war crimes cases pending, mainly inherited from the European Union Rule of Law Mission
in Kosovo (EULEX) in 2018. There is a need for continuous training and support staff, in particular
on cooperation between police and the prosecution. Mutual legal assistance between Kosovo and
Serbia in war crimes cases remains difficult. Cooperation with the UN International Residual
Mechanism for Criminal Tribunals in The Hague is good.
The Kosovo Specialist Chambers and Specialist Prosecutor’s Office continued to investigate and
prosecute violations of international law. During the reporting period, pre-trial preparations in two
cases were completed and trial proceedings started, including the case against the then President
of Kosovo and another case involving a former Kosovo Liberation Army member. In one other
case, the Chambers found a former member guilty of torture, arbitrary detention and murder and
sentenced him to 26 years of imprisonment. The verdict was appealed. 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. Kosovo has put in place a fund that dispenses legal aid to the accused at the Kosovo
Specialist Chambers, as well as financial support to their families, without any proof of financial
needs. However, no financial support has so far been made available for victims who have been
found by the Kosovo Specialist Chambers to have suffered as a result of war crimes and crimes
against humanity. The Kosovo Specialist Chambers has issued a first reparation order to victims.
It is therefore not clear how the victims will be compensated in the absence of funds from the
accused or a fund by Kosovo for this purpose. It is key that Kosovo addresses this inequality of
treatment.
The Government Commission on Recognition and Verification of the Status of Survivors of
Sexual Violence during the Conflict continued its work. Since the beginning of the process in
February 2018, this Commission has received 1 939 applications. Of these, 1 473 applicants had
their status recognised (1 402 women and 71 men), while 283 requests were rejected (247 women
and 36 men). During the reporting period, the Commission received 249 applications: 356
applicants had their status recognised (332 women and 24 men) while 50 applications were
rejected (43 women and seven men). As of February 2023, the Commission could not accept new
applications due to the deadline set by the law. Although the government approved the request to
extend the deadline and the respective draft, as of March 2023 this is still pending approval by the
Assembly. The draft law approved by the Kosovo government makes provision for extending the
Commission’s mandate by another 3 years despite appeals by civil society calling for an indefinite
mandate. The law’s timeframe still excludes those who suffered conflict-related sexual violence
after 20 June 1999. The government assigned 14 April as a memorial day for survivors of sexual
violence during the war as an acknowledgment of their pain and suffering.
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 Kosovo authorities conducted 16 exhumations
and officially identified 6 people in 2022. As of April 2023, there were still 1 621 missing persons
as a result of the conflict.
The adoption of the transitional justice strategy is still pending. The Assembly adopted the law
to establish an Institute for crimes committed during the war in Kosovo. This initiative has replaced
the initiative on a truth and reconciliation commission. The Government Commission on Missing
Persons within the Office of the Prime Minister took over the leading role in the working group to
amend the Law on missing persons. Civil society remains actively engaged in truth-seeking,
reconciliation and memorialisation initiatives.
In the context of the EU-facilitated Dialogue, the Parties agreed on and endorsed a joint
Declaration on Missing Persons at a High-level Dialogue meeting in Brussels on 2 May 2023,
committing to improving Kosovo and Serbia’s joint efforts towards resolving the outstanding cases
24
of missing persons from the Kosovo conflict. Work is ongoing to establish the Joint Commission
that will monitor the implementation of this Declaration. During the reporting period, a number of
field operations and exhumations were carried out in Kosovo. Four of them included the
participation of forensic experts from Serbia, which is a positive development. There has been no
session of the ICRC-led Belgrade-Pristina Working Group on Missing Persons since April 2021,
as the Kosovo delegation refuses to hold meetings until the Serbia delegation changed its head.
Nonetheless, lower levels of the mechanism (sub-working group on forensic issues analytical team
and one meeting on unidentified bodies) have continued to work on specific cases and sites. Both
the Kosovo and Serbia delegations have shown interest in resuming excavations at the Stavalj mine
complex in summer 2023. From June 2022 until March 2023, the combined efforts of EULEX and
local forensic experts resulted in 34 field operations and 12 exhumations. Some 12 sets of remains
were recovered, representing a minimum of 12 individuals. Eight individuals were identified, of
which three were on the list of missing persons. A total of 21 individuals were handed over to the
families and 74 DNA samples were sent for analysis.
Fight against corruption
Kosovo is in between an early stage and some level of preparation in fighting against
corruption. During the reporting period, Kosovo made limited progress. Kosovo adopted a
new regulatory framework on auditing political parties and campaign financing. A lot remains
to be done to implement the recently adopted anti-corruption legislation, including the Law on
the Agency for Prevention of Corruption, the Law on asset declaration and legislation on
political parties and campaign financing. The legal framework on criminal confiscation is fairly
advanced, including the Law on extended powers of confiscation. However, the law remains
largely unimplemented and the value of finally confiscated assets remains low. The Law on
the State Bureau for Verification and Confiscation of Unjustified Assets, which aims to
introduce a system of non-conviction-based confiscation, is pending before the Constitutional
Court. Sustained efforts are needed to have more proactive investigations, final court decisions
and final confiscation of assets. Accessory punishments prohibiting the exercise of public
functions or other professions, in particular for those convicted of corruption-related offences,
are not sufficiently enforced. Despite improvement in the performance of the Agency for
Prevention of Corruption, the anti-corruption preventive tools laid down in the legislation are
not yet fully implemented, in particular the adoption of integrity plans in public institutions,
legislation ‘proofing’, risk assessments, and the practical use of whistle-blower procedures in
the public and private sectors. Overall, corruption remains an issue of serious concern. There
is a need for a robust criminal justice response to high-level corruption cases. In this regard,
the removal of the Head of the Kosovo Police Special Investigative Unit is a cause for concern,
sending a negative signal about Kosovo’s commitment to fight corruption. The Commission’s
recommendations from last year were only partially met, and therefore remain valid. In the
coming year, Kosovo should in particular:
→ further strengthen the capacity of the Agency for the Prevention of Corruption in terms of
staff and expertise, to ensure it can effectively carry out its mandate; relevant institutions
should adopt and implement integrity plans and whistle-blower internal procedures
(including in the private sector);
→ further strengthen the efficiency of the criminal confiscation regime; promote systematic
use of extended and ‘regular’ confiscation by criminal prosecution and police; increase the
level of specialisation/expertise in seizure and confiscation of assets; establish a
confiscation fund;
→ further strengthen law enforcement and prosecution as well as multidisciplinary
cooperation and a target-based approach to ensure proactive investigations, and effectively
25
combat high-level corruption cases; systematically conduct financial investigations during
the criminal investigations; ensure the security of judges and prosecutors.
Track record
Kosovo continued to make efforts on its track record of investigations, prosecutions and
convictions in the fight against corruption. However, more political will and resources are
necessary, in particular to tackle high-level corruption. These efforts should continue, and the
Commission will continue to monitor development. 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 88 cases in total. By that time, there
had been 75 indictments: 33 organised crime cases (involving 320 individuals) and 42
corruption cases (involving 310 individuals). Of these, 22 cases ended in convictions/partial
acquittals, leading to the conviction of 22 individuals for corruption-related offences and 66 for
organised crime-related offences. At present, the track record mechanism includes only the
cases selected in the 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.
During 2022, the Agency for Prevention of Corruption handled some 619 cases under
preliminary investigation for suspicion of corruption-related offences. Of these, 267 reports
were submitted to prosecution and police to initiate criminal proceedings, including 4 cases
delegated to other institutions (Police Inspectorate, Medical Inspectorate and Education
Inspectorate). In addition, 6 cases were transferred to competent administrative bodies with a
request to initiate disciplinary proceedings. 267 cases were terminated, and 65 cases are
ongoing.
In 2022, 4 687 of the 4 748 officials (98.72%) obliged to submit regular annual declarations
of assets did so on time, while 61 (or 1.28%) officials did not meet the deadline (51 officials
declared after the deadline, and 11 did not declare at all). The Agency for Prevention of
Corruption performed a full assets control procedure for 973 officials. The checks were mainly
done through random selection, but for 41 officials based on the Agency’s own information or
reports by members of the public. As a result of the full control of assets, around 180 officials
are being investigated for having made a false declaration or for failure to declare assets. 178
cases were referred to prosecution and police for further investigation. There were 38 court
decisions in 2022, of which 37 convictions and a single acquittal. Shortcomings persist in the
system for declaring and assessing the origin of property belonging to senior public officials.
The Agency’s staffing, IT resources and training capacities should be increased. An electronic
declaration system came into operation, simplifying the declaration and submission process and
increasing transparency and accuracy in monitoring and verification. Cooperation and exchange
of data should be strengthened with the police, the Tax administration, the Financial
Intelligence Unit, the cadastral registry and municipal authorities.
In 2022, the Agency handled 233 cases of suspicion of conflicts of interest. The number of
requests of institutions submitted to the Agency for advice and opinion on conflicts of interest
doubled from the previous year. The Agency provided advice and opinions in 129 cases.
Conflict of interest was avoided in 49 cases, while 34 cases resulted in non-existence of conflict,
a single case was forwarded to the competent court, and 4 cases were referred for preliminary
investigation.
In 2022, the Agency handled 218 cases related to the monitoring and prevention of corruption
in public procurement activities. These resulted in 211 opinions being issued, out of which 162
opinions were respected and 49 were not. Some 33 cases were submitted for preliminary
26
investigation, and 7 cases terminated.
Despite a fairly advanced legal framework being in place, criminal asset confiscation remains
low. Even though the 2019 Law on extended powers of confiscation is in force, it is not being
consistently applied. Local coordinators for confiscation matters were appointed in the
prosecution offices. Confiscation, as a means of targeting the economic interests of criminal
organisations, remains underutilised by prosecutors, who remain the weakest link in this regard.
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 2022, the value of assets frozen, sequestrated and confiscated amounted to about
EUR 21.4 million (EUR 14 million in 2021) while the value of final confiscated property was
around EUR 670 000 (EUR 770 000 in 2021). The Agency for the Management of Sequestrated
and Confiscated Assets (handling more than EUR 1.5 million in various assets in 2022)
continues to struggle to manage the assets in its portfolio. This is partially due to the courts not
allowing the anticipated sale of assets pending proceedings and partially due to the Agency’s
set-up. The value of assets sold in 2022 was about EUR 36 000, which is less than in 2021
(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 auditing political parties and campaign
financing. The aim of the framework is to ensure complete reporting, timely disclosure,
meaningful oversight and accountability for irregularities. The power to conduct the auditing
was shifted from the Assembly to the newly established Office for Registration, Certification
and Financial Control of Political Entities under the Central Election Commission (CEC). This
Office has operational independence in performing monitoring and financial control of political
entities. It has powers to receive financial annual reports and campaign funding reports, to hire
external auditors to conduct the auditing, and to issue annual reports which form the basis for
Parliament’s allocation of public funds to political entities. During the reporting period, the
Chairman of the CEC appointed the Director of the Office. In recent years, the Assembly has
not regularly conducted audits, and the CEC applied selective sanctions, which resulted in
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,
and numerous sources of income and expenditures remain unreported.
Institutional framework
Interinstitutional coordination and cooperation between preventive anti-corruption institutions
and law enforcement entities are key to implementing anti-corruption legislation.
Prevention measures
The competences of the Agency for Prevention of Corruption include the verification and
control of asset declarations and gifts, dealing with whistle-blowing and the prevention of
conflicts of interest. A law reorganising the competences of the former Anti-Corruption Agency
was adopted in July 2022 with a view to strengthening its mandate. Specifically, the Agency
has powers to implement tools such as corruption proofing, corruption risk assessment and
integrity plans in public institutions, which should be adopted without delay. The Agency also
has powers to initiate administrative investigations and impose sanctions. Its performance
overall reflected progress as it became more operational and conducted an increased number of
inspections. The Agency also launched an awareness-raising campaign on its mandate and
competences. However, it is essential to strengthen its staffing capacity and expertise, and to
increase its budget in order to fully and effectively fulfil its mandate and fulfil its new powers,
27
including checking asset declarations and implementing the new anti-corruption prevention
tools.
There is a continuous need to promote the drafting and adoption of integrity plans in the public
service as a tool for preventing corruption and ensuring discipline, including at municipal level.
Under the new law on the Agency, central administration bodies, independent agencies and
municipal authorities are required to adopt integrity plans and appoint the official responsible
for managing the integrity plan’s preparation and implementation. This should be implemented
without delay.
Law enforcement
Kosovo has functional specialised institutions to fight corruption, including the National
Coordinator for Combating Economic Crimes within the prosecution 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. Cooperation between police and
prosecution must be strengthened to ensure proactive investigations and to implement a joint
target-based approach to combating high-level corruption cases. Financial investigations need
to be launched systematically and in parallel to the main investigation. The use of special
investigative measures, when applicable, should be strengthened. Measures and mechanisms to
ensure the protection of judges and prosecutors from interference and pressure should be
effectively implemented.
There are concerns that the accessory punishment of prohibition from exercising public
functions or other professions (as provided for in the Criminal Code and the Law on execution
of criminal sanctions) is not being applied, in particular for those convicted of corruption-
related offences. There are inconsistencies and a lack of standardised practice in enforcement,
and staff (administrative staff, judges or prosecutors) lack willingness or understanding of the
concept of accessory punishments and of their responsibilities when applying such
punishments.
The Kosovo Police’s Special Investigation Unit, 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 and that it cooperates effectively with the Prosecution Service. The ongoing reform
of the police’s organisational structure should ensure that the Special Investigation Unit
maintains sufficient investigation capacity to efficiently fulfil its functions. The Head of the
Unit was removed from this position in order to be appointed to another post this year. This
change is a cause for concern. It is essential that the integrity of ongoing investigations is
preserved and that the Kosovo Police’s investigative capacities on anti-corruption are
independent and impartial.
Following the restructuring 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
financial crimes. In 2022, the total number of indictments was 236 (147 in 2021), while the
total number of sentencing decisions was 29 (122 in 2021). A new law on the Special
Prosecution Office is pending before Parliament. The law clarifies the scope of jurisdiction
between the Special Prosecution and the Basic Prosecution on the adjudication of the
investigations and prosecution.
The special departments in the Basic Court of Pristina and the Court of Appeals, which handle
all cases of the Special Prosecution Office, solved 85 cases in 2022 (42 cases by the Basic Court
28
and 43 by the Court of Appeals) and an additional 45 cases in 2023 (25 cases by the Basic Court
and 20 cases by the Court of Appeals).
Legal framework
Owing to status-related issues, Kosovo is not party to international anti-corruption conventions
such as the UN Convention against Corruption and the Council of Europe’s Criminal Law
Convention on Corruption. Nevertheless, 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: the new Criminal Procedure
Code, the Law on the Agency for Prevention of Corruption and the Law on asset declaration.
The new law on the Criminal Procedure Code aims at strengthening criminal proceedings. The
anti-corruption legal framework introduces, among other novelties, the suspension of officials
from duty as a preventive measure in case of obstruction of proceedings. The new Law on the
Agency for Prevention of Corruption strengthens the Agency’s mandate on the prevention of
corruption and in the implementation of the Asset Declaration Law, the Protection of Whistle-
blowers Law and the Prevention of Conflicts of Interest Law. The Agency has been given new
tools to prevent corruption; these include corruption proofing, corruption risk assessments and
monitoring of integrity plans in the institutions. The new Law on asset declaration adds new
categories of public officials obliged to declare assets. It also includes more complete asset
information and data to be declared by officials, increases the number of officials under the
Agency’s full control and introduces an online system for asset declarations. Effective
implementation remains largely pending.
The legal framework on criminal confiscation remains fairly advanced. The Law on the State
Bureau for Verification and Confiscation of Unjustified Assets, which aims to introduce a
system of non-conviction-based confiscation, is pending before the Constitutional Court. Such
an advanced system requires clear safeguards against possible misuse and abuse and should
respect the principles enshrined in the Constitution and fundamental rights. 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 sufficiently implemented. Although the
law does not require proof of a predicate offence to retain a conviction, many prosecutors and
judges continue to consider a predicate offence an essential part of money laundering offences.
As a result, many stand-alone money laundering cases are dismissed either by the prosecution
or by the court. The legislation on prevention of money laundering and combating terrorist
financing needs to be fully harmonised with the 4th and 5th EU Directives and
recommendations of the Financial Action Task Force (See also Chapter 4 on the free movement
of capital and the section on organised crime).
The legal framework on the prevention of conflicts of interest is in place since 2018 but still
needs to be fully implemented. The Agency for the Prevention of Corruption continues to try
to identify officials holding multiple positions in breach of the law. Kosovo has no specific
legislation on lobbying.
The Law on the protection of whistle-blowers aims to align the national framework with the
EU legislation. Implementing legislation determining the procedure for receiving and handling
whistle-blowing cases is in place. Strengthened whistle-blowing mechanisms and protection
requirements still need to be implemented in the public and private sectors.
The Assembly adopted amendments to the legal framework on political parties and election
campaign financing in line with the Venice Commission Opinion. These need to be
29
implemented promptly to ensure more accountable, transparent and enforceable party and
campaign financing. One remaining element missing in the law is the requirement for interim
reporting of the income and expenditure of contestants during the campaign period.
Strategic framework
The rule of law strategy and action plan include specific measures to improve the institutional
framework against corruption, as well as the assets declaration system and regulations on
accepting gifts. Since 2018, Kosovo has no anti-corruption strategy in force. The government
established a working group to draft a strategy and action plan against corruption. The Judicial
Council adopted a 2022-2025 strategic plan for the efficient resolution of cases of corruption
and organised crime.
Fundamental rights
In general, the legal framework guarantees the protection of fundamental rights and is in line
with European standards. During the reporting period, Kosovo adopted the Law on the Kosovo
Property Comparison Verification Agency and set up a protocol for the treatment of sexual
violence cases. The capacity of the authorities to monitor implementation of fundamental rights
policies and legislation has improved and the rate of implementation of the Ombudsperson’s
recommendations increased. The Parliament adopted the Law on prevention and protection
from domestic violence, violence against women and gender-based violence. Despite these
positive developments, additional efforts are needed to enforce fundamental rights effectively.
The government’s capacity to streamline and oversee fundamental rights issues requires further
improvements, including in coordinating 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 and consequently more human and financial resources
should be allocated to relevant institutions. Kosovo must continue its efforts to ensure equal
access of persons with disabilities to institutions, quality services, employment and education.
More efforts should be made to implement the process of verification of university diplomas
from the University in Mitrovica North and extend this process to high school diplomas, to
ensure language compliance in both official languages and to ensure that the representation
quota for all non-majority communities is respected in public institutions. There was no
progress on implementing the Constitutional Court decision on the Dečani Monastery.
The Commission’s recommendations from last year were only partially met and therefore
remain valid. In the coming year, Kosovo should in particular:
→ reinforce the protection of women’s civil and fundamental rights by adopting the Civil
Code, by implementing the Law on prevention and protection from domestic violence, and
by strengthening the implementation of the Law on gender equality and the strategy on
gender-based violence;
→ strengthen the protection of the rights of the child by adopting all the sub-legal acts of the
Law on child protection as a matter of urgency and reinforcing capacities to implement the
law;
→ improve implementation of legislation on the rights of non-majority communities, adopt
the strategy for protection and promotion of the rights of communities, adopt the law on
cultural heritage and the law on religious freedom, re-establish relations with the Serbian
Orthodox Church and implement the Constitutional Court decision on the Dečani
Monastery.
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
30
legislation with these instruments and maintained its practice of ad hoc reporting. 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 2021-2025 programme for the protection and promotion of human rights and fundamental
freedoms and its action plan are the main human rights instruments. The two main mechanisms
responsible for monitoring the implementation of the programme are: (i) the Inter-Institutional
Coordination Group on Human Rights led by the Deputy Prime Minister for Minority Issues
and Human Rights; and (ii) the Office for Good Governance within the Office of the Prime
Minister (OGG/OPM). In March 2023, the OGG/OPM issued several monitoring reports,
including on the implementation of the human rights programme. Some progress in
implementation was noted, with activities without progress predominantly relating to health,
well-being and environmental protection. Furthermore, a human rights indicators framework
was developed for the first time for each mandatory right laid down in the Constitution and in
legally binding international acts.
The government’s Inter-institutional Coordination Group on Human Rights held its
constitutive meeting in June 2022 but met only once more in June 2023. The aims of the DPM
for Minority Issues and Human Rights, the Assembly’s Committee on Human Rights and the
Council for Democracy and Human Rights under the Presidency, are to effectively implement
and streamline human rights policies and legislation. In practice, there seems to be insufficient
synergy between them. The OGG/OPM was active in trying to fulfil its broad mandate, but
continuously lacks appropriate human, financial and administrative resources, while its
performance remains reliant on donor support. The Assembly needs to take a more proactive
role in overseeing the implementation of human rights legislation.
The Ombudsperson Institution continues to play a significant role in the promotion and
protection of human rights. During the reporting period, an electronic system for monitoring
implementation of its recommendations was established, as well as a joint team for their
coordination and monitoring. The latter includes the OGG/OPM, the Ombudsperson Institution
and the Gender Equality Agency. After a lengthy delay, the process to select the fifth deputy
Ombudsperson from the non-majority communities was finalised in June. The Parliament also
finally approved the Ombudsperson’s 2021 annual report in January 2023. More systematic
tabling of review of the annual reports and selection of deputies in the Assembly are needed to
avoid such delays. Although the institution has progressively expanded its responsibilities, it
was not provided with matching financial and human resources. Nevertheless, the
Ombudsperson still enjoys broad public trust. In 2022, the Ombudsperson received 1 595
complaints, of which 672 were opened for investigation, a level comparable to the previous
year. The institution issued 646 recommendations. The total rate of implementation stands at
23%, while 46% of recommendations issued in 2021 had been implemented as of the end of
2022. This denotes increased responsiveness on the part of Kosovo’s institutions, which needs
to be further strengthened. The institution has taken a proactive approach to addressing
complaints from residents of the north of Kosovo regarding the expropriation of privately
owned land.
The Kosovo authorities continue to show commitment to preventing torture and ill-
treatment. The National Preventive Mechanism (NPM) operates under the umbrella of the
Ombudsperson Institution. In 2022, the National Preventive Mechanism conducted 62
unannounced visits in places of detention, including psychiatric and social care institutions (the
same number as in 2021) and published 8 reports. Overall, it addressed 38 recommendations
to the authorities (against 11 in 2021); 10 were already fully or partially implemented. The
31
NPM enjoyed very good cooperation with the institutions visited but reported one case where
it was denied access. No case of torture or mistreatment of prisoners was reported during the
reporting period. There were reports of alleged ill-treatment during the arrest of four Kosovo
Serbs in relation to their alleged involvement in the violent events of 29 May in Zveçan/Zvečan.
The Police Inspectorate registered 14 cases of suspected ill-treatment by police officers (11 the
previous year); all cases were referred to the prosecution. One police officer was arrested and
suspended. The Ombudsperson received 6 complaints against officers of the Kosovo Police
over excessive use of force; which led to the opening of 3 investigations.
While the prison system broadly complies with the UN Standard Minimum Rules for the
Treatment of Prisoners and with the European Prison Rules, some challenges remain. Further
efforts are needed to safeguard the rights of prisoners, especially among women and girls and
non-majority groups. The Law on the Correctional Service and the Law on the execution of
criminal sanctions were adopted in July 2022. Under the latter, the official for prisoners’ rights
within the Ministry of Justice’s Office for Human Rights is tasked with monitoring their
protection. A number of regulations are yet to be adopted to ensure implementation of these
laws. The Institute for the Treatment of Persons (prisoners) with Special Needs was established
on the premises of the Dubravë/Dubrava correctional centre. Several management posts in the
Correction Service remained vacant or with an acting manager, hampering the functioning of
this service. A total of 3 163 alternative measures to detention were imposed during the
reporting period, about half of which for juveniles. No overcrowding of existing facilities was
reported by the NPM. Efforts to improve drug treatment programmes and prison medical
facilities are ongoing. The agreement for transferring prisoners from Denmark to Kosovo is
pending ratification by the Assembly of Kosovo.
On personal data protection, the laws in force are broadly in line with the EU General Data
Protection Regulation and the Law Enforcement Directive. The Information and Privacy
Agency oversees the implementation of the Law on personal data protection and the Law on
access to public documents. The Agency has shown itself to be independent and continued to
improve its capacity. It further strengthened the legal framework by adopting regulations and
guidelines on the organisation, systematisation and operational procedure for controllers and
inspections. Although restrained by limited budget and human resources, the Agency is
processing complaints on access to public documents and on data protection in an independent
and efficient manner. During the reporting period, the Agency conducted 44 inspections on its
own initiative and 51 inspections based on complaints, and issued 66 decisions on violations
of the Law on personal data protection, maintaining similar standards as the previous year. It
issued 8 fines. Challenges remain concerning the implementation of the Agency’s decisions by
public and private institutions. On access to information, legislation is broadly in line with
EU standards. The Agency needs to step up its capacity to monitor transparency levels among
public institutions. In 2022, the Agency reported that public institutions received a total of
4 481 requests for access to public documents (7 561 in 2021). Among them, 154 were rejected
(95 in 2021).
On freedom of thought, conscience and religion, there are legal provisions, mainly in the
Constitution and the Law on freedom of religion, intended to promote religious tolerance and
provide for the separation of religious communities from public authorities. A new draft law
on religious freedom underwent consultation and was reviewed by the Venice Commission. It
is expected to address one important gap by enabling registration of religious communities as
legal entities. However, while the government adopted the draft law in January 2023, it remains
pending before Parliament. Relations between the government and the Serbian Orthodox
Church remained poor. This year marked the seventh anniversary of the Constitutional Court
32
decision confirming 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 and this should be done without further delay.
The Kosovo Assembly approved a working definition of antisemitism as defined by the
International Holocaust Remembrance Alliance. The Jewish community does not have a
synagogue. However, the construction of a Jewish Cultural Centre in Prizren began in 2022
with the support of the government. Efforts need to be made to promote Holocaust
remembrance, education and research.
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Freedom of expression
The media environment in Kosovo remains lively and pluralistic, and the legal framework is
mostly in line with European standards. In this area, Kosovo has some level of preparation.
Limited progress was made in addressing the recommendations of the previous report.
Concerns remain regarding physical attacks and threats, public smear campaigns and hate
speech directed against journalists. Not all threats against journalists and media are reported to
the authorities, although 2022 noted a slight increase in number of reported cases. Particularly
concerning is freedom of expression in the north of Kosovo, including with regard to self-
censorship and the security of journalists and media professionals. There was no progress on
amending the Law on the radio and television of Kosovo or on amending the Law on the
Independent Media Commission to align it with the EU’s Audiovisual Media Services
Directive. This process needs to be transparent and inclusive, with involvement of media actors
and civil society. The lack of financial self-sustainability leaves the 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 in law. The
decision to withdraw the business licence of a major private broadcaster has raised serious
concerns. The Commission’s recommendations from last year were not met and therefore
remain valid. In the coming year, Kosovo should in particular:
→ improve the institutional cooperation and response of key institutions to attacks against
journalists and other forms of undue pressure, including by enhancing the prosecutorial,
judicial and law enforcement authorities’ capacity to handle cases concerning the right to
freedom of expression and information;
→ review the Law on radio and television to ensure sustainable funding preserving its
independence; review the Law on the Independent Media Commission to update its powers,
including regarding audiovisual media, in line with the Audiovisual Media Services
Directive;
→ increase the availability of data on the audiovisual market, especially on media ownership.
Intimidation of journalists
In 2022, the Association of Journalists in Kosovo (AJK) reported 33 cases of intimidation,
threats and attacks against journalists and other media professionals, an increase on the 29 cases
reported in 2021. Out of these, 19 cases were classified as threats and harassment against
physical persons (journalists), eight were physical attacks, and six were attacks against media,
media organisations and/or journalist associations. More than half of the cases of attacks
against journalists targeted women journalists. During the reporting period, the Directorate for
the Investigation of Serious Crimes registered 32 cases of physical attacks against journalists,
33
qualifying 12 cases as intimidation, seven cases as assault, one as bodily injury, and one as
arson. The Kosovo Prosecutorial Council’s statistics show that 14 cases of incitement of attacks
and threats against journalists are ongoing, with nine cases solved. In several instances, public
officials, including high-level officials, made derogatory statements and smears and used
intimidating language against journalists.
With the setting up of roadblocks and increased political tension in the north of Kosovo, a
series of attacks targeting Albanian-language media professionals and journalists occurred. The
AJK and journalist associations condemned the attacks and called on the Kosovo Police, KFOR
and EULEX to provide security for journalists and media professionals. They also called for
swift and thorough investigations. During May and June 2023, an unprecedented number of
attacks against journalists and media professionals were recorded. The AJK recorded over 30
attacks, including physical assault, damage to equipment and vehicles.
During the reporting period, AJK reported one case of strategic litigation against public
participation lawsuits (SLAPP) filed by a public figure against journalists. Handling of cases
remains slow, and lenient sentences have been handed down in cases adjudicated. The AJK
advocates for the crime case database to include reference to the profession of victims so that
cases against journalists can be identified. Kosovo prosecutorial and judicial authorities
undertook measures to address crimes against journalists by appointing specialised prosecutors
and judges. They have set the collection of statistics and the prioritisation of these cases as an
objective in the 2022-2024 strategic plan for the prosecutorial system.
Legislative environment
Kosovo’s legal framework guarantees freedom of the media and freedom of expression. In
general, relevant laws are in line with international standards. Kosovo ranked 61st
in the 2022
World Press Freedom Index, 17 places higher than in the previous year.
No steps were taken towards adopting the draft law on the public broadcaster/ Radio Television
of Kosovo (RTK) proposed in 2018. Similarly, the draft law on the Independent Media
Commission, harmonised with the 2018 EU Audiovisual and Media Services Directive, is still
pending before the Assembly. The Law on protection of journalists’ sources is yet to be aligned
with European standards. The Law on the protection of whistle-blowers aims to align with EU
acquis, but whistle-blowing mechanisms and protection requirements still need to be
strengthened and effectively implemented.
Despite improvements in the implementation of laws relevant to access to public documents,
journalists still encounter some obstacles, in particular due to delays or denials of access by
public institutions, including the government. Lack of language compliance by public
institutions in their communication with the local media continues to be concerning, mainly for
Serbian-language media. Some local media occasionally report that certain political parties and
public institutions engage in discriminatory selection when inviting media to their official
events. Public institutions do not consistently provide relevant and complete information in
official languages. Violations of the law on official languages were noted in several other
instances, such as a public media outlet’s failure to air the press conference of government
members in the Serbian language. The Assembly has continued to fail to provide translation
into Serbian during plenary sessions.
Implementation of legislation/institutions
Implementation of existing legislation remains insufficient. During the reporting period, the
Independent Media Commission (IMC) was largely dysfunctional due to the lack of quorum,
including in the Media Appeals Board. The IMC Board has not been functional since March
34
2021, as the mandate of one of the members expired and the Assembly failed to appoint a new
member until May 2023. The Press Council is effective in implementing the Press Code for
online media.
Public service broadcaster
The Radio Television of Kosovo (RTK) Board is not involved in the legislative revision
process for the draft law on RTK. The RTK’s budget allocation remained below the legally
specified amount in the Law on budget appropriations, prompting RTK to assess possibilities
for participatory financing and a reorganisation of its internal structure. Civil society and
opposition political parties criticised the appointment of the RTK Director of Albanian-
language channels due to alleged ties with the ruling party. Additionally, the artistic community
and civil society saw the signing of a contract between RTK and the Ministry of Culture, Youth
and Sport as unfavourable to RTK’s editorial independence.
Economic factors
The media sector in Kosovo suffers from a lack of transparency in ownership and financing
and a lack of financial self-sustainability, making it vulnerable to political influence and
financial pressure. The public broadcaster is financed through the public budget, while private
media rely on advertising as their primary means of revenue. Government advertising on
private media is no longer permitted. Media registered as NGOs continued to receive support
from donors. The non-majority media in Kosovo rely on short-term projects and donor support.
Lack of data on the advertising market and media ownership structures, especially for online
media, remains a concern. There is lack of transparency on media market share, with some
mainstream media publishing individual viewership surveys with significant discrepancies in
the respective results. In June, the Kosovo Business Registration Agency suspended the
business licence of Klan Kosovo, one of the main private media outlets. Such action may have
a negative impact on the state of freedom of the media in Kosovo.
Internet
There is no restrictive legislation on the functioning of the media online or on freedom of
expression online, and no restriction was noted during the reporting period. Kosovo should
consider developing a strategy for a better internet for children, including facilitating the
detection of and response to online child sexual abuse. Slight progress is noted with the
approval of the Administrative Instruction that lays down measures to protect children from
pornographic content and other inappropriate content. Online threats and sexual harassment
against women and girls are widespread, with no prevention or redress mechanisms.
Professional organisations and working conditions
Journalists in private media continue to work on short-term contracts, or without contracts,
unlike public service media journalists, who enjoy longer contracts. The lack of professional
security and the relatively uncertain employment and economic situation of journalists creates
conditions for abuse and restrictions. According to the AJK, although there is no indication of
discriminatory contracts or salaries against women, those working in the private sector still
face obstacles to enjoying their rights, including to maternity leave. Further, fewer women have
access to managerial positions than men. There is no trade union representative body for
journalists in the private sector, while the public broadcaster is the only media that has a trade
union.
The AJK is a non-governmental organisation with the mission of promoting, encouraging and
improving quality and open journalism in Kosovo, as well as improving the position of
journalists in general in Kosovo society. The association contributed to the Journalists-in-
35
Residence in Kosovo programme, under which Kosovo offered a safe space for 20 Ukrainian
journalists, most of them women. In December 2022, the programme was expanded following
the government-approved decision to also host journalists from Afghanistan. Currently Kosovo
is hosting 14 Ukrainian and six Afghani journalists.
Freedom of artistic expression
The freedom of artistic creativity is guaranteed by the Constitution. No limitation on any form
of artistic expression was reported during the reporting period.
(See also Chapter 10 on digital transformation and media)
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Freedom of assembly and association is guaranteed by the Constitution and generally
respected. During the reporting period, the Law on public gathering entered into force, aiming
to guarantee the right to organise and participate in public events. No case of inadequate use of
force has been reported by the Police Inspectorate. Police officers received training on policing
during gatherings and use of force. The LGBTIQ Pride Parade was held in June 2022 in Pristina
with no recorded incidents.
Issues of labour and trade union rights are further covered in Chapter 19 on social rights
and employment.
On property rights, in December 2022 the Assembly adopted amendments to the Law on the
Kosovo Property Comparison and Verification Agency. The authorities should ensure swift
implementation. Due to some shortcomings in the Kosovo property sector, including ambiguity
in legislation and the inconsistent enforcement of rights, the implementation of judicial
decisions (including by the Constitutional Court) remains an issue. This is the case in particular
in conflict-related property cases. Prolonged court proceedings in civil cases, especially
property related, remain an issue of concern.
Ownership of property by women increased. The affirmative measure that assists
implementation of property legislation favouring women was extended by another year; this
measure has led to an increase in the registration of women as property owners, from 1 505
registered properties in 2021 to 6 951 in 2022. Only 19.2% of properties are registered in the
name of two spouses.
In 2022, institutions continued to take measures to protect the property rights of communities
in vulnerable situations, displaced persons and women. The Property Comparison and
Verification Agency performed 25 evictions, out of a total of 27 eviction requests. The legal
remedy to demolish illegal structures was not used as there were no requests from interested
parties. Out of 33 cases in mediation during 2022, 10 were completed successfully in the first
quarter of 2023. In June 2023, the Agency’s Director and Deputy Director were appointed by
the Kosovo Assembly. Concerns remain about fraudulent property transactions and illegal
transfers of ownership of properties, mainly belonging to displaced persons.
There was limited progress on the issue of more than 350 052 buildings constructed without a
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 government approved six expropriation decisions in Kosovo’s northern
municipalities. Kosovo Serbs raised concerns about how the expropriation procedures were
conducted and their compliance with the requirements of the applicable Law on expropriation
of immovable property. It is essential that the government make efforts to ensure that
36
expropriation activities comply with the law, that due process is followed, and that the property
rights of concerned owners and interest holders are fully respected.
The Law on protection from discrimination is broadly in line with European and international
standards but its implementation remains limited, including due to a lack of institutional
capacity. This affected rights related to employment, education, access to social services and
freedom of movement, among others. The uneven application of legislation on official
languages continues to result in unequal access to public services, justice and employment. The
Ombudsperson Institution is the equality body responsible for promoting, monitoring and
supporting equal treatment without discrimination. During the reporting period, it received 164
individual complaints of alleged discrimination; 101 cases were referred for investigation. In
February 2023, the Office of Legal Affairs, together with the Office of Good Governance,
initiated an ex post evaluation of the Law on protection from discrimination. The aim is to
identify institutional, legal and functional gaps related to its implementation. Additionally, the
Office of Legal Affairs launched the National Platform for Protection against Discrimination
for the Roma, Ashkali and Egyptian Communities, aiming to facilitate the reporting of
discrimination cases. In its first year 23 cases were reported.
The collection of judicial statistics on discrimination cases is a challenge due to inappropriate
identification and categorisation. During the reporting period, courts reached a verdict in
several discrimination cases, including cases of discrimination based on gender and on
disability. It is essential to further build legal professionals’ capacities to litigate and adjudicate
cases of discrimination. Implementation of the policy against sexual harassment in public
administration is facing challenges due to lack of awareness among officials and the absence
of complaint mechanisms. On hate crime, while the Kosovo Prosecutorial Council maintains a
tracking mechanism, data collection remains insufficient. Hate speech against those in
vulnerable situations, including the LGBTIQ and non-majority communities, persists,
especially on social media.
With regard to cases of discrimination, hate crime or hate speech targeting persons belonging
to non-majority communities, the Kosovo Police reported 12 potential inter-ethnic cases falling
within the reporting period. In October 2022, a former government minister was sentenced to
one year in prison for inciting ethnic hatred, discord or intolerance.
Legislation and institutional mechanisms on gender equality are broadly in line with
international and European standards. Despite efforts to strengthen the application of these
mechanisms, women continue to face discrimination in the public administration (see public
administration section), the labour market (see functioning of the economy), access to finance,
ownership of property (see property section) and treatment by the justice system (see
justice/rule of law section).
Kosovo institutions made some efforts to place gender equality higher on their political agenda.
The President organised the first Women Peace and Security Forum and set up a gender
equality working group under the Council for Democracy and Human Rights to analyse the
harmonisation of laws with the Law on gender equality. The government measures to improve
women’s economic empowerment have increased the number of women who have opened
bank accounts to receive child allowances.
The Agency for Gender Equality continues to play a central role in advancing gender equality.
It published the first monitoring report for the 2020-2021 action plan on gender equality with
a long delay. Coordination with gender equality officers in the ministries and municipalities
has improved, although their roles and responsibilities are yet to be harmonised. Capacity
building on gender equality should be extended to ensure that all civil servants fulfil their
37
responsibilities in this regard, specifically those in managerial positions. Civil society
continued to play a critical role in advancing gender equality. It contributes to the improvement
of legislation, monitors policy implementation, provides services, assists victims of violence
and raises awareness, reflecting the need for the authorities to further step up their engagement
in these areas.
Domestic violence continues to be the most prominent form of gender-based violence in
Kosovo. A police directorate for the prevention and investigation of domestic violence was
established. Implementation remains insufficient despite institutional efforts, and despite the
legal and institutional framework in this area being largely in line with European and
international standards. Kosovo needs to prioritise implementing the Law on prevention and
protection from domestic violence, violence against women and gender-based violence,
including by adopting the relevant bylaws. There was limited progress on preventing and
combating domestic violence, protecting and reintegrating victims and the rehabilitation of
perpetrators. Reporting of domestic violence has increased, although cases are still not handled
adequately (see judiciary). The total number of reported cases during the reporting period
continued increasing (2 710 in 2022, against 2 456 in 2021). Prominent cases of rape and
femicides caused public outrage.
Other forms of violence against women continued. Women in public life, including MPs,
continue to be judged and stereotyped. Sexual harassment, body shaming and other verbal
attacks continue, but reactions from public officials, institutions, civil society and women
rights’ organisations continue contributing to making sexism less acceptable. Implementation
of the government’s December 2020 policy against sexual harassment in public administration
remains a challenge, with limited knowledge of the policy within the institutions.
The Ministry of Justice continued its efforts to give visibility to the phenomenon and to tackle
institutional and legal shortcomings. The latest government action includes the proposal to
amend the criminal legislation to protect victims and increase penalties for perpetrators. The
position of Coordinator for Domestic Violence remains vacant since September 2022. This
appointment is essential for overseeing and monitoring the 2022 strategy and action plan
against domestic violence and violence against women. In December 2022, the Ministry of
Justice adopted the State Protocol for handling cases of gender-based violence, which defines
responsibilities for each institution. This should be swiftly implemented.
In 2023, the government increased the funds allocated to shelters for victims of domestic
violence and trafficking in human beings and delivered the funds on time. Nevertheless,
financial support is still inadequate. A multi-annual budget line under the Kosovo budget and
funding commitments by municipalities are needed. The functioning of the municipal
coordination mechanisms for domestic violence is still uneven.
On the rights of the child, Kosovo’s legal framework is largely in line with international
standards, but implementation remains limited. The Inter-ministerial Committee for Children's
Rights provides advice and coordinates state policies to guarantee the rights and protection of
children in all areas. The implementation of the Law on child protection is delayed. Out of the
17 pieces of implementing legislation planned, only 6 were published in the Official Gazette.
As per the administrative instructions deriving from the law, the Council for Children’s Rights
was established, making it the highest professional mechanism at central level coordinating
work on implementing the law. Child rights teams have been established in 14 municipalities.
The systematic collection of reliable and comparable data disaggregated by age and sex will
contribute to the development of evidence-based policy priorities and ensure effective
protection of children.
38
The Ombudsperson Institution continued to strengthen its child protection department; to that
end it finalised a programme on reporting, protecting and monitoring children’s rights. During
the reporting period, the Ombudsperson received 80 complaints, out of which 20 were assessed
as inadmissible and 60 complaints were referred for investigation. The following legislation
should be adopted: (i) the Civil Code, which includes among its aims the regulation of legal
concepts and the clarification of provisions on the treatment of children in highly vulnerable
situations; and (ii) the draft law on local government finances, which has a specific grant for
social services that will allow for better implementation of the Law on child protection.
Children with disabilities lack proper access to education. In a significant effort to address this
challenge, 100 assistants for children with special needs in regular schools and three sign
language interpreters were hired during the reporting period. Eighty directors of vocational
secondary schools, 25 teachers of vocational schools, and 18 teachers of primary and lower
secondary schools were trained on inclusive education. Authorities should also make more
efforts to reach out to children with disabilities that remain outside the education system and
scale up community-based social and health services for children with disabilities, including
by increasing financial support.
No steps were taken to adopt the Civil Code, which would enable support to persons in foster
care up to 26 years of age, instead of 18. There remains a lack of quality services and dedicated
programmes for the prevention and reintegration of children with drug problems. Official data
is incomplete. Services for treatment of children using drugs in the public health system are
non-existent. The new Law on early childhood education remains pending. Over the years, the
authorities have failed to address problems related to street children, including child begging.
Child, early and forced marriages remain an issue, particularly among Roma and Ashkali
communities. While the Law on child protection aims to prevent physical violence against
children, it remains a concern in society. Furthermore, there are no foster families established
to provide care for children in conflict with the law, despite legal provisions in place to address
this. A comprehensive strategy for child protection is necessary to accelerate de-
institutionalisation and the transition towards quality, family- and community-based care
services, including with an adequate focus on preparing children to leave care. While the Law
on child protection aims to prevent physical violence against children, this remains a concern
in society.
Persons with disabilities lack access to healthcare, rehabilitation, social services, education
and assistive equipment and physical infrastructure. There remains a clear gap in harmonising
legislation and policies with the relevant UN Conventions and the EU acquis on the rights of
persons with disabilities The Administrative Instruction for access by persons with disabilities
is in force but not being applied. Direct discrimination against persons with disabilities was
confirmed through a court judgment. Five persons with disabilities filed lawsuits against
various institutions in Kosovo based on the Law on protection from discrimination. In 2022,
the Pristina Basic Court decision confirmed discrimination in one case. Overall, health services
for persons with disabilities need to improve, including for women and girls with disabilities.
The employment of persons with disabilities remains a great challenge. Implementation of the
Law on the status and rights of persons with disabilities is a challenge, while the new draft law
remains pending. Civil society has expressed concerns about the medical evaluation
commission for the status and rights of paraplegic and tetraplegic persons. The government
declared 2022 as the year of persons with disabilities. In this context, it launched several
initiatives to increase accessibility to central and local institutions and to legal and
administrative documents. The government also issued a report on the progress of the action
plan for the rights of persons with disabilities. In December 2022, the government asked the
39
Assembly to incorporate the Convention on the Rights of Persons with Disabilities into the
directly applicable human rights instrument of the Constitution.
On the rights of lesbian, gay, bisexual, transgender, intersex and queer (LGBTIQ) persons,
the Constitution protects against discrimination based on sexual orientation or gender. No
significant change can be reported regarding public awareness and acceptance of LGBTIQ
persons. The draft Civil Code, which includes provisions for civil partnerships for same-sex
partners, has still not been approved by the Assembly. There remain concerns that discussions
surrounding same-sex unions instigate homophobic language by public figures, political
figures and media outlets. The 2019-May 2022 working plan of the Advisory and Coordinating
Group for Community Rights LGBTI has expired. Civil society reports a lack of improvement
in attitudes towards LGBTIQ persons. Dedicated social services are exclusively offered by
NGOs, which report an increased suicide rate among LGBTIQ persons and an increase in
domestic violence cases. There was no progress on the planned building of a shelter for
LGBTIQ victims of domestic violence or family rejection in the municipality of Pristina. As
for legal gender recognition, the process of amending the Law on civil status remains pending.
Further training for law enforcement agents is needed, especially on transgender rights,
qualification of hate crimes and secondary victimisation.
The procedural rights of persons suspected of crime and rights of victims of crime are
stipulated in the Constitution and the law. Amendments to the Criminal Procedure Code
entered into force in February 2023, addressing shortcomings in criminal procedure. The
reforms include a stricter test for the Court of Appeals in returning cases for retrial; permission
for trials in absentia in relation to all types of criminal offences; and expansion of the ex officio
appointment system. The effect of these reforms will depend on their interpretation and
implementation. Some of the remaining issues of concern are delayed and excessively
prolonged court proceedings jeopardising the right to a fair trial, including for cases of domestic
and gender-based violence; lack of professional interpreters/translators and low-quality
standards of interpretation; excessive use of pre-trial detention and insufficient consideration
of other measures for securing the presence of defendants. On victims’ rights, there remains
insufficient provision of legal information to victims of crimes on their rights and on
professional assistance and representation during criminal proceedings. Despite the extension
of free legal aid to all women victims of gender-based violence, very few are represented in
court proceedings. The level of legal aid (for both victims and suspects/accused), although
improved, remains inadequate due to conflicting legislation, lack of public awareness and
different systems for providing free legal aid. The budget allocated for legal aid in 2022 was
EUR 1 877 134, up 9.4% on the previous year. However, the budget implemented in 2022 was
EUR 1 692 393, similar to 2021 (EUR 1 686 056). The lack of a system of quality assurance
of free legal aid remains an issue. Out of 1 595 complaints received by the Ombudsperson in
2022, 472 concerned the right to a fair trial within a reasonable time. Protection and assistance
officers need to provide a better- quality service to victims. The number of requests for a
compensation programme for victims of crime was the same as in 2021. In 2022, the total
number of requests for compensation was 53, with one carried over from 2021. The Committee
for Crime Victims Compensation approved 27 of these requests, for a total value of
EUR 99 106. A positive development to be highlighted is the increase of the 2023 budget to
EUR 148 000, up from EUR 78 000 in 2022.
Kosovo has a well-established legal framework for the protection of non-majority community
rights at the central and local level. The Communities Consultative Council in the President’s
Office, the Office of the Language Commissioner and the Adviser on Communities to the
Prime Minister continued their work to address their most urgent concerns. These include
40
equal access to education, employment, lack of language compliance, their representation in
local and central level institutions, the promotion of cultural identity and access to social
welfare. As of November 2022, the Communities Consultative Council has new members
appointed for the next two-year term: the government appointed three members to the Council,
which is a positive step. During the reporting period, representatives from the central
institutions conducted a series of visits to non-majority communities, focusing on outreach to
civil society and the business sector. At the same time, challenges remain over institutional
coordination between different levels of government and the lasting underfunding of
mechanisms to protect the rights of communities. Initiatives aimed at addressing concrete
problems lack political commitment and are mostly donor-driven. Furthermore, security
concerns, unequal access to education, employment and social welfare, access to illegally
occupied property and non-compliance with the Law on languages remain widely unaddressed.
Further efforts are needed to ensure inclusiveness for all communities residing in Kosovo.
The 2023-2027 strategy for the protection and promotion of the rights of communities and their
members is pending. Furthermore, the appointment of a new Kosovo Serb Minister for
Communities and Return on 1 December 2022 raised questions regarding its compliance with
the Constitution. If the appointee is not an elected member of the Assembly, the Constitution
requires formal endorsement by a majority of Kosovo Serb MPs.
Steps have been taken to appoint a new director of the Office for Community Affairs within
the Office of the Prime Minister; despite this, the post has been vacant since February 2021.
For the first time since 2019, in May the government reconvened the Technical Working Group
for the implementation of the recommendations of the Council of Europe’s Framework
Convention on National Minorities.
Kosovo institutions still lack the capacity to ensure adequate implementation of the Law on the
use of languages. The lack of translation of official websites of central and local level
institutions in both official languages hinders equal access to information. Inconsistency
between Albanian and Serbian translations of legislation and the limited number of translators,
including in courts, limits equal access to justice for members of non-majority communities.
The working group, composed of representatives of the Office of the Prime Minister as well as
international partners, was put in place to lead the preparatory work to set up a unit for
translation, harmonisation and linguistic control. As of the end of May 2023, the working group
had held three meetings.
The Balkan Studies programme of the Philology Faculty of the University of Pristina is the
only educational programme offered by the Kosovo educational system in both official
languages. The programme lacks concrete support and promotion from the Kosovo institutions
to address its rather low enrolment rates (below 15 students).
Discontinuation in 2021 of the work of the Commission verifying university diplomas obtained
from the (Serbia-run) University in Mitrovica North continued to affect graduates from this
university and hinder their access to employment. Additionally, the lack of recognition of high
school diplomas obtained from the Serbia-run educational system, combined with limited
access to employment and a poor economic situation, exacerbates the migration of young
people from non-majority communities out of Kosovo. In February 2023, the government of
Kosovo issued a decision to re-establish the Commission, which by mid-May held eight
procedural meetings. By 21 June, the Ministry of Education, Science, Technology and
Innovation had received 44 applications, out of which none had been verified yet.
Inter-ethnic and potentially ethnically motivated security incidents continue to negatively
impact the perception of security and safety among non-majority communities. Although the
41
number of potentially ethnically motivated incidents affecting non-majority communities in
2022 continued its long-term downward trend, the perception of security among some non-
majority communities has deteriorated, especially in the Kosovo Serb community.
Overall, relations between the government and the Kosovo Serb community have deteriorated
significantly. Following a series of crises, Kosovo Serbs resigned from their positions in
Kosovo institutions in November 2022 and subsequently many of them signed employment
contracts with the Serbian government. Kosovo and Serbia should prioritise enabling the
expedient return of Kosovo Serbs to institutions in Kosovo. Furthermore Kosovo should
engage additional efforts to build trust with this community. Expropriations of privately-owned
land in the north of Kosovo and the increased presence of special police units in the north have
created widespread discontent among the local Kosovo Serb population, negatively affected
the confidence of the Kosovo Serb population in Kosovo institutions and negatively affected
the Dialogue.
In 2022, the voluntary return and reintegration of refugees and displaced persons continued
to witness a decreasing trend. According to the United Nations High Commissioner for
Refugees, 204 individuals returned, compared to 368 in 2021. Some progress was achieved,
with the Ministry for Communities and Return finalising and putting into operation a returns
case management system consisting of a returns database and an appeals commission.
In 2022, Kosovo adopted the 2022-2026 strategy for the advancement of the rights of the Roma
and Ashkali communities and the 2022-2024 action plan. The Municipal Assembly in Prizren
unanimously voted in favour of granting the Romani language the status of language in official
use at municipal level, meaning that Romani is a language in official use at municipal level in
two municipalities in Kosovo. Furthermore, the Office for Good Governance within the Office
of the Prime Minister, in cooperation with the Social Justice for Roma, Ashkali and Egyptian
project, launched the National Platform for Protection against Discrimination for the Roma,
Ashkali and Egyptian Communities, which members of this community can use to denounce
acts of discrimination. However, the Anti-discrimination law remains largely ineffective in
combating anti-gypsyism. The housing situation remains a challenge due to poor living
conditions and lack of property documents. Municipalities in Kosovo have made progress in
including settlements whose residents mainly belong to marginalised communities in their
urban development plans. However, more political will is required to increase the level of
investment and infrastructure building in these settlements. Further efforts are needed to
transform undeclared work among Roma to implement the Poznan Declaration’s objective on
employment. The government created an inter-institutional team to promote the employment
of Roma, Ashkali and Egyptians, led by the Office of Good Governance.
On cultural rights, there have been no developments concerning the adoption of the new Law
on cultural heritage. Relations between the government and the Serbian Orthodox Church
witnessed a further souring following the incident on 26 December 2022 when the Patriarch
was denied entry to Kosovo. The mutual distrust and compounding factors due to political
tensions between Kosovo and Serbia have not provided an enabling environment for the
Implementation and Monitoring Council to resume its work, which has been suspended since
November 2021. Furthermore, there has been no implementation of the ‘arrangement’
previously agreed in order to find a solution to the roadworks in the special protective zone of
the Visoki Dečani Monastery. Efforts towards reconvening the Implementation and Monitoring
Council should be taken as a matter of priority. Kosovo should complete legislation in the field
of cultural heritage by finalising and adopting the relevant Law on cultural heritage.
2.2.2 Chapter 24: Justice, freedom and security
42
Kosovo is in between an early stage and some level of preparation in this area. Limited
progress was made. Previous improvements in the legislation on the fight against organised
crime have not yet delivered tangible results. Sustained efforts are needed to ensure more
proactive investigations, final court decisions and the final confiscation of assets. Kosovo
advanced in the area of counter-terrorism and prevention of violent extremism with progress
in the implementation of the bilateral arrangement on counter terrorism with the European
Commission. Progress was also made on migration management as accommodation capacity
for migrants increased. Kosovo has spare capacity to accommodate a migration influx of up to
2 000 people. With regards to its asylum policy, Kosovo should ensure that refugees are
included in social protection schemes. Kosovo should roll out an information campaign on
rights and obligations linked to the visa free travel status, to prevent possible misuse. In the
area of drugs, Kosovo is yet to adopt a new drug strategy and action plan, to take the necessary
steps to ensure the operational capacity of its National drug observatory and to establish an
early warning system. As last year’s recommendations are only partly implemented, they
remain valid. In the coming year, Kosovo should in particular:
→ continue to reinforce the capacity of the Special Prosecution Office and further improve the
investigation and prosecution of high-profile organised crime cases;
→ establish a National Centre for Countering Terrorism and Violent Extremism, or reinforce
the Office of the National Coordinator for CT/CVE with adequate financial and human
resources and ensure the regular practice of conducting joint threat assessments;
→ implement the EU Action Plan on the Western Balkans by: further improving migration
governance, coordination and monitoring of policies; reinforcing capacities for data
collection and analysis; further strengthening the asylum system; amending the Law on
foreigners in line with EU standards.
Fight against organised crime
Kosovo is at an early stage in the fight against organised crime, and made limited progress
in investigating and prosecuting organised crime cases. Kosovo should make better use of the
existing powerful tools envisaged by the Criminal Code and the Law on extended powers of
confiscation. Law enforcement operations against organised crime continued; nevertheless,
efforts to map and target organised criminal structures should be further intensified. Sustained
efforts are needed to ensure proactive investigations, final court decisions and the final
confiscation of assets. The operational independence of law enforcement agencies must be
ensured. Fighting organised crime in the north of Kosovo continues to be challenging,
including because of the resignation of Kosovo Serb officials from public institutions in 2022.
In addressing this, the authorities must continue to strictly uphold all relevant rule of law
standards.
Kosovo has partly implemented the 2022 recommendations, mostly regarding training and
awareness raising on new legislation. It adopted a new police organisational structure and
upgraded intelligence and analysis capacity. Cooperation with Europol and Eurojust further
advanced. The new Law on implementation of targeted international financial sanctions should
be an effective tool in combating organised crime. In addition to recommendations on
confiscation of criminal assets (see section on fight against corruption), in the coming year,
Kosovo should:
→ effectively implement the new police organisational structure, and continue implementing
intelligence-led and community policing approaches as core police business models;
→ proactively and jointly target and map organised criminal groups and continue to
systematically conduct financial investigations at all stages of the criminal investigations
43
into all serious, organised crime and corruption cases and initiate stand-alone investigations
for money laundering;
→ enhance efforts to prevent and combat criminal networks involved in migrant smuggling
and trafficking in human beings, as well as on the identification and referral of victims to
assistance services; ensure financial sustainability of shelters and assistance for victims of
trafficking.
Institutional set-up and legal alignment
The Kosovo Police has 437 police officers per 100 000 inhabitants, compared with an EU average
of 335.3 per 100 000 inhabitants (Eurostat, 2019-2021); 85% of officers are men and 15% are
women. A total of 446 cadets, including 53 women, graduated from the Kosovo Academy for
Public Safety. During the reporting period, 578 Kosovo Serb officers from the north of Kosovo
resigned from the Kosovo Police following the decision of Kosovo Serb political representatives
to abandon Kosovo institutions in four northern municipalities. This created a security vacuum
and conditions favourable for organised crime in the north of Kosovo. To address the situation,
the Kosovo Police temporarily relocated Kosovo Albanian officers from South Mitrovica to
occupy vacant positions. In addition, the Kosovo Police launched two separate calls to recruit
non-majority officers at the North Mitrovica Regional Police Directorate. In the first recruitment
process, out of 145 (116 males and 29 females) received applications, 73 (57 male and 16 female)
non-majority candidates were enrolled, including 43 Kosovo Serbs (36 male and 7 female). In the
second recruitment process, which closed on 30 May 2023, out of 205 applications received (167
males and 38 females), 87 (69 males and 18 females) were from Kosovo Serbs. The police’s
composition needs to reflect the four municipalities’ ethnic composition. The resignation of
several newly deployed police cadets from non-majority communities following intimidation is
of concern.
The Special Prosecution Office, the Special Department of the Basic Court and the Court of
Appeals in Pristina are the key institutions involved in the fight against organised crime. Some 15
additional support staff were hired in the Special Prosecution Office in 2022. The increase in staff
has thus far not had a significant impact on the investigation and prosecution of high-profile
organised crime cases.
In March 2023, the Prime Minister appointed the new General Director of the Kosovo Police,
following a transparent and competitive recruitment process. In the same month, the Minister for
Internal Affairs and the General Director of the Kosovo Police approved a new organisational
structure for the police and established a working group to oversee implementation of the new
structure. In order to appoint qualified officers, the process needs to be transparent, impartial and
meritocratic, and requires commitment from the police’s management. The new police structure
is organised around three main pillars: operations, investigations and border police, and promotes
two key concepts: community policing and intelligence-led policing. The police’s Investigation
Department, responsible for preventing, detecting and investigating organised crime and
corruption-related offences, has also been restructured. The Intelligence and Analysis Directorate
has become a stand-alone department, with separate offices. In addition, the Crime Investigation
Division includes directorates for cybercrime and war crimes.
Working groups continued monitoring the implementation of police strategic documents,
including the 2021-2025 strategic development plan, the integrated intelligence-led policing
approach, the community policing strategy and the action plan 2021-2025. In July 2023, the
second Strategic Level Tasking and Coordination Group drafted new priorities based on an annual
strategic crime assessment report. The Ministry of Internal Affairs should take into account the
findings of the police risk assessment analysis of the government buildings and accordingly
44
refrain from utilising police officers for tasks that are not core police service tasks.
The Kosovo Border Police, Kosovo Customs administration, Financial Intelligence Unit and 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. The Kosovo Customs administration and the Financial Intelligence Unit
continued to perform well. The Asset Recovery Office (the ‘Unit for Asset Investigations’ under
the new police organisational structure), which remains operational, continued to receive limited
requests for asset recovery. The authorities should support and accelerate the transfer of the Asset
Recovery Office to the State Prosecution Office, and assign dedicated staff from the Prosecution
Service, the police, the Financial Intelligence Unit and the Customs and Tax administrations. The
Police Information System is advanced and linked to other law enforcement databases.
Implementing legislation regulates 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 continued to stall during
the reporting period. There were delays in the revision of the Law of the Civil Registration
Agency, which remains pending. The Agency functions without a strategic plan to guide its vision
for development and modernisation, or to align with the public administration reform process. For
over 2 years now, an acting General Director leads the Civil Registration Agency. The National
Audit Office found that the Civil Registration Agency has still not put in place an IT governance
risk and compliance framework to ensure continuity in the operation of its information systems.
Current systems do not sufficiently guarantee data confidentiality, integrity and availability. Due
to supply chain issues, for over 4 months in the second half of 2022 personal documents/passports
could be issued only in emergency cases. Urgent steps need to be taken to ensure continuous
provision of essential services to citizens.
The main strategic framework, the rule of law sector strategy, consists of the Kosovo Judicial
Council’s strategic plan for the efficient solving of cases of corruption and organised crime, and
other relevant strategies on arms control, the informal economy, money laundering and terrorist
financing, counterterrorism, trafficking in human beings, and cybersecurity. All relevant
institutions must cooperate to implement these strategic documents effectively. The 2018-2022
strategies and action plans against narcotics and organised crime in Kosovo have expired. The
authorities should assess the implementation of the previous expired strategies and adopt strategic
documents and their respective action plans for the following period In addition to the annual
strategic crime assessment report, Kosovo police prepares a serious and organised crime
assessment report every 3 years.
The legal framework on the fight against organised crime is broadly aligned with the EU acquis.
For status-related reasons, Kosovo is not party to international conventions on the fight against
organised crime, such as the UN Convention on Transnational and Organised Crime (the Palermo
convention), but still applies these international principles in its criminal legislation.
The Law on money laundering and terrorism financing should be amended to bring it fully in
line with the 4th and 5th EU Directives on anti-money laundering and countering financing of
terrorism and with evolving international standards. The government should review the legislation
to ensure its full compliance with these directives and the Financial Action Task Force (FATF)
recommendations. The Assembly adopted the Law on implementation of targeted international
financial sanctions. Kosovo made progress in strengthening its asset recovery regime, having
adopted a concept document on establishing a confiscation fund. In 2022, the Assembly adopted
the Law on the State Bureau for Verification and Confiscation of Unjustified Assets, introducing
the concept of illicit enrichment into the domestic legal system and providing the basis for
establishing the Bureau for Verification and Confiscation of Assets. The opposition Democratic
45
Party of Kosovo (PDK) filed an action for Constitutional Court constitutional review of the law.
To increase the transparency of legal persons and arrangements, the government adopted a
concept document on the beneficial ownership register, addressing shortcomings identified by the
2018 Council of Europe anti-money laundering and countering the financing of terrorism
(AML/CFT) assessment and paving the way for legislative changes.
On the implementation of the Law on interception of electronic communications, upgraded
interception capacities and the procurement of technical equipment resulted in the decentralisation
of monitoring centres to other regional police directorates. Legislation on cybercrime is generally
in line with the EU acquis. The Kosovo Police upgraded its cybercrime unit to a cybercrime
directorate and will allow to increase the number of cybercrime investigators in accordance with
its newly adopted organisational structure. Legislation on trafficking in human beings is broadly
aligned with the relevant EU acquis, but implementation remains limited. In May 2023, the
Ministry of Internal Affairs adopted the Administrative Instruction on the Database for Victims
of Human Trafficking. The new Criminal Procedure Code, which entered into force in February
2023, further aligned Kosovo legislation with the relevant EU acquis on the procedural aspects
of trafficking offences. The 2022-2026 strategy and action plan against trafficking in human
beings is being smoothly implemented. In November 2022, the Ministry of Justice adopted the
State Protocol for handling cases of sexual violence, setting out the responsibilities of each
relevant institution.
Implementation and enforcement capacity
The Kosovo authorities continue to report on the total number of indictments and convictions for
the charge of ‘organised crime’ as defined in the UN Convention on Transnational and Organised
Crime. During 2022, 25 new cases were initiated (19 cases in 2021), and 16 individuals 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 and serious crime cases currently not included in the
aforementioned track record, during 2022, 50 cases were initiated regarding trafficking in human
beings involving 70 persons (70 in 2021), and prosecution presented indictments against 42
individuals (45 indictments were presented in 2021). In 2022, 14 people were convicted (3 in
2021). In addition, in 2021, 3 people were indicted (23 in 2020) for illicit trafficking of firearms;
there were no court decisions (3 people convicted in 2021). For money laundering, 2 people were
indicted in 2022 (9 in 2021) and 3 were convicted (1 in 2021). Police and 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 the section on the 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
multidisciplinary joint investigation teams, wherever possible.
The Kosovo Police has basic capacity and capability to combat organised crime. However,
organised crime investigations remain vulnerable to corruption and undue interference. This issue
should be tackled with more corruption prevention measures such as robust integrity and ethics
training, as well as disciplinary and criminal investigations. The changes in the organisational
structure of the Kosovo Police aim to enforce the police’s integrity plans by introducing a new
Integrity Section under the new Deputy Director General. The Ministry of Internal Affairs, as
envisaged by the Law on the Police Inspectorate, should adopt a plan to implement Police
Inspectorate recommendations. So far this has still not been done. During 2022, the Police
Inspectorate investigated 257 officers which resulted in the suspension of 164 police officers; the
46
filling of the resulting vacancies is slow. The trend of successful police operations targeting
organised crime continued during the reporting period, also involving international and cross-
border cooperation. In 2022, the police dismantled 34 organised crime groups (49 in 2021), a
decrease of 30% on 2021. The main reasons for the decrease are twofold: increased operational
reassignment of police in the north, especially during the second part of 2022, and the focus of
investigations on more complex cases. Operations against organised crime groups resulted in a
number of arrests and the preliminary confiscation of assets, which need to be followed up by
prosecution and the judiciary. The fight against organised criminal structures should be
intensified. Investigations should be more proactive and criminal groups should be adequately
mapped. The police should target criminal groups and structures as opposed to single types of
crime. The new police organisational structure is an improvement in this regard.
The Kosovo Police Special Investigation Unit continued to play an essential role in the
investigation of high-profile corruption cases. In 2022, the Special Investigation Unit handled 98
corruption cases, 46 of which were high-profile. Prosecution received 6 criminal reports. Four
indictments were filed, and 13 cases were closed. The government should ensure that the police’s
Special Investigation Unit, the successor of the abolished Anti-Corruption Task Force, has a
sound legal and organisational structure (see section on the fight against corruption).
Kosovo made some steps to improve implementation of the intelligence-led policing and
community policing approaches. In the new organisational structure, the Kosovo Police has
strengthened its intelligence structures, both at central and regional levels. To that end, it upgraded
the Intelligence and Analysis Directorate into a stand-alone police department and added a new
division for community policing. During 2022, the Directorate for Intelligence and Analysis
received 11 250 information reports (37.55% increase on 2021) and distributed 3 965 intelligence
reports (27.16% increase on 2021). Dedicated community officers within sectors have been
integrated into the organisational structure. Outreach activities are planned to build trust with
communities. During 2022, the police carried out a pilot project entitled ‘Get to know your
police’, which will be implemented throughout Kosovo. However, the implementation of
intelligence-led policing remains overall weak as structures and systems are not yet fully in place.
Under the new police organisational structure, the police should take the following actions: further
establish intelligence structures at regional and central levels; continue the recruitment and
training of dedicated analysts; and fully operationalise the strategic tasking coordinating group at
the top management level and the tactical tasking coordinating group at the regional level. There
is a need for more specialised and on-the-job training for all institutions involved in fighting the
more complex organised crime cases. The police and Special Prosecution Office should cooperate
closely to develop strategies to better conduct investigations and have a clear division of
responsibilities. The police should establish a verification office for special investigative
measures to review investigators’ requests for special measures from the prosecution. This would
enable a joint target-based approach to improve the proactive detection 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). In March 2023, cooperation between Europol and Kosovo Police improved further
with the deployment of a Kosovo Liaison Officer at Europol’s headquarters in The Hague. The
Secure Information Exchange Network Application (SIENA) is operational. The Kosovo Police
cooperates well with police services in EU Member States, including through joint investigation
teams and exchanges of information on civil and criminal cases. During the reporting period, as
part of its international cooperation, the Kosovo Police recorded 19 investigations and 2 joint
operations. The police has signed 103 international police cooperation agreements, including with
47
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 cooperation in place through the appointment of the two contact
points. Kosovo has joined the Eurojust WB CRIM JUST project to enhance the level of interaction
and integration between the EU and the Western Balkans in the criminal justice field.
The Kosovo Police is working to improve the handling of cases of domestic violence and other
forms of gender-based violence. It has updated the standard operating procedure on addressing
domestic violence cases and improved police officers’ capacities to handle cases, produce risk
assessments and set up victim-friendly interview rooms. However, the handling of cases is still
deficient. The failure to protect victims, including the dismissal of reports, disclosure of identity,
inadequate interviewing and non-enforced protection orders was reported in some severe cases of
rape and killing by intimate partners. More needs to be done to ensure that Kosovo police officers
understand their role in cases of domestic violence. in accordance with existing laws, strategies
and the new State Protocol for the handling of cases of gender-based violence.
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. The
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 producing the expected
results. In 2022, there was one final conviction for money laundering. More efforts are needed to
achieve a substantial level of proactive investigations, final court decisions and final confiscation
of assets. The capacities of the police and prosecution should be strengthened. Money laundering
and terrorist financing are often not prosecuted as a stand-alone crime. There is a pressing need
to foster prosecutors’ and judges’ enhanced understanding of the concept of money laundering
and terrorist financing and to increase their specialisation in this field. Financial investigations
are still not systematically launched in cases of organised crime and corruption and are not used
in the context of a broader approach to fighting organised crime and high-level corruption. Recent
or ongoing sectoral risk assessments enable the competent authorities to develop their
understanding of the high-risk areas in several sectors, including real estate, non-profit
organisations, construction and games of chance. The level of understanding of different types of
financial institutions and designated non-financial businesses and professions in this area varies
significantly. Reaching a substantial level of effectiveness will require targeted training and
outreach. In 2022, the Financial Intelligence Unit received 947 suspicious transaction reports (up
3% on 2021). In total, EUR 2 077 995 of assets were confiscated. Overall, although the efficacy
of financial investigations has improved at the police level, they are still not systematically
conducted in parallel with criminal investigations/proceedings. Inter-agency cooperation and
coordination needs to improve significantly. The adoption of police standard operating procedure
to centralise all aspects of financial investigations in line with Financial Action Task Force
(FATF) recommendations is yet to produce concrete results.
Despite progress, 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 2022, the Kosovo Police
seized 1 473 firearms (1 280 in 2021) and 29 903 pieces of ammunition of various calibres
(42 031 in 2021). The authorities should accelerate efforts towards drafting amendments to the
key laws, by-laws and strategy on firearms, ammunition and explosives, with a view to achieving
harmonisation with the main EU firearms directives and regulations. Kosovo’s firearms focal
point continues to function as good practice in the region, and its ballistics laboratory is well
equipped. Kosovo continues to have the highest level of harmonisation in the region with the
48
provisions of the UN Firearms Protocol.
Kosovo remains a country of origin, transit and destination for victims of trafficking in human
beings, notably for sexual exploitation. During 2022, the Kosovo Police identified 22 victims of
trafficking, out of which 21 were girls and women and one man, with 14 victims under the age of
18 and 8 over the age of 18. Victims were offered protection and support services by relevant
police units, licensed NGOs and social protection services. The authorities have taken coordinated
efforts to prevent and raise awareness on this issue. Actions include enhancing the identification
procedure, starting from victim identification to long-term reintegration, and increasing efficiency
in prosecuting those leading the trafficking in human beings. However, there is still much room
for development to gain a better understanding of the scope of and conditions under which
trafficking in human beings is taking place, including how it inter-relates with labour exploitation.
A strong focus is needed on data collection and monitoring of workplaces, especially in the private
sector. In addition, more work is needed to strengthen institutional capacity to enforce existing
legislation (including prosecution), structures and mechanisms to counter trafficking in human
beings.
Cigarette and tobacco smuggling is of growing concern. Kosovo is a key transit country for the
smuggling of counterfeit cigarettes and for legally produced tobacco products shipped illicitly via
neighbouring countries in the Western Balkans.
During 2022, there were 54 cases (37 in 2021) of cybercrime. An indictment was filed against
one person but there was no final judgment, and one investigation was terminated. The Kosovo
Police Sector for the Investigation of Cybercrime initiated 8 cases over child abuse in
pornography, and 8 criminal charges were filed against 8 people. Kosovo needs to address several
issues, such as the limited availability of cybercrime training for newly appointed judges and
prosecutors and those handling electronic evidence.
Under the 2017 working arrangement with the EU Agency for Law Enforcement Training
(CEPOL), Kosovo plays an active role in a number of the Agency’s activities. Kosovo has full
access to the CEPOL exchange programme and its electronic learning system. It is recommended
that the authorities of Kosovo, with the assistance of CEPOL, design, prepare and organise
targeted training to address counter terrorism from the protection, prevention and responding
angles, as a priority training topic.
Kosovo participates in the European Multidisciplinary Platform Against Criminal Threats
(EMPACT). In 2022, Kosovo participated in 22 operational actions in 3 of the 15 EMPACT
operational action plans, in the first half of 2023, Kosovo has participated in 9 operational actions
In 2022, Kosovo appointed a National EMPACT Coordinator, the Police Director for
International Cooperation, and continued to participate in EMPACT Joint Action Days. It also
continued to cooperate with EU police services through the European Network of Fugitive Active
Search Teams, in which it has observer status.
Cooperation in the field of drugs
Institutional set-up and legal alignment
A national strategy on drugs spanning the period 2018-2022 has expired and so far no new strategy or
action plan has been adopted. 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
and on the Criminal Code. A more comprehensive revised draft law aligned with the most recent EU
legislation is yet to be adopted.
A coordination mechanism is in place to prevent and combat drug trafficking and the illicit use of
49
precursors. While a National Drug Observatory has been in place since August 2018, it has been
without a head since December 2018. With only one full-time staff member, the Observatory lacks
the necessary human resources to fulfil its role and remains ineffective. In March 2023, the Ministry
of Internal Affairs adopted the new Regulation on the internal organisation and systematisation of
jobs, which makes provision for a Drug Observatory within the Secretariat of Strategies. The early
warning system on new psychoactive substances is not yet established. The Ministry approved an
internal regulation on the organisation of the National Drug Observatory and the early warning system,
which ensures adequate human and financial support, but additional staff are yet to be recruited.
Despite general progress on data collection, difficulties remain regarding the sustainable and routine
collection of drug-related data. In the absence of a functional health information system, establishing
a drug treatment register is not a priority.
Implementation and enforcement capacity
Kosovo continues to be both a storage and transit country for narcotic drugs and their derivatives.
Drug seizures continued to increase: around 662 kg of marijuana, 246 kg of heroin, 4 kg of cocaine
and 24 500 cannabis plants were seized in 2022. During 2022, the Kosovo Police registered 808
new drug-related cases (726 in 2021), arrested 1 039 suspects, and filed 532 criminal charges
against 791 suspects. Out of all the cases, 271 were charged for drug trafficking, 505 for illegal
possession of drugs, and 32 for cultivation. Provisions are in place for the secure storage of seized
drugs awaiting destruction.
Organised crime groups continue to play a dominant role in large-scale drug trafficking and
subsequent distribution to the EU. The Western Balkan drug trafficking routes constitute a major
challenge. Kosovo law enforcement agencies continue to engage in successful drug targeting
operations, in cooperation with EU Member States. Industrial-scale indoor and outdoor cannabis
cultivation facilities have been identified in several countries in the region, including in Kosovo.
During the reporting period, several successful operations against drug cultivation laboratories
were carried out, including in northern Kosovo. Law enforcement agencies and prosecution need
to further increase their understanding of the drug market through analytical work. Inter-agency
cooperation and exchange of information in the fight against drug trafficking in the chain of justice
sector should further improve. The Prosecution Service continues to be understaffed and
insufficiently trained to deal efficiently with drug-related offences. Increased cooperation,
coordination and exchange of information among law enforcement agencies in the Western
Balkan region is paramount and should improve. Kosovo has a 24-hour drug abuse hotline and
offers addiction treatment and methadone therapy. Cooperation with the European Monitoring
Centre for Drugs and Drug Addiction remains satisfactory.
Fight against terrorism
Institutional set-up and legal alignment
A range of institutions remains active in combating terrorism and violent extremism, and in
dealing with reintegration of returning foreign terrorist fighters and their families. The Minister
for Internal Affairs acts as the National Coordinator for the Prevention of Violent Extremism and
the Fight against Terrorism. This position is intended to improve interinstitutional coordination,
monitor and report on the implementation of policies, activities and other actions, and serve as a
point of contact. However, given the nature of the Minister’s other tasks, the focus on this issue
is limited.
Kosovo’s legal framework on anti-terrorism is partly aligned with the EU acquis and
international instruments. The Law on combating money laundering and the financing of
terrorism needs to be amended to be fully in line with EU and international standards (see section
50
on the fight against organised crime and on the free movement of capital). Kosovo adopted the
important Law on implementation of targeted international financial sanctions. Legislation on
critical infrastructure protection remains in place; the adoption of implementing legislation is
pending, there is also need for appropriate capacity to implement the legislation.
Kosovo has a strategy and action plan against terrorism (2018-2023) in line with the EU’s
counterterrorism strategy. A strategy and action plan against violent extremism (2015-2020)
expired at the end of 2020 and the National Coordinator decided to merge the two strategies into
one. The new 2023-2028 national strategy and action plan on the prevention and countering of
terrorism were adopted in June 2023. The EU supported Kosovo in the revision process through
the Radicalisation Awareness Network Policy Support. The Joint Threat Assessment Centre,
including a threat-level grading system, is yet to be established. In the second half of 2022,
Kosovo Police and the Kosovo Intelligence Agency produced the second joint threat assessment
analysis as part of the situation analysis for the new strategy on the prevention and countering of
terrorism. There is a need to improve donor coordination and to establish a more structured
mechanism. The Kosovo authorities continue to implement the bilateral Implementing
Arrangement with the EU for the Joint Action Plan on Counter-Terrorism for the Western
Balkans. Kosovo submitted its fifth implementation report in February 2023.
Implementation and enforcement capacity
Kosovo continued to fight the threat of terrorism. In 2022, 7 indictments were filed and 6 people
were convicted. Investigations were completed in 12 cases against 43 suspects. Greater
consistency in sentencing practices for offences related to terrorism and violent extremism is
necessary. The functioning of the Special Department in the Basic Court of Pristina and the
Court of Appeals has contributed to effective handling of terrorism cases. At present, 19 inmates
for terrorism-related crimes are in prisons in Kosovo, with 5 inmates sentenced, 5 in detention
at the high-security prison and 9 sentenced at the Dubravë/Dubrava correctional centre. During
2022, 11 people were released, of which 4 on parole, 3 on early release and 3 after having served
their sentences. Between January and June 2023, 5 prisoners sentenced for terrorism-related
crimes were released. Sentences for terrorism crimes for foreign terrorist fighters have been
relatively lenient (average sentence 3.6 years). The Ministry of Internal Affairs took measures
related to conditional release to ensure that the conditional release panel pays more attention to
security aspects when dealing with inmates leaving prison with higher level of radicalisation. So
far, there have been a few cases of recidivism among those convicted of terrorist-related
offences.
Despite significant efforts, some challenges remain in the countering of terrorism and the
prevention and countering of violent extremism and radicalisation. The increase in violent
incidents of domestic religious extremism and the impact of other forms of extremism is
concerning. Militant Salafist ideology, growing ethnonational and far-right movements in the
region5
, including Kosovo, remain a threat. False bomb threats against public institutions
emerged during the reporting period, including at the airport. Despite the efforts of the Kosovo
authorities to improve the situation, there are a number of push and pull factors for radicalisation,
including poverty, the perception of corruption, lack of institutional capacity, and the political
situation. The Kosovo authorities need to balance efforts to prevent and counter violent
extremism in all its forms with rehabilitation and reintegration measures. It is important to
continuously revise the existing strategies, action plans and reintegration and rehabilitation
programmes.
Kosovo authorities have taken a leading role in the rehabilitation and reintegration of
51
returnees from foreign conflicts; to that end, they repatriated a large number of Kosovans and
provided them with psychosocial support and economic reintegration initiatives. Since the start
of the civil war in Syria in 2012, 257 Kosovans have returned (133 men, 39 women, 85 children),
106 have died, and 83 allegedly remain in the Middle East (35 men, 8 women, 40 children).
After the return operation in May 2022, there has been no further developments to repatriate the
remaining individuals from the region. The Reintegration Division of the Ministry of Internal
Affairs needs appropriate financial and human resources. The authorities need to continue to de-
securitise the rehabilitation and reintegration process and prevention of violent extremism work,
while ensuring risk mitigation. In terms of planning and implementation of rehabilitation and
reintegration processes, Kosovo should establish multidisciplinary mechanisms at local level.
There is a need to focus more on education, training and preparedness of local practitioners
dealing with returnees. The National Coordinator for the Prevention of Violent Extremism and
the Fight against Terrorism should play an enhanced role in overseeing the rehabilitation and
reintegration process, including by linking up with municipalities. During the reporting period,
the Ministry of Internal Affairs piloted multidisciplinary mechanisms in the municipality of Hani
I Elezit handling cases of returned foreign terrorist fighters, their families and other individuals
at risk of radicalisation. These mechanisms should be further strengthened. Civil society plays
an important role in rehabilitation and reintegration efforts in local communities. The Law on
the Kosovo Correctional Service formally established an Intelligence Unit and Unit for
Extremism Management within the Correctional Service, thus contributing to improved
coordination when dealing with extremist and terrorist inmates. However, de-radicalisation and
disengagement programmes within the correctional system need to be significantly intensified.
Authorities need to intensify specific training, including for the Kosovo Probation Service,
which must develop programmes for convicted terrorist who are released after serving their
sentence.
The Kosovo authorities should improve their capacity to address terrorist content online,
including increasing their efforts to refer terrorist content to internet providers, as well as
enhancing efforts to empower civil society to develop effective counter-narratives.
Judicial cooperation in civil and criminal matters
For status-related reasons, Kosovo is not party to most multilateral treaties governing mutual
judicial cooperation but unilaterally applies internationally recognised treaty standards.
Cooperation between Kosovo and Eurojust further advanced. During the reporting period,
Kosovo did not apply to become party to any multilateral treaty or organisation in the field of
judicial cooperation. Two new bilateral treaties on judicial cooperation in civil matters entered
into force and Kosovo has taken steps to conclude additional bilateral treaties.
The legal framework for judicial cooperation in civil matters is consolidated and fully aligned
with the EU acquis. Cooperation with countries with which Kosovo does not have bilateral
agreements is based on the principle of reciprocity and comity. During the reporting period,
Kosovo addressed 269 requests on civil matters to EU Member States and received 344
responses. It received 372 requests from EU Member States and provided 382 responses.
Kosovo’s international legal cooperation in criminal matters is based on the Law on legal
cooperation in criminal matters and on 40 bilateral treaties. During the reporting period, Kosovo
issued 142 requests in criminal matters and received 178 responses. Over the same period, it
received 365 requests and provided 325 responses. In addition, 11 people were extradited from
the EU Member States to Kosovo, and 7 people from Kosovo to EU Member States.
In 2022, the Kosovo authorities did not undertake any action to cooperate with the European
Public Prosecutor’s Office.
52
The 2015 procedures on mutual legal assistance agreed between Belgrade and Pristina form the
basis for judicial cooperation between their judicial authorities. Most countries that do not
recognise Kosovo have voluntarily accepted the facilitating role of the EU Special
Representative (EUSR) in the transmission of judicial requests (including those concerning
extradition). However, the lack of cooperation by some non-recognising states has resulted in
cases of impunity. Since the end of August 2022, Kosovo has not received any request for
mutual legal assistance or related responses from Serbia.
Legal and irregular migration
Kosovo has mobilised additional resources to adjust the existing contingency plan to manage
mixed migration flows. Stranded migrants outside reception centres faced particular
challenges, as they remain unregistered.
Kosovo has engaged with the EU on the implementation of the EU Action Plan on Migration
presented by the Commission in December 2022. Delivery should continue on all the strands
of the Action Plan.
Kosovo participates in the regional Anti-Smuggling Operational Partnership with the Western
Balkans launched in the EU-Western Balkans Justice and Home Affairs Ministerial meeting
on 3 November 2022 to support law enforcement and judicial cooperation against criminal
smuggling networks, and to increase border management capacities.
Institutional set-up and legal alignment
The institutions dealing with migration in the Ministry of Internal Affairs and the Border
Police remain effective. The capacity of the Department for Citizenship, Asylum and Migration
in the Ministry of Internal Affairs should be increased. Currently, the Department employs 34
staff members, while the organisational chart makes provision for a staff of 52. One of the
deputy ministers is the National Anti-Trafficking Coordinator and National Migration
Coordinator. The authorities should reflect on creating a permanent position to bring more
stability to this role.
In September 2022, the government restructured the Government Authority on Migration. The
Multistakeholder Forum remains an important platform where all relevant stakeholders
cooperate on migration-related issues.
The legal framework is largely in line with the EU acquis. Steps should be undertaken to
further align legislation, including the Law on foreigners, with the EU acquis and international
standards. It is recommended that Kosovo align legislation with Directive 2008/115/EC (the
Return Directive), include a humanitarian protection category, and extend the voluntary return
period.
Kosovo has readmission agreements with 24 countries, including 20 EU Member States and
members of the Schengen area. During the reporting period, Kosovo did not sign any new
readmission agreements. There is no readmission agreement with the EU as a whole. During
2022, the government approved initiatives to conclude new readmission agreements with 14
countries: Latvia, Lithuania, Portugal, Poland, Ireland, the United Kingdom, Pakistan, Côte
d’Ivoire, the United States, Jordan, Egypt, Libya, Chad and Australia.
The 2021-2025 migration strategy and action plan reflect the priorities in the government
programme for the same period. The strategy and action plan take into account obligations
deriving from the Stabilisation and Association Agreement as well as European and global
initiatives such as the EU Pact on Migration and Asylum and the Global Compact on Safe,
Regular and Orderly Migration. The strategy meets all requirements, including on defining
53
baselines, clear budgeting and setting target values. Issues related to the diaspora are not
included in the migration strategy; instead, it will form a part of the future diaspora strategy.
This is a first step towards developing a comprehensive strategy covering all relevant policy
areas, coordination and implementation. The Department of Citizenship, Asylum and
Migration prepared the first six-month report on the implementation of the migration strategy.
Implementation and enforcement capacity
In 2022, the number of registered migrants decreased from 1 487 to 957. There were 469 non-
registered migrants in the period January-December 2022. Most migrants are single men, with
a limited number of single women, families and children.
During the first half of 2023, 308 new migrant arrivals were registered in Kosovo: 222 of them
applied for 15 days of international protection and have been accommodated in the temporary
reception centre in Vranidoll, while 86 applied for asylum and have been accommodated in the
asylum centre in Magure. 134 evacuees from Afghanistan are still present in the US facility in
Kosovo. There are 71 unregistered migrants inside Kosovo residing outside regular reception
centres.
The International Organization for Migration (IOM)’s displacement tracking matrix remains
an important mechanism to monitor movements in and out of Kosovo, and as such helps the
authorities to develop evidence-based policies and provide migrants with adequate protection
services. Kosovo has limited capacity to manage labour mobility to and from Kosovo. There
is a need to establish and ensure access to safe and regular migration pathways, and to work
with skills mobility partnerships. This would also foster an environment conducive for circular
migration.
Migrants who enter Kosovo can either apply for asylum or make use of 15 days to decide
whether to apply for asylum or leave. After 15 days, if they did not apply for asylum and leave,
or apply for voluntary return assistance, they may be subjected to forced return. As no
alternatives to detention are in place, they may be subject to detention.
The authorities expanded accommodation capacities, which are currently sufficient. There are
three reception centres, with a current capacity of up to 600 (Magure, 100 people; Vranidoll,
200 people; Belvedere Camp, 300 people, which can be expanded up to 2 200). The refurbished
temporary reception centre in Vranidoll, which can host up to 70 people, opened in June 2022.
The average stay of a migrant in the Magure asylum centre is 20 days, 6 days at the Vranidoll
temporary reception centre for migrants, and 90-120 days at the Vranidoll detention centre for
foreigners.
While fundamental rights are generally upheld, services provided at the centres should
improve, including medical assistance, psychological support and interpretation services.
Measures should be taken to increase safety for asylum seekers in facilities, in particular to
prevent gender-based violence. Providing proper care and security for the most vulnerable
groups of migrants remains a challenge. Kosovo needs to further increase and strengthen
authorities’ capacities to evidence irregular migration and offer protective quality services. In
2022, the government adopted the guidelines on the prevention, risk management and response
to gender-based violence in the context of mixed migration.
In 2022, 20 migrants were detained in the detention centre for foreigners. Detention should
only be applied as a last resort, in line with the EU acquis. Establishing sustainable alternatives
to detention for irregular migrants remains a priority. The IOM, funded by the EU, provided
essential support to migrants at the detention centre for foreigners. Conditions need to improve
to align with international and human rights standards. In the first 5 months of 2023 9
54
foreigners present in Kosovo were returned to their place of origin under the readmission
agreements, one third each by force, voluntarily or through IOM voluntary channels
respectively.
Despite the government’s efforts, transnational smuggling networks continued to facilitate
secondary movements of irregular migrants from entry points along the Western Balkan route.
During the reporting period, the Kosovo Border Police intercepted 869 migrants entering in an
irregular manner. They also initiated 24 cases of migrant smuggling (compared to 27 in the
previous reporting period) involving 44 people (57 in the previous reporting period). 26
indictments and 13 guilty verdicts were issued. During the first half of 2023, 4 individuals were
arrested for involvement in migrant smuggling.
Gaps remain in enforcement of the laws, mostly due to a lack of coordination between
government agencies. The Border Police’s capacity in the area of protection-sensitive
migration needs to be further strengthened. Qualified interpreters are needed to service the
asylum and detention centres and the Border Police. The lack of biometric equipment and
interoperability of data affects the efficiency of initial registration and further processing.
Overall, there is a need for better interinstitutional coordination, including with municipalities.
Further efforts are needed to put in place a gender-responsive system.
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. The Migration, Asylum, Refugees Regional Initiative (MARRI) established
a Permanent Working Group on Migration Statistics to collect, process and disseminate
migration data through the regional platform for migration data exchange in the region.
According to Eurostat, the number of Kosovo citizens refused entry at the external borders of
the EU was 1 795 in 2022 (1 650 in 2021), and those found to be illegally present was 3 960 in
2022 (3 545 in 2021). The number of Kosovo citizens ordered to leave the EU increased
slightly from 3 740 in 2021 to 3 930 in 2022. 1 380 returned to a third country in 2022.
The readmission agreements with EU Member States and Schengen associated countries are
being implemented satisfactorily. The total number of readmitted persons in 2022 was 613, out
of which 536 were by force (87%), 13 voluntarily (2%) and 64 through IOM voluntary channels
(10%), marking a decrease compared with 2021. The majority of those readmitted are in the
age groups 35-64 (266 or 43.4%) and 18-34 (242 or 39.5%). Among those readmitted by force
in 2022, 470 (87.6%) were male, while 66 (12.3%) were female. According to data from the
IOM, out of the voluntarily readmitted persons in 2022, 41 (64%) were male and 23 (36%)
were female. For 2023, by May a total of 209 persons had been readmitted to Kosovo, 174
(83.25%) by force, 15 (7.18%) voluntarily and 20 (9.57%) voluntarily through IOM channels.
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 the Kosovo authorities continue to
cooperate well on readmission. The number of Kosovans ordered to leave the EU increased
from 3 740 in 2021 to 3 930 in 2022, according to Eurostat. 1 380 returned after the order to
leave in 2022 (35.1%).
The number of asylum applications made by Kosovo citizens in both EU and Schengen
associated countries has fallen steadily, from the peak of 73 210 in 2015 to 1 515 in 2020 and
1 600 in 2021, rising to 2 445 in 2022. The overall number of Kosovo citizens readmitted
dropped from 18 789 in 2015 to 625 (512 forced and 113 voluntary) in 2020, and 849 (710
forced and 139 voluntary) in 2021.
55
Overall, there is a need for better interinstitutional coordination, including with municipalities,
as well as improved systemic monitoring and evaluation 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-linked and NATO-related
evacuees/refugees from Afghanistan, based on the Kosovo government’s decision to grant
them temporary protection for one year. They are hosted in two open facilities in Kosovo on
the understanding they will be further resettled in the United States under a specific visa regime
or in NATO Member States committing to taking them in. Since January 2023, 158 departures
have been registered and 134 people are present in Bondsteel Camp.
Asylum
Institutional set-up and legal alignment
In March 2022, the EU Agency for Asylum (EUAA) and Kosovo adopted and started to
implement a bilateral roadmap for cooperation (2022-2024).
Kosovo’s legal and institutional framework on asylum is mostly in line with the EU acquis.
The Kosovo legal framework provides for access to the territory and respects the principle of
non-refoulement. Refugees should be included in social protection schemes. Certain sectors of
the system require further strengthening in line with the Roadmap agreed with the EUAA.
The establishment of a fully effective and protection-sensitive entry system requires clear legal
provisions. These should include identification, screening and referrals of people seeking
international protection and those with specific needs. The new Law on foreigners is an
opportunity to provide clear definitions; it should also lay down provisions on facilitated
integration.
Implementation and enforcement capacity
Kosovo continues to be a transit route for most people arriving in mixed movements. Limited
capacity in terms of biometric devices and lack of data interoperability affect the efficiency of
the registration and further processing of asylum claims. To comply with its mandate, the
Border Police needs adequate equipment and more expertise.
The Ministry of Internal Affairs Asylum Division / Department for Citizenship Asylum and
Migration consists of 3 officials who handle asylum cases. Authorities should consider
accelerating the process of hiring new staff.
In 2022, Kosovo recorded 550 asylum applications, a trend similar to 2021 (578). By May
2023, 73 asylum claims had been registered. During 2022, Kosovo granted protection to 25
people. By May 2023, protection had been granted to 13 people.
Most asylum requests are suspended, as applicants disappear without completing the procedure
(52 out of 73 as of May 2023). Cases of gender-based violence remained institutionally
unattended due to the lack of appropriate response systems. The current practice of issuing a
“Certificate for accommodation at the Temporary Reception Center for Migrants” allowing for
accommodation rights for 15 days, without granting any legal status during this period is not
in line with the EU acquis in the field.
The integration system is at an early stage of development. Kosovo made some progress to
increase staffing and build capacity through training and new procedural guidance. On child
protection, it remains crucial to strengthen procedures concerning unaccompanied minors,
including age determination, legal guardianship and communication.
56
The Ministry of Internal Affairs has contracted companies to provide translation services; in
addition, the United Nations High Commissioner for Refugees provides translation support.
Under the Migration, Asylum, Refugees regional initiative, the Department of Citizenship,
Asylum and Migration benefits from the exchange of translators of rare languages among the
MARRI member states. Investment in further strengthening the quality of refugee status
determination is required to ensure that asylum officials are able to carry out quality assessment
of asylum claims. In August 2022, the Ministry of Internal Affairs concluded a memorandum
of understanding with the Free Legal Aid Agency on the provision of free legal aid to
foreigners.
In August 2022, the temporary reception centre for migrants, which also hosts asylum seekers,
improved its reception conditions in terms of accommodation capacities. The right to be
accommodated at the centre and access to services are granted for 15 days, which can be
extended at the authorities’ discretion. In addition, asylum seeker registration is still conducted
outside the centre without proper profiling and referrals.
The budget for the integration of refugees in Kosovo is planned under the annual budget law
for the Ministry of Internal Affairs’ Department for Reintegration of Repatriated Persons and
Integration of Foreigners. In 2023, the budget is EUR 1 381 395.
In October 2022, Kosovo approved the guidelines for foreigners’ access to vocational training
and employment. The authorities continue to provide effective support to those granted
international protection by offering rent for accommodation, language courses and integration
courses for 2 years. This period may be extended on a case-by-case basis.
Since August 2021, Kosovo began temporarily hosting US-linked and NATO-related
evacuees/refugees from Afghanistan, based on the Kosovo government’s decision to grant
them temporary protection for one year. They are hosted in two open facilities in Kosovo on
the understanding they will be further resettled in the United States under a specific visa regime
or in NATO Member States committing to taking them in. Since January 2023, 158 departures
have been registered and 134 evacuees/refugees are still present in Bondsteel Camp.
The authorities have confirmed their readiness to host up to 5 000 Ukrainian citizens, providing
temporary residence for humanitarian reasons. Kosovo also hosts 14 Ukrainian journalists with
temporary status, including accommodation and employment with the Association of
Journalists. Six Ukrainian nationals were granted subsidiary protection.
Visa policy
Kosovo has yet to fully align its legislation with EU visa policy. Kosovo grants visa-free travel
to travellers of 110 countries with ordinary passports for 90 days within a six-month period,
including 22 countries that do not have a visa-free regime with the Schengen area. Passport
holders of 89 countries need to obtain a visa prior to entering, 4 of which enjoy visa-free travel
to the Schengen area. 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 the visa information system. 16 Kosovo consulates around
the world can issue visas.
Kosovo continues to fulfil the visa liberalisation roadmap benchmarks. On 18 April 2023, the
European Parliament endorsed the agreement with the Council on a Commission proposal
enabling Kosovo passport holders to travel to the EU without a visa. Based on this, as of
1 January 2024, passport holders from Kosovo will be able to travel to the EU without a visa
for up to 90 days in any 180-day period. During the process, Kosovo authorities demonstrated
commitment to addressing all questions raised by the EU.
57
Kosovo should roll-out an information campaign on rights and obligations linked to the visa
free travel status to prevent possible misuse.
Schengen and external borders
Institutional set-up and legal alignment
The National Centre for Border Management is an important tool to effectively manage the
security of Kosovo’s borders. The Centre hosts an operational and coordination room. The
latter 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. The Centre has a Joint Intelligence, Risk and
Threat Analysis Unit, which collects, analyses and disseminates information from and to the
border authorities. Since 1 June 2022, the Centre is also hosting the Passenger Information
Unit, which scans advance passenger information and passenger name records. Standard
operational procedures need to be further developed.
The legislative framework for managing Kosovo’s borders is mostly in line with the EU acquis
and international standards. The Law on state border control and surveillance and the Law on
cooperation between authorities involved in integrated border management are the main
regulations in this field. Kosovo has a 2020-2025 integrated border management (IBM)
strategy and 2020-2023 action plan in place; these were reviewed in February 2023. The
relevant executive board reviews implementation on a quarterly basis.
Implementation and enforcement capacity
The Kosovo Police Border Department is able to conduct its daily tasks and obligations despite
the current operational situation, especially in the northern parts of Kosovo, and the constantly
changing human resources challenges due to the resignation of Kosovo Serb officers.
Operational tasks have been facilitated by internal transfers and other compensatory measures.
Staffing numbers in all Border Police units in the north of Kosovo do not reflect the
composition of the local population, in accordance with Brussels Agreement. Responsibilities
for border security tasks are divided between three regional border directorates (West, East and
North) and the Pristina airport police. All regional directorates have quick reaction units
responsible for supporting border surveillance stations. The Kosovo Border Police does not
have special units or capacities, even though quick reaction teams are well trained and equipped
to address challenging situations in the border area. Based on risk analysis, the Border Police
established four additional bases in the north of Kosovo.
The Border Police’s performance and its knowledge of border procedures have improved.
Statistics indicate increasing effectiveness in several areas of cross-border crime. As an
example, in 2022 Kosovo arrested 61 people engaged in the trafficking of human beings in 37
cases and disbanded 4 organised groups. Development of infrastructure, equipment and tactical
methods, especially at the green border areas, would enhance the whole border security
system’s capacity and bring it closer to EU standards. The Kosovo Police Information System
is linked to all border crossing points. The infrastructure at border crossing points has improved
and the border management system continues to operate satisfactorily. However, some of the
facilities need renovation. The lack of direct online access to some 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. Cooperation between Kosovo
and Frontex is good and improving. Frontex is deploying officers to several border crossing
58
points in Kosovo, based on mutually agreed operational plans (e.g. project coordination points).
The Agency provides other border management-related support, such as guidance to establish
a national coordination centre, in accordance with the EU acquis. Kosovo participates in the
Western Balkan risk analysis network (WB RAN) and in several other regional exercises
organised by Frontex.
Cooperation with all neighbours is good, except with Serbia. The Border Police has appointed
focal points in charge of international cooperation. Joint patrolling agreements with Albania,
North Macedonia and Montenegro are in force, and joint activities are conducted regularly.
Based on police cooperation agreements in force, there are joint police cooperation centres with
Albania and North Macedonia. Kosovo participates in the trilateral (Kosovo, Albania,
Montenegro) Joint Police Cooperation Centre based in Plav, Montenegro.
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). 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 required from Serbia to close illegal
roads and bypasses to ensure exclusive use of official crossing points for goods and persons
entering into or leaving Kosovo.
In 2022, two specific corruption-related operations took place, resulting in the investigation of
70 people on suspicions of bribery. According to the Kosovo Police Inspectorate, these
operations had a preventive affect. Such preventive actions, in cooperation with IBM
authorities, in connection with possible corruption cases, continue to take place.
Kosovo made progress on implementing the revised 2020-2025 National Centre for Border
Management development plan. However, there is still need for better strategic assessment and
analyses of border-related risks, and for better cooperation with other border authorities. The
effectiveness of such cooperation is affected by the lack of connection, for status-related issues,
to important international networks such as Interpol’s I-24/7.
Counterfeiting of the euro (criminal law aspects)
The 2019 Kosovo Criminal Code is broadly in line with the EU acquis on the suppression of
counterfeit currency. Kosovo has competent authorities and procedures in place to deal with
counterfeit money. However, the Criminal Code would need to be further aligned with the EU
Directive on the Protection of the Euro and Other Currencies against Counterfeiting.
The Forensics Agency within the Ministry of Internal Affairs carries out technical analysis of
counterfeit money (including euro banknotes and coins), in line with international standards.
The Agency has concluded an agreement with the European Commission on exchange,
assistance and training for the protection of the euro against counterfeiting (the Pericles 2020
programme).
Between June and December 2022, the police initiated 433 cases for a total value of
EUR 54 333, and 10 people were detained. Between January and March 2023, the police
initiated 275 cases valued at EUR 44 731. Two individuals were detained.
(See Chapter 32 on financial control).
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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.
2.3.1. The existence of a functioning market economy
Kosovo is between an early stage and some level of preparation and has made some
progress in developing a functioning market economy.
Kosovo’s economic rebound moderated significantly in 2022 as investment contracted and
household consumption growth slowed owing to high inflation, which surged to double-
digits in the wake of rising energy, food and transport prices. Russia’s war of aggression
against Ukraine had mainly indirect effects, through higher import prices and uncertainty.
Supported by high revenue growth and a significant under-execution of public capital
spending, the headline budget was close to balance in 2022 and the public debt ratio fell.
However, the investor base for government debt remains narrow. Social benefits remain
poorly targeted. The Assembly passed the new law on the minimum wage, which decoupled
the level of war veterans’ pensions from the minimum wage. The financial performance of
publicly owned enterprises represents a fiscal risk. The current account deficit rose
significantly on the back of strong increases in energy import prices. The financial sector
remained well capitalised and stable, and bank lending continued to expand in nominal
terms. However, sustained supervisory vigilance is required in the context of slowing
economic growth, tightening financial conditions and the rapid rise in mortgage lending to
households. The economy remained resilient during recent crises, but the private sector
continues to be hindered by long-standing structural challenges such as a widespread
informal economy, a high prevalence of corruption and the overall weak rule of law. The
business environment improved somewhat. Labour market formalisation continued, but
Table 7.1: 2020 2021 2022
Kosovo - Key economic figures
GDP per capita (% of EU-27 in PPS) 24 25 27 27
Real GDP growth 4.6 -5.3 10.7 3.5
Economic activity rate of the population aged 15-64 (%), total 40.4 38.3 39.3 38.6
female 19.6 20.8 22.0 22.0
male 60.9 56.0 56.6 55.5
Unemployment rate of the population aged 15-64 (%), total 30.3 25.9 20.7 12.6
female 30.6 32.3 25.0 16.5
male 24.4 23.5 19.0 11.0
Employment of the population aged 15-64 (annual growth %) 1.4 -4.4 10.4 5.4
Nominal wages (annual growth %) 3.6 -2.3 3.9 7.6
Consumer price index (annual growth %) 0.9 0.2 3.3 11.6
Exchange rate against EUR* 1.0 1.0 1.0 1.0
Current account balance (% of GDP) -7.1 -7.0 -8.7 -10.5
Net foreign direct investment, FDI (% of GDP) 3.2 4.2 4.0 6.7
General government balance (% of GDP) -2.0 -7.6 -1.2 -0.5
General government debt (% of GDP) 14.9 22.4 21.5 19.9
* The euro is used as a de facto domestic currency
Source: Kosovo statistics, World Bank and IMF
2014-19
average
60
labour market participation and employment rates, especially among woman and young
people, remain very low, while unemployment remains high.
Last year’s recommendations were partly addressed and remain mostly valid. In order to
improve the functioning of the market economy, Kosovo should in particular:
→ continue to mitigate the impact of the energy crisis by well-targeted and temporary
support measures if needed, while complying with the fiscal rule’s deficit ceiling of 2%
of GDP;
→ ensure compliance with the legal ceiling on war veteran pensions and with the wage bill
rule, and undertake a review of tax expenditure, quantifying the size of the revenue
forgone from all exemptions, preferential rates and special regimes;
→ improve the quality of public spending by reforming the social security system and
addressing weaknesses in public investment management;
→ implement relevant business environment measures, in particular on the fight against the
informal economy and the simplification and digitilisation of licences and permits.
Economic governance
Kosovo’s economic policies focused on providing policy support to cushion the impact of
higher energy prices and on re-establishing fiscal buffers. In 2022, the government allocated
and implemented around EUR 316 million (3.5% of GDP) in temporary support to vulnerable
households and firms, and wage and pension bonuses and subsidies to the energy and
agricultural sectors. The 2023 budget includes an allocation for contingencies of 3.5% of GDP,
of which 2.7% of GDP is a blanket allocation, which undermines fiscal transparency. There
was limited progress in improving the planning, selection and management of public
investment, and the public capital budget was significantly under-executed. The government
took fiscally prudent decisions by rejecting a proposal to withdraw more funds from the
Kosovo Pension Savings Trust (KPST). The Assembly passed the new law on the minimum
wage, which decoupled the level of war veterans’ pensions from the minimum wage. The new
Law on public-sector salaries, combined with a suitable value of the wage coefficient set by
the government, ensures that the public wage bill does not exceed its legal ceiling. On 25 May,
the IMF Executive Board approved a 24-month precautionary Stand-By-Arrangement in the
amount of EUR 100 million for Kosovo and a EUR 78 million support from the IMF’s newly
established Resilience and Sustainability Facility, to be used for investments in renewable
energy and energy efficiency.
The policy guidance jointly agreed at the May 2022 Economic and Financial Dialogue
between the EU and the Western Balkans and Türkiye has been partially implemented.
Tax revenue grew strongly on the back of high inflation and a reduction in the informal
economy, but there was little progress on reviewing tax exemptions. The financial oversight of
publicly owned enterprises (POEs) has improved but work to set up a fiscal oversight body has
not advanced. For 2023-2025, Kosovo’s Economic Reform Programme (ERP) aims to
maintain stable public finances and comply with fiscal rules, while supporting the economic
recovery mainly through higher capital spending.
Macroeconomic stability
61
Kosovo’s economic rebound moderated
significantly in 2022 due to the fallout
from Russia’s war of aggression against
Ukraine. Real GDP growth eased
markedly from 10.7% in 2021 to 3.5% in
2022, which is below the pre-pandemic
(2015-2019) average rate of GDP growth of
about 5%. The key factors behind the
economic slowdown were a decline in
gross fixed capital formation and a
deceleration in private consumption
growth. The slower growth in private consumption was due to high inflation and the resulting
fall in real disposable income as well as a moderate drop in net inflows of remittances as a
share of GDP. Still, household consumption remained one of the main drivers of growth on the
back of government support measures and higher bank lending. Moreover, a strong increase in
exports of goods and services, together with a sharp slowdown in real imports growth, resulted
in a positive contribution of net exports to GDP growth. Economic growth accelerated slightly
to 3.9% year-on-year in the first quarter of 2023, up from 3.6% in the previous 3 months.
Despite some gradual improvement, the lack of economic diversification, high import
dependency and an unreliable energy supply render Kosovo vulnerable to adverse external
shocks. Kosovo’s per capita GDP remains the lowest in the Western Balkan region, standing
at 27% of the EU average in 2022 Income inequality is high due to a large informal sector and
high inactivity rates, especially among women.
The negative terms-of-trade shock led to a substantial deterioration in the current
account balance. The current account deficit widened significantly to 10.5% of GDP in 2022,
up from 8.7% in 2021. A key factor was the energy-balance-induced surge in the merchandise
trade deficit, which outpaced the continued rebound of services exports, resulting in an increase
in the overall trade deficit to 32.5% of GDP, up from 31.8% a year before. Affected by the
economic slowdown in the EU, remittances decreased to 13.7% of GDP in 2022, down from
14.5% in 2021, while the primary income surplus fell to 1% of GDP, down from 1.9% a year
earlier. Further unofficial services exports and remittances were reflected by large errors and
omissions in the balance of payments (equivalent to 2.7% of GDP) in 2022. The four-quarter
moving average current account deficit narrowed to 9.2% of GDP in the first quarter of 2023.
Net foreign direct investment (FDI) inflows increased strongly to 6.7% of GDP in 2022,
covering around two thirds of the current account deficit. The key drivers for the 88% year-
on-year increase were continued investment
by the diaspora in the real estate sector, as
well as higher inflows in mining and
quarrying, financial and insurance activities,
and manufacturing. In 2021, Kosovo issued
its first diaspora bonds totalling
EUR 10.4 million, most of them 5-year
bonds, in an effort to tap additional sources
of financing. Otherwise, Kosovo remains
absent from international debt markets. The
four-quarter moving average of net FDI
inflows increased slightly to 7% of GDP in the first quarter of 2023, while official reserve
assets amounted to 2.3 months of imports of goods and services.
-9
-6
-3
0
3
6
9
12
2017 2018 2019 2020 2021 2022
Graph 7.1: Kosovo - Real GDP growth and
contributions
Priv. cons. Gov. cons. GFCF
Stocks Net exports Real GDP growth
Source: WiiW
% y-o-y
-12
-9
-6
-3
0
3
6
9
-40
-30
-20
-10
0
10
20
2018 2019 2020 2021 2022
Graph 7.2: Kosovo - Current account selected
components and FDI
Workers' remittances balance Goods and services trade balance
Current account balance (rhs) Net FDI (rhs)
% of GDP
Source: IMF and Central Bank of Kosovo
62
After peaking in 2022, annual inflation started to gradually decline since the last quarter
of that year. Annual average consumer price inflation accelerated significantly to 11.6% in
2022, up from 3.3% in 2021. The main drivers were rising energy, food and transport prices.
However, in the last months of the year inflation started to moderate, reaching an average of
10.1% year-on-year in the first quarter of 2023 and decreasing further to 2.4% in July on the
back of gradually decelerating global commodity prices. Most energy prices are regulated in
Kosovo. Following a request by KEDS, Kosovo’s energy distribution company, in early
December 2022, the Energy Regulatory Office increased electricity tariffs by 15.4% for all
consumer categories in late March 2023. The government continued subsidising tariffs for
households and businesses consuming up to 800 Kwh.
Fiscal consolidation continued in 2022 with a further reduction of the headline deficit on
the back of high revenue growth and underexecution of the capital investment
programme. The headline budget deficit
fell to 0.5% of GDP in 2022 (from 1.2% of
GDP in 2021), which corresponds to a
surplus of 0.2% of GDP under the fiscal
rule’s definition6
. Government deposits fell
slightly to 3.5% of GDP, down from nearly
4% in 2021. The fall in the government
deficit resulted primarily from a higher-
than-projected increase in budgetary
revenue, which rose by nearly 14% year-
on-year, on the back of high inflation and
some formalisation gains. Tax revenue increased by 14.3%, with direct and indirect tax income
growing healthily by 21% and 12% respectively in 2022. Public expenditure grew by 10.5%
year-on-year. The largest increase took place in the category of transfers and subsidies (26.3%
year-on-year), mainly driven by energy subsidies. The execution of overall current expenditure
was roughly in line with the revised budget plan. Wages and allowances recorded an annual
decrease of 2.2%, while spending on goods and services rose by 9.4%. Capital spending
practically stagnated compared to 2021, and only reached around 60% of the revised budget
allocation, affected by weak public investment management capacity and higher input prices,
which have led to a surge in project costs.
On the back of the improved budget balance and high nominal GDP growth in 2022, the
public debt-to-GDP ratio declined, but the domestic investor base for government debt
remains narrow. The public debt ratio fell to a revised 19.9% at the end of 2022 and further
to 17.3% in June 2023. These figures do not include the liability for the State from COVID-
19-related tax-free withdrawals of 10% of pension savings from the Kosovo Pension Savings
Trust, which the government promised to reimburse from 20237
. Domestic debt, which is held
by a narrow investor base, increased only by 0.5% in nominal terms in 2022. In March 2023,
the share of domestic debt held by the KPST rose to 49%, up from 44% in 2021, while the
Central Bank of Kosovo and commercial banks hold a further 20% and 24% of domestic debt
respectively. In the absence of a sovereign credit rating and very limited access to international
6
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 stipulates 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.
7
The IMF estimates the liability to the Kosovo Pension Savings Trust at 1.8% of 2020 GDP.
0
5
10
15
20
25
-8
-6
-4
-2
0
2
4
2017 2018 2019 2020 2021 2022
Graph 7.3: Kosovo - Fiscal developments
Primary balance (lhs) Interest (lhs)
GG balance (lhs) Public debt (rhs)
Source: IMF and MoF
% of GDP
63
bond markets, foreign financing has been provided by international donors. Foreign debt rose
by 11.2% in 2022. This includes loans from the World Bank (EUR 60.1 million), the European
Investment Bank (EUR 23.8 million), the European Bank for Reconstruction and Development
(EUR 14.5 million) and the Council of Europe Bank (EUR 10.8 million). The new Law on
public debt and state guarantees, aligning the legal framework with EU standards and
international practices, was adopted at the end of 2022, and the secondary legislation will be
reviewed and approved by the end of 2023. Under this new law, the definition of public debt
will also include debt issued on behalf of municipalities. The law regulates municipality
borrowing (including the power to borrow), reporting requirements and debt limits.
Progress with public investment management and adressing fiscal risks has been mixed.
Budgeted public capital spending is expected to increase by 3.6% of GDP compared to the
2022 outturn, despite weak planning and implementation capacities and recurring under-
execution of the capital budget in the previous years. Some steps were taken to unlock project
implementation, including through paid land expropriations and making the Procurement
Review Body board operational again in the second quarter of 2022. Furthermore, the Law on
public works support, adopted at the end of 2022, compensates contractors up until mid-2023
for higher project costs resulting from very high inflation. The implementation of the Law on
salaries of public officials is expected to increase the wage bill by 11.1% in 2023. This is lower
than the nominal GDP growth in 2021, meaning that the wage bill rule is being respected. The
issue of recurring spending overrun on war veteran pensions has not been resolved due to the
absence of a reclassification of beneficiaries. The 2023 budget again includes a large blanket
allocation, which undermines fiscal transparency and budget planning unless it is justified as
part of a concrete risk assessment framework. The fiscal risk analysis of the main central
publicly owned enterprises in the medium-term expenditure framework (MTEF), annual
budget and the ERP has been expanded beyond the POEs overseen by the Ministry of
Economy. However, the analysis is limited to high-risk POEs, excluding other companies.
Implementation of the Energy Roadmap reached on 21 June 2022 between Kosovo and Serbia
in the EU-facilitated dialogue to address electricity billing issues in four municipalities in the
north of Kosovo is yet to move forward. Fiscal risks related to billing and payment of invoices
remain. In 2022, the financial obligations of KOSTT, the Kosovo transmission operator, for
the losses caused by the energy consumed (but not paid for) in that part of Kosovo reached
EUR 63 million.
After 2 years of substantial fiscal consolidation, the planned strong fiscal impulse in 2023
is appropriate. In 2022, the government adopted temporary support packages that helped to
mitigate the impact of the energy crisis, including energy subsidies and transfers to vulnerable
households and firms. However, the measures could have been better targeted and more
transparent. Budget revenue relies on a narrow tax base, mainly from indirect taxes, weakened
by numerous tax exemptions, preferential tax rates and special regimes, while public spending
is burdened by category-based specific transfers, leaving little space for means-tested benefits
and employment policies. The 2023 budget provides for a strong fiscal stimulus, which is
largely appropriate after 2 years of substantial fiscal consolidation. This would mainly be
implemented through an increase in public spending on wages and investment. However, there
is a risk of the latter facing constraints due to weak public investment management.
Functioning of product markets
Business environment
The gap between newly registered and terminated firms has widened over the last 5 years.
The difference between new (11 049) and terminated firms (1 775) widened to 9 274 in 2022,
up from 8 066 in 2018, mainly due to a higher number of newly registered companies.
64
Some progress was made in improving the business environment. In July 2022, the
government approved the concept document for the Register of Beneficial Owners. The
Commercial Court became fully operational in August 2022, which is expected to increase the
efficiency of the judicial system in settling commercial disputes, but the court still faces a large
backlog of cases. In September 2022, the government adopted an improved programme to
reduce and prevent the administrative burden on citizens and businesses. The e-Kosova
platform has increased the number of services available through the platform from 21 in 2021
to 140 in 2023. In October 2022, the government approved the concept document for business
organisations and the secondary legislation on the Business Registration Agency. In November
2022, an assessment of the agency’s database compatibility with the requirements of the
Business Register Interconnection System (BRIS) was finalised. The Kosovo Investment and
Enterprise Support Agency (KIESA), whose task is to support foreign and domestic businesses
including SMEs, promote exports and attract foreign direct investment, lacks capacity and
resources to execute its broad mandate, while its restructuring and reform are long overdue.
For this reason, in January the government approved the Law on sustainable investments,
which is awaiting the Assembly’s approval. Its purpose is to regulate the protection, promotion
and encouragement of sustainable investments. The law also envisages to replace the KIESA
by a new agency, which would facilitate foreign investment and report directly to the prime
minister’s office.
Despite some progress in reducing the informal economy, it still accounts for more than
30% of GDP. Formalisation efforts by the government, Kosovo’s Agency of Statistics, and
the Customs administration have borne fruit, contributing around 35% of the cumulative
change in tax revenues in 2020-20228
. The government subsidies for registered employees to
mitigate the negative impact of the COVID-19 pandemic on households and firms helped shift
more employees from the informal to the formal sector. Increased labour demand at the time
of the economic rebound contributed to an increased number of formal employees. During the
reporting period, the Secretariat of the Government Working Group for the implementation of
the 2019-2023 National Strategy for the Prevention and Combating of Informal Economy,
Money Laundering, Terrorist Financing and Financial Crimes, published a report covering the
first half of 2022, which showed that only 50% of the planned actions were implemented. A
second action plan covering the period 2022-2023 was adopted in 2022, while the Secretariat
has started drafting the new national strategy for 2024-2028. To tackle corruption, a set of new
anti-corruption laws was adopted in 2022. These aim at strengthening criminal proceedings,
the anti-corruption agency, and asset declaration. According to Transparency International’s
corruption perceptions index, Kosovo improved its index score in 2022, ranking 84 out of 180
countries, 3 positions higher than in 2021.
State influence on product markets
The State aid policy framework is at an early stage of development. The current framework
lacks a coherent approach to State aid or a comprehensive strategy and cost-benefit evaluations
for aid and subsidies granted. In the reporting period, the State Aid Department developed an
online monitoring system for State aid. Training of the competent staff on recording and
monitoring State aid in the system is in progress. The State Aid Commission has still not been
appointed by the Assembly and remains without a decision-making quorum. In 2022, in the
context of higher energy and crop prices amid Russia’s war of aggression against Ukraine,
about 1% of GDP was allocated for subsidies to firms operating in the agricultural and energy
sectors.
8
IMF Country Report No. 23/55, January 2023.
65
Privatisation and restructuring
Kosovo took further steps to set up a sovereign fund. In June 2022, the government adopted
a concept document on the sovereign fund, and a public consultation was launched in March
2023 on the draft law on its establishment. The sovereign fund is expected to take over socially
owned enterprises9
and assets managed by the Privatisation Agency of Kosovo (PAK), as well
as some publicly owned enterprises managed by the Ministry of Economy after these improve
their financial performance. However, setting up the fund will not be sufficient to address the
long-standing issues of poor financial performance and management, which reflect weaknesses
in corporate governance and oversight of publicly owned enterprises. In June 2023, the
government approved the draft law on the sovereign fund, which will be discussed in the
Assembly. During the reporting period, the PAK initiated liquidation procedures for 3 socially
owned enterprises. In total, 582 socially owned enterprises are under liquidation procedures.
The process of dismissing and appointing new board members of publicly owned enterprises
continued, with more women being appointed.
Functioning of the financial market
Financial stability
The financial sector showed resilience amid continued challenges. The predominantly
foreign-owned banking sector accounts for 68.4% of financial system assets, followed by
pension funds, micro-financial institutions and insurance companies, with 24.5%, 4.1% and
2.7% respectively. The banking sector’s profitability improved in nominal terms, with the
average return-on-equity ratio rising to 20.6% in 2022, up from 17.6% in 2021, and increasing
further to 21.1% in July. At the end of 2022, the non-performing loans ratio stood at a
historically low 2% and remained unchanged at end-March 2023, partially supported by the
denominator effect of high nominal credit growth. The banking sector has to be closely
monitored due to non-negligible risks from a weaker economic outlook, higher commodity
prices and lower-than-projected remittances. Furthermore, as new mortgage lending to
households has been growing relatively strongly, it appears appropriate to strengthen
surveillance of the housing market. The ratio of banks’ regulatory capital to risk-weighted
assets stood at 14% in 2022 and increased to 15.3% in July, comfortably exceeding the
regulatory minimum of 12%. Banks continued to be financed by deposits, predominantly from
households. The loan-to-deposit ratio increased to 78.3% in 2022, up from 76.5% in 2021, and
rose further to 81.1% in March. In 2022, the net profit of micro-financial institutions increased
to EUR 17.2 million, up from 14.1 in 2021. The insurance sector’s net profit fell by 44% on an
annual basis, reflecting the increase in operating expenses, namely the cost of purchasing goods
and services, administrative expenses and claims incurred.
Access to finance
Lending to the private sector continued to expand in 2022. Driven by both business and
household lending, bank loan growth accelerated to an average of 17.4% in 2022 up from
11.2% in the previous year, before slowing to 15% year-on-year in the first quarter of 2023.
The average interest rate on loans increased to 6.3% in 2022, up from 5.8% in 2021, and
remained at 6.3% in March, reflecting tighter financing conditions in the euro area. Deposits’
average growth eased to 10.8% in 2022, down from 13.8% a year earlier, before picking up to
16.3% year-on-year in the first quarter of 2023. New loans issued to businesses with a focus
on investment grew by 9.6% in 2022. Despite some new initiatives undertaken by the Kosovo
Credit Guarantee Fund, the lack of easily accessible and affordable credit continues to be a
9
The ownership of socially owned enterprises was considered as shared social property in the former Yugoslavia.
66
barrier to SME growth. 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. Microfinance has gained momentum in recent
years10
, but shortcomings in the legal framework regulating micro-financial institutions hinder
the industry’s long-term growth and sustainability.
Functioning of the labour market
Despite some progress, the labour market continues to suffer from very low participation,
high unemployment and large gender
gaps. Labour Force Survey results continue
to be published with large delays. The latest
available data refer to the last quarter of
2022. In line with the continued rebound of
economic activity, the employment rate
increased to 34%, up from 31.7% in the last
quarter of 2021. Meanwhile, the
unemployment rate declined markedly
from 19% to 11.8%, while the labour force
participation rate decreased from 39.2% to
38.5% in the same period. The wide gap between male and female employment rates (50.8%
and 17.1% respectively) persisted. In the last 3 months of 2022, the share of young people
(aged 15-24) not in employment, education or training decreased somewhat to 33.7%, down
from 34.8% in the same period a year before. To improve the situation, the government adopted
a multiannual youth guarantee implementation plan, and there are ongoing reforms to public
employment services. Tax administration data suggest that official employment in the private
and public sector increased by 4.9% in 2022. In December 2022, the number of registered job
seekers decreased by 1.5% compared to the same period a year before.
Despite some recent formalisation gains, an overall poorly targeted system of social
assistance creates disincentives to joining formal employment. In 2022, spending on
transfers and subsidies reached nearly 12% of GDP, of which expenditure on poverty-targeting
social assistance was less than 0.5%. Category-based social transfers, such as the war veteran
pension scheme, undermine the soundness and fairness of the social benefit system. The lack
of social and other benefits in formal employment – given the lack of structures to provide
them – discourages many informal employers and employees from formalising working
arrangements. According to estimates, 40% of the workforce is not declared or is under-
declared. Relatively high public-sector wages and remittances increase reservation wages,
restricting labour supply, while the lack of jobs fuels the emigration of young people.
Increasing private-sector productivity would improve export competitiveness, increase job
opportunities and allow for higher wages. The lack of childcare and elderly care facilities
hinders female employment.
2.3.2. The capacity to cope with competitive pressure and market forces within the Union
10
Despite the expansion of the microfinance sector, the interest rate on loans was around 18%, which is nearly three higher
than the rate on bank loans.
10
20
30
40
50
2017 2018 2019 2020 2021 2022
Graph 7.4: Kosovo - Labour market trends
(15-64 age group)
Participation rate Unemployment rate
Employment rate
Source: Kosovo Agency of Statistics
67
Kosovo is at an early stage and has made limited progress in terms of its capacity to cope with
competitive pressure and market forces in the EU. The education system does not sufficiently
teach the necessary key skills and is not adequately aligned with labour market needs. Limited
progress was made in improving transport infrastructure. The energy sector remains a major
bottleneck for Kosovo’s economic development, and the ongoing energy crisis underlined the
urgency of ensuring a reliable and clean energy supply and diversifying energy sources. Kosovo
made some progress on digitalising the economy. Structural changes are advancing slowly, as
the economy remains highly reliant on small and micro firms, which cannot compete
internationally. At the same time, the export structure has somewhat diversified, although it is
still dominated by base metals. Trade openness increased as both exports and imports grew
robustly. The recommendations from 2022 were not fully implemented and remain mostly valid.
In order to improve competitiveness and sustain long-term growth, Kosovo should in particular:
→ improve the quality of education at all levels, and align education, particularly higher
education programmes and vocational education and training, with labour market needs by
closely cooperating with the business community;
→ strengthen energy security and increase energy efficiency incentives in the residential and
private sectors and 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
Little progress has been achieved on reforming the education system and aligning it with
labour market needs. Public spending on education amounted to 4.1% of GDP in 2021 (down
from 4.6% in 2020 and 4.3% in 2019), which is broadly in line with the EU average. However,
in terms of outcomes, Kosovo performs worse. The enrolment rate of children in early
childhood education stands at 6.7%, the lowest in the region, while for primary and secondary
education the combined enrolment rate of 88.1% is very similar to those of regional peers. To
address an insufficient participation in early childhood education, the government has approved
the draft Law on early childhood education, which is with the Assembly for adoption. The
absence of quality learning materials (including a lack of digital resources) in schools and the
lack of teachers’ initial training and continuous professional development have a negative
impact on the quality of education. Learning materials were adapted in the light of the
Programme for International Student Assessment (PISA) 202211
test, after Kosovo registered
its lowest-ever ranking in 2018. Kosovo students’ scores were lower than the OECD average
in reading by the equivalent of 5 years of schooling, and in mathematics by a little over 4 years.
The education system is not geared to developing the necessary key skills and is not adequately
aligned with labour market needs. The 2022-2026 education strategy, adopted in October 2022,
aims to raise the quality of pre-university education and, in particular, to harmonise education
and professional training. It also fully recognises the need to develop a real-time information
system and forecasting on labour market needs, as well as a standardised methodology for
labour market research. This commitment has yet to be translated into action. In September
2022, the Kosovo Accreditation Agency (KAA) was granted the status of affiliated member of
the European Association for Quality Assurance in Higher Education (ENQA). The agency is
currently in the process of applying for membership in the ENQA and the European Quality
Assurance Register. Kosovo adopted the Law on KAA, which aims to increase the agency’s
11
PISA 2022 test results will be published in December 2023.
68
operational independence and transparency of management appointments.
Kosovo’s performance lags behind in research and innovation. This is true for policy
governance, the public research system, public-private linkages, innovation in firms and human
resources for innovation; overall Kosovo has one of the lowest scores in the Western Balkan
region12
. Budget allocation for research and development, at 0.1% of GDP, is far below the
0.7% of GDP required by law (compared to an average of 2.2% in the EU), in particular for
business innovation. There is chronic fragmentation in implementing innovation policy and no
overall coordination among line ministries and the SME support agency, KIESA. In 2022, the
Kosovo National Science Council managed successfully to develop the National Science
Programme as the main strategic document on science and research. Kosovo has successfully
completed negotiation with the EU to become a fully associated member of the Horizon Europe
programme, although there is a need to improve performance in accessing grants.
Physical capital and quality of infrastructure
Foreign direct investment (FDI) has not led to an increase in domestic productivity.
Kosovo has primarily attracted investment in areas with limited scope for productivity spill-
overs, such as construction and real estate, which represent 80% of FDI13
. In 2022, 67% and
7% of all FDI inflows were directed to real estate and financial and insurance activities
respectively. Additionally, FDI is limited to a handful of countries, namely states where a
sizeable, well-established Kosovo diaspora exists. Export-oriented FDI has been very scarce,
and overall figures are relatively low, passing the EUR 300 million figure only once in the past
7 years.
Kosovo made limited progress in improving road and railway infrastructure, delaying
the implementation of major projects. The government submitted a loan request to the
EBRD and EIB for Route 7 Peace Highway. The rehabilitation works for Railway Route 10
continued at a slow pace, with the first segment expected to be completed in the first quarter
of 2024. The works on the second segment started at the end of 2022, while the related
signalling and telecom works have yet to start. The transport system still faces several
challenges in terms of safety, inadequate maintenance, and weak administrative capacity of
regulatory institutions.
An unreliable and undiversified energy supply and an extremely fragile energy sector
remain major bottlenecks for Kosovo’s economic development. The reliability of energy
supply is still below the average for Europe and Central Asia. Despite some improvements,
Kosovo ranks 90th in the world for ease of getting electricity14
. The lack of energy security
gives rise to significant costs for business and represents one of the biggest obstacles to
attracting high-quality foreign direct investment. Energy demand and consumption continue to
grow quickly, and have doubled since 2000. Kosovo also suffers from high technical and
commercial losses in the distribution and transmission grids due to poor infrastructure (around
20%).
Kosovo’s electricity generation relies heavily on coal-fired plants. More than 90% of
electricity is produced by two outdated, unreliable and highly polluting lignite power plants,
which the government plans to refurbish. Renewable energy sources account for just over 5%
of electricity supply. The roll-out of renewables is expected to accelerate through the newly
adopted 2022-2031 national energy strategy and the law on renewable energies due to be
12
OECD (2021), Competitiveness in Southeast Europe – a policy outlook 2021.
13
IMF (2023), Republic of Kosovo, Selected Issues Paper.
14
World Bank (2020b), Doing Business 2020: Comparing Business Regulation in 190 economies.
69
adopted by the Assembly in Q3-2023. The draft law provides for a competitive bidding process
to support renewable energy projects, replacing the previous system of feed-in tariffs. In May
2023, Kosovo launched a pilot auction for 100 MW of solar power. There has been an increase
in renewable energy investments, and several projects to develop significant wind and solar
energy sources are already planned. (See also Chapter 15 – Energy).
The digital transformation of the economy is gradually advancing, but the digitalisation
of public services is still at an early stage. 100% of households nationwide now have access
to fixed broadband electronic communications infrastructure. Fixed access internet penetration
is estimated to be 125% of households, compared to 89% in the EU, and mobile telephony
penetration is around 95% of the population. Kosovo has a small but rapidly growing ICT
sector, particularly in the export of software development, smart phone application
development and web design. More needs to be done to train skilled workers in this sector,
where demand for employees outstrips supply. Since 1 July 2021, Kosovo has constructively
engaged in high-level regional dialogue on digital transformation and the implementation of
the Regional Roaming Agreement. Despite some improvements in implementing e-commerce
programmes, there seems to be little progress in increasing the adoption of e-commerce
practices among SMEs. The Digital Agenda strategy covering the period up to 2030 has been
submitted for public consultation. The policy document is expected to provide a comprehensive
framework for digital transformation, including 5G technologies and the digital transformation
of businesses and public services.
Sectoral and enterprise structure
The services sector continues to dominate the economy in terms of GDP and employment.
The sectoral structure of gross value added (GVA) shows a steady increase in the share of
wholesale and retail trade to nearly 14% in 2022, up from 12.5% in 2018. This has been
followed by slight growth in the share held by agriculture (7.4% in 2022, up from 6.5% in
2018). At the same time, the share of real estate activities in GVA fell by 1.2 pps to 5.9%
compared to 2018, followed by shrinking contributions from public administration and
education. Despite its slight decline compared to 2018, the services sector continued to
dominate economic activity in 2022, providing around 45% of GVA. The contribution of
construction remained virtually unchanged at around 8% compared to 5 years before, while
employment in the sector fell to 11% in 2022, down from 11.9% in 2018. For the same period,
the proportion of employees in the services sector increased slightly from 70% to 73%.
Kosovo’s private sector is dominated by very small firms with difficult access to finance.
Although SMEs represent over 99% of registered enterprises, almost all of them are micro
firms employing 1-9 employees, while the proportion of larger companies (10-249 employees)
is less than 1%. SMEs and family-run businesses account for 80.4% (2020) of employment in
non-financial businesses (significantly above the EU average of 65.2%) and generate 81% of
the country’s total value added. Access to finance remains an obstacle to growth due to banks’
stringent loan requirements, affecting mostly smaller enterprises. Within almost 7 years, the
Kosovo Credit Guarantee Fund (KCGF) portfolio has reached the cumulative value of
approved loans of around EUR 550 million, while the value guaranteed by the Fund has reached
EUR 290 million, distributed in almost 13,000 loans.
70
Economic integration with the EU and price competitiveness
Over the last 5 years the EU remained Kosovo’s largest trading partner, while the share
of CEFTA countries declined. In 2022, the EU accounted for 42.4% of Kosovo’s total imports
of goods, marginally lower than in 2018, while the CEFTA partners’ share fell by around 8 pps
to 17.7%. On the other hand, the proportion of goods imported from Türkiye increased to nearly
15%, up 5 pps on 2018. The EU’s share in Kosovo’s merchandise exports increased to 33.9%
in 2022, up from 27.5% in 2018, while the proportion of CEFTA countries decreased to 36.2%
from 47.2%. Among CEFTA partners, North Macedonia and Albania are the main destinations
for Kosovo’s exports of goods. The share of base metals15
in goods exports fell to 23.1% in
2022, down from 34.1% in 2018, but they still account for the largest part of merchandise
exports. The proportion of various manufactured articles increased significantly to around 20%
in 2022, up from 4% in 2018.
Trade openness improved significantly in 2022, in line with the robust performance of
trade in goods and services. Overall, trade openness (i.e. the total value of exports and
imports) increased to 109.2% of GDP in 2022, up from 98.6% in 2021 and 86.3% in 2018. The
improvement took place for both merchandise and services trade. The increase in goods exports
(21.8%) in 2022 was mainly driven by mineral products as well as plastic, rubber and their
manufactured articles. Services exports continued to grow robustly, by 31.3% in nominal
terms, mainly driven by diaspora tourism from Western Europe. In addition to travel services,
which currently account for the largest share of service exports (74.4%), there were positive
developments in exports of telecommunications and computer and information services.
Imports of goods rose quickly (20.4%) mainly due to higher energy imports.
The EU Member States remain the main investors in Kosovo. Net FDI inflows surged by
88% in 2022, mainly on the back of significant diaspora investment in real estate, followed by
financial and insurance activities. Heavy concentration in these sectors (around 75% of FDI
inflows) contributes little to improving export capacity. The EU’s share in Kosovo’s net FDI
stock reached 40.5% in 2022, up from 32.1% in 2018. The shares of Germany and Switzerland
(two countries with large diasporas from Kosovo), increased to 17.5% and 16.4% respectively
in 2022, up from 11.8% and 11.4% in 2018.
15
This is partly because Ferronikeli (Kosovo’s largest exporter) halted production in the last quarter of 2021 on
the back of higher energy prices.
0
20
40
60
80
2015 2016 2017 2018 2019 2020 2021 2022
Graph 7.5a: Kosovo - Exports of goods
EU CEFTA Other
Source: WiiW
% of GDP
0
20
40
60
80
2015 2016 2017 2018 2019 2020 2021 2022
Graph 7.5b: Kosovo - Imports of goods
EU CEFTA Other
Source: WiiW
% of GDP
71
2.4. PUBLIC PROCUREMENT, STATISTICS, 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 is in between some and moderate level of preparation in the area of public
procurement. It made limited progress in this area. Public procurement remains prone to
irregularities and vulnerable to corruption during both the procurement process itself and in
the subsequent implementation of the contract. No progress was made in adopting a new
public procurement law. Since last year’s recommendations were not implemented, they
remain valid.
In the coming year Kosovo should in particular:
→ adopt a new law on public procurement and a new law on concessions in line with the
EU acquis; prepare the corresponding implementing legislation and ensure their proper
implementation;
→ increase the capacity of – and cooperation between – all public-procurement institutions
and contracting authorities;
→ ensure that the Procurement Review Body is fully operational and remains functionally
independent; it should also strengthen the Body’s capacity and ensure that its review
process is timely, effective and transparent.
Institutional set-up and legal alignment
The legal framework on public procurement is partially aligned with the EU’s 2014 public-
procurement acquis. A new public procurement law is still awaiting adoption by the
government for over two years. The authorities have not yet started to draft the implementing
legislation. A new law on public private partnerships is also awaiting governmental approval.
Strategic priorities in the area of public procurement, including activities in this area, are now
part of the new 2022-2026 public finance management strategy and its 2022-2024 action plan,
both of which were approved at the end of December 2022.
The Central Procurement Agency, under the Ministry of Finance, Labour and Transfers, carries
out centralised purchases on behalf of the central government. 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 public procurement law and reviews bidders’ complaints. The Body’s functional
independence should be reflected in the new law. It is also important to ensure better
cooperation among these and other institutions, such as the Kosovo National Audit Office and
the Kosovo Competition Authority. Cooperation in this area would help to detect any bid-
rigging and reduce risks through careful planning and design of the tenders.
Implementation and enforcement capacity
Kosovo’s public-procurement market was estimated as being worth 6.5% of GDP in 2022,
compared with 5.6% of GDP in 2021. By June 2023, the country’s e-procurement system had
registered approximately 14 400 businesses and around 16 300 active users. In 2022, 10 290
public contracts were signed, compared with 9 892 in 2021. In terms of value, contracts worth
EUR 559 million were signed in 2022, compared with contracts worth close to EUR 430
72
million in 2021. A significant amount of public procurement activities (21.80%) were carried
out via negotiated procedure without formal procurement and bidding process. The value of
contracts signed under negotiated procedure without being published represents EUR 78.56
million or 14.05%.
On the monitoring of contract awards and implementation, in 2022, 78.2% of contracts
were awarded through open procedure and 94.34% of public contracts were awarded according
to a lowest-price criterion, with only 5.66% (or EUR 31.6 million worth) 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. Interoperability has still not been ensured between the e-
procurement system and other relevant government IT systems to increase transparency (such
as with the Kosovo Financial Management and Information System) to track payments.
The capacity of the contracting authorities to manage public-procurement processes
varies. Improvements are needed in market research, in the tender evaluation process as well
as in the implementation and the monitoring of contracts. Further improvements are needed in
the drafting of technical specifications to better support the quality, efficiency and transparency
of procurement. There is a risk of mismanagement and corruption due to limited enforcement,
insufficient managerial accountability, insufficient quality control and limited contract
management capacity. The Public Procurement Regulatory Commission organised trainings to
improve the capacities of contracting authorities to use the best-price quality ratio as award
criterion. Furthermore, it held seminars on the use of the modules on contract management and
on the performance evaluation of contractors. The e-procurement system needs to be updated
to ensure full functionality.
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
understaffed. Kosovo should improve its planning of procurement, and reduce the use of
negotiated procurement procedures. To mitigate the risks of misuse and fraud, it is important
to ensure full transparency, ensure robust reasoning to explain the award decision and maintain
audit trails.
The Procurement Review Body would benefit from more qualified staff, particularly with
respect to review and legal experts, to ensure timely and quality decisions on complaints.
There were no developments in the area of integrity and the fight against conflicts of
interest. Kosovo has a code of ethics for public procurement, but it does not monitor
compliance with this code. Specialised professional and ethics training should be delivered to
all contracting authorities. Further efforts are underway to both the procurement systems and
audit oversight of local governments. More and more municipalities are now publishing their
procurement contracts.
Efficient remedy system
Kosovo’s legislation on the right to legal remedy is broadly in line with the EU acquis.
Appeals to contest procurement awards can be lodged through the e-procurement platform.
Following the resignation of one board member, the Procurement Review Body board is once
again incomplete, although it continues to operate. Kosovo needs to ensure that the
Procurement Review Body becomes fully operational and remains functionally independent.
The Body’s capacity needs to be strengthened and its review process managed in a timely,
effective and transparent manner. A total of 820 appeals were lodged and the board handled
732 cases in 2022 and 88 cases in 2023.
Chapter 18: Statistics
73
EU rules require Member States to produce statistics based on professional independence,
impartiality, reliability, transparency, and confidentiality. Common rules are in place for the
methodology, production and dissemination of statistical information.
Kosovo has some level of preparation in the area of statistics. Some progress was made in
the reporting period, notably in improving: the data-collection methodology; data transmission
to Eurostat; and implementation of the Eurostat peer-review recommendations.
Communication between the different statistical institutions has improved, but coordination at
the technical level and the use of available administrative data are insufficient. Kosovo has also
improved the frequency of its statistical outputs. Some statistics on energy, social statistics and
short-term statistics in the services sector are now being sent to Eurostat on a monthly basis,
whereas they used to be sent on a quarterly basis. The delayed population and housing census
is now planned to take place between 1 November and 31 December.
Last year’s recommendations were partially met and remain valid. In the coming year, Kosovo
should in particular:
→ finalise preparations for the population and housing census and its implementation by
ensuring operational details and full coverage of the territory;
→ increase the number of statistical products and send these products more frequently to
Eurostat;
→ fill existing vacancies and increase the capacities of the Kosovo Agency of Statistics.
On statistical infrastructure, the legal framework is broadly in line with the European
Statistics Code of Practice. However, the implementation of this framework needs to be
strengthened. To that end, Kosovo should: (i) preserve a leading role for the Kosovo Agency
of Statistics (KAS); (ii) improve statistical governance and coordination between the main
statistical institutions; (iii) and ensure better access to administrative data sources. The KAS
should continue to implement Eurostat’s peer-review recommendations, particularly in relation
to increasing the Agency’s cost-effectiveness, strengthening quality management, and
strengthening relations with data users. KAS should also fill vacant positions. The efficiency
of internal systems, processes and delegated management remains a challenge. Data
transmission to Eurostat continues to improve. Despite improvements to its web-based
dissemination of statistics, the Agency should seek to strengthen its relations with data users
and academia. Kosovo continues to use the European classification of economic activities
(NACE Rev.2). The existing registers (agriculture, business and households) are updated
regularly, but the population register needs to be improved. KAS has improved access for the
public to some existing administrative data, such as data from the Civil Registry Agency, and
the Food and Veterinary Agency. In March 2023, the Agency signed a memorandum of
understanding with the Czech Statistical Office setting a framework for cooperation and
procedures for the exchange of information and expertise in the field of official statistics. The
Agency does not systematically compile gender-disaggregated data. Kosovo still does not yet
have a Gender Equality Index.
On macroeconomic statistics, Kosovo has made some slight improvements, and further
alignment with the European System of Accounts (ESA) 2010 is ongoing. Although the
Agency compiles annual and quarterly national accounts, methodological inconsistencies in
these accounts need to be addressed. The reporting period has seen some improvements: (i) the
experimental compilation of GDP by income approach (for 2011-2019); (ii) the compilation of
Non-Financial Sector Accounts (2015-2021) to be transmitted to Eurostat in September 2023;
and (iii) Supply and Use Tables (2013-2016) expected to be sent to Eurostat in October 2023.
74
Quarterly sector accounts and regional accounts are not regularly compiled. The number of
ESA 2010 transmission tables sent to Eurostat has increased and improved. As regards
government finance statistics (GFS) and excessive deficit procedure (EDP) , further
methodological work is expected to fully adhere to ESA 2010. Kosovo should continue efforts
to improve the coverage and timeliness of the EDP tables as well as to start completing the
questionnaire relating to the EDP tables. After the tables for quarterly financial account for
general government and quarterly debt for general government were transmitted to Eurostat for
the first time in 2023, Kosovo now provides the currently full set of required GFS tables.
However, efforts are still needed to improve various qualitative aspects of the tables.
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 on the balance of payments are submitted to Eurostat. KAS publishes
quarterly government finance statistics. The Harmonised Index of Consumer Prices is regularly
published on the KAS webpage and transmitted to Eurostat. There has been no progress in
broadening the work by adding data on Purchasing Power Parities (PPP).
Structural business statistics and some short-term statistics are partially in line with the EU
acquis. However, the availability of both these types of statistics is limited and they lack
distinction between public and private investments or by sectors. Only one set of short-term
statistics (on building permits) has been sent to Eurostat. Industry statistics are produced
broadly in line with the relevant EU 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. Industry statistics on manufactured
goods (PRODCOM survey) for the year 2021 were published in December 2022. Foreign
affiliates statistics are not available. Tourism statistics and transport statistics are not aligned
with the EU acquis, while statistics on development and innovation are not produced on a
regular basis. The statistics on information and communication technologies (ICT) for
households started in 2018, and are now published regularly (the results for 2022 were
published in October 2022). The 2021 ICT statistics for enterprises were published in
November 2022.
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: in July 2022, the
Assembly adopted the Law on population and the housing census. In August 2023, the
government decided that the census will take place from 1 November to 31 December 2023,
and allocated EUR 10 million for this.. Statistics on income and living conditions (regular EU-
SILC survey) are produced annually. The last set of SILC statistics for Kosovo was for the year
2020 and was published in December 2022. Social-protection and labour-market statistics are
only partially produced. Kosovo carries out an annual and quarterly labour-force survey and
the timeliness of publication of the results of this survey has improved. Kosovo still does not
produced statistics on the labour cost index, the structure of earnings data, and job vacancies.
Education statistics for 2022/2023 are aligned with the international education classification
standards (ISCED 2011) Public health and crime statistics are not yet in line with EU standards.
For agricultural statistics, KAS publishes data on annual agricultural crops, livestock
production, and orchards statistics. The agricultural holding survey is regularly produced and
aligned with acquis standards. The next farm-structure survey is not planned until 2025.
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. Agriculture statistics are sent to Eurostat through the EU IT system for statistics, the
Electronic Data Files Administration and Management Information System (EDAMIS).
75
Energy and environment statistics are partially in line with the acquis. During the reporting
period, KAS reduced the timeframe for publishing energy balance results (publishing on a
monthly rather than quarterly basis since mid-2022). Thus, it increased the number of statistical
products sent to Eurostat. In April 2023, the share of renewable energy sources in the overall
electricity consumption stood at 17.32%. Energy-consumption statistics are collected for the
residential, services and transport sectors, but the results are not published regularly. The lack
of energy-efficiency indicators is an obstacle to reporting on energy savings. Waste and water
statistics are produced regularly. Statistics on greenhouse-gas emissions are not published
regularly. Other environmental statistics, such as air-emissions accounts, environmental taxes,
environmental-protection expenditure. and material flow balances, are not yet produced.
Chapter 32: Financial control
The EU promotes the reform of national governance systems to improve managerial
accountability, sound financial management of income and expenditure, and external audits of
public funds. The financial control rules further protect the EU’s financial interests against
fraud in the management of EU funds and protect the euro against counterfeiting.
There is some level of preparation in this area. Kosovo made limited progress during the
reporting period by adopting the new 2022-2026 PFM strategy and its action plan. The
implementation of both needs to speed up. Kosovo needs to further harmonise its public
internal financial control (PIFC) legislation with EU best practices. Additionally,
implementation of managerial accountability, including delegation of decision-making
responsibilities; (ii) addressing effective internal control measures; and (iii)systematic follow-
up of internal and external audit recommendations remain key priorities. The parliamentary
oversight of management of public funds is not efficient. Because the recommendations from
the previous year were not fully implemented, Kosovo should in the coming year:
→ implement efficiently the new 2022-2026 PFM strategy, and its actions relevant to PIFC
and external audit;
→ develop and adopt the new Law on public financial management and accountability based
on best EU practices and harmonise this new Law with PIFC law;
→ improve the managerial accountability of budget users at both central and local level;
→ improve cooperation between the Kosovo National Audit Office (KNAO) and Parliament
by: (i) improving parliamentary scrutiny of budget implementation; and (ii) continuously
and efficiently implementing and following-up on the KNAO audit recommendations.
Public internal financial control
Kosovo has made some progress in improving its strategic framework for PIFC, as it adopted
the new 2022-2026 PFM strategy and its action plan. Kosovo needs to make further efforts to
ensure inter-institutional coordination and to improve its framework for monitoring and
reporting. Making improvements to this framework will lead to a more consistent and coherent
approach in implementing the internal control standards. The work on the development of the
new law on PFM and accountability has started. This new law should be harmonised with the
PIFC legislation.
The efficient implementation of managerial accountability remains a challenge for budget
users at both central and local level. Kosovo needs to ensure the consistent application of
international internal audit standards and better delegate management powers in public entities
The process to rationalise government agencies is moving slowly, and is insufficient to bring
about any improvements. The implementation of the Regulation on financial management and
76
control remains inefficient, and the lines of delegation and accountability are not yet embedded
in the administrative culture of the budget users. The Law on the organisation and functioning
of the administration and independent agencies, which sets out the lines of accountability
between first-level spending units and subordinate bodies, is not applied in a consistent manner
(See section on PAR).
The legal framework on internal control is largely harmonised with the international
standards, but is not being sufficiently implemented. Financial management and control and
budget supervision should both be improved, following best EU practices. In 2022, the process
of development and adoption of risk-management registers continued at central and local-
government level. However, the incorporation of these measures into financial control and
management processes remains insufficient.
On internal audit practices, further efforts are needed to efficiently implement internal audit
standards in the public sector. Most internal audit units lack experienced and skilled staff.
Internal audit committees are not efficient nor properly functioning and it is recommended that
their role and legal basis be reconsidered. Further efforts are needed in building up the skills of
budget users so they can use internal audit methodological tools in a consistent and coherent
way. The implementation of internal audit recommendations is limited in practice. The quality-
assurance methodology is not yet systematically implemented. The Administrative Instruction
on the training programme and certification of internal auditors in the public sector has been
updated, but not yet adopted. There are therefore delays to the start of the national programme
for certification of internal auditors in the public sector. Further efforts are needed to provide
continuous training to internal auditors, at both central and local level.
The Central Harmonisation Unit provides methodological guidance and coordinates the
development in the public sector of internal audit and financial management and control.
However, its capacities remain insufficient, especially in monitoring and reporting on the
functioning of the overall system for internal control. The government adopted the 2022 PIFC
annual report, but its structure and scope could be further improved and its recommendations
could be more systematically implemented.
There is no legal basis in the PIFC law with regard to anti-corruption and there is no mechanism
in place to monitor the number of cases investigated, prosecuted and subject to court resolutions
as a result of internal audits or inspections.
External audit
The Law on the Auditor General and the National Audit Office of Kosovo (KNAO) is largely
harmonised with the standards set by the International Organisation of Supreme Audit
Institutions. Nevertheless, further review of the legal framework is needed to improve the
external audit function in the public sector for example to increase the KNAO’s financial and
operational independence and to remove its obligation to conduct annual financial audits of all
organisations that receive a budget from the state. These legal changes are of crucial importance
for improving the capacities and the quality and impact of the KNAO’s audit work. KNAO has
the institutional capacity to carry out its tasks, with 164 employees of which 82% are audit
staff, and 18% are employees providing other professional support services. Kosovo continued
to implement the 2022-2025 strategic development plan.
In 2022, some progress was noted as the annual audit plan was fully met, with 133 audits
carried out, including 3 compliance audits and 15 performance audits. On the impact of the
audit work, auditees do not effectively implement the KNAO’s recommendations. Out of 606
audit recommendations provided by the KNAO in 2020, 50% were fully implemented, 5%
were partially implemented, and 45% were not implemented. Although cooperation between
77
the KNAO and Parliament has improved, parliamentary scrutiny of the preparation and
implementation of the budget preparation should be improved. In 2022, the Commission for
the Supervision of Public Finances reviewed 23 reports, two less than during the previous
reporting period. The transparency and accountability of the management of public funds must
be ensured through efficient monitoring mechanisms by the executive and the Parliament,
including through follow-up on the KNAO’s audit recommendations.
Protection of the EU’s financial interests
On alignment with the acquis, national legislation is not yet harmonised with the Convention
on the protection of the EU’s financial interests, and this harmonisation will require
amendments to the Criminal Law. Kosovo has also not yet set up an anti-fraud coordination
service (AFCOS) and a national anti-fraud strategy for protecting the EU’s financial interests
has not yet been developed. Since the Kosovo authorities do not directly manage the EU funds,
irregularities are not reported to the Commission through the Irregularity Management System.
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
On alignment with the acquis, there is to some extent harmonisation with the EU regulations
on the system for the fight against counterfeiting of the euro. The Criminal Code considers the
counterfeiting of currency a criminal act and the Law on the Central Bank regulates the fight
against counterfeiting. Kosovo has a Regulation for cash operation that obliges financial
institutions to treat and withdraw from circulation all euro banknotes and coins suspected as
counterfeit, and to submit them to the police. The Agency for Forensics is responsible for the
technical analysis of suspected counterfeit banknotes and coins. It has concluded an agreement
with the European Commission on coins, but not yet on banknotes with the European Central
Bank. In 2022, out of 2 162 suspected banknotes assessed by the agency 718 were confirmed
as counterfeit, and out of 12 028 coins, 10 979 were confirmed as counterfeit. There is no
shared electronic system for the exchange, processing, analysis and reporting of cases with the
Central Bank and the agency. Kosovo needs to build capacities of key institutions to use
methodological tools and exchange data with national and international authorities. All relevant
institutions for fighting counterfeit currency participate in EU’s Pericles IV programme.
3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION
Good neighbourly relations and regional cooperation form an essential part of Kosovo’s
European integration process. They 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), the Energy Community, the Transport
Community, the South-East European Cooperation Process (SEECP) and the Regional
Cooperation Council (RCC)16
.
The EU-Western Balkans Summit in December 2022 took place for the first time in the
region, in Tirana. The summit focused on support to the region in the fields of energy and
migration, as well as on youth cooperation, roaming, green lanes and overall progress on
16
Kosovo is a member of CEFTA. Kosovo has free trade agreements (FTAs) with Albania, North Macedonia,
Croatia, Bosnia-Herzegovina and Türkiye. Kosovo has several Generalized System of Preferences (GSP)
programmes with the US, Japan and Norway.
78
implementing the Economic and Investment Plan.
On the Common Regional Market, a political breakthrough was achieved at the Berlin
Process Summit in Berlin in November 2022, where leaders adopted the three mobility
agreements on higher education qualifications, on professional qualifications and on free
movement with identity cards. Kosovo has ratified all three mobility agreements and deposited
the related notification instruments. A number of important decisions agreed at the technical
level within CEFTA remain blocked.
Kosovo generally maintains good bilateral relations with other enlargement countries and
neighbouring EU Member States.
Kosovo’sbilateral relations with Albania remain good overall. In July 2022, Albanian
President Meta chose Kosovo as the destination of his last official visit before completing his
term as president. In August 2022, President Begaj paid his first official visit to Kosovo, and
Kosovo President Osmani hosted President Begaj in Pristina again in February 2023. The
assemblies of Albania and Kosovo held their first joint meeting in November 2022.
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. Bilateral
meetings took place occasionally on the margins of regional and multilateral summits. An
initiative to simplify the visa procedure for all citizens of Kosovo is still pending.
Kosovo maintained close relations with Montenegro. Throughout the reporting period, several
meetings took place at the level of prime ministers and foreign ministers on the margins of
international and regional events. Bilateral relations were improved by the official visit of
Kosovo’s President to Montenegro in February 2023, and the visit of Montenegro’s Prime
Minister to Kosovo in April 2023.
Kosovo continued to enjoy overall good relations with North Macedonia, with Kosovo
President Osmani paying an official visit in April 2023. Other contacts between political
leaders took place on the margins of international and regional events.
Kosovo continued to maintain good relations with Türkiye, including in the political, economic
and cultural sectors. Kosovo PM Kurti visited Türkiye in February 2023. Kosovo provided 36
Kosovo Security Force troops to an international humanitarian operation in response to the
devastating earthquake on 6 February 2023.
Georgia, the Republic of Moldova and Ukraine have no formal relations with Kosovo, as they
do not recognise Kosovo’s independence. The Moldovan Parliament, however, ahead of the
European Political Community Summit on 1 June 2023, amended the law on visitors from third
countries allowing Kosovo representatives to obtain visas for participation in international
meetings held in Moldova.
4. NORMALISATION OF RELATIONS BETWEEN KOSOVO AND SERBIA
The EU-facilitated Dialogue on normalisation of relations between Kosovo and Serbia
continued in the reporting period with regular meetings at the level of Leaders and Chief
Negotiators. After months of intense negotiations and with the support of key partners, the
Parties reached an Agreement on the Path to Normalisation in Brussels on 27 February 2023,
and agreed on its Implementation Annex in Ohrid, North Macedonia, on 18 March 2023. As
79
part of the Agreement, the Parties took note that the Agreement and the Implementation Annex
will become integral parts of the respective EU accession processes of Kosovo and Serbia.17
Both Kosovo and Serbia are yet to start implementation of their respective obligations
stemming from the Agreement, which are valid and binding for the Parties and part of their
European paths. The Parties are urged to start engaging more constructively and start
implementation without further delay or precondition. This includes the establishment of the
Association/Community of Serb Majority Municipalities (A/CSM). Kosovo is expected to start
the process leading to the establishment of the A/CSM based on the European proposal
presented to the Parties on 21 October 2023 and Serbia is expected to support this process and
start delivering on their key obligations from the Agreement in parallel. Formalities, including
related to adoption, should not stand in the way of making progress in implementation. The
Parties also have an obligation to fully implement all past Dialogue Agreements. The
constructiveness of the Parties will be assessed based on their implementation performance.
The European Council on 26 October 2023 regretted the lack of implementation by both Parties
of the Agreement on the path to normalisation and its Implementation Annex as well as other
agreements reached in the EU facilitated dialogue, led by the High Representative and
supported by the EU Special Representative. Normalisation of relations is an essential
condition on the European path of both Parties and both risk losing important opportunities in
the absence of progress.18
Despite the conclusion of the Agreement on the Path to Normalisation, the Dialogue has been
hampered throughout the reporting period by a number of negative developments and crises in
the north of Kosovo triggered by actions of one or both Parties. Kosovo has executed a number
of such actions in the north of Kosovo, including the increased presence of Kosovo’s special
police and expropriation of land, which have created widespread discontent among the local
Kosovo Serb population and negatively affected the Dialogue. The mass resignation of Kosovo
Serbs from Kosovo institutions – police, judiciary and administration – in November 2022,
roadblocks in the north of Kosovo in reaction to arrests of Kosovo Serbs in December 2022, as
well as the boycott of early local by-elections in April 2023 by Kosovo Serbs further damaged
the Dialogue and exacerbated the negative atmosphere around it. As a result of the Kosovo
Serbs leaving all Kosovo institutions in November 2022, by-elections took place in the four
Kosovo Serb majority municipalities in the north of Kosovo on 23 April 2023. While the
elections were held in line with the legal framework of Kosovo, not all parties and communities
made use of their democratic right to participate and vote in the elections, resulting in a record
low turnout, which does not offer a long-term political solution for these municipalities.
17 Implementation Annex to the Agreement on the Path to Normalisation of Relations between Kosovo and Serbia: This Annex constitutes an integral part of the Agreement.
Kosovo and Serbia fully commit to honour all Articles of the Agreement and this Annex, and implement all their respective obligations stemming from the Agreement and this Annex
expediently and in good faith.
The Parties take note that the Agreement and the Implementation Annex will become integral parts of the respective EU accession processes of Kosovo and Serbia. The Parties note that
immediately after the adoption of the Agreement and this Annex, the EU Facilitator will start the process to amend the Chapter 35 benchmarks for Serbia to reflect Serbia’s new
obligations stemming from the Agreement and this Annex. The agenda of Kosovo’s Special Group on Normalisation will equally reflect Kosovo’s new obligations stemming from the
Agreement and this Annex.
The Parties agree to endorse the Declaration on Missing Persons, as negotiated under the EU-facilitated Dialogue, as a matter of urgency.
To implement Article 7, Kosovo launches immediately negotiations within the EU-facilitated Dialogue on establishing specific arrangements and guarantees to ensure an appropriate
level of self-management for the Serbian community in Kosovo, in compliance with relevant previous Dialogue agreements as determined by the EU Facilitator.
The Parties agree to set up a Joint Monitoring Committee, chaired by the EU, within 30 days. The implementation of all provisions shall be ensured and supervised by the Joint
Monitoring Committee.
To implement Article 9, the EU will organise a donor conference within 150 days to set up an investment and financial aid package for Kosovo and Serbia. No disbursement will happen
before the EU determines that all provisions of the Agreement have been fully implemented.
Kosovo and Serbia agree that all Articles will be implemented independently of each other.
The order of the paragraphs of this Annex is without prejudice to the order of their implementation.
Kosovo and Serbia agree not to block implementation of any of the Articles.
All discussions related to implementation of the Agreement will take place under the EU-facilitated Dialogue.
Kosovo and Serbia recognise that any failure to honour their obligations from the Agreement, this Annex or the past Dialogue Agreements may have direct negative consequences for
their respective EU accession processes and the financial aid they receive from the EU.
18
https://www.consilium.europa.eu/media/67627/20241027-european-council-conclusions.pdf
80
While there had been no progress in the implementation of the Energy Roadmap adopted in
June 2022, the tentative agreement in August 2023 between the commercial companies KEDS
and Elektrosever on the scope of functions potentially marks a significant step forward in the
implementation of the Roadmap. The Parties are now expected to quickly enable the signing
of the outstanding commercial and technical agreements between the two companies to ensure
that people living in the four Kosovo Serb-majority municipalities in the north start paying for
the electricity they consume.
During the reporting the period, the Parties agreed on and endorsed the political
declaration on Missing Persons in May 2023. The Parties are encouraged to start
implementation of the declaration immediately and, as the first step, agree to the Terms of
Reference for the Joint Commission that is to be established as per the declaration.
When it comes to the state of play on implementation of past Dialogue agreements:
- The withdrawal of Kosovo Serbs from Kosovo institutions in November 2022 and the
boycott of local elections in the north of Kosovo in April 2023 violate Serbia’s Dialogue
obligations and they constitute severe backsliding in Serbia’s compliance to the April 2013
“First agreement of principles governing the normalisation of relations” and direct violation
of the Justice Agreement of 2015. Serbia is urged to encourage Kosovo Serbs to return to
the institutions immediately and Kosovo to enable this return to happen. Since November
2022, neither Party has taken any steps in this regard. The recruitment of new Kosovo Serb
police cadets undertaken by the Kosovo Police while welcomed, did not follow the
procedures in line with Dialogue agreements.
- There has still been no further progress on the implementation of the August 2015
Agreement. While the EU welcomes the presentation of a first draft Statute of the A/CSM
to the High-level Dialogue in May 2023, the draft presented is not in line with the relevant
Dialogue Agreements. A European proposal for the establishment of the
A/CSM in Kosovo was presented to the Parties on 21 October 2023. Formalities, including
related to adoption should not stand in the way of making progress in implementation.
Kosovo and Serbia are now urged to engage constructively on the establishment of the
A/CSM with no further delay, conditions or obstructions. This obligation forms a part of
the implementation of the Agreement on the Path to Normalisation of Relations, which the
Parties are expected advance on, without delay or precondition, as recalled by the European
Council in October 2023. The issue of Serbia-run structures needs to be addressed in this
same context.
- 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.
Any decision on opening of the Bridge has to be agreed and coordinated in the Dialogue.
- As regards the technical Dialogue agreements (2011-2012), some are not or only partially
being implemented. Until sustainable solutions are found, both Parties need to remain
committed to the continued implementation of the 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 acceptance of university
diplomas agreements is still pending due to non-implementation by Serbia. Serbia also 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.
81
- 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). 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 required from
Serbia to close illegal roads and bypasses to ensure exclusive use of official crossing points
for goods and persons entering into or leaving Kosovo. Serbia also must allow resumption
of the joint technical IBM meetings at all levels.
- On Freedom of Movement, after months of tensions, Kosovo and Serbia agreed in
November 2022 that Serbia will stop issuing new licence plates with Kosovo cities’
denominations, and that Kosovo will suspend any further actions related to re-registration
of vehicles. The full implementation of the Freedom of Movement agreements is still
pending. This also requires the Parties to find a permanent solution to the issue of licence
plates in compliance with the relevant Dialogue agreements. Lack of such solution has
continued to cause tensions in the north of Kosovo during the reporting period.
- Both Parties need to fully respect the Telecoms Agreement and not put its hitherto
successful implementation at risk. Kosovo needs to ensure that MTS d.o.o has a business
licence for the functions that have been agreed as part of the Agreement to enable the
company to continue providing mobile and landline telephony services. MTS d.o.o needs
to engage constructively and in line with the Kosovo law to enable this to happen.
- The processing of Mutual legal assistance requests has been stopped by Serbia. Serbia
needs to resume the processing immediately, in line with the relevant Dialogue Agreement.
- Both Parties need to respect the Arrangements for Official Visits more consistently. Kosovo
needs to allow the visits of the Serbian Chief Negotiator and other Serbian government
officials when they are announced and conducted in line with the Arrangements, which has
not always been the case during the reporting period.
Overall, Kosovo has remained engaged in the Dialogue, but it needs to demonstrate more
serious commitment, invest more efforts and make compromises to take the normalisation
process forward. Kosovo needs to uphold its Dialogue commitments and commit to the full
implementation of all past Dialogue agreements and the Agreement on the Path to
Normalisation of Relations. 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 also needs to create a conducive environment for the conclusion of the legally-binding
normalisation Agreement with Serbia. Kosovo is expected to engage more constructively to
enable negotiations on the comprehensive legally-binding normalisation Agreement to start
and show flexibility in order to make rapid and concrete progress. Reaching such an Agreement
is urgent and crucial so that Kosovo and Serbia can advance on their respective European paths.
An important requirement for negotiations on the comprehensive legally-binding Agreement
is for the Parties to implement the Agreement on the Path to Normalisation swiftly and
efficiently and without any conditions or obstructions.
The reporting period was marked by multiple crises and violent incidents in the north of
Kosovo. The most serious crisis during the reporting period occurred on 24 September 2023,
when Kosovo Police was attacked by heavily armed individuals, who were surprised in the
midst of a major weapons’ smuggling operation, leaving one police officer dead and three
wounded. During the the operation the attackers had taken several pilgrims hostage while
barricading themselves in the Serbian Orthodox Monastery of Banjska/Banjskё, which they
82
left behind when fleeing. During the ongoing investigation into the events, large amounts of
military-grade weapons were seized. In the following days the Deputy Leader of Srpska Lista
through his lawyer, announced that he prepared and coordinated the attack. He was questioned
by Serbian authorities, shortly detained and released with his passport confiscated. In the days
following the attack Serbia increased its military presence in the vicinity of Kosovo, which was
subsequently reduced. The perpetrators of the attack need to be apprehended and swiftly
brought to justice and Serbia is expected to fully cooperate and take all the necessary steps in
this regard. The attack should not serve as an excuse for either side to divert attention from the
EU-facilitated Dialogue. Kosovo and Serbia must pursue sustained de-escalation efforts, as
well as ensure the holding of new elections in the north of Kosovo as soon as possible, with
the active participation of Kosovo Serbs.
Prior to it, another serious escalation took place in May 2023 when the newly elected Kosovo
Albanian mayors were installed in the municipal buildings in the north of Kosovo, against the
clear recommendation of the international community, which triggered protests by Kosovo
Serbs. Some turned violent and led to unacceptable and unprovoked attacks against citizens,
KFOR soldiers, law enforcement and representatives of media, which are yet to be condemned
and acted upon by Serbia. Several arrests of Kosovo Serbs by Kosovo Police in relation to their
alleged involvement in the violence of 29 May in Zveçan/Zvečan, which did not systematically
and fully adhere to the legal requirements, are of concern.
To find a way out of the cycle of crises, the Parties are expected to meet the requests of EU, as
per the statements by the High Representative on behalf of the EU from 3 June 202319
and 19
September20
related to de-escalation on the situation on the ground, enabling new early
elections with unconditional participation of Kosovo Serbs and return to the Dialogue and
implementation of all Agreements. The European Council expressed on 26 October 2023 that
failure to de-escalate the tensions will have consequences21
.
5. EUROPEAN STANDARDS
CLUSTER 2: INTERNAL MARKET
This cluster covers: the free movement of goods (Chapter 1); freedom of movement for workers
(Chapter 2); right of establishment and freedom to provide services (Chapter 3); free movement
of capital (Chapter 4); company law (Chapter 6); intellectual property law (Chapter 7);
competition policy (Chapter 8); financial services (Chapter 9), and consumer and health
protection (Chapter 28).
This cluster is key for Kosovo’s preparations for the requirements of the EU’s internal market
and is of high relevance for accelerated integration and growth, including the development of
the Common Regional Market. Kosovo has some level of preparation in most of the areas of
the internal market, namely in the areas of the free movement of workers, company law and
competition. It is in between some and moderate level of preparation in the area of free
movement of goods. Kosovo is moderately prepared in the right of establishment and freedom
to provide services, free movement of capital, intellectual property law and financial services.
19
https://www.consilium.europa.eu/en/press/press-releases/2023/06/03/statement-by-the-high-representative-
on-behalf-of-the-eu-on-kosovo-and-latest-developments/
20
https://www.consilium.europa.eu/en/press/press-releases/2023/09/19/belgrade-pristina-dialogue-
statement-by-the-high-representative-on-behalf-of-the-european-union-on-expectations-from-serbia-and-
kosovo/
21
https://www.consilium.europa.eu/media/67627/20241027-european-council-conclusions.pdf
83
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 the free movement of
workers, company law, competition policy, financial services and 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 creating unjustified barriers to trade.
Kosovo is in between some and moderate level of preparation in the area of the free
movement of goods. Some progress was made with the adoption of the Law on general product
safety and by further aligning Kosovo’s legislation with the EU acquis on market surveillance
and on mutual recognition. Further alignment with the EU acquis is needed in this area and
Kosovo must increase staff numbers and improve staff skills in the area of quality infrastructure
(especially conformity assessment and market surveillance).
As some recommendations of last year remain valid, Kosovo should, in particular:
→ increase the enforcement capacity on conformity assessment and market surveillance
bodies;
→ start implementing the new Law on general product safety and Law on inspections and
adopt relevant secondary legislation;
→ start implementing requirements of the European Regulation on the registration, evaluation,
authorisation and restriction of chemicals (REACH).
General principles
Kosovo has started drafting a legal framework for the production, distribution and
marketing of industrial products. It adopted the Law on general product safety, which
harmonises rules in the area of market surveillance. It has also adopted the Law on general
inspections. However, this only partly aligns Kosovo with the relevant EU acquis, and the
relevant implementing legislation still needs to be adopted.
Non-harmonised area
Kosovo has started screening its legislation to comply with requirements 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). Kosovo is working to further align legislation on
the mutual recognition of goods. There is a specific Contact Point for Notification in place that
monitors ministries and other bodies on their obligation to notify. Kosovo still requires
products to be labelled with the flag of their country of origin, which is not in line with the EU
acquis.
Harmonised area: quality infrastructure
The Kosovo Standardisation Agency is still not a member of any of the European or
international standardisation organisations. Its application for affiliate membership with the
European Committee for Standardisation (CEN) and the European Committee for Electro-
technical Standardisation (CENELEC) is still pending. The Kosovo government’s standard
management information system is an online platform partly compatible with that of
CEN/CENELEC and other international standardisation bodies. This system needs to be
developed to be compatible with the CEN/CENELEC system and allow Kosovo to adopt new
standards more quickly, making it user-friendly for businesses.
84
The Accreditation Directorate of Kosovo (DAK) needs to adopt implementing legislation to
help it to be more effective in its work. The Directorate completed accreditation for 9 testing
laboratories and 9 inspection bodies during the reporting period. At present, there are 53
accredited conformity-assessment bodies in Kosovo (34 test laboratories and 19 inspection
bodies). There is still a need to improve the technical capacity and skills-testing ability of these
accredited conformity assessment bodies.
The Kosovo Metrology Agency helps ensure further EU acquis alignment and to implement
and develop quality-management systems and standards for calibration laboratories. Kosovo is
currently pursuing associated membership of the European Association of National Metrology
Institutes (EURAMET).
On market surveillance, the Market Inspectorate’s responsibilities have increased since
inspection rules were harmonised in 2022. The reorganisation of the Inspectorate and set-up
of an e-inspection system is still ongoing. Kosovo also started preparing a new Law on market
surveillance and compliance of products that harmonises with the most recent EU acquis by
adopting an action plan. The new Law on general product safety has been adopted in April
2023 and is being implemented, taking into account the technical requirements for products
and conformity assessment.
During the reporting period, the Market Inspectorate conducted 2 830 product safety
inspections, imposed 311 fines, processed 195 cases, and confiscated 5 705 pieces of harmful
goods.
Harmonised area: sectoral legislation
On the ‘new and global approach’ to product legislation, Kosovo adopted legislation
designed to be aligned with the EU acquis on aerosol dispensers, pressure equipment, gas
appliances, personal protective equipment and construction products. Further alignment is
needed on the other new legislative framework legislation.
In the area of ‘old approach’ product legislation, Kosovo needs to start implementing its Law
on chemicals designed to align with EU Regulation on registration, evaluation, authorisation
and restriction of chemicals (REACH) and the EU Regulation on classification, labelling and
packaging (CLP). Further alignment is necessary on fertilisers and detergents. Kosovo is not
aligned with the EU acquis on motor vehicles, two or three wheeled vehicles, tractors
(agricultural, forestry) or non-road mobile machinery emissions.
Kosovo made no progress on procedural measures during the reporting period. Kosovo’s
legislation remains partly aligned with the EU acquis in the areas of firearms, textile labelling,
the pricing of medical products, cultural objects unlawfully removed from an EU Member
State and defence products.
Inspectorates responsible for market surveillance and product safety are prone to corruption.
Their competences should be clearly identified and should not overlap. Staffing should be
sufficient in terms of number and quality.
Chapter 2: Freedom of movement 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.
85
Kosovo has some level of preparation in the field of free movement for workers and made
limited progress during the reporting period, notably on social security coordination. Kosovo
is in ongoing negotiations on bilateral agreements on social security with Slovenia and started
negotiations with Croatia in 2022.
In the coming year, Kosovo should in particular:
→ continue negotiating and concluding new bilateral agreements on social security, notably
with EU Member States;
→ start work to prepare for joining the European Network of Employment Services (EURES)
upon accession.
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, Kosovo’s Employment
Agency issued 202 short-term work permits (in 2021, 209), of which 114 were for EU nationals
(in 2021, 157).
On social security coordination, Kosovo has already in place bilateral social security
agreements with Belgium and the Netherlands, as well as with Switzerland and Albania. These
agreements ensure that periods of work in Kosovo by nationals of these countries (or periods
of work in these countries by citizens of Kosovo) will be taken into account for entitlement to
social-security benefits. Negotiations for a similar agreement are ongoing with Slovenia. In
2022, Kosovo started negotiations on a similar deal with Croatia.
There is no legislation in force to preserve the supplementary pension rights of mobile workers
who have worked in other countries or EU Member States.
Chapter 3: Right of establishment and freedom to provide services
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. EU rules on postal services focus on improving the quality of
universal service, gradual market opening to competition, and the establishment of an
independent regulator.
Kosovo remains moderately prepared in this area and made some progress. Kosovo started
implementing its five-year action plan to make its sectoral laws compliant with the EU Services
Directive. The Point of Single contact is not fully functional. Kosovo’s postal market has
already been opened to competition in 2022 and the legal framework is being aligned with the
EU postal acquis. More efforts are needed to align Kosovo with the EU acquis on recognition
of professional qualifications.
As most of last report’s recommendations have not been addressed, in the coming year Kosovo
should:
→ remove the identified barriers to the right of establishment and freedom to provide services
and implement the action plan to make sectoral laws compliant with the EU Services
Directive;
→ complete Kosovo’s alignment with the EU postal acquis as regards the Regulation on cross-
border parcel delivery services and strengthen institutional capacity to monitor and ensure
compliance with the new rules in the postal market;
86
→ align with the EU acquis on mutual recognition of professional qualifications, including
with the Directive on recognition of professional qualifications and with the Directive on a
proportionality test before adoption of a new regulation of profession.
On the right of establishment and freedom to provide services, Kosovo is partially aligned
with the EU acquis on services. During the reporting period, the authorities set up a working
group to monitor and coordinate the implementation of the five-year action plan to make
sectoral legislation compliant with the EU acquis on services. The working group adopted
monitoring guidelines, discussed progress, and organised capacity building to assess the
compliance of its government bodies with the Law on Services. A tracking mechanism is
needed to monitor the progress in this area. To ensure that its rules are harmonised with the
standards set out in the EU’s Services Directive, Kosovo should increase inter-institutional
coordination between the legal departments of line ministries, agencies and other public and
professional bodies. If foreign companies wish to provide services in Kosovo, they are
currently obliged to establish an office. This impedes their freedom to provide services. To
remedy this and other problems in this sector, the authorities have conducted an analysis of
three service areas: legal, health and ICT to identify potential barriers to the freedom to provide
services.
Kosovo’s Point of Single Contact is responsible for licensing auditors and audit companies and
has now started to expand its role to licensing surveyors and accountants. The number of
professions registered via the Point of Single Contact should increase in the coming years and
the associated online platform needs to be transformed into a user-service delivery point,
including for company registration. Although businesses and the public can already access the
Point of Single Contact platform online, they receive only general information on starting a
business, with no interoperability options and therefore no real utility for the end user.
In the area of postal services, Kosovo made good progress on the regulatory alignment with
the Postal Services Directive, as the reserved area to the universal service provider was
aboslished in 2022. Bylaws on implementing accounting separation and net cost calculation of
the universal service were adopted, in line with the Postal Services Directive. There is one
universal service provider and 26 other postal operators active in the postal market. The
national regulatory authority is legally separated and operationally independent from postal
operators, but has limited resources and needs strengthening to monitor and ensure compliance
with the new rules in the postal market. Kosovo still needs to align its legislation with the
Regulation on cross-border parcel delivery services.
The Law on regulated professions broadly lays down 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 strengthened and fully staffed to become
operational. Kosovo needs to start identifying all regulated professions in the country and draw
up a detailed list of regulated professions.
Chapter 4: Free movement of capital
In the EU, capital and investments must be able to move without restrictions, with 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 is moderately prepared in the area of free movement of capital. During the reporting
period, Kosovo made some progress by adopting the Law on implementation of targeted
international financial sanctions and the Law on the state bureau for verification and
87
confiscation of unjustified assets. Some of the recommendations from the previous report
remain to be addressed.
In the coming year, Kosovo should, in particular:
→ increase efforts to further align its legal framework with the EU Payment Services 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
and strengthen the effectiveness of confiscations of assets and proceeds of crime.
The Central Bank of Kosovo has licensed one electronic money institution. However, the
execution of payments is predominantly carried out in cash, and money transfers are largely
limited to traditional financial institutions. More work could be done in this area to reduce
transaction costs and facilitate unbanked and underserved customers.
On payment systems, Kosovo needs to further align its legislation with the EU Payment
Services Directive 2. The country’s current framework on e-commerce suffers from regulatory
shortcomings, such as a weak system for electronic payments. This work of aligning with the
EU Payment Services Directive 2 should be backed by introducing and encouraging new
electronic payment methods through innovative solutions that are more efficient and less
costly. Kosovo is not a member of the International Telecommunication Union, and this could
hinder the development of international payment systems in the country.
The law on the prevention of money laundering and combating terrorism financing
(AML/CFT) needs to be further aligned with the fourth and fifth Anti Money Laundering
Directives. In 2022, the Assembly adopted the Law on implementation of targeted international
financial sanctions, which addresses shortcomings identified by the 2018 Council of Europe
Assessment Report on Anti-Money Laundering and Countering Terrorist Financing. The Law
sets out measures to be taken and also identifies the competent authorities and procedures for
proposal, approval, supervision and implementation on targeted international financial
sanctions. These sanctions relate to the prevention and combating of terrorism; terrorist
financing; and the proliferation of weapons of mass destruction. The Law on the State Bureau
for verification and confiscation of unjustified assets, currently in the Constitutional Court,
introduces penalties for illicit enrichment in the domestic legal system and provides for civil
confiscation of certain assets without prior convictions. In view of increasing the transparency
of legal persons and arrangements, in July 2022 the government adopted a concept document
on regulating the beneficial ownership register and upgraded guidance is adopted by Kosovo’s
Financial Intelligence Unit (FIU) on AML/CFT obligations of legal professionals.
The number of suspicious transaction reports in Kosovo increased to 947 in 2022, up 3% from
2021. Although Kosovo has made some progress in the fight against financial crime, there is
still a need to strengthen inter-institutional cooperation in the fight against economic and
financial crime (See also Chapter 24 - Justice, freedom and security).
Chapter 6: Company law
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 field of company law. Kosovo made limited
progress in further aligning with the EU acquis on company law and is preparing a new law
88
on business organisations to align more broadly with the EU acquis. Since the 2022
recommendations were only partially addressed, they remain largely valid.
In the coming year, Kosovo should in particular:
→ adopt the draft law on business organisations to further align with the EU acquis on
company law including with the most recent EU acquis (the encouragement of long-term
shareholder engagement, the Directive on the use of digital tools and processes in company
and the Directive on company cross-border operations);
→ further align with the EU acquis on company reporting and strengthen both the institutional
audit-oversight structures and the professional independence/objectivity of auditors and
audit firms as well as their sufficient and sustainable funding.
On company law and corporate governance, Kosovo is preparing a new draft law on business
organisations. This aims to further align the country’s legal framework with the EU company
law acquis, particularly on minimum capital requirement, shareholders’ rights (including the
encouragement of long-term shareholder engagement), company takeovers, aspects of
disclosure of information about companies and their branches, Directive on the use of digital
tools and Directive on cross-border operations (mergers, divisions, conversions), and Directive
on gender equality on boards of directors. The Kosovo Corporate Governance Code adopted
in June 2021 reflects international standards set out in the OECD Principles on Corporate
Governance.
Kosovo completed an assessment of the technical infrastructure required to ensure the
interoperability of the Kosovo Business Registration Agency with the EU Business Register
Interconnection System (BRIS) and now needs to ensure that the conditions for this connection
are met. Insufficient coordination and data sharing between the Kosovo Business Registration
Agency and the Kosovo Council for Financial Reporting still affects the timely reporting and
publication of accounting documents. The Agency does not publish information on companies
in some legal situations (e.g. under insolvency proceedings) and there is still no legal obligation
to publish accounting documents in the business register.
On company reporting, the Law on accounting, financial reporting and audit is only partially
aligned with the EU acquis. Kosovo will need to align with the most recent EU rules covering
corporate sustainability reporting. The law requires statutory audits to be carried out
following relevant international standards on auditing. Large companies must submit and
publish their audited financial statements with the Kosovo Council for Financial Reporting
(KCFR), and non-compliance risks legal sanction. All submitted financial statements are
published on the Council’s website. Kosovo still needs to secure sufficient sustainable funding
for the Public Audit Oversight Board which was appointed by the KCFR as its executive branch
responsible for overseeing this sector. This has prevented it from fully exercising its
supervisory powers and enforcement functions.
Chapter 7: Intellectual property law
The EU has harmonised rules for the legal protection of intellectual property rights (IPR),
copyright and related rights. Rules for the legal protection of IPR cover, for instance, patents
and trade marks, designs, biotechnological inventions and pharmaceuticals. Rules for the legal
protection of copyright and related rights cover, for instance, books, films, software and
broadcasting
Kosovo is moderately prepared on intellectual property rights. Some progress was made to
align the domestic legal framework with the EU acquis. The new laws on: patents, trade marks,
industrial design, topographies of semiconductor products and trade secrets entered into force.
89
The government adopted the new Law on copyright and related rights (and relevant legislation
regarding a collective rights management system in the fields of copyright for literary and
visual works). This new law also aims to align with the Directive on certain online transmission
of broadcasting organisations and retransmissions of television and radio programmes to cover
online transmissions as well as with the Directive on copyright and related rights in the Single
Market. Kosovo also took steps to better enforce intellectual and industrial property rights by
establishing the Commercial Court that is mandated to solve cases and disputes in this field.
Last year’s recommendations were partially implemented.
In the coming year, Kosovo should in particular:
→ establish a functioning collective management system by strengthening the existing
collective management organisations in the fields of music and audio-visual and by
facilitating the creation of collective management organisation in the fields of literary and
visual works;
→ adopt implementing legislation as a result of the approval of industrial property laws
(patents, trade marks, industrial design, topographies of semiconductor products and trade
secrets).
Kosovo has made some progress in terms of legislative alignment, so it can start to guarantee
some level of protection of intellectual, industrial, and commercial property rights equivalent
to that applied in the EU and in line with the SAA.
In the area of copyright and related rights, the draft law on Copyright and Related Rights,
which aims to align Kosovo’s legislation with the Directives on collective management of
copyright and related rights and on copyright and related rights in the Digital Single Market
has been adopted. Kosovo has not yet established a functioning collective management system
in the fields of literary and artistic works.
The main body responsible is the Office for Copyright and Related Rights (OCRR). It remains
at a low level of administrative capacity, with only three officials. Kosovo’s national strategy
to strengthen the copyright system (2019-2023) contained plans to create two divisions within
the Copyright Office, one for the promotion and education and one for the collective
management and supervision of copyright. Neither of these bodies have been set up yet to
support the enforcement of current rules and ensure the remuneration of right holders.
On industrial property rights, Kosovo’s Industrial Property Agency needs restructuring and
additional staff. Kosovo had legislation in place since 2022 on ‘topographies’ of semi-
conductors, patents, designs, trade secrets and trade marks. During the reporting period,
Kosovo also adopted relevant implementing legislation for the registration of patents, trade
marks and industrial designs. In particular, in July 2022, Kosovo adopted the Law on trade
marks and seven administrative instructions. Kosovo has not yet adopted a strategy on
industrial property for 2022-2026.
The State Intellectual Property Council and the Task Force against Piracy are responsible for
the enforcement of intellectual property rights in Kosovo. In this area, Kosovo needs to
improve the capacity and coordination between policy-making institutions and law-
enforcement institutions to effectively enforce intellectual property rights. Lengthy procedures
for the treatment of applications and the lack of enforcement of decisions taken, are a major
constraint to effectively implement the IPR legal framework.
In 2022, the Task Force confiscated around 800 pieces of pirated materials. At the initiative of
the Market Inspectorate, 3 760 goods were confiscated. Also about 1 000 copies of materials
that violated copyrights were seized, representing a 233% increase compared with the previous
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year. A total of 4 062 textiles pieces and 63 machine tools were prevented from entering the
market, as they did not have any commercial name and were evaluated as potentially intended
and falsifiable for the internal market. The Industrial Property Agency issued 7 269 official
documents that include decisions on registration of rights, invitations to make payments and
other notices for applicants to complete their IPR applications.
In 2022, Kosovo Custom’s IPR Unit initiated 612 investigation cases, seizing 968 980 pieces
of fake goods for a total value of EUR 10.6 million, which represents an increase on last year.
Kosovo established the Commercial Court specialised in commercial matters and the court is
mandated to solve cases and disputes in the field of industrial property rights and copyright.
Chapter 8: Competition policy
EU rules protect free competition. These include antitrust rules against restrictive agreements
between companies and abuse of dominant position, and also include rules on concentrations
between companies which would significantly impede effective 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 preventing distortion of competition.
Kosovo has some level of preparation in competition policy and made limited progress in
this chapter. It revised the legal framework on antitrust and mergers but made no progress on
State aid. State aid control and enforcement is non-existent and put on hold as cases are neither
handled nor enforced without the State Aid Commission’s approval, whose mandate expired
in March 2022. The urgent establishment of a functional State Aid Commission should be
prioritised. Further efforts are needed to align and enforce legislation in both the antitrust and
mergers and State aid areas. As recommendations from the previous report remain largely
valid, Kosovo should:
→ urgently fulfil SAA obligations, including by establishing a functional State Aid
Commission;
→ further align the legislative framework on anti-trust, mergers and State aid and ensure its
enforcement;
→ ensure the functional capacity and operational independence of the competition and State
aid authorities; increase cooperation and coordination between all stakeholders, including
ministries, regulators and the judiciary.
Antitrust and mergers
The legislative framework on antitrust and mergers is partly in line with the EU acquis. In
2022, Kosovo adopted the new Law on protection of competition; however, further
amendments including to articles four and six are needed to ensure its alignment with the EU
acquis. Implementing legislation needs to be aligned with the new law and with the EU acquis,
as the present version is no longer valid and applicable.
On the institutional framework, the Kosovo Competition Authority (KCA) is responsible for
implementing the legal framework and the Kosovo Competition Commission (KCC) acts as
the decision-making body. The KCC became functional again upon appointment in June 2022.
The cooperation between the KCA and other sector regulators was strengthened, and a
Memorandum of Understanding was signed with the Public Procurement Regulatory
Commission and the Procurement Review Body.
In its capacity to enforce competition, the KCA acts as an independent agency accountable
to the Assembly of Kosovo, adopts enforcement decisions and is composed of 18 members.
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The KCC is also appointed by the Assembly, acts as a collegial body that manages the work of
the KCA, is composed of five members with two positions vacant.
On implementation, in 2022, the KCA issued 10 decisions in the sectors of software
development, insurance, medical services, telecommunication and financial markets. The KCA
launched four market studies, including on the markets for wheat, flour, gas, cooking oil,
gasoline, sugar, oil, transport products, cement and pellets.
Kosovo made no progress in enforcing competition rules by imposing fines or remedies
following decisions taken by the KCA. Case numbers remain low and to date, the KCA has not
carried out any dawn raids nor has the leniency programme been used. Disruptions to the
KCC’s functioning have led to a high number of unresolved cases.
Training for Kosovo judges and prosecutors on essential aspects of competition law continued
in 2022. Raising awareness among judges on the enforcement of competition law remains key,
to avoid contradictory judgements by different court instances.
State aid
The legislative framework on State aid is broadly aligned with the EU acquis. However, no
progress was made during the reporting period to amend it further. The draft Regulations on
horizontal aid, including block exemptions and regional aid, although prepared, are yet to be
adopted. Similarly, the draft Law on State aid although prepared in draft has not been adopted
either.
On the institutional framework, the State Aid Department, as part of the Ministry of Finance,
is responsible for assessing proposals for State aid, drafting assessment reports for the State
Aid Commission (SAC), and updating the State aid inventory. The SAC acts as a decision-
making body and is composed of five members.
On enforcement capacity, no progress can be reported as the mandate of the State Aid
Commission expired in March 2022 and no new Commission has been established by the
government, putting all control on State aid on hold.
On implementation, the SAD began assessment of nine State support measures in 2022, of
which only one was notified by the provider. As there is no State Aid Commission in place, no
decisions were adopted in 2022. No annual report for the approval of State aid was submitted.
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
EU rules aim to ensure fair competition among, and the stability of, financial institutions,
namely banking, insurance, supplementary pensions, investment services and securities
markets. They include rules on authorisation, operation and supervision of these institutions.
Kosovo is moderately prepared in the area of financial services. It made limited progress in
implementing last year’s recommendations due in large part to a lack of capacity. All past
recommendations not fully implemented remain valid. The country should make further efforts
to align with the financial services acquis, focusing on the priorities identified.
In the coming year, Kosovo should in particular:
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→ strengthen the governance framework of the Central Bank by appointing the two deputy-
Governors of the Bank;
→ step-up its efforts to implement Solvency II measures and continue with enhanced
supervisory role on the insurance sector;
→ further advance in aligning with the revised versions of Capital Requirements Directive and
Capital Requirements Regulation (CRR/CRD), Bank Recovery and Resolution Directive
(BRRD) and Deposit Guarantee Scheme Directive (DGSD).
On banks and financial conglomerates, the Central Bank continued to align its legal
framework with Basel III requirements on capital and risk management. It has approved
regulations in relation to liquidity coverage ratio, and bank liquidity risk assessment. Despite
global economic challenges, the financial sector remains resilient 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.
In relation to governance issues, during the reporting period the Central Bank of Kosovo faced
challenges in performing its tasks and responsibilities. . The position of Governor of the Central
Bank was left vacant for a number of months before being filled in July. Two positions of
Deputy Governors remain vacant. Principles of transparency and merit-based selection should
be upheld. 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. The Central Bank is working on updating regulations to harmonise
them with the Bank Recovery and Resolution Directive (BRRD) I and II, with which Kosovo
has not fully aligned. Amendments to the Law on banks, to assign the function of the recovery
and resolution to the Central Bank, must ensure that the authority has functional independence.
The Kosovo Deposit Insurance Fund (DIFK) has set up the working group to amend the Law
on deposit guarantee. Amendments should seek to approximate the Deposit Guarantee Scheme
Directive. The Central Bank must ensure that consumers are protected to prevent unfair
banking practices.
Regarding Insurance and Occupational Pensions, Kosovo continued to implement
Solvency I measures and started gradual implementation of Solvency II. There are
improvements to be noted with regard to capital and liquidity adequacy levels of the insurance
sector and the increased supervisory role of the Central Bank in the insurance industry. Despite
the opinion presented by the Kosovo Competition Authority, the prices on the compulsory
motor liability insurance market remain fixed, as the Motor Third Party Liabilities price
liberalisation process has yet to start and the new risk-based model for adjusting car insurance
tariffs has not been introduced.
Despite some progress on the uninsured and unregistered vehicles, Kosovo continues to
remain outside the green card system. 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.
During the reporting period, the Governing Board of the Kosovo Pension Savings Trust
(KPST) was non-functional for five months, as the mandate of the members of the Board
expired in February 2023, until new appointment of members was made in July 2023.
Securities markets and investment services remain at the early stages of development, as
most activity centres on the market for government bonds, auctioned by the Central Bank. The
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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. In the reporting period, there were no developments
as regards funds and asset management.
On digital and sustainable finance, Kosovo should conduct further work to incorporate
sustainable considerations both in banking and non-banking strategic policies and objectives,
and to implement a regulatory financial framework supporting private investments towards
sustainable/green activities. The Kosovo Credit Guarantee Fund (KCGF) can guarantee up to
80% of loan portfolios of financial institutions to MSMEs in areas such as energy efficiency
and sustainable agriculture. The KCGF has issued up to EUR 303 million in guarantees as of
July 2023.
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, and medicines for human and
veterinary use. The EU also has rules for upholding patients’ rights in
cross-border healthcare and in preparing for and responding to cross-border health threats,
including communicable diseases.
Kosovo is at an early stage of preparation in this area. There was limited progress overall
via the adoption of the Law on general product safety, however the law on consumer protection
has not yet been adopted. Kosovo achieved compliance with the EU Digital COVID Certificate.
As last year’s recommendations were not fully addressed, they remain largely valid.
In the coming year, Kosovo should:
→ adopt the law on consumer protection;
→ increase human and financial resources and systems necessary to implement health sector
reforms, especially by implementing the electronic public health information system, and
improve access and health outcomes for those in the most vulnerable situations;
→ ensure rigorous implementation of tobacco control, in line with the relevant EU acquis and
international obligations.
Consumer protection
Kosovo’s legislative framework is partly aligned with the EU acquis. In October 2022, the
government approved the draft law on Consumer Protection, which amends the existing
consumer law to the latest changes to EU consumer legislation introduced by Directive (EU)
2019/2161. However, final adoption is still pending. Enforcement of consumer rights
protection remains limited. An integrated platform to harmonise the complaints process
remains to be created. The Central Bank has a division that handles most consumer complaints
on financial services, in 2022 they have dealt with 644 complaints, lower compared with 2021.
Regarding product safety, Kosovo adopted a new Law on general product safety designed to
be fully aligned with the EU acquis. During the reporting period, the Market Inspectorate
conducted 2 830 product safety inspections, imposed 311 fines, processed 195 cases, and
confiscated 5 705 pieces of harmful goods.
As regards non-safety issues, the law on consumer protection addresses consumers’ economic
interests. The weakness of consumer rights organisations remains a challenge.
Public Health
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On public health policy, the quality of healthcare remains of concern. The draft law on health
and draft law on health insurance, which aim to steer health sector reforms, have not been
amended. The new 2023-2030 Health Sector Strategy has been drafted, and is yet to be
approved. Health expenditure amounts to around 3% of the GDP, which is second lowest in
the region and more than three times lower than the EU average of around 11%. Kosovo
allocated a record high level of health sector budget in 2023 (around EUR 300 million), an
increase of around 15.6% compared to 2022. Health financing is predominantly based on
historical expenditure and there are no performance-based indicators. Institutional
accountability of public health providers’ remains low. There are no incentives to improve
productivity, efficiency and quality in the sector. Despite a relatively strong network of primary
healthcare facilities that provide services free of charge, the out-of-pocket expenses remain
very high. 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.
Life expectancy in Kosovo at birth remains the lowest in the region; non-communicable
diseases are the leading cause of death, especially cardiovascular diseases and cancer. Some
33% causes of death are incorrectly reported or are not diagnosed. Health promotion and
prevention programmes for non-communicable diseases is weak; screening for chronic
conditions (such as diabetes and hypertension) is not systematically performed. There has been
no progress with the implementation of the health promotion action plan, or the strategic plans
on mother and child healthcare. Child mortality remains a serious issue, 16 children out of
1 000 live births die before they are five, three times higher than the EU average. In 2022, the
government made efforts to improve maternal and child health. It expanded home visiting
programmes to all municipalities and allocated additional resources to this (EUR 3.4 million).
Although most indicators in the public health information system are aligned with the European
Core Indicators, it is only partly functional. Its utility for policy development, research and
decision-making is therefore limited.
On mental health, several clinical guidelines were approved. Mental health services continue
to be integrated services. The 2013 Law on tobacco control is not being comprehensively
enforced and implemented, though there was a notable increase in inspections on smoking in
public places in Pristina during Q2 of 2023.
The legislation on blood, tissues, cells and organs is partly aligned with the EU acquis. Full
alignment with the EU acquis remains a challenge, Kosovo continues to lack necessary
administrative, infrastructure, financial and human resources capacities in this field.
On serious communicable diseases and serious cross-border threats to health, Kosovo
made some progress in strengthening its capacities for surveillance and reporting data to the
World Health Organization. The Assembly adopted the law on communicable diseases in line
with ECDC recommendations and the EU acquis in August 2023. Routine immunisation is
improving, however, coverage rates are still lower than pre-COVID-19 levels and currently
stand between 87-89%.
During the reporting period, health authorities in Kosovo continued to manage the COVID-19
pandemic, and made further progress on surveillance, case investigation, contact tracing and
case management. In July 2022, Kosovo achieved compliance with the EU Digital COVID
Certificate. The number of positive cases progressively declined, following the increase during
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Q2 and Q3 2022. The rate of vaccination significantly declined during the reporting period.
New cold-chain facilities and equipment to ensure proper storage of vaccines were finalised.
Legislation on patients’ rights in cross-border healthcare is partially aligned with the EU
acquis. For specialised health services that are not available in Kosovo, patients can benefit
from the health insurance fund for health services abroad. However, the Fund is currently
serving only as a payment agent, instead of developing standardised approval and monitoring
processes. It does not engage in any contract negotiation with hospitals abroad. Such passive
position has generated significant financial risk to the health insurance fund.
Kosovo has a cancer screening programme. However, despite some progress, cancer
screening is not performed systematically. Main cancer diagnostic and treatment services are
provided at the tertiary healthcare level at one clinical centre.
Kosovo has not made any progress in adopting the nutrition action plan on nutrition and
physical activity. Legislation on medicines for human use and medicines for veterinary
use remain partially aligned with the EU acquis. The list of essential medicines, for which the
costs are covered by the government, has still not been updated. The level of the coverage of
costs for medicinal products from the essential list remains around 70%, and above 90% for
consumables in primary healthcare.
Health inequalities remain a serious issue. The continuous postponement of the introduction
of universal health insurance scheme and out-of-pocket payments remain very high. This
influences the access to essential health services for those in vulnerable situations, such as those
living in poverty, in rural areas and persons belonging to Roma, Ashkali and Egyptian
communities. It is estimated that almost a third of Kosovo population has only limited access
to health care services. The rate of routine immunisation of Roma, Ashkali and Egyptian
children in Kosovo are only half that of other children.
CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH
This cluster covers: digital transformation and media (Chapter 10); taxation (Chapter 16);
economic and monetary policy (Chapter 17); social policy and employment (Chapter 19);
industrial policy (Chapter 20), science and research (Chapter 25); education and culture
(Chapter 26); and the customs union (Chapter 29).
Kosovo is moderately prepared in the area of customs, as well as on enterprise and industrial
policy. It has some level of preparation in the area of taxation, digital transformation and media,
as well as education and culture, and is at an early stage of preparation in the areas of social
policy and employment, and science and research. During the reporting period, some progress
was achieved in most areas of this cluster, but only limited progress on digital transformation
and media.
Chapter 10: Digital transformation and media
The EU supports the smooth functioning of the internal market for electronic communications,
electronic commerce and audiovisual services. The rules protect consumers and support the
universal availability of modern services.
Kosovo has some level of preparation in the area of digital transformation and media.
Kosovo made limited progress by further aligning its legislative framework with the EU
acquis, particularly with the adoption of the cybersecurity law. However, further alignment
and implementation are still needed in the area of audiovisual policy . Kosovo engaged
constructively in high-level regional dialogue on digital transformation and on the
implementation of the Regional Roaming Agreement. In September 2022, Kosovo hosted
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the Western Balkans Digital Summit in Pristina. A sustainable solution for the funding of
the public broadcaster and ensuring its editorial independence still needs to be found. The
government adopted the Digital Agenda 2030. The budgetary resources for cybersecurity
remain insufficient.
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 (NIS 2) and
the EU’s Toolbox for 5G cybersecurity; revise the Law on the Independent Media
Commission, in line with the Audio-visual Media Services 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.
In the area of electronic communications and information and communication technologies
(ICT), according to the Kosovo Agency for Statistics, in 2022, 97.9% of households had access
to the Internet (compared to 96.1% in 2021). Kosovo’s broadband coverage is now 100%. In
2022, the share of individuals purchasing or ordering goods and services online (within the last
three months) was 51%, compared to 23.1% in 2021. Kosovo’s legislative framework on
broadband cost reduction is aligned with the EU acquis and implementation is advancing, with
the completion of the broadband atlas and the single information point. Further efforts are
needed to align it with the European Electronic Communications Code to ensure freedom to
provide electronic communications networks and services. Kosovo still needs to complete the
drafting process of the Concept Document for the Electronic Communications Code.
The Regulatory Authority of Electronic and Postal Communication approved the Frequency
Release Plan, including all frequency bands with important economic value. In autumn of 2022,
Kosovo initiated pilot 5G access. The Regulatory Authority completed the process of
assignment of 800MHz and 3.5GHz bands to enable the deployment of 5G technology. Kosovo
adopted the regulation for number portability for public electronic communications services
subscribers. The existing resources of the Electronic and Postal Communications Regulatory
Authority remain limited and not proportionate to their responsibilities.
Alignment with the Digital Services Acts and Digital Markets Act needs to be stepped up, to
provide predictability for the business community.
Kosovo made some progress in the area of digital transformation, as it adopted the 2030
Digital Agenda. The Law on cybersecurity, which is partially aligned with the NIS Directive,
has been adopted on 2 February 2023. The strategy and action plan related to the Law on
cybersecurity still need to be adopted. Kosovo developed basic capabilities in cybersecurity; it
needs to step up efforts to ensure proper operational mechanisms, technical capacities and
human resources to operate in the cyberspace context effectively. The e-government portal is
operational: the platform offers over 150 fully digitalised services. Kosovo needs to make
further efforts to finalise and adopt the e-Government Strategy. Kosovo still needs to align with
the EU acquis on open data and the re-use of public sector information. Kosovo should also
align with the European Interoperability Framework and the Interoperable Europe Act.
On audiovisual policy, the long-awaited amendment of the Law on Independent Media
Commission (IMC) has been further delayed. This process should be conducted in an inclusive
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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
still lacks adequate human and financial 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. Due to the 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
of the IMC provides sufficient regulatory, enforcement, and monitoring powers to ensure
pluralism and competitiveness in the market. The amendment, currently underway, should
further align the Law with the Audiovisual Media Services Directive to extend its powers to
online audio-visual media.
A review of the current Law on radio television of Kosovo (RTK) launched in 2019 has stalled.
The draft law includes a funding model for RTK, whose editorial independence is weak, as it
still relies on direct government funding, with the Assembly determining its budget annually.
The appointment of the new Director General through an open, merit-based process is a
positive development. The Board should ensure that independent and professional individuals
without links to political parties are appointed to managerial positions.
Chapter 16: Taxation
EU rules on taxation cover value-added tax, excise duties and aspects of corporate taxation.
They also cover cooperation between tax administrations, including the exchange of
information to prevent tax evasion.
Kosovo has some level of preparation in the area of taxation. It made some progress with
implementation of risk-based tax inspections on some high-risk sectors and service
digitalisation. Increased compliance and formalisation measures have led to increased tax
revenues.
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 finalise the new
strategy for combating the informal economy, money laundering, financing of terrorism
and financial crime (2023-2026);
→ 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 period with regard to tax collection, enforcement and
compliance. Between June 2022 and April 2023, the Tax Administration of Kosovo (TAK)
collected revenues of 728.7 million EUR, 16.7% higher than the same period in the previous
year. During the reporting period TAK also stepped-up activities to combat the informal
economy, increasing the number of compliance visits, audits and investigations of suspected
cases of fiscal evasion. These activities resulted in additional revenue of EUR 181.5 million
for the period June 2022 – May 2023, 17% higher than the same period in the previous year.
Regarding 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 still needs to be further
harmonised with the EU acquis. The legal framework and procedures on e-commerce taxation
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need to be established. On direct taxation, Kosovo made no progress in amending the Law on
personal income tax, or 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 status issues.
Kosovo has double taxation treaties in application with 11 EU member states (Austria, Croatia,
Luxembourg, Hungary, Latvia, Malta, Slovenia, Germany, Finland and Belgium, and Ireland).
On operational capacity and digitalisation, the Tax Administration made progress with
regard to service quality, in particular with the use of e-services. This is also reflected in the
2022 Tax Administration Diagnostic Assessment Tool (TADAT assessment). In terms of
streamlining and improving its service delivery, the Tax Administration needs to further
strengthen professional capacities, especially on the tax inspection/audit, and improve the
effectiveness of tax audit functions. The Tax Administration is implementing its 2022-2026
Strategy. It plans to increase revenue collection; strengthen voluntary compliance; strengthen
approach and expertise in managing large taxpayers; build modern IT systems and tools; and
strengthen the inspection programme. There is a significant seatback regarding the
development of the new IT system for tax administration. The tax Administration intensified
its actions on risk-based approach regarding tax compliance. Despite higher revenues
registered from tax audit processes, Kosovo needs to strengthen enforcement of a risk-based
approach. Data quality and exchange of data across different agencies for the administration of
taxes remain a challenge.
Chapter 17: Economic and monetary policy
EU rules require the independence of central banks and prohibit them from directly financing
the public sector. 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 data collection and transmission to Eurostat; however, further efforts are needed
to address the methodological inconsistencies on national accounts. The Central Bank has faced
challenges in performing its tasks and responsibilities. After a vacancy of a few months, in July
2023 the Assembly elected a new governor. The Assembly also adopted a Law on minimum
wages, decoupling war veterans’ pensions, in an effort to ensure compliance with the legal
ceiling applicable for spending on war veteran pensions.
The 2022 recommendations were not fully addressed and therefore remain valid. Kosovo
should in particular:
→ strengthen the Central Bank’s governance by completing the procedure for the selection of
its Deputy Governors;
→ increase reporting capacities for governmental financial statistics according to the ESA
2010 and ensure regular monitoring of standards;
→ improve the quality of macroeconomic forecasting in the budgetary process.
Kosovo does not have an independent monetary policy and does not have standard monetary
policy tools at its disposal, as it uses the euro as a legal tender, leaving fiscal policy as the main
macroeconomic policy instrument. Kosovo’s use of the euro is fully distinct from membership
of the euro area.
The Central Bank of Kosovo (CBK) is the sole authority responsible to promote and maintain
the stability of the financial system in Kosovo and to contribute to maintain price stability. The
Law on the Central Bank and the constitution establish its functional and institutional
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independence, prohibits its decision-making bodies to give and receive instructions from
government authorities. The Law also prohibits monetary financing of the public sector and
ensures that the latter does not have privileged access to financial institutions.
The Central Bank of Kosovo is facing challenges in performing its tasks and responsibilities.
The mandate of the Governor ended in March 2023, and the position was vacant until the
Assembly appointed a new governor in July. Even though new staff were recruited, the Central
Bank needs to ensure that its core functions, including banking supervision and maintaining
financial stability, are adequately staffed. The Bank still needs to implement reforms with
regard to its corporate governance structure in order to improve its accountability.
On economic policy, Kosovo needs to further align with the requirements of the EU Directive
on budgetary frameworks. In July, the Assembly adopted a Law on minimum wages,
decoupling the level of war veterans’ pensions from the minimum wage in an effort to ensure
compliance with existing legal spending limits. Although fiscal rules are well established in
the legislation, further efforts are required to ensure their full compliance.
During the reporting period, operational capacities of the Ministry of Finance improved. In
particular, macro-fiscal modelling, planning and forecasting, as well as assessment of the fiscal
impact of the government's new policy and legislative initiatives has improved. Kosovo is at
the early stages of introducing programme-based budgeting. Some steps have been taken to
better link the medium-term policy with budgetary planning process. Nonetheless, strong
political will and inter-institutional cooperation are necessary to transform the budget into a
policy-planning tool and strengthen the medium-term budgetary framework.
During the reporting period progress was made in the timeliness and completeness of annual
national accounts data produced, according to the European System of Accounts (ESA) 2010
methodology. Some progress was made also in government deficit and debt statistics, but
further work is expected to fully adhere to the ESA 2010 methodology. Kosovo should make
efforts to improve the coverage and timeliness of the Excessive Deficit Procedure (EDP)
notification tables and to start completing the questionnaire relating to the EDP tables. After
the tables for quarterly financial accounts for general government were transmitted to Eurostat
for the first time in 2023, Kosovo now provides the currently full set of required Government
Finance Statistics (GFS) tables. However, efforts are still needed to improve various qualitative
aspects of the tables.
The 2023-2025 Economic Reform Programme (ERP) was submitted on time. There is a
significant degree of uncertainty surrounding the macroeconomic and fiscal framework
presented in the ERP. The ERP projects a robust acceleration of economic activity in 2023-
2025, which is above the historical trend. An expected strong rebound in public investment is
seen as a key growth driver, but in order to realise this ambition, obstacles to public investment
execution need to be effectively addressed. There are additional sizeable downside risks to this
outlook notably linked to higher-than-expected energy and food prices following Russia’s war
of aggression against Ukraine and the induced energy crisis. The 2022 policy guidance has
been implemented only partially. The structural reforms presented in the ERP reflect the
government’s plan to address obstacles to competitiveness and inclusive growth in the
medium-term. However, implementation of the structural measures has often been delayed and
improvements have not materialized. Similarly, additional efforts are necessary to improve
macro-fiscal projections underpinning the budget and the linkage between the macro-fiscal
framework and the planning of structural reforms.
Chapter 19: Social policy and employment
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EU rules in the social field include minimum standards for labour law, equality, health and
safety at work and non-discrimination. They also promote social inclusion and social
protection, and social dialogue at European level.
Kosovo is at an early stage of preparation in this area. Some progress was made during the
reporting period, in particular on the preparations for the implementation of the Youth
Guarantee, in securing funds for social services and intensifying inspections in work sectors
with higher risk. However, the rate of fatal occupational accidents remains high.
Last year’s recommendations were only partially implemented and remain valid. In the coming
period, Kosovo should in particular:
→ continue implementing the Youth Guarantee Implementation Plan to prepare for the
piloting of the scheme; adopt the amendments to the Law on Labour to align with recent
EU acquis, particularly in relation to non-discrimination in employment and parental leave;
→ continue intensifying 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, and improve access to social services, in particular for children.
Kosovo has postponed amendments to the legislation on labour and on health and safety at
work, which are necessary to further align with the EU acquis, including with the EU Directive
on work life balance. The 2014 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. During 2022, there were 349 workplace accidents, of which 15 resulted in fatalities.
The Labour Inspectorate is increasing: in 2022, 12 new inspectors were recruited. The Tax
Administration Inspectorate took actions to formalise jobs, and together with Labour
Inspectorate and International Labour Organization, launched a campaign to promote labour
rights.
On social dialogue, tripartite and bipartite dialogue remain limited. During 2022, the Social
Economic Council mandated its Commission to negotiate the new General Collective
Agreement. The social partners have approved the work plan for 2022 and 2023. On 14 June
2022, the Assembly approved in the first reading an increase in the minimum wage at EUR
264 (from EUR 170) per month, but the final adoption is pending. The capacity of social
partners remains limited.
On employment policy, Kosovo has continued drafting a new employment and labour market
strategy 2023-2028, a new employment policy 2022-2024, and a concept document regulating
the field of employment. The last sectoral strategy (2018-2020), albeit with modest targets, had
a very low implementation rate.
The overall activity rate stood at 38.6% in 2022, a slight decrease compared to 39.3% in 2021.
Unemployment rates in 2022 were 12.6% (20.7% in 2021). The rates are higher among
women, 16.5% (25% in 2021), than among men, 11% (19% in 2021). The indicators that still
give rise to most concerns are the high inactivity rate, 61.4% (60.8% in 2021) and youth
unemployment 21.4% (38% in 2021). 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.
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Youth unemployment remains high (21.4% in 2021), particularly among women (27%).
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. 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 continued the preparations for the implementation the Youth Guarantee, in
line with the implementation plan adopted in November 2022. As of 2023, authorities are
working to ensure conditions for piloting the Youth Guarantee in two municipalities, and in
amending relevant legislation, restructuring the key delivery mechanisms (public employment
services), and fast-tracking some long-due reforms in vocational education training.
Kosovo is restructuring the Employment Agency so as to deliver on the Youth Guarantee
implementation plan. Management and operational procedures, and data management are still
weak. The labour market information system to support evidence-based policy making and
planning is outdated and lacks operational capacity in critical areas. The lack of human
resources in public employment services is the greatest concern.
There were no developments on the preparation of the European Social Fund. (See Chapter
22 - Regional policy and coordination of structural instruments).On social inclusion and
protection, Kosovo’s spending on social assistance scheme amounts to 6% of GDP, but less
than 0.5% of GDP is allocated to the most deprived as most of the amount is spent on war
veterans’ pensions. On 4 April 2023, the Assembly has ratified an agreement with the World
Bank to conduct thorough reforms in the social assistance system. Kosovo made no progress
to provide funding allocation for social services. The draft law on local government finances
is not part of the 2023 legislative plan raising concerns as to the sustainability of financing for
social services. For 2023 the government fund dedicated for licensed NGOs to provide social
services increased by 50% (from EUR 1 million to 1.5 million); this does not address fully the
funding situation for the provision of quality social services at the local level. Municipalities
should make effort to improve service planning and delivery, data collection and integrated
care. Care for the elderly remains a serious issue. Around 18% of Kosovo's population lives
below the poverty line (EUR 45 per month, with 5.1% percent of the population living below
the extreme poverty line). Children from poor households, and those with special needs, lack
equal access to vital and quality health and education services. Children represent half of those
benefiting from social assistance, but less than 10% of them are with special needs. Children
with disabilities lack adequate health and rehabilitation services, social services and assistive
equipment from state institutions. Most of them lack proper access to education facilities.
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.
Kosovo has to intensify efforts to address discrimination against women in employment and
social policy, particularly during hiring procedures, promotion and pay. The unequal share of
responsibilities present in the maternity, paternity and parental leave between women and men
hinders women’s employment. Women face discrimination also when they are pregnant or
wish to have children; therefore, it is important to treat the termination of a probationary period
due to pregnancy as direct discrimination. Trainings are needed for both labour inspectors and
judges to better address the issue of gender-based discrimination. In 2022, the employment rate
for the population aged 15-64 was 18.4% for women and 49.4% for men, resulting in a very
high gender employment gap of 31 percentage points. Limited access to childcare and flexible
working arrangements, as well as regulations that discourage the recruitment of women are
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important barriers. Other challenges faced by women, especially in rural areas, are the lack of
care for the elderly, discrimination in the access to property, and gender-based violence.
Chapter 20: Enterprise and industrial policy
EU industrial policy strengthens competitiveness, facilitates structural change and encourages
a business-friendly environment that stimulates small and medium-sized enterprises (SMEs).
Kosovo is moderately prepared in the area of enterprise and industrial policy. It made good
progress, as the government approved the Strategy for industrial development and business
support 2030, the first of its kind. The Assembly passed the Law on sustainable investment and
the Law on technological and industrial parks in first reading. The laws provide for the
establishment of two new agencies dedicated to investment and export promotion and business
support and entrepreneurship. The operational performance of the existing Kosovo Investment
and Enterprise Support Agency (KIESA) also improved during the period. .
Last year’s recommendations were only partially implemented and remain largely valid. In the
coming period, Kosovo should in particular:
→ Implement the 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);
→ complete the restructuring of the Kosovo Investment and Enterprise Support Agency
(KIESA) into separate investment promotion and SME support agencies, as well as ensure
both are sufficiently resourced.
As regards enterprise and industrial policy, the Ministry of Industry Entrepreneurship and
Trade (MIET) prepared an ambitious strategy for industry development and business support
2030. It aims to improve the business environment in Kosovo, promote industrial development,
address the trade deficit, create jobs, as well as to ensure both resource efficiency and a more
circular economy. The Ministry prepared a comprehensive analysis of the main subsectors in
the manufacturing sector to use for refining its policies and actions. In view of the expansion
of solar energy in the carbon emissions policy, incentives for the use of renewable energy
sources in industry are planned; their approval is expected in 2023.
The Assembly has adopted in first reading two laws to promote investment and encourage
private sector development: a Law on Technological and Industrial Parks and a Law on
Sustainable Investment. The latter anticipates restructuring of the Kosovo Investment and
Enterprise Support Agency (KIESA) into an Agency for Support to the Enterprises within the
MIET, and of the Agency for Investment and Export (AIE) under the remit of the Prime
Minister’s Office. With clear delineation of responsibilities, the two agencies could be more
efficient in providing support to active companies and attracting new investors. KIESA has
long struggled with limited capacities to implement its broad mandate. Despite this, KIESA
has strongly improved its performance in 2022, increasing foreign direct investments (FDI) by
43.6% over the period January to September 2022 and increasing participation of Kosovo firms
in international trade fairs.
A concept document for public enterprises adopted in 2023 envisages the revision of the Law
on public enterprises and implementing legislation. The Ministry of Economy has initiated
policy changes covering publicly owned enterprises to align with the new legislation on
Sovereign Fund. In June 2023, the government adopted the Law on the Sovereign Fund.
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In the area of policy instruments, the KIESA organised a high number of activities despite
capacity deficiencies. The Agency had difficulties fulfilling its objectives, in particular
enabling the implementation of before- and after-care services and programmes and promoting
links between multinational enterprises and SMEs.
Kosovo has no streamlined process to handle investors’ grievances and retain investments.
Having such a process would implement the principles of the systemic investment response
mechanism, as proposed by the World Bank. The fragmented and inefficient flow of
information between state institutions remains a challenge, it in turn presents obstacles for
SMEs to access the available business support services and obtain permits and licenses. When
applying for government support, SMEs are required to submit excessive paperwork and
information, which extends the application time.
The Law establishing the legal framework for a Commercial Court was passed in February
2022 and the court became fully operational and began hearing cases in August 2022. Although
since 2022 the legislation on foreign investment includes equal treatment of national and
foreign nationals and companies, foreign nationals and companies still encounter challenges in
practice, for instance when registering property rights.
Kosovo has significantly increased the number of services available on its e-government
platform and has begun preparations to simplify and digitalise permits and licenses on the e-
government platform. Business licensing procedures are clear and centralized. Kosovo
continues reforms to reduce the administrative burden on businesses. Self-employed workers
face a low tax burden and the incorporated SMEs benefit from corporate income tax incentives.
The tax administration simplification and the development of digital services have decreased
tax compliance costs for SMEs.
The lack of easily accessible and affordable credit serves is a substantial barrier to the growth
of SMEs. In addition, SMEs and corporations suffer 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. By 2022, the Kosovo Credit Guarantee
Fund (KCGF) expanded; it now enables loans worth EUR 270 million to 8 871 micro-small
and medium-sized enterprises (MSMEs) in the sectors of production, services agriculture, and
trade, including start-up firms and female owned businesses. On 11 May 2023, Kosovo signed
the Association Agreement for the participation in the EU “Single Market Programme” (SMP).
Chapter 25: Science and research
The EU provides significant support for research and innovation. All Member States can
participate in the EU’s research and innovation programmes and benefit from them, especially
where there is scientific excellence and solid investment in research and innovation.
Kosovo is at an early stage of preparation in the area of science and research. Some progress
was made during the reporting period: Kosovo substantially improved its performance in the
EU’s framework programme on research and innovation.
Since the recommendations of the previous report were not fully addressed, Kosovo should in
particular:
→ fully implement the national science programme, including prioritise and promote
scientific research and innovation, ensure higher spending on research and innovation, and
seek to stimulate investment from the private sector by completing a smart specialisation
strategy;
→ continue efforts to increase participation in the Horizon Europe programme;
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→ use the newly established current research information system to provide reliable data on
numbers of researchers, on percentage of GDP spent on research and innovation, and on
performance related to the European Research Area priorities.
Despite some progress on research and innovation policy, Kosovo lacks a strategic approach
to develop, prioritise and promote research activities. There has been some progress in this
respect since the National Science Council developed the national science programme as the
main strategic document on science and research. It identifies priority fields for the economic
and social development for the next six-year period. In addition, it includes new funding
models and the creation of a fund for innovations.
The smart specialisation strategy should be completed as a priority. The current research
information system has been developed and should be put into use. It systematically collects
research, science and innovation data, that should be used to support evidence-based decision
making. The bundling of competencies for science, education, technology, and innovation in a
single ministry is a welcome development. This should foster the coordination and
administrative capacities to plan, implement, monitor, and evaluate research and innovation
policies.
The research and innovation sector is severely underfunded, with public research spending
amounting to only 0.1% of GDP despite a 0.7% of GDP target mandated by law. The financing
of scientific research through the allocation of the budget for higher education institutions is
unclear since the budget for scientific research and innovation is not separated from the budget
for universities. The quality of programmes preparing postgraduates for research careers
remains unsatisfactory. Funding of innovation support measures is urgently needed to support
the economic recovery. Kosovo is encouraged to take up the opportunities made available by
the European Institute of Innovation and Technology.
Kosovo was for the first time fully associated to Horizon Europe in 2021. After a slow start,
preliminary figures for 2022 show a substantial performance increase from the research and
innovation community with five projects receiving a total EU funding of EUR 0.8 million.
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 has some level of preparation in the field of education and culture. During the
reporting period there has been some progress, notably with the Kosovo Accreditation Agency
becoming an affiliated member of the European Association for Quality Assurance in Higher
Education and the European Quality Assurance Register for Higher Education, and with the
adoption of the Law on the Kosovo Accreditation Agency and the Law on early childhood
education. However, the quality of education still needs improvement in terms of teachers’
qualifications and training and learning outcomes. The Assembly should adopt key legislation
on higher education.
As last year’s recommendations were only partially implemented, Kosovo should in particular:
→ develop a roadmap for the implementation of key reforms of the education system,
including the recommendations under the ETF Rapid Education Diagnosis;
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→ finalise the implementation of the new curricular framework for basic education, complete
the revision of the existing textbooks and provide sustainable training to teachers;
systematically apply quality assurance mechanisms at all education levels;
→ enhance the VET governance and increase the quality of vocational education and training
for professions in demand in view of the Youth Guarantee.
Kosovo’s public spending on education in 2022 stood at 4.1% of GDP (13.3% of the total
budget). Although the amount as a percentage of GDP is comparable to EU countries, per
capita spending is considerably lower. Thus, Kosovo should increase the funds for students
per capita and for investment in quality education. The funding formula used to allocate pre-
university budget to each municipality is under revision, as the current one is not sufficiently
accurate. During 2022, almost two thirds of schools in rural areas (63%) operated in multiple
shifts. In consequence, pupils receive an insufficient number of teaching hours.
In recent years, Kosovo has made considerable progress in increasing access to pre-primary
and primary education. It should nevertheless do more to equitably increase coverage of pre-
school and secondary education. In the 2021/2022 school year, 224 429 pupils attended
primary and lower secondary education: a decline of 18% compared to the 273 649 pupils in
2014/2015. On average, (gross) enrolment rates in primary and secondary education are very
similar to those in the region, and relatively high: 88.1% of children attend pre-primary
education but for no more than 2 to 2.5 hours/ day in public institutions. In private institutions,
the duration is 7 to 8 hours/ day. In 2020/2021, the inclusion rate in primary education was
101.2%. Participation of children in pre-school education and care remains low, at 6.7%, well
below the average in the region and the OECD average (over 36%). Only 46.2% of pre-school
children are girls, while the number of Roma, Ashkali and Egyptian children included in the
early childhood education system is low. The new Law on pre-school education was adopted
by the Assembly on 10 July 2023; the primary curriculum for Early Childhood Education is
being developed. Higher education gross enrolment rate continues decreasing and is currently
at 49.4%, almost 30% lower than five years ago, but low graduation rates remain of concern.
Kosovo adopted a new education strategy 2022-2026, which includes plans for digitalisation
of schools, focusing on digital learning, platforms, content, teachers upskilling and support,
connectivity, devices, and institutional support. For the successful implementation, the
Ministry of Education, Science and Technology (MESTI) needs to ensure the necessary human
and financial resources. The restructuring of the MESTI is still pending. The restructuring of
the MESTI is still pending.
The quality of education remains poor, as evidenced by the last two OECD Programme for
International Student Assessment (PISA) evaluations, with Kosovo ranking respectively
second and third from bottom. Kosovo participated in the 2019 Trends in International
Mathematics and Science Study (TIMSS), in the 2021 Progress in International Reading
Literacy Study (PIRLS) and PISA 2022. In TIMSS 2019, Kosovo was among the ten poorest
performers. However, Kosovo has joined the ICILS 2023 (International Computer and
Information Literacy Study) which can help monitor targets regarding students’ digital
competences and also monitor progress toward the UN Sustainable Development Goals.
Kosovo is participating in the European Education Area working groups 2021-2025. These
working groups fosters collaboration among European Union Member States, as well as with
candidate countries, in order to build more resilient and inclusive national education and
training systems and prepare their youth for the green and digital transition.
Reforms are still lagging behind due to the lack of suitable textbooks, teaching materials and
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sustainable professional development schemes for teachers. Another issue is the mismatch
between education outcome and skill requirements. The law on the education inspectorate is
not properly enforced due to the insufficient number of inspectors.
Higher education institutions (HEIs) should invest more in the implementation of their
strategic documents and action plans. Academic integrity remains an issue. The Ministry
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. It also has developed the new Kosovo
Research Information System (KRIS) platform that requires the registration of all researchers.
During the reporting period, MESTI developed a roadmap on the performance-based funding
of the public HEIs. All public HEIs have fully aligned with the accreditation standards. Apart
from the University of Pristina, all public universities depend financially on the state budget.
Kosovo should adopt the new law on higher education that would strengthen the autonomy and
academic integrity of higher education institutions, governance matters and improve quality
assurance. The limited involvement of the students in the decision-making processes at the
university level remains an issue. The newly adopted Kosovo education strategy 2022-2026 is
expected to address the above-mentioned issues. In 2022, the Kosovo Accreditation Agency
(KAA) became an affiliated member of the European Association for Quality Assurance in
Higher Education and the European Quality Assurance Register for Higher Education. Kosovo
adopted the Law on the Accreditation Agency which aims at increasing its operational
independence and transparency of appointments of the KAA management.
Over half of upper secondary schools students enrol in vocational education and training
(VET). The statistics for the 2022/2023 academic year show that out of 67 373 students
enrolled in upper secondary education, 35 568 students are enrolled in vocational education
schools, compared to 31 805 students enrolled in gymnasiums. VET profiles offered by
vocational schools are not based on occupational standards and are often not well aligned with
the labour market demands. Funding for vocational education has not increased over the last
few years. Only 9.6% of the total education budget is allocated to VET.
Work-based learning, integrated in the current VET curriculum, is not systematically
delivered. The currently used subject-based curricula are not geared towards developing
vocational skills. Schools generally lack the conditions, teacher skills, equipment, materials
and structured cooperation with businesses to develop learners’ practical skills. During the
reporting period, Kosovo adopted the Youth Guarantee implementation plan, making the
introduction of the necessary reforms in VET even more urgent. It includes both preventative
measures to make education and VET more relevant and measures to expand offers for young
people that are not in employment education or training (NEET).
Kosovo needs to increase the access of students with disabilities to education. It is estimated
that 38 000 children with disabilities do not attend school. Key problems include the lack of
suitable definitions of various forms of disability, barrier-free access to schools and adequate
support, and the low number of suitably qualified teachers and assistants. Despite the positive
development with the decision of the government to increase the number of assistants for
children with special needs to 100 per year, at least until 2024, the quality of education for
children with disabilities is low. The dropout rate remains higher among Roma and Ashkali
children though statistics are unreliable. During the reporting period, trainings were organised
on inclusive education, human and minority rights and on Kosovo respective policies and legal
framework for 25 municipal officers (14 women and 11 men) from 22 municipalities.
With the cooperation of the Kosovo government, the European Training Foundation carried
out an evidence-based rapid education diagnosis of the entire education system addressing
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three main thematic areas: inequality, financing and governance. The analysis aimed to identify
key issues and actions to improve the quality and delivery of education services overall. The
Foundation drew up a set of recommendations for the Kosovo authorities to consider. These
recommendations include: (i) setting up adequate monitoring and evaluation mechanisms; (ii)
improving cross-ministerial cooperation; (iii) boosting institutional capacity, particularly for
financial management; and (iv) setting priorities in the Education Strategy.
Kosovo benefits from the international dimension of the 2021-2027 Erasmus+ programme. In
2022, around 480 higher education staff members and 650 students from Kosovo were selected
to undertake a mobility period in EU Member States and associated third countries to the
programme, while Kosovo’s higher education institutions are expected to host 375 staff
members and 225 students from Europe.
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.
The Ministry of Culture, Youth and Sport (MCYS) has the responsibility to prepare and
implement public policies, drafts legal acts, and adopts implementing legislation in the field of
culture, youth, sports, copyright and related rights. MCYS is at an early stage to develop a
culture strategy. MCYS needs to increase its efforts to improve the status of the artistic
community, governance and budget issues of public cultural institutions. During reporting
period, the Ministry allocated EUR 500 000 for construction of the Jewish Cultural Centre that
will serve to organise exhibitions on the history of the Jewish community. MCYS can increase
its commitment towards further development of technical capacities in the specific cultural
heritage skills by ensuring further education of the students in this area and providing
professional training.
Kosovo currently participates in the Creative Europe programme. More efforts are needed to
increase the number of culture beneficiaries in Culture strand calls with European partners.
Kosovo still has to increase efforts to align on the short term its legislation with EU Audiovisual
Media Services Directive, in order to participate as well in MEDIA strand.
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 as well as adequate implementing and
enforcement capacity and access to common computerised customs systems.
Kosovo is moderately prepared in the area of customs. During the reporting period, it made
some progress as it reduced fees charged to exporters/importers at inland customs terminals,
opened a customs office at the Port of Durrës (Albania) increased the number of authorised
economic operators and enforced customs measures, for example for the protection of
intellectual property rights (IPRs). Kosovo Customs has continued the fight against narcotics
and other smuggling activities. As not all the recommendations from the previous report
have been addressed, in the coming year Kosovo should in particular:
→ continue to align with the Union Customs Code and the excise acquis, including
approving a new Customs and Excise Code;
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→ Kosovo Customs should strengthen its administrative and professional capacity, and to
that end, ensure merit-based and transparent selection processes, transfers and
promotions;
→ abolish all fees charged to exporters/importers at both public and private inland customs
terminals.
In the area of customs legislation, the newly drafted Customs and Excise Code, which is
aligned with that of the Union Customs Code, is still to be adopted by the government.
Due to recognition issues, there was no progress on Kosovo’s application to become an
observer under the Common Transit Convention. Regarding the rules of origin, Kosovo
continues to apply the Pan-Euro Mediterranean (PEM) Convention. The Kosovo Customs
continues to systematically exchange data on the cross-border movement of goods among
Western Balkan economies. Kosovo is participating in ‘Customs’, the EU programme for
cooperation in the field of customs.
The legislation on customs measures governing IPR and export controls for cultural goods is
aligned with the EU acquis.
Kosovo Customs continued to make good progress on trade facilitation. Kosovo Customs has
granted an additional five certificates for Authorized Economic Operators, bringing the total
number to ten Authorized Economic Operators.
There is some progress with regard to reducing fees for exporters/importers at inland customs
terminals. Import fees have been entirely abolished at the Peja customs terminal, while the
Trepca terminal applies a reduced fee. All other customs terminals apply a full fee.
Kosovo Customs should still strengthen its administrative and operational capacity, by
ensuring merit-based and transparent transfers, promotions and selection processes. In this
regard, it should update its secondary legislation job descriptions. Kosovo Customs should
continue to implement its medium-term strategic plan (2019-2023).
During the reporting period, Kosovo Customs jointly with Kosovo Police detected and seized
substantial amounts of narcotics valued at several million euro. Kosovo Customs conducted 42
field inspections. Kosovo Customs, other law enforcement authorities and line institutions,
cooperate well to fight against the informal economy and customs fraud.
Kosovo Customs initiated three cases involving four customs officers suspected of corruption
of which 12 officers have been dismissed, and one arrested. The legal framework for
investigation of asset declarations checks filled by customs officials is still not developed.
CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY
This cluster covers: transport (Chapter 14); energy (Chapter 15); trans-European networks
(Chapter 21); and environment and climate change (Chapter 27).
Kosovo is at an early stage or has some level of preparation in 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, some progress was
made in the energy sector. Kosovo adopted an ambitious energy strategy, which includes an
increased share in renewable energy sources, and launched the first solar auction Kosovo
remains heavily reliant on coal. Limited progress was made in the transport sector with the
adoption of the multimodal transport strategy, whereas limited progress was made in the areas
of environment and climate change.
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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,
Stateaid and market liberalisation in road transport, railways, inland waterways, combined
transport,aviation and maritime transport.
Kosovo is in an early stage of preparation in this area. It made limited progress, notably with
the adoption of the multimodal transport strategy.
As most of the last year’s recommendations have not been addressed, they remain valid; Kosovo
should:
→ invest in road maintenance and inspections, organise prevention campaigns and establish
a systematic monitoring mechanism for the collection of crash data and continue the
alignment with the EU rail market acquis, and in particular, the Law on safety and
interoperability;
→ adopt and roll out the action plan 2023-2025 of the multimodal transport strategy; 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; continue efforts to harmonise with the EU
passenger rights acquis across all modes of transport.
On transport matters, Kosovo proactively participated in Transport Community activities. In
January 2023, the government approved the Multimodal Transport Strategy; the adoption of the
action plan is still pending. Further efforts are needed to align and implement the EU acquis in
all areas of the sector, with a focus on safety and incorporating elements of the Smart and
Sustainable Mobility Strategy. Kosovo needs to take concrete measures to speed up the
implementation to meet the deadlines set in the five Transport Community Action Plans (rail,
road, road safety, waterborne transport and multimodality). Kosovo made limited progress on
the implementation of Annex 1 of the Transport Community Treaty. The operational and
administrative capacities of the enforcement bodies remain insufficient. Kosovo needs to
upgrade the existing capacities to improve coordination to ensure proper, timely and
professional implementation of all infrastructure projects. Kosovo should begin to enhance
transport climate resilience and the use of alternative fuels, in line with the Green Agenda
and the Smart Sustainable Mobility Strategy for the Western Balkans. For larger transport
agglomerations, sustainable urban mobility plans which respect environmental and social
standards should be developed following EU practice.
On road transport, Kosovo should make further efforts to align with the EU acquis. For the
first time, Kosovo has allocated a budget for 2022-2024 to set up the Road Asset Management
System. Kosovo should implement the recommendations on establishing a Road Safety
Agency, including developing the national system for continuous road crash data collection.
The current road crash data collection system is not compliant with Common Accident Data
Set (CADaS) and the improvement of the system is not yet foreseen. Kosovo should continue
raising awareness to achieve better results in line with the United Nations (UN) and EU's goal
to halve the number of road deaths and injuries by 2030. Kosovo should also still implement
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the report recommendations of Technical Assistance to Connectivity project in the Western
Balkans - CONNECTA - to improve the quality of the road network and implement actions as
set out in the road safety Transport Community Treaty regional action plan. The draft bylaw on
aligning the Directive 2008/69/EC on road infrastructure safety management and the bylaw on
periodic technical inspections on roads should be finalised without any further delays.
Establishing a system/model to increase the capacity of road safety inspectors and auditors
should be a priority.
Kosovo has made some progress on the implementation of rail transport acquis, with the
partial implementation of the Transport Community action plan on rail. The market for rail
transport services is open and functional. However, the railway legislation still needs be fully
aligned with the market and technical pillars of the fourth Railway Package. Kosovo drafted a
multiannual maintenance contract; final approval is pending. Although the 2021 agreement on
joint rail border crossing is in place for more than 2 years, the joint rail station with North
Macedonia is not yet operational. Kosovo should still ensure the outstanding finalisation of the
2020-2024 financial agreement between the infrastructure manager, Infrakos, and the relevant
authorities.
On air transport, Kosovo is part of the European Common Aviation Area (ECAA)) and is also
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. KFOR/NATO still manages and coordinates upper Kosovo airspace. The
institutional shortcomings of the Air Navigation Service Agency and the Civil Aviation
Authority, as well as the lack of revenue from upper airspace management, remain an issue.
The ongoing staff-management issues in the Civil Aviation Authority remain unsolved and may
have a negative impact on the functioning of the Authority. Its upcoming reorganisation and
administrative reforms should reflect public administration reform principles, as well as the
aviation sector's specific circumstances and requirements. More efforts are needed to continue
the alignment with the remaining ECAA first-phase items. Kosovo made some progress with
the second phase of ECAA requirements, on aviation safety matters.
On combined transport, the approval of the Multimodal Transport Strategy sets out the
objective for a well-functioning transport infrastructure which is integrated into TEN-T network
and enables the provision of multimodal transport services. However, the 3-year
implementation program of the Strategy is yet to be adopted.
Kosovo should increase its efforts to implement EU passenger rights acquis in all mode of
transport. While it has made limited progress in implementing certain aspects of the EU
Regulation on rail passenger rights, further efforts are required to achieve comprehensive
compliance.
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 area of energy. Kosovo has made some progress,
notably with the adoption of an ambitious new Energy Strategy in March 2023, the launch of
the first solar auction in May 2023, and with further investments in the energy efficiency of
public and residential buildings in line with the Energy Support Package action plan. Kosovo
remains heavily reliant on coal, which in addition to being a dominant source ofgreenhouse
gases, causes serious health and environmental hazards. The targets set in the new Energy
Strategy and in the National Energy and Climate Plan (NECP) will need to be aligned with the
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Kosovo made some progress on the security of supply. Electricity market integration with
Albania advanced with the launch of the Albanian Power Exchange (ALPEX) and the
successful inauguration of the day-ahead market in Albania. ALPEX obtained a license to
operate the day-ahead market in Kosovo, and the launch was expected by September 2023.
Market coupling between Albania and Kosovo is envisaged to take place in parallel with the
launch of the day-ahead market in Kosovo. Kosovo still made no progress in restructuring the
existing Bulk Supply Agreement between Kosovo Electricity Supply Company (KESCO) and
the Kosovo Electricity Corporation (KEK). The phase out of the bulk supply agreement would
contribute to unlocking competition and liquidity in the market for the benefit of Kosovo’s
energy consumers.
Kosovo Transmission Operator (KOSTT) continued withdrawing electricity from the
European network to balance demand in an unauthorised manner. KOSTT lacks the financial
resources required to cover for the losses to which unpaid electricity bills in the north of Kosovo
contribute. Electricity supplies for the North of Kosovo are provided through deviations that
breach the Connection Agreement with ENTSO-E. KOSTT should address the problem of
frequency deviations in the control area of Kosovo as a matter of urgency, as the transmission
system operator TSO is responsible for fulfilling the obligations under the Connection
Agreement with ENTSO-E.
Although Elektrosever received a supply license in June 2022, following the adoption of the
Energy Roadmap as part of the EU-facilitated Dialogue, the conclusion of a commercial
contract between the distribution company KEDS and Elektrosever remains pending.
Following the separation of the Kosovo transmission system operator KOSTT from the Serbia
control block, the Serbian electricity transmission system operator EMS did not determine net
transmission capacities and capacity allocation at the interconnection with Kosovo.
In March 2023, Kosovo adopted an ambitious Energy Strategy setting a clear vision for
decarbonisation and foreseeing a substantial increase of renewable energy sources in the
electricity mix and approved its implementation program in September. Kosovo needs to
ensure a time-efficient and dynamic implementation of various energy strategy components
and reach ambitious targets. Kosovo is dependent on outdated, unreliable, and highly polluting
lignite-fired thermal power plants, which are greenhouse gas emission sources and cause
2030 Energy Community energy and climate targets. This plan (NECP) needs to be adopted by
the end of June 2024, in line with the Energy Community 2030 energy and climate targets,
taking due account of recommendations issued by the Energy Community Secretariat. Kosovo
needs to align its legislation with the Energy Community Electricity Integration Package.
Implementation and enforcement of legislation on energy efficiency need to be enhanced.
Kosovo has to fulfil its obligations under the connection agreement with ENTSO-E without
delay.
Since the 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 implement support to residential
buildings and small and medium-sized enterprises; and
→ adopt the Law on renewable energy sources and sign a direct agreement with the service
provider to use the national electronic register for the issuance, cancellation, and trade of
guarantees of origin.
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serious health and environmental hazards. Kosovo should work on decommissioning the non-
working parts of Kosovo A thermal power plant. In 2024, it is expected that Kosovo starts the
works to enhance the environmental performance of the Kosovo B thermal power plant and to
bring dust and nitrogen oxide emission levels in line with the EU standards. Kosovo is already
in breach of the Energy Community requirements for reducing greenhouse gas emissions; the
legal framework also needs to be aligned with the EU Directives on large combustion plants
and industrial emissions.
Kosovo’s new energy strategy does not envisage the development of gas infrastructure. The
feasibility study for the Kosovo-North Macedonia pipeline and the gas master plan have been
completed but there is no investment decision on gas infrastructure.
Concerning the internal energy market, there is no progress with the further opening of the
retail market. In practice, all customers except those on high voltage continued to be supplied
at a regulated price. To ensure compliance with the Third Energy Package and the latest
Electricity Integration Package requirements of the Energy Community, Kosovo’s Energy
Regulatory Office (ERO) still needs to implement the liberalisation of the retail electricity
market in Kosovo. On 30 March 2023, the Board of ERO approved the maximum allowed
revenues for regulated operators and increased the new electricity tariffs for all consumer
categories by 15.4%. The government is defining energy-poor consumers according to the
World Bank recommendations, so not only social assistance beneficiaries will benefit but also
other consumers in vulnerable situations; the latter will also benefit from the EU’s Energy
Support Package. Kosovo submitted its draft National Energy and Climate Plan to the Energy
Community Secretariat on 10 July 2022. The final plan is to be adopted by end of June 2024.
On renewable sources, by the end of 2022, Kosovo registered 276.2 MW of renewable
electricity generation, 128 MW of small hydropower, 137 MW of wind, 10 MW of solar and
1.2 MW of biomass. Kosovo needs to mobilize new investments in renewable energy sources
to achieve the targets of the Energy Strategy and the Green Agenda for the Western Balkans.
Kosovo also needs to make more efforts to adopt the legal framework on Renewables. In May
2023, Kosovo launched the auction for the first solar energy park of 100 MW. Permitting
procedures need to be simplified and streamlined to enable faster deployment of renewables.
Kosovo should sign a direct agreement with the service provider to use the national electronic
register for the 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 EU standards.
The biomass/woodchips supply chain, critical for the operation of the installed heating and
cogeneration plant in Gjakova/Đakovica, is not yet established. To ensure the supply chain for
woodchips, Kosovo needs an improved forest management plan and dedicated subsidy for
sanitation of the forestry. Due to concerns over their environmental impact, the development
of small hydropower plants continued to face strong public resistance. In line with the
acquis on concessions and the environment, developing new hydropower plants should always
be accompanied with proper environmental and social impact assessments. Kosovo’s new
energy strategy does not foresee the development of new hydro power capacities.
Good progress can be noted on the implementation of the energy efficiency fund. Kosovo has
put in place the operational procedures for subsidising energy efficiency measures in the
residential sector, including social housing. The financial model for investments in the
residential sector on a revolving basis is under development. To increase the energy efficiency
as foreseen in the Energy Strategy, Kosovo needs to mobilise more financing and to strengthen
the institutions’ capacity to implement and monitor the savings. The Law on energy efficiency
and the Law on energy performance of the buildings have to be aligned with the new directives
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as required by the Energy Community Treaty. Kosovo needs to immediately implement the
energy performance certification of the buildings and adopt both the Building Renovation
Strategy and the Plan for nearly zero energy buildings.
The capacities of the Nuclear Safety and Radiation Protection Agency remain weak, Kosovo
has still not found a solution for the treatment and interim storage of radioactive waste in
accordance with EU standards.
Chapter 21: Trans-European Networks
The EU promotes trans-European networks (TENs) in the areas of transport,
telecommunications and energy to strengthen the internal market and contribute to growth
and employment.
Progress on the trans-European Transport Network (TEN-T) is limited due to the lack of inter-
institutional capacities to implement infrastructure projects. All transport infrastructure
investments need to be based on realistic cost/benefit analyses, and comply with EU standards
on public procurement, state aid and environmental impact assessments. A revision of the
indicative TEN-T core and comprehensive network took place. A relevant high-level
agreement on indicative maps for TEN-T in the Western Balkans was signed in July 2023. The
amended maps for the new European Western Balkans corridor will be part of the revised TEN-
T Regulation, which is currently under negotiation between the EU co-legislators.
In 2022, the government submitted the loan request to EBRD and EIB for the segment of the
“Peace Highway” (part of Route 7). However, negotiations have not yet been concluded. 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 works on the second segment are progressing, while the tendering for the related signalling
and telecom is delayed. Kosovo and Albania will conduct a feasibility study for a railway
connection between Durres and Pristina.
Kosovo achieved some progress on rail market opening. Obstacles remain, such as the mutual
recognition of operating train driver licenses, institutional framework, and recognition of safety
certificates and vehicle authorisations. Kosovo needs to further revise the railway law and to
finalise the new rail safety and interoperability law by incorporating the market and technical
pillars deriving from the fourth railway package.
On energy networks, the Feasibility Study for Kosovo-North Macedonia gas/hydrogen
pipeline and the Gas Master Plan for Kosovo are completed. The government does not foresee
to develop gas infrastructure in Kosovo. In the new Energy Strategy, the government plans to
consider joint investments in natural gas power plants with Albania, North Macedonia, and
In the area of trans-European networks (TENs), Kosovo has some level of preparation. Kosovo
made limited progress in developing transport and energy networks, with the implementation
of the Transport Community action plans on road, road safety, rail, and transport facilitation,
and the operationalisation of a common power exchange with Albania.
As recommendations from the previous year 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.
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Greece. Progress was made towards advancing electricity market integration with Albania. The
Albanian Power Exchange (ALPEX), including Kosovo, was launched in April 2023.
On telecommunications networks, the institutional capacity of the electronic and postal
communications regulatory authority still needs to be reinforced.
Chapter 27: Environment and climate change
The EU promotes strong climate action, sustainable development and protection of the
environment. EU rules contain provisions addressing climate change, water and air quality,
waste management, nature protection, industrial pollution, chemicals, noise and civil
protection.
In the area of environmental protection and climate change, Kosovo is at an early stage of
preparation. During the reporting period, Kosovo made limited progress with the
adoption, in March 2023, of the Law on Integrated Prevention and Control of Pollution.
Kosovo needs to increase its political commitment and administrative capacity to address
the issues related to environmental degradation and climate change as well as to improve
the implementation and enforcement of its legislation. These efforts should be aligned with
the goals of the Green Agenda for the Western Balkans. The recommendations from the
previous report have not been implemented.
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; introduce circular
economy measures to reduce waste, develop and approve inter-municipal integrated
waste management plans; and establish the extended producers responsibility
system; intensify the work for reduction of industrial pollution through the
implementation and enforcement of the law on integrated pollution prevention and
control;
→ 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 the acquis
on climate; adopt the national energy and climate plan, in line with the Energy
Community requirements, and finalise the drafting the long-term de-carbonisation
strategy, and prepare for alignment with the EU Emissions Trading System (ETS).
Environment
As regards horizontal issues, Kosovo needs to take ownership and all the necessary measures
in the environmental sector and to that end, increase the capacities of the environmental
authorities at the central and local level, implement structural reforms and ensure inter-
institutional cooperation. Further efforts are needed to revise and adopt strategies, action plans,
and relevant legislation to ensure coherence with the objectives of the Green Agenda. The
adoption of the Strategy for Environmental Protection and Sustainable Development 2022-2030
is still delayed. There are challenges to implement the strategic framework due to the lack of
sufficient funding, low administrative and technical capacities, and heavy reliance on donor
support. Kosovo needs to align its environmental protection with the environmental liability
Directive. Kosovo adopted the legislation on inspections, but inspection capacities and
implementation needs to improve. Kosovo recently adopted the Environmental and Social
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Impact Assessment Law; however, it needs to amend the Law on Strategic Impact Assessment.
Kosovo needs to meaningfully consult civil society in this policy area, as well as to raise the
public and its institutions' awareness of the importance of environmental protection.
Air quality, notably pollution, continues to be a major health threat. Although detailed
identification of sources of air pollution has been completed, Kosovo needs to implement
adequate measures to remedy and curb air pollution. Kosovo does not comply with the
emission ceilings established under its national Emissions reduction plan, the adoption of
which is delayed. Kosovo needs to start the preparation of the implementation of the new
National Emissions Ceiling Directive. Measures for banning the use of coal for heating need
to be effectively enforced. Kosovo introduced subsidies for investments in more efficient and
less polluting sources for the first time. The air quality plans for zones where pollutant levels
exceed limit values need to be adopted. The real time monitoring, identification of air
pollution sources and air quality reporting have slightly improved.
There is some progress in aligning the waste management legislation with the EU acquis,
but the unsustainability of the system still needs to be addressed. While the legal framework
is partially aligned with the EU acquis, it needs to include the extended producer responsibility
and the polluter pays principle. In August 2022, Kosovo adopted the Law on Waste, aligning
with the Waste Framework Directive. The implementation and enforcement of waste
management legislation is lagging behind, with the only noticeable progress being on
management of organic waste with 18 of 38 municipalities having initiated home-composting
systems and some municipalities having implemented pilot measures for the separation of
fractious collection waste and the reduction of organic waste. Most of the waste still ends up
in landfills, which are not properly managed or categorised as illegal dumpsites. However,
the number of illegal dumpsites has steadily decreased (from 1489 in 2020, 1 189 in 2021 to
763 in 2022). Kosovo needs to increase capacities and set realistic recycling targets to
implement its integrated waste management and circular economy. In March 2023, the
Ministry of Environment, Spatial Planning, and Infrastructure launched the Circular Economy
Roadmap; however, the overall grasp of the concept is still at an early stage. The capacity of
the central and local institutions, including inspections, to fulfil their responsibilities needs to
be strengthened. The coal ash deposit lake operated by the Kosovo Electricity Company and
the Mirash landfill in Obiliq/Obilić remain open, despite their negative environmental impact.
The government selected locations for the new landfill for Pristina regional waste
management and hazardous waste storage; yet, it needs to conduct the environmental and
social impact assessments procedures.
Kosovo made limited progress to align the water legislation with the EU acquis. The
monitoring mechanism of the 2017-2036 Water Strategy and the implementation of the Law
on Waters need further improvement. Kosovo needs to urgently set up the monitoring systems
with data available to the public. Water protection zones still need to be enhanced. The river
basin district authorities need to become operational as a matter of urgency. The management
plan for the White Drin basin has to be adopted, and the preparation of the other river basin
management plans should accelerate. Any small hydroelectric power plants need to be built
in full respect of the environmental legislation and undergo appropriate environmental
assessments. Flood risk and hazard maps preparation progressed well. Untreated sewage and
discharge remain the primary sources of water pollution, particularly in rivers. The planning
and construction of wastewater treatment plants in bigger cities are progressing, but
identifying agglomerations and sensitive areas in line with the Urban Waste Water Treatment
Directive remains weak. Reduction of water losses and traffic collection should intensify.
Kosovo made no progress on nature protection. The Strategy for Environment and
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Sustainable Development 2022-2031 has not yet been 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 needs to be fully implemented. The designated areas
continue to be polluted and poorly maintained, and illegal activities such as construction,
hunting, and logging still, need to be addressed. Effective measures are necessary to ensure
the protection of critically endangered species. Although Kosovo has taken steps to start
inventories of natural habitats and species, the designation of potential Natura 2000 sites is at
a very early stage. Kosovo made some progress on forestry, mainly in planning and
management, as it adopted relevant secondary legislation. The forest Strategy and the forestry
Law are yet to be adopted. Deforestation and illegal logging remain matters of serious
concern.
Kosovo made limited progress in aligning with the acquis on industrial pollution and risk
management. In March 2023, the Assembly adopted the Law on Integrated Prevention and
Control of Pollution. Progress in implementation 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.
Significant efforts are needed to align with the EU acquis and to implement it, particularly
concerning the Industrial Emissions Directive and Seveso III. This process requires a
strengthened capacity to enforce the legislation on the central and local levels. In addition,
public awareness campaigns, training of the affected industry, and issuing integrated permits
for reducing harmful industrial emissions are necessary.
There was no progress on chemicals; here, alignment with the EU acquis and implementation
of legislation remains at a low level. Kosovo is not a party to the Rotterdam Convention. It
still needs to implement the regulatory framework on the export and import of hazardous
chemicals. Kosovo made some progress in providing information to stakeholders; yet, more
efforts are needed to develop a centre for the control of chemical poisoning.
There was no progress in noise regulation in the reporting period.
Kosovo is not part of the Union Civil Protection Mechanism but can benefit from certain
Union Civil Protection Mechanism activities 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 in the Mechanism activities,
such as training, 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 a comprehensive investment plan for preparedness and response, improve
coordination among responsible authorities in large-scale disasters, and strengthen
governance and procedures related to developing national risk assessment. The coordination
between the central level and local level should improve. Kosovo made no progress regarding
disaster risk needs assessment; it did not develop a recovery strategy or prepare 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).
Climate change
Implementing the 2019-2028 climate change strategy and the action plan for 2021-2023 is very
limited. Kosovo has still not adopted the law on climate change. The national energy and
climate plan, needs to be adopted at the end of June 2024 (See Chapter 15 – Energy). The
government should start drafting a Decarbonisation Strategy, including actions related to
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energy, agriculture, forestry, and overall economic development. The re-established National
Climate Change Council took concrete measures to mainstream climate action and raise public
awareness. The greenhouse gas emissions inventory reporting for 2020 is not yet available. The
strategic and legislative framework needs to be aligned with the EU strategic goals stemming
from the Green Agenda for the Western Balkans. Kosovo needs to get prepared for alignment
with the climate acquis as per the important modifications brought in by the Fit for 55 package.
Kosovo needs to take the necessary steps for the establishment of a mechanism on carbon
pricing, aligned with the EU ETS, to advance the implementation of the EU acquis and
adequately prepare for the EU Carbon Border Adjustment Mechanism, that enters into force in
its transitional phase as of 1 October 2023. Administrative and inspection capacities in the
sector need to be significantly strengthened and structural reforms need to be implemented.
Awareness raising need to be enhanced. Kosovo is not a UN member, and de facto not a
signatory to the UN Framework Convention on Climate Change; therefore, it does not have a
nationally determined contribution under the 2015 Paris Agreement. Full implementation of its
climate change strategy should serve as a guide to achieving the Agreement's objectives.
CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION
This cluster covers: agriculture and rural development (Chapter 11); food safety, veterinary and
phytosanitary policy (Chapter 12); fisheries and aquaculture (Chapter 13); regional policy and
coordination of structural instruments (Chapter 22); and financial and budgetary provisions
(Chapter 33).
The system for the implementation of the agricultural and rural development policy is being
developed. Kosovo has some level of preparation in this area. In March 2023, the Assembly
adopted the Law on agriculture and rural development as well as the Law on forestry.
Legislation on genetically modified organisms and plants protection needs to be aligned with
the EU acquis. On chapter 12, Kosovo made limited progress. Kosovo developed surveillance
and eradication programmes for animal diseases, as well as prepared secondary legislation; yet,
more progress is needed. Kosovo should adopt the agriculture and rural development
programme 2022-2027 and the Law on agriculture land. Administrative capacity of the ministry
and agencies need to be strengthened significantly with adequate human and financial
resources. A policy dialogue with the EU on the strategic orientation of Kosovo’s agriculture
need to be launched as soon as possible. The measures encouraging land consolidation are
insufficient. Kosovo needs to make more efforts to implement the relevant acquis on fisheries
and aquaculture.
Chapter 11: Agriculture and rural development
The EU’s common agricultural policy supports farmers and ensures Europe’s food security. It
helps tackle climate change and the sustainable management of national resources; maintains
rural areas and landscapes across the EU; and keeps the rural economy alive by promoting
jobs in farming, agri-food industries and associated sectors. This requires strong management
and control systems. There are also common EU rules for marketing standards, quality policy
and organic farming.
Kosovo has some level of preparation on agriculture and rural development. There was limited
progress with the adoption of the Law on agriculture and rural development, while the
agriculture and rural development programme 2022-2027 remains to be adopted. The Law on
Forestry was also adopted.
Some of the Commission’s recommendations from last year were not fully implemented and ,
therefore remain valid. In the coming year, Kosovo should in particular:
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→ perform a qualitative assessment of the direct payments and rural development programmes
provided under the financial framework 2014-2020; adopt the Law on agricultural 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, in 2022, the budget for direct payments and rural development increased
to EUR 58.1 million, 59% higher than in 2021. In 2022, the agriculture and rural development
programme prioritized investments in rural diversification; it also provided support to
agricultural primary production and to the processing and trading of agricultural products.
Support measures need to be brought in line with the EU acquis.
Kosovo is still in the process of establishing agricultural system which include the integrated
administration and control system (IACS), a farm accountancy data network (FADN) and
agricultural market information system.
A law on the common market organisation (CMO) remains to be adopted.
On rural development, a Law on Agriculture and Rural Development was adopted in March
2023. However, the agriculture and rural development programme 2022- 2027 is yet to be
adopted.
On quality policy, Kosovo recorded some progress with the first registration of a geographical
indication.
Organic farming certification and control operations are carried out by f our international
organisations.
An action plan for protection of agricultural land, 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 has not yet been adopted.
Chapter 12: Food safety, veterinary and phytosanitary policy
EU hygiene rules for food production ensure a high level of food safety. Animal health and
welfare and the safety of food of animal origin are safeguarded together with the quality of
seeds, plant protection material, the protection against harmful organisms and animal
nutrition.
Kosovo is in between some and moderate level of preparation in the area of food safety,
veterinary and phytosanitary policy. During the reporting period, Kosovo made limited
progress, as it prepared and adopted the necessary secondary legislation as well as developed
surveillance and eradication programmes concerning animal diseases and control programmes
concerning stray dogs. The food control and traceability management system as well as the
laboratory information management system for the food safety and veterinary laboratories were
put in place .
The Commission’s recommendations from last year were only partially met and therefore
remain valid. 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
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health standards, a prerequisite for a competitive agri-food sector;
→ take a decision on a model for operating 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 implementation
of disease control and surveillance programmes, including by taking over the responsibility
of financing fully oral rabies vaccination campaigns to be carried out from autumn 2023
onwards.
Kosovo further progressed in the field of food control and traceability as well as the laboratory
information management system managed by the Food and Veterinary Agency. Furthermore,
it prepared a gap analysis regarding the legislation covering the areas of animal health, animal
welfare, food safety and phytosanitary, as well as the strategy and action plan for drafting the
missing legislation. Notwithstanding the transfer of 75 inspectors from municipalities, the
financial and human resources of Kosovo’s Food and Veterinary Agency remains insufficient
to fully implement the EU acquis in this area. While food and veterinary laboratory continued
testing and participated in proficiency testing with EU reference laboratories, there is still no
progress in obtaining international accreditation.
Limited progress was made on the veterinary policy. Kosovo developed surveillance and
eradication programs for animal diseases and in October 2022 approved the Stray Dog Control
Programme and Action Plan. The Food and Veterinary Agency has still not developed or begun
implementing a comprehensive disease monitoring and control system, in line with EU
legislation and World Organisation for Animal Health requirements.
The long-term planning and implementation of programmes to eradicate endemic diseases in
Kosovo still requires 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.
No progress was made regarding animal health. While the multi-annual animal diseasecontrol
and surveillance programme still needs to be adopted and implemented, Kosovo continued
rabies eradication vaccination campaigns. Taking full ownership of these campaigns from
autumn 2023, and continue with the vaccination campaigns twice a year, is still necessary to be
in line with the obligations stemming from the EU acquis.
Kosovo made no progress on the system for collection and disposal of animal by-products.
This is not yet functional despite the existence of a new and equipped rendering plant. Kosovo
still has not decided on the operating model and procedures for the rendering plant and the
collection system, as well as on the timeline for its operationalisation.
Some progress was made on animal identification and registration, through a microchipping
campaign for dogs with owners. The under-reporting of animal movements remains a challenge.
The Food and Veterinary Agency has yet to adopt measures to enforce the relevant regulation
at the level of livestock markets, slaughterhouses and transport. Kosovo made no progress in
identifying basic cross-compliance measures in the areas of food safety, animal health and
welfare.
On the placing of food, feed and animal by-products on the market, some progress was
made during the reporting period. Moreover, the National Residue Monitoring Plan (NRMP)
for the year 2022 was completed and submitted to the Commission for evaluation and the
comments/corrections were addressed accordingly.
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Kosovo made some progress on phytosanitary policy. Standard operating procedures and the
necessary accompanying documentation required for the monitoring of 18 high priority pests
(quarantine organisms) were prepared. Alignment is yet to be ensured for novel food and for
genetically modified organisms.
Chapter 13: Fisheries and aquaculture
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 control and inspection, rules on markets and
aquaculture, and support for fisheries and coastal communities. Further, it promotes a
sustainable aquaculture.
Kosovo remains at an early stage of preparation in this chapter and it made no progress in this
area. As none of the recommendations of the previous reports were implemented, in the coming
year Kosovo should:
→ adopt a multi-annual strategy dedicated to aquaculture;
→ further align market policy with the acquis;
→ establish an inventory of fish species.
Kosovo does not have a coastline, it has inland fishing and aquaculture, therefore the acquis on
catch quotas, inspection and control is only partially applicable. The fisheries acquis also
covers inland fisheries and aquaculture operations.
The adoption of a multi-annual strategy dedicated to aquaculture and legislation on aquaculture
with the acquis is pending.
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. It should also significantly reinforce
administrative capacity for policy management, inspection and control.
Chapter 22: Regional policy and coordination of structural instruments
Regional policy is the EU’s main tool for reducing regional disparities and investing in
sustainable and inclusive socio-economic growth. It is operating through “shared
management” between the Commission and EU Member States. The implementation of
cohesion policy programmes requires appropriate administrative capacity on programme and
project level, the establishment of systems of sound financial management and control and also
the fulfilment of other EU acquis elements such as environmental or public procurement
legislation.
Kosovo remains at early stage of preparation regarding regional policy and coordination of
structural instruments. During the reporting period, Kosovo made some progress in this area,
when it adopted the Law on Balanced Regional Development.
In the coming year, Kosovo should:
→ adopt the Regional Development Action Plan 2023-2025;
→ improve the administrative and technical capacity across the IPA operating structures;
→ further develop activities stemming from the law as a step towards the principles of the EU
regional and cohesion policy; ensure the implementation of the legal and strategic
framework for regional development, upgrade the local and regional program, project
planning and implementation capacity.
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Kosovo has made some progress to align its existing strategic and legislative framework on
the public financial management and control framework with the EU acquis. The legal basis,
namely the Law on Balanced Regional Development, adopted in July 2023, and the Action
Plan for the implementation of the Strategy on Regional Development 2020-2030, adopted in
June 2023, improve regional development policy.
The Agency of Statistics in cooperation with EUROSTAT has not yet harmonised statistical
regions with economic ones. The budget for regional development in 2022 amounts to EUR
4.2 million.
The institutional framework for the management of EU funds is not yet in place. At the same
time, structures for the management of national regional development programs and projects
are functional. 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. Concerning the financial management, control and audit,
Ministries established functional internal services. The national audit authority performs
central financial management and audit.
Programming is focused on national regional 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
programs and projects.
During the reporting period, Kosovo implemented cross-border cooperation programs with
Albania, North Macedonia and Montenegro. Regarding trans-national cooperation programs,
Due to status issues, Kosovo does not participate in transnational and interregional cooperation
programmes that cover the Western Balkans.
CLUSTER 6: EXTERNAL RELATIONS
In the area of trade, Kosovo is at an early stage of preparation. Limited progress was made
during the reporting period. Improvement was achieved 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 commercial policy towards third countries, based on multilateral and
bilateral agreements and autonomous measures. There are also EU rules in the field of
humanitarian aid and development policy.
Kosovo is at an early stage of preparation in the area of external relations. Limited progress
was made during the reporting period. Kosovo has made progress in implementation of
Common Regional Market action plan, notably by ratifying the three “Berlin process
agreements” on free movement and mutual recognition of qualifications. Kosovo should
abstain from taking further unilateral trade measures without justification and prior
consultation with the Commission, in line with its SAA commitments. Disagreements relating
to the representation of Kosovo have led the government to block decision-making mechanisms
in CEFTA. Kosovo has yet to establish a humanitarian and development policy.
As not all recommendations from the previous report were implemented, part of the
recommendations remain valid. In the coming year, Kosovo should, in particular:
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→ 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; and finalise the negotiations on, and adopt, the Additional
Protocol 7 on dispute settlement;
→ approve the Regulation on the establishment of the Trade Facilitation Enquiry Point;
→ start the process to establish a development and humanitarian aid policy.
On the common commercial policy, Kosovo has not yet adopted a comprehensive trade policy
or ratify the CEFTA Additional Protocols on trade facilitation and trade in services.
On 8 November 2022, the Assembly adopted the Law on temporary measures of basic products
in special cases of market destabilisation, which provided the government with the authority to
impose trade restrictions, price controls and rationing measures in cases of emergency. The
implementation of this new law is suspended as opposition parties referred it to the
Constitutional Court, on grounds that it is a breach of constitutional provisions on free market.
The Court has yet to make a decision.
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 the green lanes. During the reporting
period, Kosovo has adopted three important laws on the CRM: on ratification of the Agreement
on the recognition of professional qualifications for medical doctors, dentists and architects;
on ratification of the Western Balkans Agreement on the recognition of higher education
qualifications; and on ratification of the Agreement on freedom of movement with identity
cards in the Western Balkans.
However, disagreements relating to the representation and denomination of Kosovo in CEFTA
are hampering progress in other areas, notably the free movement of workers. These
disagreements have also led the government to block decision-making mechanisms in CEFTA,
with the adoption of the budget and the appointment of a new director still pending due to this
lack of consensus. Kosovo, along with all participants in the CRM, should play a constructive
role and deliver on joint commitments set out in the action plan. In June 2023, Kosovo’s
Ministry for Internal Affairs (MoI) issued a “temporary operational security measure”
blocking the entry into Kosovo of Serbian goods and postal parcels. This measure appears not
to be in line with Kosovo’s commitments under CEFTA and goes against the spirit of the
Stabilisation and Association Agreement. This measure was imposed by Kosovo following
the arrest of three Kosovo Police officers by the Serbian authorities in mid-June. The officers
were eventually released at the end of June.
There is a need to enhance the capacity of the trade department. The needs are both in the
number of staff and in increasing their capacities to deal with the complex tasks. Delays in
access to the Kosovo Customs trade databases and to the statistics by the Kosovo Agency of
Statistics negatively affected the efficiency of the trade department.
Kosovo’s law on dual-use goods remains aligned with EU regulations. Kosovo updated its list
of dual-use goods in line with the delegated Regulation of the EU Commission 2023/66 of 21
October 2022.
As regards bilateral agreements with third countries on economic/trade/technical
cooperation, Kosovo has a number of Free-Trade Agreements (FTAs) with enlargement and
third countries. Kosovo has reached a trade partnership and cooperation agreement with the
United Kingdom, and a first meeting of the Partnership Council took place in December 2022.
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In June 2022, EFTA states and Kosovo officially launched free trade negotiations. Between
August and December 2022, there were two rounds of negotiations, with good progress made
in all areas.
There were few developments in the areas of development policy and humanitarian aid. As
Kosovo is a recipient of aid programmes, it does not provide humanitarian aid to third countries
in a systematic manner. It has 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, in accordance with EU policies and principles, and to build
dedicated administrative structures. In the context of Russia’s war of aggression against
Ukraine, Kosovo pledged to host up to 5,000 refugees and 20 journalists from Ukraine. Kosovo
also pledged assistance to Türkiye and Syria after the earthquake in February 2023.
ANNEX I – RELATIONS BETWEEN THE EU AND KOSOVO
The EU-Kosovo Stabilisation and Association Agreement (SAA) entered into force in April
2016. This comprehensive agreement provides a framework for political dialogue and covers
cooperation in variety of sectors. Since 2016, five Stabilisation and Association Council
meetings and seven cycles of subcommittee meetings took place. Kosovo participates in the
ministerial dialogue between the economic and finance ministers of the EU, and the candidate
countries and potential candidates, aiming to help the latter to gradually meet the economic
accession criteria and be better prepared for economic reforms, competitiveness and job
creation.
On 31 March 2023, the government approved the National Programme for European
Integration 2023-2027, subsequently endorsed by the Assembly on 15 June 2023. To further
guide the implementation of reforms under the SAA, in November 2016, the Commission and
Kosovo adopted the European Reform Agenda (ERA). It outlines priority actions in the fields
of good governance, rule of law, competitiveness, investment, sustainable development,
employment, education and health. In 2021, Kosovo adopted the second phase of the ERA
(ERA II) through a dedicated action plan. Kosovo should have implemented the priorities
identified of ERA II within a two-year period, until mid-2023.
The government submitted its application for EU membership on 15 December 2022.
Regarding visa liberalisation for Kosovo, the relevant Regulation was adopted on 9 March by
the Council and on 18 April 2023 by the European Parliament. The Regulation allows Kosovo
biometric passport holders to travel to the EU without a visa for a period of 90 days within any
180-day period, starting on 1 January 2024.
The bilateral EU support for Kosovo under the Instrument for Pre-accession Assistance II
(IPA II) in 2014-2020 amounted to EUR 562 million, and included, among others, budget
support operations on public administration reform, public financial management and on socio-
economic recovery.
The EU’s COVID related assistance to Kosovo amounted to EUR 68 million. As part of the
wider COVID-19 response, the EU made available a Macro Financial Assistance scheme of
EUR 100 million in highly favourable loans in order to underpin the local economy.
The IPA III Regulation for the 2021-2027 financial period22
continues to provide financial
support to the region and will also finance the Economic Investment Plan (EIP) for the Western
22
Official Journal L 330, 20.9.2021
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Balkans. The IPA 2021, 2022 and 2023 annual programmes include an EU contribution
amounting to around EUR 201 million. Under the EIP, Kosovo benefits from EUR 312 million,
generating mobilised investments of EUR 940 million.
At the EU-WB Summit in Tirana in December 2022, the Commission put forward an Energy
Support Package of EUR 1 billion for the Western Balkans to address immediate, short-term,
and medium-term needs in the region in the context of the energy crisis and of Russian war of
aggression against Ukraine. Kosovo will benefit with EUR 75 million in IPA 2023 funding
under this package.
Kosovo continues to benefit from support under the IPA multi-country and regional
programmes. Additionally, Kosovo participates in three cross-border cooperation
programmes, and benefits, with IPA support, from participation in some EU programmes.
Since 2018, Kosovo joined the following EU programmes: Erasmus+, Single Market
Programme, Citizens, Equality, Rights and Values Programme, Creative Europe, Customs,
Fiscalis and Horizon Europe. To facilitate progress on permitting procedures, Kosovo is
participating as observer in a pilot project under the Technical Support Instrument.
Kosovo and Europol have enhanced their cooperation. Following the signing of the framework
Working Arrangement in July 2020, there are three additional agreements/protocols: the
Memorandum of Understanding on Secure Communication Line through SIENA, the
Arrangement on secondment of Liaison Officers, and the Arrangement on the exchange and
protection of classified information. The SIENA connection is fully operational. As of 15
March 2023, Kosovo Police has the first liaison officer to Europol in the Hague.
Since 2008, the European Rule of Law Mission in Kosovo (EULEX) has been assisting
Kosovo authorities in establishing sustainable and independent rule of law institutions. Under
its current mandate extended until 14 June 2025, the Mission continues to undertake monitoring
activities and has limited executive functions.
Frontex is deploying its officers to several border-crossing points in Kosovo based on mutually
agreed operational plans. Additionally, the agency provides with other border management
related support e.g. guidance in the process to establish a National Coordination Centre (NCC).
To date, according to the government, Kosovo has been recognised by 117 countries, including
22 EU Member States.
Following Russia’s war of aggression against Ukraine, Kosovo has continued to adopt
packages of sanctions against Russia and Belarus by replicating the ones imposed by the EU
and the US. Among the measures taken was a suspension of broadcasting activities of Russian
media channels in Kosovo and introducing a visa requirement for Russian citizens. As regards
Kosovo support to Ukraine, the government allocated EUR 100 000 in humanitarian aid and
dedicated funds to shelter 20 journalists from Ukraine. The Assembly passed a resolution
expressing a willingness to receive up to 5 000 Ukrainian refugees.
In relation to the escalation in the north of Kosovo in May 2023, the EU urged both Kosovo
and Serbia to immediately and unconditionally take measures to de-escalate the situation and
to return to the process of normalisation of relations. Due to lack of decisive steps to de-escalate
by Kosovo, and in line with the 3 June Statement, the EU decided to take a number of measures.
The work of the Stabilisation and Association Agreement bodies has been put on hold.
Programming of funds for Kosovo under the IPA 2024 programming exercise has so far been
put on hold. The proposals submitted by Kosovo under the Western Balkans Investment
Framework (WBIF) were not submitted for consideration by the WBIF Board. As regards
ongoing support, procurement procedures and signing of new contracts were suspended.
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Kosovo was also not be invited to high-level events and bilateral visits were suspended, other
than those focused on addressing the crisis in the north of Kosovo and those related to Western
Balkans regional integration.
These measures are temporary and reversible depending on the credible, decisive and timely
steps taken by Kosovo authorities to de-escalate the situation, return to the Dialogue and
implement the commitments made in this context.
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STATISTICAL DATA (as of 31/08/2023)
Kosovo
Basic data Note 2010 2017 2018 2019 2020 2021
Population (thousand) 2 208 s 1 784 s 1 799 s 1 796 s 1 782 s 1 798 s
Total area of the country (km²) 1) 10 908 w 10 905 w 10 905 w 10 905 w 10 905 w 10 905 w
National accounts Note 2010 2017 2018 2019 2020 2021
Gross domestic product (GDP) (million euro) 4 031 6 357 6 672 7 056 6 772 7 958
GDP (euro per capita) 1 826 s 3 564 s 3 709 s 3 930 s 3 800 s 4 426 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 (%) 4.9 4.8 3.4 4.8 - 5.3 10.7
Employment growth (national accounts data), relative to the previous year (%) : c c c : :
Labour productivity growth: growth in GDP (in volume) per person employed, relative to the
previous year (%)
: c c c : :
Unit labour cost growth, relative to the previous year (%) : c c c : :
**3 year change (T/T-3) in the nominal unit labour cost growth index (2015 = 100) : 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 (%) 11.5 9.2 8.1 9.0 8.9 8.6
Industry (%) 23.5 24.1 24.2 23.4 24.1 23.6
Construction (%) 9.3 10.1 10.4 10.1 9.3 10.6
Services (%) 55.6 s 56.5 s 57.2 s 57.5 s 57.7 s 57.2 s
Final consumption expenditure, as a share of GDP (%) 105.7 91.1 91.9 92.6 98.8 95.9
Gross fixed capital formation, as a share of GDP (%) 31.0 30.0 31.7 31.0 29.7 32.9
Changes in inventories, as a share of GDP (%) 2.1 4.7 4.6 3.5 3.7 3.1
Exports of goods and services, relative to GDP (%) 21.7 27.3 29.1 29.3 21.7 33.4
Imports of goods and services, relative to GDP (%) 60.5 53.1 57.3 56.4 53.9 65.2
Gross fixed capital formation by the general government sector, as a percentage of GDP (%) : : : : : :
Business Note 2010 2017 2018 2019 2020 2021
Industrial production volume index (2015 = 100) : : : : : :
Number of active enterprises (number) 29 710 pw 34 355 w 31 028 pw 34 615 w 40 056 w 45 468 w
Birth rate: number of enterprise births in the reference period (t) divided by the number of
enterprises active in t (%)
13.9 pw 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 (%)
5.3 w 4.2 w 3.7 pw 4.2 w 2.6 w :
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People employed in SMEs as a share of all persons employed (within the non-financial
business economy) (%)
: 78.8 sw 78.4 psw 9.6 sw 8.6 sw 7.7 sw
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 2010 2017 2018 2019 2020 2021
Consumer price index (CPI), change relative to the previous year (%) : 1.5 d 1.1 d 2.7 d 0.2 d 3.4 d
**Annual change in the deflated house price index (2015 = 100) : : : : : :
Balance of payments Note 2010 2017 2018 2019 2020 2021
Balance of payments: current account total (million euro) - 516.1 - 348.6 - 508.8 - 399.5 - 472.2 - 694.6
Balance of payments current account: trade balance (million euro) - 1 741.6 - 2 464.2 - 2 737.7 - 2 840.2 - 2 573.2 - 3 567.0
Balance of payments current account: net services (million euro) 176.0 827.3 855.8 926.0 391.6 1 034.9
Balance of payments current account: net balance for primary income (million euro) 67.0 127.4 113.1 160.6 164.0 150.9
Balance of payments current account: net balance for secondary income (million euro) 982.5 1 161.0 1 260.0 1 354.1 1 545.4 1 686.2
Net balance for primary and secondary income: of which government transfers (million euro) 319.5 199.7 226.1 236.6 276.6 233.7
**3 year backward moving average of the current account balance relative to GDP (%) : - 7.6 - 7.1 - 6.3 - 6.8 - 7.1
**Five year change in share of world exports of goods and services (%) : 28.3 37.6 37.0 14.9 49.4
Net balance (inward - outward) of foreign direct investment (FDI) (million euro) 331.1 w 212.0 w 225.8 w 188.4 w 286.6 w 320.4 w
Foreign direct investment (FDI) abroad (million euro) 37.4 w 43.4 w 46.3 w 66.2 w 59.1 w 100.3 w
of which FDI of the reporting economy in the EU-27 countries (million euro) : 14.1 w 13.0 6.1 16.5 26.5
Foreign direct investment (FDI) in the reporting economy (million euro) 368.5 w 255.4 w 272.1 w 254.6 w 345.7 w 420.7 w
of which FDI of the EU-27 countries in the reporting economy (million euro) : 86.1 w 58.7 158.6 152.1 215.6
**Net international investment position, relative to GDP (%) 9.2 w - 1.8 w - 6.1 w - 5.8 w - 12.3 w - 11.6 w
Year on year rate of change in gross inflow of remittances (in national currency) from migrant
workers (%)
14.5 sw 11.9 s 12.0 s 12.1 s 14.5 s 14.5 s
Public finance Note 2010 2017 2018 2019 2020 2021
General government deficit / surplus, relative to GDP (%) : - 0.8 w - 1.0 w - 0.5 w - 5.2 w :
General government gross debt relative to GDP (%) 5.9 ew 16.6 ew 17.1 ew 17.5 w 21.8 w :
Total government revenues, as a percentage of GDP (%) 26.8 w 30.2 w 30.1 w 31.5 w 32.6 w :
Total government expenditure, as a percentage of GDP (%) 28.9 w 28.9 w 29.6 w 30.5 w 34.4 w :
Financial indicators Note 2010 2017 2018 2019 2020 2021
Gross external debt of the whole economy, relative to GDP (%) 34.0 sw 32.9 sw 30.5 sw 31.2 sw 37.2 sw 37.4 sw
Gross external debt of the whole economy, relative to total exports (%) 157.0 w 120.2 w 105.0 w 106.4 w 171.2 w 111.9 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) : : : : : :
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Total credit by monetary financial institutions to residents (consolidated) (million euro) 1 458.7 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) 14.63 w 6.83 w 6.65 w 6.51 w 6.21 w 5.96 w
Deposit interest rate (one year), per annum (%) 2) 3.70 w 1.04 w 1.31 w 1.46 w 1.49 w 1.33 w
Euro exchange rates: average of period (1 euro = … national currency) 1 w 1 w 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) 612.5 w 683.4 w 769.3 w 863.7 w 900.8 w 1 100.3 w
External trade in goods Note 2010 2017 2018 2019 2020 2021
Value of imports: all goods, all partners (million euro) 2 158 3 047 3 347 3 497 3 297 4 684
Value of exports: all goods, all partners (million euro) 296 378 368 384 475 756
Trade balance: all goods, all partners (million euro) - 1 862 - 2 669 - 2 980 - 3 114 - 2 822 - 3 929
Terms of trade (export price index / import price index * 100) (number) 100.0 sw 93.0 sw 91.0 sw 94.2 sw 92.6 sw 101.4 sw
Share of exports to EU-27 countries in value of total exports (%) 45.2 s 22.0 s 27.5 s 33.2 s 34.5 s 31.5 s
Share of imports from EU-27 countries in value of total imports (%) 40.4 s 42.3 s 42.7 s 49.1 s 45.8 s 44.3 s
Demography Note 2010 2017 2018 2019 2020 2021
Crude rate of natural change of population (natural growth rate): number of births minus
deaths (per thousand inhabitants)
13.3 b 8.2 e 7.7 6.9 7.4 ep :
Infant mortality rate deaths of children under one year of age (per thousand live births) 8.8 9.7 10.6 8.7 : :
Life expectancy at birth: male (years) : : : : : :
Life expectancy at birth: female (years) : : : : : :
Labour market Note 2010 2017 2018 2019 2020 2021
Economic activity rate for persons aged 20–64: proportion of the population aged 20–64 that
is economically active (%)
: 49.0 w 46.6 w 45.2 w 42.9 w 43.9 w
*Employment rate for persons aged 20–64: proportion of the population aged 20–64 that are
in employment (%)
: 34.4 w 33.2 w 34.2 w 32.3 w 35.1 w
Male employment rate for persons aged 20–64 (%) : 54.0 w 52.6 w 53.0 w 48.8 w 51.9 w
Female employment rate for persons aged 20–64 (%) : 14.6 w 14.1 w 15.6 w 16.0 w 18.5 w
Employment rate for persons aged 55–64: proportion of the population aged 55–64 that are
in employment (%)
: 32.7 w 31.5 w 32.2 w 30.9 w 32.1 w
Employment by main sectors
Agriculture, forestry and fisheries (%) : 4.4 w 3.5 w 5.2 w 4.8 w 2.8 w
Industry (%) : 17.4 w 14.3 w 15.1 w 16.3 w 14.8 w
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Construction (%) : 12.9 w 11.9 w 12.6 w 11.1 w 10.5 w
Services (%) : 65.3 w 70.3 w 67.1 w 67.9 w 71.9 w
People employed in the public sector as a share of total employment, persons aged 20–64
(%)
: 28.4 w 30.8 w 27.6 w 28.7 w 28.3 w
People employed in the private sector as a share of total employment, persons aged 20–64
(%)
: 71.6 w 69.2 w 72.4 w 71.3 w 71.7 w
Unemployment rate: proportion of the labour force that is unemployed (%) : 30.3 w 29.4 w 25.5 w 25.8 w 20.6 w
Male unemployment rate (%) : 28.5 w 28.3 w 22.4 w 23.4 w 18.9 w
Female unemployment rate (%) : 36.4 w 33.3 w 34.4 w 32.2 w 24.9 w
Youth unemployment rate: proportion of the labour force aged 15–24 that is unemployed (%) : 52.7 w 55.4 w 49.4 w 49.1 w 38.0 w
Long-term unemployment rate: proportion of the labour force that has been unemployed for
12 months or more (%)
: 21.7 w 17.2 w 16.2 w 18.4 w 14.5 w
Unemployment rate for persons (aged 25–64) having completed at most lower secondary
education (ISCED levels 0-2) (%)
: 32.5 w 35.8 w 28.3 w 30.2 w 27.6 w
Unemployment rate for persons (aged 25–64) having completed tertiary education (ISCED
levels 5-8) (%)
: 23.4 w 16.8 w 18.0 w 17.0 w 13.7 w
Social cohesion Note 2010 2017 2018 2019 2020 2021
Average nominal monthly wages and salaries (national currency) : 431 w 453 w 477 w 466 w 484 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 45 w :
Poverty gap : : 47.4 55.3 w 46.6 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 (%)
: 12.2 w 9.6 w 8.2 w 7.8 w 7.0 w
Standard of living Note 2010 2017 2018 2019 2020 2021
Number of passenger cars relative to population size (number per thousand population) 90.6 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 1 072.0 ew
Mobile broadband penetration (per 100 inhabitants) : 65.4 ew 73.9 ew 78.4 ew 84.5 ew 88.4 ew
Fixed broadband penetration (per 100 inhabitants) : 15 ew 18 ew 20 ew 21 ew 22 ew
Infrastructure Note 2010 2017 2018 2019 2020 2021
Density of railway network (lines in operation per thousand km²) 1) 30.3 sw 30.5 sw 30.5 sw 30.5 sw 30.5 sw 30.5 sw
Length of motorways (kilometres) w 108 w 119 w 137 w 137 w 137 w
Innovation and research Note 2010 2017 2018 2019 2020 2021
Public expenditure on education relative to GDP (%) : 4.4 sw 4.5 sw 4.6 sw 4.6 sw 4.3 sw
*Gross domestic expenditure on R&D relative to GDP (%) : : : : : :
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Government budget appropriations or outlays on R&D (GBAORD), as a percentage of GDP
(%)
: : : : : :
Percentage of households who have internet access at home (%) : 88.8 93.2 93.2 96.4 :
Environment Note 2010 2017 2018 2019 2020 2021
*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)
553.1 409.0 398.1 392.3 413.9 405.0
Electricity generated from renewable sources relative to gross electricity consumption (%) 1.4 3.6 4.2 5.2 5.3 5.4
Road share of inland freight transport (based on tonne-km) (%) : : : : : :
Energy Note 2010 2017 2018 2019 2020 2021
Primary production of all energy products (thousand TOE) 1 861 1 793 1 822 1 849 1 901 1 937
Primary production of crude oil (thousand TOE) 0 0 0 0 0 0
Primary production of solid fuels (thousand TOE) 1 612 1 412 1 428 1 503 1 562 1 591
Primary production of gas (thousand TOE) 0 0 0 0 0 0
Net imports of all energy products (thousand TOE) 619 s 769 s 757 s 815 s 787 s 942 s
Gross inland energy consumption (thousand TOE) 2 517 2 569 2 585 2 669 2 665 2 888
Gross electricity generation (GWh) 5 168 5 918 5 915 6 351 6 711 6 892
Agriculture Note 2010 2017 2018 2019 2020 2021
Agricultural production volume index of goods and services (at producer prices) (2010 = 100) 100.0 w 112.4 w 108.3 w 119.0 w 100.0 w 95.7 w
Utilised agricultural area (thousand hectares) 406.9 e 417.0 419.5 421.0 421.1 421.2
Livestock numbers: live bovine animals (thousand heads, end of period) : 259.7 259.7 257.7 261.4 260.5
Livestock numbers: live swine (thousand heads, end of period) : 41.1 40.2 40.5 45.4 47.4
Livestock numbers: live sheep and live goats (thousand heads, end of period) : 210.7 s 209.8 s 216.3 s 241.7 s 241.4 s
Raw milk available on farms (thousand tonnes) : 365.1 334.3 : : :
Harvested crop production: cereals (including rice) (thousand tonnes) 430.5 477.9 441.8 459.4 529.1 504.4
Harvested crop production: sugar beet (thousand tonnes) : : : : : :
Harvested crop production: vegetables (thousand tonnes) 158.5 147.8 155.3 177.8 169.4 165.0
Source: Eurostat and/or the statistical authorities in Kosovo
: = not available
b = break in series
c = confidential value
d = definition differs
e = estimated value
n = not significant value
p = provisional
s = Eurostat estimate
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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.