EUROPEAN COMMISSION Brussels, 29.5.2019 SWD(2019) 216 final COMMISSION STAFF WORKING DOCUMENT Kosovo* 2019 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 2019 Communication on EU Enlargement Policy {COM(2019) 260 final}



* This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence Table of Contents 1.Introduction 1.1. Context 1.2Summary of the Report 2.Fundamentals first: political criteria and the rule of law 2.1Functioning of democratic institutions and public administration reform 2.1.1Democracy 2.1.2Public administration reform 2.2Rule of law and fundamental rights

2.2.1Judiciary and fundamental rights 2.2.2Justice, freedom and security 3. Fundamentals first: economic development and competitiveness 3.1.The existence of a functioning market economy 3.2.The capacity to cope with competitive pressure and market forces within the Union 4.Good neighbourly relations and regional cooperation 5.Normalisation of relations between Kosovo and Serbia 6.European standards 6.1Free movement of goods 6.2Movement of persons, services and right of establishment 6.3Free movement of capital 6.4.Financial services 6.5.Customs 6.6Taxation 6.7Competition 6.8Public Procurement 6.9Company law 6.10Intellectual property law 6.11Social policy and employment 6.12Consumer and health protection

6.13Education and culture 6.14Science and research 6.15Trade issues 6.16Enterprise and industrial policy 6.17Agriculture 6.18Food safety, veterinary and phytosanitary policy 6.19Fisheries 6.20Environment and climate change 6.21Transport policy 6.22Energy 6.23Trans-European networks 6.24Information society and media 6.25Financial control 6.26Statistics Annex I – Relations between the EU and Kosovo ANNEX II – STATISTICAL ANNEX



1. Introduction 1.1. Context

The EU-Kosovo Stabilisation and Association Agreement (SAA) has been in force since April 2016. The European Reform Agenda (ERA), launched by the EU and Kosovo in November 2016, has continued to serve as a useful tool to guide the implementation of EU related reforms in the SAA context. In July 2018, the Commission confirmed that Kosovo has fulfilled all visa liberalisation benchmarks endorsed by the Council. In March 2019, the European Parliament supported the Commission’s proposal for visa liberalisation in its first reading. The proposal is pending in the Council and should be treated as a matter of urgency. The overall domestic political context proved challenging during the reporting period. In November 2018, the Kosovo government imposed a 100% tariff on imports from Serbia and Bosnia and Herzegovina, on political and economic grounds. This economically counter-productive measure violates the Central European Free Trade Agreement (CEFTA) and is not in the spirit of the SAA. It has undermined successful regional cooperation efforts, notably the creation of a regional economic area (REA), and must be revoked. 1.2Summary of the Report As concerns the political criteria, Kosovo made progress in the implementation of certain key EU-related reforms, in particular as regards the improvement of the legal framework in the areas of rule of law and public administration. However, a number of measures and ad hoc decisions were not in line with the government’s stated reform objectives. The excessive size of the government, including further increases in the number of deputy ministers, has continued to affect its credibility and effectiveness. The Assembly was able to build majorities on some key strategic issues for Kosovo, as demonstrated by the ratification of the border/boundary demarcation agreement with Montenegro and the adoption of important EU-related legislative reforms. However, the Assembly continued to operate in a highly polarised political context, and weaknesses in its overall functioning remained, as demonstrated notably by the frequent lack of quorum, resulting in delays in the legislative activity. There has been limited progress in addressing the EU election observation mission findings and recommendations regarding parliamentary and municipal elections held in 2017. The situation in the north of Kosovo remains particularly challenging. There is some level of preparation in the area of public administration reform. During the reporting period, some progress was made overall, however serious efforts are needed to tackle the political influence on recruitment of senior civil servants. There was good progress with the adoption of the package of laws on the functioning and organisation of public administration, on public officials and on salaries. Other achievements include the adoption of guidelines on strategic planning and the start of the implementation of the action plan on the rationalisation of agencies. The revised legal framework is an important step towards creating a modern and professional civil service and improving accountability. While the Law on Salaries introduces a more transparent and equal salary system for public officials, its medium-term budgetary impact raises concerns. Kosovo's judicial system is at an early stage. Some progress has been achieved as the Law on the Disciplinary Liability of Judges and Prosecutors and the Law on Mediation were adopted, and the roll out of an electronic case management system has advanced. The number of judicial staff in both prosecution offices and courts increased in 2018, including in the Special Prosecution Office. While the integration into the judicial system of Kosovo Serb judges, prosecutors and their support staff was formally concluded in 2017, more work is needed to ensure full functionality, in particular regarding the Court of Appeals. The judiciary is still vulnerable to undue political influence. The administration of justice remains slow and inefficient and rule of law institutions need sustained efforts to build up their capacities. Kosovo is at an early stage/has some level of preparation in the fight against corruption. Kosovo has made some progress through significant legislative reforms in the rule of law area and in investigating and prosecuting of high-level cases. Progress was also made on preliminary confiscation of assets although final confiscations remain low. Corruption is widespread and remains an issue of concern. Kosovo is at an early stage in the fight against organised crime. Some progress was made notably through significant legislative reforms in the rule of law area, in investigating and prosecuting high-level cases and on the preliminary freezing of assets. However, little progress was made on final confiscation of assets and there are still few financial investigations and final convictions. Measures are needed to strictly ensure there is no political interference with operational activities of law enforcement bodies and the prosecution. The situation in the north of Kosovo with regards to organised crime continues to pose challenges for law enforcement agencies. Progress was made in the fight against terrorism, especially with regard to creating better conditions for rehabilitation and reintegration of foreign terrorist fighters and their families. The Kosovo authorities need to be more effective in their efforts to fight money laundering and the relevant law should be brought in line with EU acquis and international standards. The legal framework broadly guarantees the protection of human and fundamental rights in line with European standards. However, the implementation of human rights legislation and strategies is often undermined by inadequate financial and other resources, particularly at local level, limited political prioritisation and lack of coordination. The existing mechanisms for coordination and implementation of human rights are ineffective. The large dependence on foreign donors remains. More needs to be done to effectively guarantee the rights of persons belonging to minorities, including Roma and Ashkali and displaced persons, to ensure gender equality in practice, to set up an integrated child protection system and to advance the protection of cultural heritage. Kosovo has some level of preparation regarding freedom of expression, which is enshrined in the Constitution. Kosovo benefits from a pluralistic and lively media environment. Rule of law institutions increasingly follow up on threats and attacks against journalists and there is a decrease in the number of incidents. A sustainable solution for the funding of the public broadcaster remains to be adopted. The broadcaster remains vulnerable to political pressure and influence. As regards the economic criteria, Kosovo is at an early stage and has made some progress in developing a functioning market economy. Economic growth was robust but the very challenging labour market situation remains a concern. The government adhered to the fiscal rules, but spending pressures relating to social benefits for specific groups of the population and public employees’ wages pose risks to public finances and hinder private sector development. The business environment improved somewhat, but persistent challenges remain, including the widespread informal economy, a slow and inefficient judiciary, high prevalence of corruption and overall weak rule of law institutions. Despite strong growth of services exports, economic diversification has advanced slowly. Kosovo is at an early stage and has made some progress regarding its capacity to cope with competitive pressure and market forces in the EU. Kosovo made some progress in improving roads, but there are large gaps in the railway and energy infrastructure. Little progress was made in securing a stable energy supply and losses in the electricity sector remain very high. Kosovo made some progress as regards the digitalisation of the economy. Little progress was made on improving the quality of education and addressing skills gaps in the labour market. Structural changes are emerging only slowly and the economy remains highly reliant on the domestic trade sector. Export growth is driven mainly by service exports to the diaspora, while the lack of product diversification hinders the growth of goods exports. As regards good neighbourly relations and regional cooperation, Kosovo continued to participate in most regional fora. However, Kosovo’s decision to impose a 100% tariff on imports from Serbia and Bosnia and Herzegovina has undermined regional cooperation efforts. Regarding the normalisation of relations with Serbia, Kosovo has remained engaged in the dialogue. However, the Kosovo government needs to revoke the tariffs on imports from Serbia and Bosnia and Herzegovina. Kosovo needs to make further substantial efforts to establish a conducive environment to the conclusion of a legally binding agreement with Serbia. Such an agreement is urgent and crucial so that Kosovo and Serbia can advance on their respective European paths. As regards alignment with European standards, Kosovo has some level of preparation. Legislative alignment has continued in some areas but implementation is weak. Some progress was made in the area of free movement of goods, services and capital, as well as on financial services, public procurement and competition. Good progress was made in the areas of statistics and financial control. In the area of taxation and customs, some progress was made in collecting tax revenues, reducing the grey economy, or enforcing customs measures for the protection of intellectual property rights, however Kosovo should step up the fight against the informal economy and tax evasion. Some progress has been achieved to address environmental issues, but implementation is lagging behind. The energy sector continues to face serious challenges, despite some progress especially on energy efficiency. Overall, Kosovo needs to improve its administrative capacity and coordination, across all sectors, to ensure effective implementation of the acquis. Authorities have made progress in managing regular and irregular migration. These efforts should be continued and built on. In this context, Kosovo needs to put in place a return mechanism for irregular migrants in line with EU standards and practices.

2. Fundamentals first: political criteria and the rule of law 2.1Functioning of democratic institutions and public administration reform 2.1.1 Democracy Domestic politics in Kosovo remained highly polarised during the reporting period. The Assembly was more active on EUrelated legislation, but weaknesses remained in its overall functioning. Kosovo made substantive progress on certain key EUrelated reforms, for instance as regards improving the legal framework in the areas of the rule of law and public administration. However, the authorities took a number of decisions that are not in line with the government’s stated reform objectives. Elections Kosovo's electoral framework needs to be strengthened by effectively addressing longstanding weaknesses throughout the electoral cycle. Most of the recommendations made following the EU electoral observation missions in 2014 and 2017 have still not been addressed. The revised legal framework on political party and campaign finances needs to be in line with Venice Commission recommendations. Following early parliamentary and regular mayoral and municipal elections in 2017, little progress has been made in strengthening the electoral process, in line with the recommendations of the EU electoral observation missions (EOMs). Allegations of intimidation in Kosovo Serb municipalities during the 2017 elections have not been adequately addressed or investigated. Long-standing weaknesses include the lack of effective oversight and enforcement of political party and campaign finance, underrepresentation of women in political party structures and elected office, deficient electoral dispute mechanisms, voter list inaccuracies and a largely defective voting scheme for residents abroad. Kosovo institutions need to take action to address these challenges, in line with the EOM recommendations and in close collaboration with partners. The joint initiative taken by the Kosovo Assembly caucus leaders in April 2019 to improve and strengthen the electoral process, and the decision of the Assembly to establish an ad hoc parliamentary committee on this matter, involving local and international experts and stakeholders, are welcome steps. Reforms of party and campaign financing, based on a legal opinion of the Venice Commission, are currently under consideration in the Assembly. The Venice Commission recommendations need to be reflected in any revised legislation. The Central Election Commission (CEC) members, except the CEC president, have not been appointed between March 2018 and March 2019. In March 2019, the President finally appointed eight out of the ten members, enabling the CEC to reach quorum, but disagreements between political parties persist on their representation in the CEC. This situation should be resolved as soon as possible. The CEC, and in particular its Political Party Registration and Certification Office, needs to strengthen its capacities significantly to ensure the effective enforcement of rules governing political party and campaign finances. In November 2018, the mayors of the four Serb-majority municipalities in the north of Kosovo resigned in reaction to the government’s decision to impose a 100% tariff on imports from Serbia. Subsequently, extraordinary mayoral elections took place in those municipalities on 19 May 2019, in a calm atmosphere. In a context of restricted electoral competition, Srpska Lista was the only Kosovo Serb party to participate. Its candidates won in the four municipalities with over 90%. Parliament The Assembly continued to operate in a highly polarised political context. Together with continuing weaknesses relating to the rules of procedure and planning of sessions, this led to delays in legislative activity. Nevertheless, the Assembly was able to build majorities on certain key strategic issues for Kosovo, such as the ratification of the border/boundary demarcation agreement with Montenegro and the adoption of several major EU-related legislative reforms. During the reporting period, the proper functioning of the Assembly was hampered by a polarised political context. The frequent absence of Assembly members, including partial boycotts, often resulted in a failure to achieve a quorum for decision-making and thus significant delays in legislative activity. In spite of this, the Assembly adopted a series of key legislative EU-related reforms, notably on the rule of law and public administration. Likewise, it ratified several important international agreements, including the border/boundary demarcation agreement with Montenegro (March 2018), the Transport Community Treaty (October 2018) and agreements on Kosovo’s participation in three EU programmes (Erasmus+, Citizens for Europe and Creative Europe) in September 2018. Frequent violations of the Assembly rules of procedure persisted, exacerbating political tensions between the governing coalition and the opposition. Furthermore, a number of plenary sessions have not been concluded, resulting in a large backlog of agenda items. The Assembly needs to return to regular plenary sessions and respect the timing of the scheduled sessions, in line with the rules of procedure. In addition, it needs to improve its regulatory framework, including its rules of procedure. Out of the 91 laws adopted during the reporting period, only two were adopted by fast-track procedure. However, overall there is still a lack of substantive debate or stakeholder consultation on draft laws. The reporting period saw changes in the political configuration of the Assembly. In March 2018, Srpska Lista parliamentarians withdrew their support for the governing coalition, resulting in the government losing its parliamentary majority. In May 2018, a new Social Democratic Party (PSD) caucus was created by 12 parliamentarians who were formerly in the Vetëvendosje caucus. Kosovo has a mandatory quota of 30% of Assembly seats reserved for women. In the current legislature, 38 of the 120 Assembly members are women, including two of the five VicePresidents. Parliamentary oversight of the executive remains weak. Ministers often failed to report to the Assembly and the government often failed to answer parliamentary questions in a timely manner. Parliamentary committees continued consultations with relevant stakeholders, but improvements are required as regards early notification and follow-up. The Assembly administration needs to build up specialist expertise to lend more effective support to parliamentarians and Assembly committees. The Assembly and the government should implement the recommendations following the review of the independent agencies, which was carried out to rationalise the number of agencies reporting to the Assembly (See section 2.1.2 – Public administration reform). These agencies do not report systematically to parliamentary committees. The current system does not ensure effective oversight of these agencies and undermines their independence from undue political or commercial influence. The Assembly failed to appoint professional board members for several independent institutions in a timely manner or on the basis of merit. It should make better use of the annual report of the Office of the AuditorGeneral to scrutinise government work. The Assembly’s Committee of Oversight of Public Finances, which prepares recommendations for adoption by the Assembly, should also hold hearings of ministers. The parliamentary oversight of the Kosovo Security Forces and the Kosovo Intelligence Agency continues to be insufficient. The Ombudsperson Institution of Kosovo continued to advance its mandate in promoting, protecting and upholding fundamental rights and freedoms for all and to strengthen its capacity to review cases. It remains the most trusted institution in Kosovo. Institutions’ implementation of the Ombudsperson’s recommendations has improved. Political parties’ finances and campaign funding and expenditure continue to lack transparency and the relevant legislation, inter alia on legal limits and the transparency of donations, contributions and expenditure, remains largely unenforced. This undermines public trust in political parties and continues to expose the democratic process to significant risks of corruption and undue influence. A draft revised Law on the financing of political entities, prepared by the government after consultation of the Venice Commission, is under consideration in the Assembly. The recommendations of the Venice Commission should be taken into account so as to ensure transparency, accountability and effective enforcement mechanisms. During the reporting period, the CEC and the competent law enforcement and judicial authorities failed to follow up the findings of external auditors from December 2017 confirming serious violations of the political party financing legislation and severe weaknesses in internal financial control by political entities. The CEC’s Office for Political Parties Registration and Certification needs to be strengthened and given operational independence to ensure proper implementation of the legislative framework, including through better cooperation with the prosecution, tax authorities, the Anti-Corruption Agency and the AuditorGeneral. Governance

The government demonstrated commitment to implementing some key European Reform Agenda (ERA) priorities, in particular on legislative reforms in the areas of the rule of law and public administration. However, at the same time it took a number of decisions that are either not in line or not in the spirit of Kosovo’s reform obligations. The number of ministers, including deputy ministers, remains excessive. The government’s overall achievements were overshadowed by its imposition of 100% tariffs on goods from Serbia and Bosnia and Herzegovina. Important progress was made with the implementation of key commitments under the ERA, including legislative reforms in the areas of the rule of law and public administration reform. However, a number of ERA commitments have not been fully implemented yet, in particular in the areas of competitiveness, employment and education. Moreover, a number of measures taken by the government over the reporting period were not in line with its states reform objectives, notably non-merit based recruitments and ad hoc decisions influenced by special interests. The appointment as government advisor and then nomination as ambassador of a convicted war criminal was widely criticised. Moreover, the fact that the government includes a number of ministers who have been indicted for offences involving corruption and abuse of office is damaging for the government’s image and its stated commitment to fight corruption and impunity at all levels. The trend of appointing excessive numbers of deputy ministers, sometimes without clear attributions of roles, continued. There are currently around 80 deputy ministers. This continues to undermine the government’s credibility, coherence and effectiveness. Kosovo’s updated 2018-22 programme for the implementation of the SAA serves as the main tool for planning, coordinating and monitoring EUrelated reforms. Implementation of the SAA is proceeding, but much of the programme is lagging behind. A stronger focus on SAA implementation will be needed to ensure that Kosovo meets its contractual obligations and deadlines under the Agreement. The Ministerial Council for European Integration (led by the Prime Minister) and the Working Committee for European Integration (led by the Minister for European Integration) meet at regular intervals to provide strategic guidance on EUrelated reforms. The role of the Ministry of European Integration is crucial in ensuring effective coordination of and a strategic approach to EUrelated reforms. In the reporting period, a number of personnel changes took place in government. Of 21 ministers, 19 are men. Five ministerial posts continue to be held by minority representatives, but the ministers belonging to Srpska Lista do not participate in government meetings and decisionmaking. Efforts to improve the capacity and service delivery of local government have continued. However, the quality of public consultation at local level remains a concern. Women remain underrepresented in local decision-making positions. All 38 mayors of Kosovo municipalities are men. Of the 38 chairpersons of the municipal assemblies, 32 are men. However, efforts by the Ministry of Local Government Administration have led to some improvements. The proportion of director positions in municipal executive bodies held by women increased from 11% to 19%. In 31 of the 38 municipalities, remunerated positions of municipal assembly committees include an equal number of women and men, as required by the Law on gender equality. The Ministry of Local Government Administration has referred the six non-compliant municipalities to the Minister for Justice for legal action. While local municipalities have been given more powers, their human and financial resources are often insufficient. Limited capacity and difficulties in enforcing laws, regulations, policies, and procedures impair the quality of delivery of municipal services. Excessive political influence over the local administration, together with weak municipal assembly oversight and budgetary powers, has a negative impact on local governance. A new Law on local finances is being prepared, addressing issues relating inter alia to budget allocations, arrangements for capital investments at the local level, the financial sustainability of small municipalities and a specific grant earmarking funding for social services. Municipalities in the north of Kosovo complied with legislation on the adoption of the 2018 municipal budgets. Inconsistencies in population figures persist and it is important that the municipalities participate in the next planned Kosovo-wide census. Civil society Further progress was made in improving cooperation between civil society and the central government. The adoption of a new Law on Freedom of Association in Non-Governmental Organizations (NGOs), in line with best international standards and practices, was an important step forward. The publication of a first government report on public funding of nongovernmental organisations resulted in more transparency. More efforts are needed to ensure meaningful involvement and cooperation also at local level. Civil society monitoring of, advocacy for and close engagement in European reforms remains key to Kosovo’s progress on its European path. Kosovo’s civil society needs to continue, and be further enabled, to play an important role in the democratic debate and in the design and implementation of public policy. The Assembly finally adopted in April 2019 a new Law on Freedom of Association in NonGovernmental Organisations, which improves the legal protection of NGOs, in line with best international standards and practices. This law reversed contentious amendments adopted by the Assembly in November 2018. In October 2018, a sectoral risk assessment for money laundering and anti-terrorism in the NGO sector was concluded by Kosovo’s Financial Intelligence Unit, in consultation with a number of civil society organisations. With some delay, a new 2019-22 strategy for structured cooperation between the Kosovo government and civil society is being prepared. The new strategic priorities aim to broaden participation in community-based NGOs and secure the sustainability of the organisations. Public consultations by the government are improving, including through an increased use of online public consultation. For the first time, an annual report on the government’s public consultations was produced in May 2018. However, some public bodies still have limited capacities to implement their legal consultation obligations. Institutions should step up their efforts to provide more consistent and meaningful feedback to input received and to broaden the consultation tools used to reach a wider audience in effective ways. There is ongoing work to introduce public consultation standards also at municipal level. There is still a need for systematic transparency in the disbursement of public funds to NGOs. While several ministries and municipalities have, for the first time, conducted open calls in accordance with legal requirements, too many ministries and municipalities still lack the capacity to fulfil new requirements. The publication of an annual government report on public funding is a good practice, but the report needs to be more detailed. Further efforts are needed to address the risks of conflicts of interest and strengthen professionalism and integrity within evaluation commissions deciding on grants to NGOs. The legal framework for tax deductions for donations remains ambiguous. 2.1.2 Public administration reform

Kosovo has achieved some level of preparation in the reform of its public administration. Some progress was made overall, while there was good progress with the adoption of the package of laws on the functioning and organisation of public administration, on public officials and on salaries. Also, the government adopted guidance on strategic planning, and started implementing the action plan on the rationalisation of agencies. While the new Law on Salaries introduces a more transparent salary system for public officials, its medium-term budgetary impact raises concerns. The government needs to ensure efficient implementation of the new legislation. A new regulation on the procedures for recruitment to senior management positions in the civil service was introduced. However, political influence on recruitments to senior civil service positions and non-meritbased recruitments remain issues of serious concern. Ad hoc policy-making, in many cases influenced by special interests, is an obstacle for inclusive and evidence-based policy-making. Delays in the adoption of special laws in line with the Law on General Administrative Procedures continue to cause legal uncertainty for citizens and businesses, hence the Commission’s recommendation from 2018 on this issue remains valid. Overall, weak central and inter-ministerial coordination hampers the implementation of these crosscutting reforms. In the coming year, Kosovo should in particular: ®adopt all necessary secondary legislation and start effectively implementing the laws on public officials, salaries and the organisation and functioning of the public administration; ®increase accountability in the public sector by implementing the action plan on the rationalisation of agencies and creating a clear framework for managerial accountability and the delegation of responsibilities in public institutions; ®align contradictory special laws with the Law on General Administrative Procedures and address the current backlog of administrative court cases; ®ensure full respect for merit-based recruitment and dismissal of public officials, especially senior management. Strategic framework for public administration reform Kosovo is implementing the three public administration reform strategies and the public financial management reform strategy for 2016-2020, supported by a number of more specific reform strategies. Implementation has experienced delays, due to the crosscutting nature of the reforms and weaknesses in inter-ministerial coordination. The action plans have been revised to take greater account of the public administration capacities. The government has continued to monitor implementation of the strategies and has published annual monitoring reports, which provide the basis for policy dialogue. However, an integrated monitoring and reporting framework for all related reforms has yet to be established. Civil society has participated actively in monitoring the government’s reform efforts. While public administration reform has enjoyed political support and the continuity provided by the Minister for Public Administration has been crucial, parallel political processes have undermined some of the reform efforts. The reform monitoring reports are neither actively discussed nor followed up at political level. Also, the Ministry of Finance still needs to become more involved in the overall coordination of reforms, especially because of the increased focus on managerial accountability (See section 6.25 – Financial control). Financial sustainability remains a concern, as reform measures rely heavily on the support of external donors. The annual budget allocations and provisions in the medium-term expenditure framework remain lower than planned in the strategies. Policy development and coordination The policy-making system, including for EUrelated reforms, is in place, but there are weaknesses. The government has started to address them by adopting a new administrative instruction on strategy planning, development and monitoring in April 2018 and issuing practical guidance in January 2019. These unified requirements aim to improve the quality of sector strategies and address overlaps, over-ambitious planning and poor financial planning as well as ensure regular monitoring and reporting. The Prime Minister’s Office has now to ensure a strong quality control and monitoring function to follow up on implementation. Some aspects of inclusive and evidence-based policy and legislative development are in place. Regulatory and budgetary impact assessments and EU acquis alignment opinions, though formally required for draft laws, are not systematically reflected in adopted government decisions. Ad hoc policy-making, in many cases influenced by special interests, seriously hampers inclusive and evidence-based policy-making. Administrative data collection and its systematic use for policy-making needs to improve substantially across the administration. Public consultations are organised more regularly, thanks to the minimum standards for such consultations. In 2018, more than 50% of all primary policy documents and draft laws were published for consultation on the web portal; this represents a substantial increase since 2017. As the response rate from civil society and the public remains relatively low, the government is making efforts to promote the use of the web-portal. Public scrutiny of government work is expected to improve with the new requirement of line institutions to publish annual monitoring reports on the implementation of their strategy documents. Also, in line with the action plan in the open data readiness assessment, the government should make more datasets available on its open data platform. Civil society should be more systematically involved in the design, monitoring and evaluation of government plans and programmes. Parliamentary scrutiny of the government remains inadequate (See section 2.1.1 – Democracy). Public financial management The public financial management (PFM) reform strategy underwent a mid-term review in 2018, but this did not give rise to new priorities. The four pillars (fiscal discipline, allocation efficiency, operational efficiency and cross-cutting issues) and 12 priorities remain the same, but some activities and indicators were adjusted to current priorities. The strategy is complemented by the 2017-2021 National Public Procurement Strategy, adopted in January 2017, and the 2015-2019 Public Internal Financial Control Strategy (PIFC), adopted in 2015. The fiscal ceilings on debt-to-GDP ratio, the fiscal deficit, the public sector wage bill and the bank balance were all observed over the reporting period. However, concerns about fiscal discipline have grown and the annual budget still lacks a degree of credibility. For example, there was considerable overspending on certain budget lines (such as social expenses). Payment arrears also remain problematic. Revenues in 2018 increased slightly compared to 2017. The government budget deficit (under the fiscal rule definition) stood at 1.0% of GDP in 2018, compared to 0.9% in 2017. By the end of 2018, the public debt stood at 17.1% of GDP, slightly higher than in 2017. The government’s investment planning and management capacity needs to be further strengthened. To enhance budget transparency, the Ministry of Finance launched a new ‘transparency portal’ that contains budgetary information regarding central and municipallevel institutions in a more user-friendly and computer readable format. In addition, the government continues to publish the citizenfriendly budget. However, the available IT systems in the Ministry of Finance and related bodies need to be looked at further to ensure that they provide better integrated realtime information on public revenue and expenditure. Public service and human resource management The legal framework for the merit-based recruitment, promotion and dismissal, and the remuneration of civil servants has improved following the adoption of a Law on Public Officials and a Law on Salaries in February 2019. For the first time, different categories of public officials are clearly defined and a coherent and transparent salary system is set out in law. However, the fiscal impact of the new Law on Salaries is a concern that needs to be addressed (See section 3 – Economic development and competitiveness). The government needs to now adopt the necessary secondary legislation and ensure efficient implementation of the new legislation across the administration. Kosovo adopted a new regulation regulating the procedures for recruitment of senior civil servants. However, political influence over appointments and dismissals, especially for senior management, has continued to be a serious concern, and should be addressed under the new Law on Public Officials. In the reporting period, several recruitment processes for senior positions in ministries and agencies raised concerns as they did not respect the principles of transparent and merit based recruitment. Non-majority communities remain underrepresented in central public institutions. Women remain severely underrepresented in senior positions in the civil service. The Independent Civil Service Oversight Board, the autonomous appeals body tasked with ensuring compliance with applicable civil service legislation, has acquired additional powers through legal amendments passed by the Assembly.

The Ministry of Public Administration, notably by establishing the Department for the Management of Public Officials, needs to further enhance its own institutional capacities for central coordination of human resources management in Kosovo administration. Also, line institutions’ human resources management units need to be enhanced before the new public administration laws enter into force. A human resource management information system is established, but not all modules are operational and interoperability with the payroll system is not yet established. The professional development of civil servants continues to be an issue, as the Kosovo Institute for Public Administration does not have the budget and capacity to provide the requisite training. Performance appraisals continue to have little impact on career development. While measures such as integrity plans are in place to promote integrity in the public service, they are not systematically implemented across the administration. A new Law on Conflict of Interest was adopted in April 2018. Whistle-blower protection has also been strengthened through a new law adopted in November 2018. Annual reports are now published on disciplinary measures against civil servants. The Assembly adopted legislative amendments that enable the removal of the public officials convicted for corruption-related criminal offences (See section on the fight against corruption). Accountability of the administration Kosovo has demonstrated commitment for more effective lines of accountability. Following the letter of commitment signed by the Prime Minister and the Speaker of the Assembly in March 2018, the government adopted an action plan on the rationalisation of agencies in June 2018 and has started to implement it. Progress has been made on the first phase of the rationalisation of agencies. A new Law on the Organisation and Functioning of Public Administration and Independent Agencies was adopted in February 2019. It introduces a typology of executive agencies and regulatory bodies, and clarifies organisational, administrative, budgetary and decision-making autonomy, and supervision requirements for such bodies. However, Kosovo should make considerable further efforts to implement managerial accountability and to delegate decision-making responsibilities in the public administration (see section 6.25 – Financial control). The independent oversight institutions, especially the Ombudsperson and the Kosovo National Audit Office, continue to address the citizens’ right to good administration. The government should ensure more efficient follow-up to implementation of their recommendations. The draft Law on Access to Public Documents should be adopted to ensure the right to access public information. Kosovo should increase judicial capacity to strengthen the citizens’ right to administrative justice. The Basic Court in Pristina has continued to accumulate a backlog of administrative cases, especially since the new Law on Minor Offences came into effect in January 2017. The backlog increased from 1,390 cases in 2017 to 1,511 in 2018. The liability of public authorities in cases of wrongdoing and the right to seek compensation are affected by fragmented legislation. No data are collected to monitor implementation. Service delivery to citizens and businesses While the government promotes a user-oriented administration, there are weaknesses in the leadership, policy directions and coordination of the overall reform process. Many institutions continue to implement their own solutions alongside the central electronic identification (eID) tools that are being developed. Collection of citizens’ and businesses’ feedback on the quality of service delivery still needs to be systematically developed. An interoperability platform exists and is now functional but the quality of registered data needs to improve for the platform to be useful. While legislation on equal access to services is in place, it is not systematically applied. Kosovo has made some progress on the simplification of administrative procedures since the entry into force of the Law on General Administrative Procedures in June 2017. An inventory of laws with special administrative procedures now exists, but only limited progress has been made on aligning the sector laws with the new law. Considerable efforts are needed to inform and educate the administration and the general public on obligations and rights under the new law. Training courses for officials have started. Kosovo should also focus on developing a clear policy on digitalisation of administrative services. 2.2Rule of law and fundamental rights 2.2.1 Judiciary and fundamental rights Kosovo is at an early stage in/has some level of preparation for applying the acquis and the European standards in this area. Some progress has been made, including in the investigation and prosecution of some high-level corruption cases. However, corruption is widespread and remains an issue of concern. The adoption of several pieces of legislation that are important for the functioning of the judiciary and the fight against corruption marked a significant step forward and these now require robust implementation. As regards fundamental rights, implementation of the relevant laws and strategies continues to be undermined by inadequate financial and other resources, and a lack of political prioritisation and coordination. Functioning of the judiciary Kosovo is at an early stage in developing a well-functioning judicial system. Some progress was achieved in 2018. As regards last year’s recommendations, the Law on the disciplinary liability of judges and prosecutors and the Law on mediation were adopted and the rollout of an electronic casemanagement system has advanced. However, the process of amending the 2015 justice package (laws on the Judicial and Prosecutorial Councils and Courts), which started in 2017, has slowed down implementation of the 2015 laws. The number of judicial staff both in prosecution offices and in the courts increased in 2018, including in the Special Prosecution Office. While the integration into the judicial system of Kosovo Serb judges, prosecutors and their support staff was formally concluded in 2017, more work is needed to ensure full functionality, in particular regarding the Court of Appeals. With outstanding appointments finally made, the Constitutional Court is now fully constituted. Two ministerial initiatives aimed at improving various aspects of the judiciary (a functional review and the Justice 2020 agenda) are under way. There were cases of political interference in the judiciary, notably regarding a war veterans’ pension scheme case. The administration of justice remains slow and inefficient, and rule of law institutions need sustained efforts to build up their capacities. In the coming year, Kosovo should in particular: ®continue to strengthen the capacity of judges, prosecutors and support staff, and improve the court administration, in particular through an electronic casemanagement system consistently used in all courts and prosecution offices that should also perform random allocation of cases and provide reliable statistical data, in line with the European Commission for the Efficiency of Justice (CEPEJ) methodology; ®implement the new Law on the disciplinary liability of judges and prosecutors to strengthen accountability; ®step up efforts to reduce the backlog of cases, including by using alternative dispute resolution tools and in particular mediation, the use of which should be properly financed and promoted. Strategic documents Overall, there is slow progress in implementing the 20142019 strategic plan of the Kosovo Judicial Council (KJC), its 2014-2019 communication strategy and the strategy for reducing the backlog of cases, an open-ended document adopted in 2013. The Kosovo Judicial Council and the Kosovo Prosecutorial Council (KPC) adopted annual plans setting out priorities for the Councils, courts and prosecution offices for 2018. Although the Prosecutorial Council progressed in the implementation of its strategic plan for 20162018, this was lagging behind. Kosovo lacks a comprehensive strategy for justice sector reforms and a proper mechanism for interinstitutional coordination. There is insufficient coordination of donors by the Kosovo authorities. This leads to inefficiencies, incoherence and duplication of effort. The functional review of the rule of law sector is due to be finalised in September 2019 and should produce inter alia a rule of law sector strategy. In September 2018, the Ministry of Justice, in coordination with the Judicial and Prosecutorial Councils, launched the Justice 2020 agenda, detailing a number of concrete steps to improve the functioning of the judiciary in the short term.

Management bodies The Kosovo Judicial Council and the Kosovo Prosecutorial Council are responsible for ensuring the independence and impartiality of the judiciary. Their composition and appointment procedures are broadly in line with European standards. The Law on the Kosovo Judicial Council was amended to align with constitutional amendments in 2016 whereby the majority of its members are to be elected by their peers. The Council now needs to be fully constituted. It took steps to implement the new Laws on the Judicial Council, on courts and on the disciplinary liability of judges and prosecutors immediately after their adoption. The budget allocated to the Judicial and Prosecutorial Councils was further increased in the reporting period. The court statistics are still not easily accessible by the public and not reliable. The formal process of integrating Kosovo Serb judges and prosecutors into the judicial system was concluded in 2017. Ensuring access to judicial proceedings in the Albanian and Serbian languages across Kosovo and the use of both languages in the work of the judicial bodies remains a challenge due to a lack of qualified translators. Laws are often poorly translated. In August 2018, the President appointed five judges to the Constitutional Court, which now has a full complement of nine judges. Independence and impartiality The Regulation on internal organisation of courts provides for random allocation of cases. There are some concerns that it is not being consistently applied. High-profile and sensitive cases are not always processed in a timely manner. Legal safeguards on independence and impartiality are enshrined in the Constitution and the legal framework. Judges cannot be transferred without their consent. The Councils should react more efficiently and actively in cases of alleged political interference in the judiciary such as with respect to the war veterans’ pension scheme. The judiciary needs to be shielded effectively from undue pressure, political or otherwise. The Judicial and Prosecutorial Councils are responsible for taking protective measures to secure the safety of judges and prosecutors. The technical aspects of protection are dealt with by the police. In the reporting period, three prosecutors were granted close protection due to threats they received for cases they were investigating. Accountability Codes of ethics are in place for judges, prosecutors and attorneys, but their effective implementation remains weak. The Prosecutorial Council adopted a new code of ethics in December 2018. The Judicial Council has made it mandatory for all judges to attend training on judicial ethics each year. In 2018, 88% of all judges received this training. Disciplinary procedures are in place, but they are subject to long delays and have proven inefficient. A new Law on the disciplinary liability of judges and prosecutors adopted in November 2018 provides for more robust and clear disciplinary mechanisms with rigorous deadlines and clear division of powers and responsibilities. The President may dismiss judges and prosecutors on a proposal from the Judicial and Prosecutorial Councils for a number of criminal and disciplinary offences. They are entitled to appeal. In 2018, the Office of the Disciplinary Counsel submitted two cases against judges and seven cases against prosecutors to the Judicial and Prosecutorial Councils. The Councils imposed a number of disciplinary measures, but there were no dismissals. Judges and prosecutors are obliged by law to declare their assets and gifts received, and to report any possible conflict of interest to the Anti-Corruption Agency. In 2018, with the exception of one prosecutor, they all submitted their assets declarations on time. Professionalism and competence The President appoints judges and prosecutors for an initial three-year term, following a proposal from the Judicial and Prosecutorial Councils respectively. So far, the President has followed all proposals. The Councils organise recruitment processes and entry exams for judges and prosecutors on the basis of merit-based criteria. In 2018, the Judicial Council recruited 37 new Basic Court judges (18 women, 19 men), including 7 from nonmajority communities. The recruitment process was conducted in accordance with the existing legal framework. The Council needs to ensure that evaluation and verification have a clear legal basis and do not interfere in judges’ private lives. Merit-based performance criteria and an evaluation system are in place. The Councils are required to carry out performance evaluations for prosecutors and judges with a permanent mandate every three years. In 2018, the Prosecutorial Council evaluated 67 prosecutors and the Judicial Council 118 judges. The results of the evaluation (94% of prosecutors and 100% of judges with permanent mandates were rated ‘good’ or ‘very good’, and none ‘insufficient’) are in stark contrast to the public perception of prosecutors’ and judges’ performance. The level of professionalism and competence, especially of prosecutors, is still a matter of concern; some are inadequately trained and some are unwilling to apply the training received and to take full responsibility for their cases. A system has yet to be implemented whereby judges and prosecutors undergo effective and systematic evaluation based on clear criteria, with the results influencing their career progression. Quality of justice The Academy of Justice is responsible for delivering initial and inservice training for judges and prosecutors and their legal and administrative staff. The training is based on the annual training curricula jointly prepared by the Judicial and Prosecutorial Councils and the Academy following a comprehensive needs assessment. The Academy also provided a training programme for the Kosovo Serb judges and prosecutors who joined the judicial system in October 2017. Judges and prosecutors undergo an initial 12month training programme following their appointment. The budget allocated to the Academy increased by more than 20% from 2017 to 2018. Inservice training remains necessary, in particular in specialised areas such as economic crime, confiscation and public procurement, the new provisions of the revised Criminal Code (including on domestic violence and sexual harassment), and European Court of Human Rights caselaw. Judicial education needs to play a more prominent role in the evaluation process. Measures to ensure the consistency of jurisprudence need to be further strengthened. The new Law on courts aims to increase transparency by making it obligatory for all courts to publish their judgments on their websites within 60 days. A webportal is being set-up to make them all easily accessible and searchable. The Academy of Justice maintains a database accessible to all judges and prosecutors; this includes applicable legislation, commentaries and other legal material. Following the appointment of 37 judges in January 2019, there are 431 judges (140 women and 291 men) and 191 prosecutors (77 women and 114 men), with 24 judges and 10.6 prosecutors per 100 000 inhabitants. According to the Council of Europe’s European Commission for the efficiency of justice (CEPEJ), the European average is 21 judges/11 prosecutors per 100 000 inhabitants. Kosovo has a low percentage of female judges and prosecutors in comparison to most other European countries.

The overall initially approved 2018 budget for the judiciary (including prosecution, courts, the Academy of Justice and the Correctional and Probation Service) was EUR 48.9 million in 2018 (up from EUR 46.4 million in 2017), or 2.35% of the general budget (2.32% in 2017). It was increased to EUR 54.7 million in the course of 2018. E-justice tools remain underdeveloped and new IT systems in the various justice sector institutions are developed in a fragmented manner, without any overall strategy or coordinated monitoring. There is a tracking mechanism for high-level corruption and organised crime cases; this currently includes 47 cases. An electronic casemanagement information system was rolled out for criminal cases in five of the seven Kosovo courts and the piloting phase for civil cases in one of the courts was completed. Continued commitment is needed to ensure the system’s systematic use and its timely implementation, including in Kosovo’s largest court and prosecution office in Pristina, as well as in Mitrovica, in particular to obtain automatically reliable statistical data about the performance of the judiciary. Work on a central criminal records registry continues as planned, but more commitment from the courts is needed to ensure sustainability. The mediation system has been operational since 2008. The new Law on mediation, which entered into force in September 2018, established a Chamber of Mediators and clearer, more robust mediation procedures. Of an initial seven regional mediation centres, only one is currently operational. However, seven mediation ‘points’ were established in basic courts and five in the basic prosecution offices. In 2018, 2,596 cases were solved by the 189 licensed mediators (67 women, 122 men), of whom 14 were from the Serb-majority municipalities. Public awareness of or familiarity with alternative dispute resolution tools remains low. However, several awarenessraising campaigns and training activities were conducted in 2018. The mediation system needs further strengthening through full implementation of the recently adopted Law and allocation of a sufficient budget. Efficiency Kosovo still needs to be more efficient in dealing with the backlog of cases. Courts face a high number of incoming criminal cases, most of which concern minor offences. The judicial system needs to ensure proper follow-up of all high-profile cases, including those handed over by the EU Rule of Law Mission in Kosovo (EULEX). The efficiency of the judiciary is seriously hampered by shortcomings in criminal legislation. The Criminal Code and the Criminal Procedure Code were substantially revised in 2018 to address these issues. The Assembly adopted the revised Criminal Code in November 2018, but has yet to adopt the new Criminal Procedure Code. The low capacity and commitment of some judges to manage court proceedings, sanction the parties causing delays and ensure the presence of all parties at sessions lead to numerous postponements of hearings and unreasonably protracted criminal proceedings. These aspects and the Appellate Court’s tendency to send cases for retrial to the basic courts contribute to a lengthy average disposition time (i.e. the average time taken from filing indictment to a judgment). These delays in proceedings, in combination with a preference for detention over other restrictive measures, have led to cases of overly long detention. By far the highest number of complaints received by the Ombudsperson Institution in the reporting period concerned delays in judicial proceedings. Kosovo should consider introducing an effective judicial legal remedy to address delays in court proceedings, including compensation. The organisation of courts and resource allocation rests with the court presidents and heads of prosecution offices. Where necessary, judges and prosecutors can be temporarily transferred. There is a need to improve strategic planning, which also requires more efforts to introduce reliable statistical systems for the judiciary based on CEPEJ standard indicators. The number of legal staff directly assisting judges and prosecutors is insufficient. The budget allocated for 2019 is insufficient to meet the requirements of the April 2018 Law on the state prosecutor and the November 2018 Law on courts to support every prosecutor/judge with one professional associate. The Prosecutorial and Judicial Councils plan to reach this target within three years. Once implemented, these provisions have the potential to improve significantly the efficiency of the system. The reform of the enforcement system, with which Kosovo passed in 2014 from court enforcement to a combined system of private enforcement agents and courts, has been generally successful. The introduction of private enforcement agents has shortened procedures and raised the overall level of debt collection. The court run enforcement system still faces a considerable backlog. It needs to be ensured that enforcement agents have easy access to public registers pertaining to their work. Domestic handling of war crime cases The war crimes department in the Special Prosecution Office of Kosovo continues its work, but challenges persist. Its workload has continued to increase significantly due to the end of the criminal executive mandate of EULEX and handover of EULEX cases to local prosecutors. There is an acute need for more training, more staff and more translation capacity. Although the number of prosecutors in the department has increased from two to three, this remains too few to handle the workload. Mutual legal cooperation between Kosovo and Serbia is extremely limited in war crimes cases. Significant concerns remain about the willingness to investigate, prosecute, judge and effectively enforce convictions in war crimes cases involving former Kosovo Liberation Army members. These concerns were further substantiated by the Kosovo judges’ handling of the Drenica 1 and 2 war crimes cases following the handover of the majority on the benches in these cases from EULEX to local judges. Both cases were characterised by the use of highly contested procedures, with one being sent for re-trial and most of the defendants released. The Prime Minister appointed, as his political advisor, a convicted war criminal who had just been released from prison after serving two thirds of his sentence in the Drenica 1 case and while he was awaiting the retrial of Drenica 2. On a positive note, the Kosovo Prosecutorial Council finally adopted the Strategy on War Crimes in February 2019. The Kosovo Specialist Chambers and Specialist Prosecutor's Office, established to investigate and prosecute allegations stemming from the 2011 Council of Europe Report, which alleges serious violations of international law, continued their work. As from February 2018, victims can apply to the Government Commission on Recognition and Verification of the Status of Survivors of Sexual Violence during the Conflict for recognition and verification to receive individual benefits. By March 2019, close to 1,000 individuals had submitted applications, of which 301 have been accepted and 147 rejected. The timeframe of the relevant law excludes those who suffered conflict-related sexual violence after 20 June 1999. Often, in addition to problems regarding access to justice, survivors of sexual violence also face societal stigma. In April 2018, the President initiated the establishment of a Truth and Reconciliation Commission and appointed a preparatory team. The authorities need to develop a comprehensive approach to dealing with the past, linking the work on the Truth and Reconciliation Commission with the government’s commitment to developing a strategy on dealing with the past and other transitional justice initiatives. These processes need to be locally and nationally owned, as well as inclusive and gender- and victimsensitive. Kosovo maintained its engagement in the Coalition for the Commission Tasked with Establishing the Facts about All Victims of War Crimes and Other Serious Human Rights Violations Committed on the Territory of the Former Yugoslavia (RECOM). Fight against corruption Kosovo is at an early stage/has some level of preparation in the fight against corruption. In the reporting period, some progress was made through significant legislative reforms in the area of the rule of law, including the Criminal Code, on the investigation and prosecution of high-level cases and on the preliminary freezing of assets. Final confiscations of assets remain low. Kosovo has partly followed the recommendations of the 2018 report, namely on the track record, the training and hiring of prosecutors, and on the adoption of legislative reforms. However, some of the recommendations remain valid, while others require robust follow-up in terms of their implementation. Overall, corruption is widespread and remains an issue of concern. There is a need for strong political will to effectively address corruption issues, as well as a robust criminal justice response to high-level corruption. In the coming year, Kosovo should in particular: ®further increase the number of prosecutors in the Special Prosecution Office investigating and prosecuting high-level corruption cases and provide training to strengthen their capacity to conduct financial investigations, confiscate assets and effectively protect witnesses; ®prioritise the thorough implementation of the revised legislative framework in the area of the rule of law, including through training and awarenessraising, to make it an effective tool to combat corruption;

®ensure that the financial reports and campaign disclosure reports of political parties are consistently published and audited, and sanctions applied for violations of relevant laws. Amend the legal framework governing political party and campaign financing in line with the opinion of the Venice Commission, to ensure effective enforcement, accountability and transparency; ®ensure the adoption of the revised Criminal Procedure Code, including provisions on the suspension of public officials indicted for corruption. Track record As regards the work of the multidisciplinary team established in 2015 to coordinate efforts to deal with high-level corruption cases and high-profile serious and organised crime, the track record now amounts to a total of 51 cases. There have been 38 indictments so far, 27 related to corruption and 11 related to organised crime. In 9 cases, there has been a final ruling, with 5 ending in a (partially) guilty verdict, leading to 9 individuals being convicted of corruption-related offences (e.g. conflict of interest, trading in influence, abuse of official position or authority). Assets worth approximately EUR 13.2 million have been frozen in these cases, with no assets finally confiscated. In July 2018, the European Commission confirmed that Kosovo had met the benchmark in its visa liberalisation roadmap to strengthen the track record in the fight against organised crime and corruption. These efforts should continue and the Commission will continue actively to monitor the further development of the track record. The standard operating procedure regarding the track record cases should be revised in order to ensure that all high-level corruption and organised crime cases are covered by the Joint Team for the Selection and Targeting of Serious Crimes (beyond the cases prioritised for the visa liberalisation benchmark) in a comprehensive and overall track record. The situation in the north of Kosovo with regard to corruption continues to pose particular challenges for law enforcement agencies. Preliminary asset confiscations have increased, but final confiscations have dropped significantly. In 2018, the total value of assets preliminarily confiscated was slightly over EUR 28 million (compared to EUR 10.9 million in 2017), while the value of finally confiscated assets amounted to only EUR 49 394, as compared to EUR 700 000 in 2017. Proper implementation of the new legislation related to asset confiscation should lead to a significant increase in these numbers. Since it was set up, the Anti-Corruption Agency has sent more than 700 cases to the prosecution, including more than 90 referrals in 2018. Of the 80 referrals in 2017, the prosecution has filed indictments in 8 cases, of which 4 are now on trial. The reports that the Agency submits to the prosecution need to be of better quality and the prosecution needs to improve its capacity and show more willingness to pursue cases related to corruption. In 2018, 385 new cases of criminal offences against official duty involving 753 individuals were reported. There were 6 new cases related to corruption in public procurement and 421 new cases related to economic crimes. Overall, 325 allegations of corruption were received in 2018 and indictments were filed against 335 individuals. The courts found 79 individuals guilty. 98% of the 4,737 officials obliged to submit annual declarations of assets have done so in time in 2018 (only 86, less than 2%, failed to do so); out of 4819 officials obliged to submit them in 2019, 98.5% did so (only 64, less than 1.5%, failed to do so). The Agency has more than 100 cases under investigation for false declarations of assets. It still lacks tools and resources to verify asset declarations. These checks would require closer cooperation and the exchange of data with the police, the tax administration, the Financial Intelligence Unit, the land registry and municipal authorities. The establishment of an e-declaration system would simplify filing and monitoring, increase transparency and decrease human errors. The AntiCorruption Agency has been proactive in ensuring that public officials from the north of Kosovo meet their obligations regarding the submission of asset declarations. In 2018, the Agency handled more than 100 cases of conflict of interest, of which fewer than 5 were submitted for the minor offences procedure and 10 were sent to the prosecution service for criminal investigation, which solved 5 cases in the reporting period. In more than 30 cases, a conflict of interest was avoided. The transparency and accountability of funding for political parties and campaign financing need to be strengthened. Reports of political parties’ finances are still not consistently and fully published and the campaigns for the 2017 parliamentary and local elections have yet to be subjected to an external audit of campaign funding and expenditure. While independent audits of the political parties’ finances from 2013 to 2016 were previously carried out with significant delay, the audits for 2017 have yet to take place, with the selection of the auditors only being finalised at the start of 2019. The Central Election Commission (CEC) and other competent authorities, including the prosecution, should clarify their respective competencies, investigate potential cases and ensure that audit reports are followed up in line with the provisions and sanctions of the law. Political parties should submit their financial reports by the legal deadline, which should then be audited properly and in due time. By the end of the reporting period, the CEC had sanctioned only one political party for a delay in submitting its annual financial report. Action plans have been developed following the assessments carried out previously to determine the risk of corruption due to weaknesses in the legal/institutional set-up in the health, education, energy and mining sectors, and in the public procurement, judicial and prosecution systems. Steps need to be taken to implement these action plans and effectively address corruption in these particularly prone sectors. There is still no policy to prevent corruption in the private sector. Institutional framework The anti-corruption institutions in Kosovo are not well integrated, their remits overlap and the division of tasks needs to be clarified. Kosovo needs to strengthen inter-institutional coordination mechanisms and bodies, and ensure that the institutions have access to the relevant databases. Prevention measures The main body for prevention remains the independent and specialised AntiCorruption Agency. It is tasked with conducting administrative investigations, checking asset declarations, monitoring conflicts of interest and public procurement activities, and improving awareness. Other bodies with inspecting and auditing powers are the AuditorGeneral, the tax authorities, the customs authorities and the Financial Intelligence Unit. Training must be provided for staff of the main anti-corruption bodies, especially on risk assessments. The Academy of Justice integrated an anti-corruption programme as part of its training curriculum, including training on prevention measures. There is a need to promote integrity in the public service as a tool to prevent corruption and ensure discipline. The Anti-Corruption Agency has worked on the design of integrity plans for five municipalities, along with international partners, on a voluntary basis. Law enforcement Kosovo has specialised institutions for fighting corruption: the National Coordinator against Economic Crime, the AntiCorruption Coordinator appointed by the Chief State Prosecutor and the Police Directorate for the Investigation of Economic Crimes and Corruption, which maintains anticorruption units at police stations and headquarters. Each basic prosecution office has an anti-corruption prosecutor, and two prosecutors are appointed by the head of the Special Prosecution Office to handle high-level corruption cases. The serious crime departments of the Kosovo Basic Courts have so far dealt with all corruption cases. Following the adoption of the new Law on courts in December 2018, special departments in the Basic Court of Pristina and the Court of Appeals will handle all cases of the Special Prosecution Office including corruption cases.

Investigations and indictments need to be of higher quality, and the presentation of cases before the courts needs to improve. The Special Prosecution Office does not have enough specialised staff with the required level of training and competence to deal with financial cases, including procurement cases. Joint, multidisciplinary inservice training on economic crimes and corruption for police, prosecutors and judges remains necessary. The number of specialised prosecutors must be increased further, also in light of the handover of EULEX cases to local prosecutors. In order to facilitate this process, the amended Law on the State Prosecutor was adopted and entered into force in April 2018. Since then, 5 prosecutors were recruited to the Special Prosecution Office, bringing the total to 15 out of a planned number of 18. Financial investigations are still not systematically launched in cases of corruption and organised crime. Kosovo needs to apply the concept of financial investigation in line with Financial Action Task Force (FATF) standards (See section on organised crime). The police, prosecutors and judges need continued specialised training on the confiscation of assets and money laundering. The Academy of Justice conducted seven specialised training courses for judges and prosecutors, focusing on public procurement and combating corruption, money laundering and cybercrime. However, the courses were badly attended. Legal framework Criminal law provisions on corruption are generally in line with relevant European standards. Kosovo is not a party to most international anti-corruption conventions, including the United Nations Convention against Corruption, due to status-related issues. However, it has made substantial efforts to align its legislation with these instruments. The newly adopted Criminal Code amended several corruption-related provisions, including on corruption in the private sector. The Criminal Procedure Code was also substantially revised, and is under consideration in the Assembly. The codes include provisions requiring the suspension and removal of public officials respectively indicted for and convicted of corruption. The new Law on extended powers of confiscation constitutes a substantial improvement in the fight against corruption. It provides for simple and robust tools to confiscate assets, including those of which the origin cannot be explained (see section on the fight against organised crime). This law must now be implemented to bring results. In addition, the Law on the prevention of money laundering clearly stipulates that the predicate offence does not have to be proven to retain a conviction on money laundering before an asset can be confiscated. Prosecutors and judges should implement this in full. The Law on the prevention of conflicts of interest was revised and adopted by the Assembly in April 2018 and should be fully implemented. Several high-level public officials still occupy two or more posts, in direct contravention of the Law’s provisions. The Law on State Prosecutor, which facilitated an increase in the number of prosecutors in the Special Prosecution, was also revised and brought more into line with European standards. At Kosovo’s request, the Venice Commission issued an Opinion on the draft Law amending and supplementing the Law on the financing of political entities in June 2018. The review of the current legislation should take account of the recommendations of the Venice Commission and aim to ensure transparency, accountability and effective enforcement, including clearly defined sanctions. Kosovo should also implement measures allowing the effective investigation of inexplicable wealth. There is still no efficient system in place for the declaration, origin and control of the property of senior public officials and the declaration, origin and control of gifts for all official persons. The amendments to the relevant legislation, together with the amendment to the Law on the Anti-Corruption Agency, should be drafted and finalised in order to give the Agency more robust powers to verify asset declarations and make the declaration system more effective in tackling graft. Kosovo has no specific legislation on lobbying. A new Law on the protection of whistle-blowers, adopted in November 2018, brings the legal framework more into line with international standards. It will have to be aligned with the new EU acquis on this issue. Strengthened whistleblowing mechanisms and protection requirements now need to be utilised in practice. Kosovo will need to ensure proper budgeting, training and awarenessraising to effectively implement and enforce this revised legal framework. Strategic framework The Anti-Corruption Strategy and Action Plan for 2018-22 were drafted after a consultation process and adopted by the government in March 2018, but they were not sent to the Assembly until October 2018 and have not yet been approved. Its implementation had been hampered by inadequate financing and a lack of measurable impact indicators. The government still needs to demonstrate genuine leadership, the ability to practise advance planning and a willingness to allocate adequate resources to the fight against corruption. A monitoring mechanism should be established to assess regularly the impact of the new Strategy and Action Plan. Fundamental rights The legal framework broadly guarantees the protection of human and fundamental rights in line with European standards. However, additional efforts are needed to enforce it. Implementation of human rights legislation and strategies is often undermined by inadequate financial and other resources (particularly at local level), limited political prioritisation and lack of coordination. The existing mechanisms for the coordination and implementation of human rights are ineffective. The heavy dependence on foreign donors remains. As regards last year’s recommendations, the Inter-Ministerial Coordination Group for Human Rights met twice in 2018, but its effectiveness remains questionable. A 2019-23 Strategy on Children’s Rights was approved in January 2019. On cultural rights, after nearly two years of inactivity, the Implementation and Monitoring Council met regularly in 2018. Much more needs to be done to address the recommendations of the 2018 report, which remain valid. In the coming year, Kosovo should in particular: ®reassess and strengthen the efficiency and effectiveness of the mechanisms for the coordination and implementation of human rights, including the rights of persons belonging to minorities and displaced persons; ®strengthen the implementation of the Law on gender equality, promote the representation of women in decisionmaking roles and advance the implementation of the strategy and action plan on protection against domestic violence; ®adopt the draft Law on child protection and ensure that it is duly implemented, ensure the sustainable funding and proper accountability of relevant institutions and actors, and the integration of the child protection systems at central and local level; ®advance the protection of cultural heritage by fully implementing and enforcing legislation on special protective zones and legislation addressing illegal construction. Adopt the Laws on cultural heritage and religious freedom and ensure the continued functioning of the Implementation and Monitoring Council; ®ensure the solid implementation of the strategy and action plan for the inclusion of Roma and Ashkali communities, including the allocated funding.

International human rights instruments form an integral part of Kosovo’s legal framework and are directly applicable, as provided for in the Constitution. Kosovo continued to align its legislation with these instruments and maintained its practice of ad hoc reporting. On the promotion and enforcement of human rights, effective implementation of human rights legislation and of the numerous human rights-related strategies remains a challenge. There is no real coordinating mechanism for the implementation of these strategies. The overall Kosovo Human Rights Strategy has not yet been finalised, even though the process started in 2013. The Advisory Office for Good Governance (eight staff) lacks the necessary resources and capacity to fulfil its broad mandate, which includes overseeing, coordinating and drawing up policies in the areas of good governance, human rights, equal opportunities and anti-discrimination issues; coordinating the involvement of civil society in policy and decision-making; and monitoring the implementation of strategic documents on corruption. The Inter-Ministerial Coordination Group for Human Rights rarely meets and neither takes decisions nor properly follows up on previous government commitments. As a result, there is no overall assessment of the human rights situation in Kosovo, no overall human rights policy and no coordination among stakeholders. Stronger political leadership is required to establish these. The role of the human rights officers in ministries and municipalities also needs to be strengthened. The Ombudsperson Institution acts as legal mechanism for the protection, supervision and promotion of fundamental rights and freedoms, as the National Preventive Mechanism against torture and as a mechanism of equality for promoting, monitoring and supporting equal treatment without discrimination. The Institution has further strengthened its capacity to review cases and continued its efforts to increase awareness on human rights issues. The positive trend in the implementation of its recommendations needs to be reinforced. In 2018, for the first time, the Assembly held a plenary session on the implementation of the Institution’s recommendations. Its independence is supported by the fact that the Law on Ombudsperson allows for a reduction of its budget in comparison to the previous year only with approval by the Ombudsperson. It has nearly 80 staff who work as part of an internal structure reflecting the competencies of the Institution. The arrest and subsequent forced deportation of six Turkish nationals legally residing in Kosovo in March 2018 raised serious concerns about the respect of due process. Following the operation, the Prime Minister demanded the resignation of the Minister of Internal Affairs and the head of the Kosovo Intelligence Agency. Since then, both the Ombudsperson Institution and the Kosovo Assembly investigation committee established to examine this issue have alleged multiple legal violations committed by Kosovo institutions. The Basic Court of Pristina has meanwhile annulled the initial decision revoking the residence permits (which was based on an alleged threat to national security) for three of the deportees. On the prevention of torture and ill treatment, the situation remains broadly satisfactory and the Kosovo authorities have shown a sustained commitment to prevent such practices in all circumstances. There have been some complaints about the incorrect treatment of prisoners by correctional staff. The team of the National Preventive Mechanism against Torture in the Ombudsperson Institution regularly visits, without prior notice, all places of deprivation of liberty in Kosovo. However, in March 2018, the team was denied access to premises and documentation at the Pristina airport to verify whether six arrested Turkish nationals were held there. Kosovo should further strengthen ongoing efforts to provide adequate medical and psychological support and rehabilitation to all victims of torture and other ill-treatment in Kosovo. There are ongoing efforts to address the recommendations issued by the European Committee for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment (see prison system). The prison system continues to comply with the UN Standard Minimum Rules for the Treatment of Prisoners and European Prison Rules. Prison conditions vary widely among the different establishments of the Kosovo Correctional Service. Following the opening of a new detention centre in Pristina, more prisoners are now accommodated in adequate facilities. Plans to close old facilities have not yet materialised. Overcrowding is generally not a problem. There has been progress regarding general staffing levels in the Correctional Service and a number of senior positions have been filled. Meaningful activities for inmates such as work and other rehabilitative programmes remain rare. Progress has been made on the provision of healthcare in prisons, which has been fully transferred from the Ministry of Justice to the Ministry of Health. Progress can also be reported regarding the Prison Inspectorate, which has adopted a new working methodology based on the ‘Mandela rules’. Political pressure continued to affect decisions on the categorisation of prisoners. This allowed for preferential treatment of high-profile prisoners. The planned amendments to the Law on the execution of penal sanctions should not compromise the progress achieved with the previous amendments to prevent such preferential treatment. Alternative sanctions and measures are ordered mainly for juveniles (over 1,000 in 2018, see child rights). As regards adults, many judges and prosecutors are reluctant to impose alternative sanctions. The new Law on personal data protection was adopted in February 2019 with the aim to align the legal framework with the EU General Data Protection Regulation and Law Enforcement Directive. This constitutes significant progress in the area of data protection. Implementation of this Law should now follow, beginning with the appointment of the commissioner and issuing/updating the necessary secondary legislation. A new Information and Privacy Agency will supervise the implementation of the legislation for personal data protection and access to public documents. The new Law on personal data protection provides for inspectors to carry out inspections on compliance. Legal provisions on the freedom of thought, conscience and religion are in place and religious leaders of all faiths continue to interact. However, the draft Law amending and supplementing the Law on religious freedom still needs to be adopted and incorporate the recommendations made by the Venice Commission. The Serbian Orthodox seminary in Prizren continues to function well. The May 2016 final judgment by the Constitutional Court on the land dispute case involving the Visoki Dečani monastery and Deçan/Dečane municipality, which confirmed the monastery’s legal ownership of the land, remains unimplemented. Local resistance to the implementation of the judgement, including overt defiance by municipal officials, continues to raise concerns. ----------------------------------------------------------------------------------------------------------------- Freedom of expression Kosovo has some level of preparation regarding freedom of expression, which is enshrined in the Constitution, and benefits from a pluralistic and lively media environment. There was limited progress in this area over the reporting period. The rule of law institutions have increased the follow-up to threats and attacks against journalists. The number of incidents has decreased. There are particular concerns regarding freedom of expression in the north of Kosovo, including self-censorship. In spite of some efforts by the Assembly, a sustainable solution for the funding of the public broadcaster remains to be adopted. The broadcaster remains vulnerable to political pressure and influence. The audio-visual sector in Kosovo is characterised by a lack of data and the existing legislation needs to be updated and implemented. There were no legislative developments on the regulation of media ownership and transparency. In the coming year, Kosovo should in particular: ®further improve the cooperation within and response of the responsible institutions to physical attacks against journalists, and other forms of pressure; ®ensure sustainable funding for the public broadcaster in a manner which preserves its independence; ®review the Law on the Independent Media Commission to update its competences, including regarding the online audio-visual media services covered by the 2010 Audiovisual Media Services Directive; ®increase the availability of data on the audio-visual market, in particular as regards media ownership. Intimidation of journalists The number of threats and attacks against journalists has decreased. According to the Association of Journalists of Kosovo, 16 incidents were reported in 2018, down from 24 in 2017. There has been a more systematic response from rule of law authorities, with the help of coordinators in the police, prosecution and courts. However, 2018 saw only one indictment and three convictions regarding threats and attacks against journalists. Adjudication of cases remains generally slow. Legislative environment Freedom of expression and the media are constitutionally guaranteed and legislation on libel, hate speech and defamation is in line with European Court of Human Rights case-law. The Law on the Independent Media Commission led to the creation of an independent regulator and authorities have provided it with sufficient regulatory, monitoring and enforcement powers to ensure that internal and external media pluralism is safeguarded. However, such legislation does not cover media available online. The newly adopted whistleblower legislation strengthens the protection of journalistic sources. The public’s right to reply and correction remains unregulated. The new Law on access to public documents has not yet been adopted.

Implementation of legislation/institutions The effective implementation of legislation remains a key challenge for the Kosovo audiovisual sector. The Independent Media Commission (IMC) has not carried out any market analysis in the last years and lags behind in initiating cases and implementing fines for legal breaches. The government has not approved IMC’s draft strategy for the digital switchover. Newspapers and broadcasters who switched to the online world are no longer monitored. The Press Council follows the online press by reacting to complaints, but it does not have the necessary resources to carry out investigations or market analyses. The Independent Media Commission does not have the power to license and monitor audio-visual media services online (e.g. video on demand, catch-up TV and WebTV), which were already covered by the Audiovisual Media Services Directive adopted in 2010. Although this creates an unhindered environment for online media, it also undermines the privacy of individuals, leading to cases of alleged hate speech, libel and defamation. The right of access to public information is undermined by the authorities’ fragmented implementation of relevant legislation. The government should be more actively involved in policy development in the media sector. Public service broadcaster The Assembly has drafted a new Law on the public broadcaster, including a potential solution for sustainable funding for Radio Television of Kosovo (RTK). To date, the broadcaster remains directly state-funded, with its budget determined annually by the Assembly. This undermines its independence, weakens its long-term sustainability and leaves it prone to political influence. Trade unions allege a lack of transparency in its recruitment procedures. Economic factors Media outlets are generally not economically sustainable. The lack of an audience measurement system and of a strong private advertising industry means that private broadcasters depend on other sources of funding and few are able to operate without strong links to political and business interest groups. A lack of data is another big challenge for Kosovo: information on media ownership structures, in particular for online media, remains unclear and often fictitious, as most media do not provide information on their finances or real ownership. There are no data on audiences or the distribution of advertising funds or funds provided to broadcasters by either central or local government. Consequently, there is neither transparency nor fair distribution of the sources of financing among the media outlets and no way of knowing whether they are concentrated in the hands of few people which could jeopardise freedom of expression. Professional organisations and working conditions Associations of journalists in Kosovo have been active in condemning incidents and threats against journalists. They have also increased their cooperation with the Kosovo Police and prosecution services on following up on these cases. However, their involvement in discussing legislative initiatives on media issues remains limited. Journalists’ associations remain largely divided along ethnic lines and are considered weak. Journalists often work without contracts, which makes them vulnerable to corruption and prone to self-censorship. (See also Chapter 10 - Information society and media) ----------------------------------------------------------------------------------------------------------------- Freedom of assembly and association is guaranteed by the Constitution and people in Kosovo have been making use of their rights by demonstrating and protesting against the government at different levels. Individuals and legal entities have the right to establish an association without having to register it, but most organisations decide to register in order to secure legal personality. Issues of labour and trade union rights are further covered in Chapter 19 - Social policy and employment. On property rights, the legislative and institutional framework governing the resolution of conflict-related property claims is adequate overall, but further improvement is needed in certain critical areas to ensure that property rights are fully realised. Despite the allocation of funds for the compensation scheme, no owners of former socially owned residential property affected by the conflict have been compensated yet. Another challenging issue is the illegal reoccupation of properties, as the Kosovo Property Comparison and Verification Agency has no authority to act on re-occupation following a second eviction. The government has adopted an amending law to allow the Agency to carry out multiple evictions and it is awaiting adoption by the Assembly. There are also concerns about fraudulent property transactions and illegal transfers of ownership of properties mainly belonging to displaced persons. Constitutional Court decisions on property cases must be fully observed and swiftly implemented. On a positive note, the Law on property taxes was adopted; it stipulates that those whose property has been illegally possessed are exempt from taxes accrued during the period of illegal possession. Some progress has been made on the issue of 350,000 constructions built without a permit, through amendments to the Law on the treatment of constructions without permit. The proof of ownership required by the amended Law should help to protect the property rights of displaced persons. When it comes to large-scale informal settlements, there is a continued lack of political will to address the issue. Women’s property rights have been strengthened in the new Laws on inheritance, family and notary, adopted in November 2018, and the measure for the registration of real estate on behalf of two spouses free of charge was extended until April 2019. However, overall women continue to face real challenges as regards property ownership and inheritance. They own less than 20% of properties. On non-discrimination, the Law on protection from discrimination is broadly in line with European and international standards, but implementation is limited. Although it establishes a general framework for preventing and combating discrimination, both rule of law institutions and victims have difficulties in identifying the situations in which its provisions can be applied. As very few cases are brought to court, there is as yet no caselaw on the use of the anti-discrimination legislation. There is insufficient data on hate crimes which prevents the police and prosecution from effectively preventing and responding to these offences. It is necessary to establish an efficient hate crime data recording and collection system, enabling the recognition and registration of hate crimes. The tracking mechanism of the Prosecutorial Council still needs to be extended to cover cases of all forms of discrimination, not only those based on ethnicity. Of the 855 cases opened for investigation by the Ombudsperson due to complaints filed by citizens, 98 related to discrimination. Kosovo’s legal framework for equality between women and men is broadly in line with international standards. However, women often face gender-based violence and various forms of discrimination. Women are still severely underrepresented in decision-making in both the central government and the municipalities. There have been some improvements at municipal level (See section 2.1.1 – Democracy). Affirmative measures, though provided for in law, are rarely used in the process of recruitment at any level of the administration. The roles of the Agency for Gender Equality and of gender equality officers in ministries and municipalities in policymaking need to be strengthened. The effective implementation of the Law on gender equality is lagging behind. Completion of secondary legislation aimed at institutionalising genderresponsive budgeting is still pending. Breakdowns of data by gender are lacking and the mainstreaming of gender in laws and policies is not systematic. The Kosovo Programme for Gender Equality has not yet been adopted. There have been increased efforts to implement the 2016-2020 strategy and action plan on protection against domestic violence since the appointment of the National Coordinator in January 2018. These need to be sustained and lead to tangible results. Coordination mechanisms for protection from domestic violence have been established in seven municipalities. Domestic violence and sexual harassment have been introduced as stand-alone offences in the new Criminal Code. An integrated database for cases of domestic violence was launched in December 2018. The Ministries of Justice and Social Welfare, the Judicial and Prosecutorial Councils and the police signed a memorandum of understanding aimed at achieving full institutional coordination to feed the database and apply and enforce the legislation on domestic and other gender-based violence. There are concerns about lenient sentencing in cases of gender-based violence. Sustainable funding for shelters for victims of gender-based violence and trafficking in human beings has still not been ensured. Measures need to be taken for the effective reintegration of victims. On the rights of the child, Kosovo’s legal framework is largely in line with international standards, but implementation remains limited. The draft Law on child protectio