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
Date: 2019-05-29
Institutions: Directorate-General for Neighbourhood and Enlargement Negotiations, European Commission
Subjects: Kosovo, accession criteria, accession negotiations, pre-accession strategy

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 

EN 

  EN 

   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}  
 
 
 
 
 
 
 
 
 
 
 
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Table of Contents 

INTRODUCTION 
Context 

Summary of the Report 

3 
3 

3 

FUNDAMENTALS FIRST: POLITICAL CRITERIA AND THE RULE OF LAW  5 
5 
Functioning of democratic institutions and public administration reform 

1. 
1.1.  

1.2 

2. 
2.1 

2.1.1  Democracy 

2.1.2 

Public administration reform 

2.2 

2.2.1 

2.2.2 

3.  

3.1. 

3.2. 

4. 
5. 
6. 
6.1 

6.2 

6.3 

6.4. 

6.5. 

6.6 

6.7 

6.8 

6.9 

6.10 

6.11 

6.12 

6.13 

6.14 

6.15 

6.16 

6.17 

6.18 

Rule of law and fundamental rights 

Judiciary and fundamental rights 

Justice, freedom and security 

FUNDAMENTALS FIRST: ECONOMIC DEVELOPMENT AND 
COMPETITIVENESS 
The existence of a functioning market economy 

The capacity to cope with competitive pressure and market forces within the Union  49 

GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION 
NORMALISATION OF RELATIONS BETWEEN KOSOVO AND SERBIA 
EUROPEAN STANDARDS 
Free movement of goods 

Movement of persons, services and right of establishment 

Free movement of capital 

Financial services 

Customs 

Taxation 

Competition 

Public Procurement 

Company law 

Intellectual property law 

Social policy and employment 

Consumer and health protection 

Education and culture 

Science and research 

Trade issues 

Enterprise and industrial policy 

Agriculture 

Food safety, veterinary and phytosanitary policy 

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54 
55 
55 

57 

58 

59 

60 

61 

62 

63 

65 

65 

66 

69 

71 

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6.19 

6.20 

6.21 

6.22 

6.23 

6.24 

6.25 

6.26 

Fisheries 

Environment and climate change 

Transport policy 

Energy 

Trans-European networks 

Information society and media 

Financial control 

Statistics 

ANNEX I – RELATIONS BETWEEN THE EU AND KOSOVO 
ANNEX II – STATISTICAL ANNEX 

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81 

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84 

85 

87 

90 
92 

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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.   

1.2 

Summary of the Report1  

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.  

1 This report covers the period from March 2018 to March 2019. It is based on input from a variety of sources, 
including  contributions  from  the  government  of  Kosovo,  the  EU  Member  States,  European  Parliament  reports 
and information from various international and non-governmental organisations.  

3 

 
 
                                                           
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 Ashkali2 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 

2  In  line  with  the  terminology  of  European  institutions,  the  umbrella  term  ‘Roma’  is  used  here  to  refer  to  a 
number of different groups, without denying the specificities of these groups. 

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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. 

2.1 

FUNDAMENTALS FIRST: POLITICAL CRITERIA AND THE RULE OF LAW  

Functioning 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 EU-related legislation, but weaknesses remained in its overall 
functioning.  Kosovo  made  substantive  progress  on  certain  key  EU-related  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.  

5 

 
 
Elections 

Kosovo's  electoral  framework  needs 
to  be  strengthened  by  effectively  addressing 
long-standing 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 

6 

 
 
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 
Vice-Presidents.  

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  Auditor-General  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 

7 

 
 
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 Auditor-General. 

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  EU-related  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 EU-related reforms. The role of the 
Ministry  of  European  Integration  is  crucial  in  ensuring  effective  coordination  of  and  a 
strategic approach to EU-related 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, 

8 

 
 
but  the  ministers  belonging  to  Srpska  Lista  do  not  participate  in  government  meetings  and 
decision-making.  

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 
non-governmental  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 
Non-Governmental 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 

9 

 
 
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-merit-based 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 cross-cutting 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  cross-cutting 
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 

10 

 
 
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  EU-related  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.  

11 

 
 
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 municipal-level institutions 
in a more user-friendly and computer readable format. In addition, the government continues 
to  publish  the citizen-friendly 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 real-time 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 

12 

 
 
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). 

follow-up 

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 
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. 

implementation  of 

to 

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.  

13 

 
 
2.2 

Rule 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 roll-out of 
an electronic case-management 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  case-management  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 2014-2019 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 2016-2018, this was lagging behind. 

14 

 
 
Kosovo lacks a comprehensive strategy for justice sector reforms and a proper mechanism for 
inter-institutional  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 

15 

 
 
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  non-majority 
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 in-service 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  12-month  training 
programme following their appointment. The budget allocated to the Academy increased by 
more  than  20%  from  2017  to  2018.  In-service  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 case-law. 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 

16 

 
 
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  case-management  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  awareness-raising  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 

17 

 
 
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 

18 

 
 
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 victim-sensitive. 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 awareness-raising, 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 

19 

 
 
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 
Anti-Corruption 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 

20 

 
 
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 

is 

The  main  body  for  prevention  remains  the  independent  and  specialised  Anti-Corruption 
Agency.  It 
investigations,  checking  asset 
declarations, monitoring conflicts of interest and public procurement activities, and improving 
awareness. Other bodies with inspecting and auditing powers are the Auditor-General, the tax 
authorities, the customs authorities and the Financial Intelligence Unit.   

tasked  with  conducting  administrative 

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  Anti-Corruption  Coordinator  appointed  by  the  Chief  State  Prosecutor 
and the Police Directorate for the  Investigation  of Economic Crimes  and Corruption, which 
maintains  anti-corruption  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  in-service  training  on  economic 

21 

 
 
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 

22 

 
 
more into line with international standards. It will have to be aligned with the new EU acquis 
on  this  issue.  Strengthened  whistle-blowing  mechanisms  and  protection  requirements  now 
need to be utilised in practice. 

Kosovo  will  need  to  ensure  proper  budgeting,  training  and  awareness-raising  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  decision-making 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. 

23 

 
 
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). 

24 

 
 
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:  

25 

 
 
  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  whistle-blower 
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 
audio-visual  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 

26 

 
 
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 
re-occupation 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 

27 

 
 
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 case-law 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 
policy-making need to be strengthened. The effective implementation of the Law on gender 
equality  is  lagging  behind.  Completion  of  secondary  legislation  aimed  at  institutionalising 
gender-responsive 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  protection,  which 
would consolidate numerous laws regulating actors and defining policies for children, is still 
awaiting adoption by the Assembly. Authorities must ensure that the Law is followed up with 

28 

 
 
an  adequate  budget  and  institutional  ownership.  A  lack  of  funding  for  social  services  and 
monitoring hinders the minimum provision of quality services for the protection of children. 
The government  approved the 2019-2023 Strategy on Children’s Rights  in January 2019.  A 
child and maternal indicators framework was also recently developed to monitor the situation 
of  children’s  rights.  Child  labour  continues  to  be  a  concern  and  inspectorates  and  other 
competent  authorities  are  unable  to  provide  adequate  services  for  the  prevention  and 
elimination  of  child  labour  and  to  address  the  issue  of  children  living  and  working  in  the 
streets. A systemic solution and an institutional response to child begging and child marriage 
among  Roma  and  Ashkali  children  is  still  lacking.  The  education  management  information 
system  has  been  strengthened  with  the  integration  of  a  violence  case  registry  module  and 
early  warning  system  in  30  municipalities,  which  contributes  to  the  implementation  of  the 
protocol for the prevention and referral of violence in schools and prevention of dropout from 
school.  Overall,  however,  efforts  to  prevent  all  forms  of  violence  against  children  remain 
insufficient and the current legal framework does not explicitly prohibit corporal punishment. 
The draft Law adopted by the government would change that. Kosovo does not host children 
in large residential institutions, but has managed to develop alternative forms of protection for 
children without parental care. The subsidies for family housing for children without parental 
care and with disabilities were increased in 2018 by 33% to 66%. There is a lack of services 
and programmes for the prevention and reintegration of child victims of drug abuse. Kosovo 
has continued to make progress on juvenile justice, including the adoption of amendments to 
the Juvenile Justice Code in October 2018, which reduced pre-trial detentions for juveniles in 
conflict with the law from 12 to a maximum of six months. The new Code has increased the 
number  of  available  diversity  measures  for  juveniles.  Kosovo  has  strong  implementation  of 
alternative measures for convicted minors.  

Little progress has been made on the rights of persons with disabilities and their integration 
in  society  remains  a  challenge  due  to  limited  support,  inadequate  health  services  and  poor 
access  to  existing  services.  Physical  access  to  public  buildings,  including  schools,  and 
transport remains  limited for persons with  disabilities.  Inclusive planning  and budgeting  for 
appropriate interventions and service delivery should be pursued for both adults and children. 
The legal framework on mental health is also incomplete. Implementation of the Law on blind 
persons and the Law on the status of the rights of persons with paraplegia and tetraplegia is 
limited. The same applies for the 2013-2023 strategy on the rights of persons with disabilities. 
The National Disability Council should take a more proactive role to improve the wellbeing 
of  persons  with  disabilities  and  promote  their  rights.  Authorities  should  increase  financial 
support to scale up community-based social and health services for children with disabilities 
and increase efforts to integrate them effectively into educational institutions. Girls face more 
challenges than boys as regards access to education. 

On  the  rights  of  lesbian,  gay,  bisexual,  transgender  and  intersex  (LGBTI)  persons,  the 
Constitution protects against discrimination based on sexual orientation. In addition, the 2015 
Law  on  anti-discrimination  covers  both  sexual  orientation  and  gender  identity.  The  new 
Criminal  Code  broadens  the  legal  protection  of  LGBTI  persons  including  incorporating 
gender  identity  as  a  new  aggravation  of  punishments  and  sexual  orientation  and  gender 
identity as new basis for committing incitement to discord and intolerance. Further efforts are 
necessary  to  ensure  the  adequate  implementation  of  the  legislation,  including  through  the 
LGBTI action plan. In October 2018, the second official LGBTI Pride parade was organised 
in  Pristina and was  more widely attended than in  2017. Although the population  and public 
figures  are  becoming  increasingly  conscious  of  LGBTI  rights,  studies  show  that  public 
awareness  and  acceptance  of  those  rights  remain  low.  A  rise  in  hate  speech  was  reported 
during  the  Pride  Week.  More  efforts  are  needed  to  counter  intolerance  towards  LGBTI 

29 

 
 
persons,  as  many  remain  at  risk  of  discrimination  and  violence.  In  addition,  there  are  no 
shelters for LGBTI victims of violence. Cases of hate crime against LGBTI persons are still 
not  always  properly  investigated  and  brought  to  court.  A  legal  framework  for  legal  gender 
recognition should be developed. 

On  procedural  rights,  those  who  are  suspected  or  accused  of  committing  a  crime,  and 
victims of crime have the right to solid protection under Kosovo law. They have the right to 
interpretation and translation, the right to information on their rights, the right to legal aid, and 
the right to communicate with family members, employers and consular authorities. Specific 
amendments  to  the  Criminal  Procedure  Code  should  nevertheless  be  adopted  to  incorporate 
additional  rights  and  guarantees  to  those  suspected,  those  accused  and  victims  of  crime  in 
order  to  comply  fully  with  the  relevant  EU  Directives.  These  amendments  have  nearly  all 
been included in the revised draft Criminal Procedure Code adopted by the government and 
awaiting adoption in the Assembly. The legal aid provision is insufficient in practice to meet 
the obligations of the relevant Kosovo legislation and the requirements of the EU acquis and 
the European Convention on Human Rights and its jurisprudence. About a third of the cases 
investigated by the Ombudsperson in 2018 regard the right to a fair and impartial trial within 
a  reasonable  time.  The  Law  on  crime  victim  compensation  is  broadly  aligned  with  the  EU 
Directive on Compensation for Crime Victims. Authorities should ensure that they meet their 
obligations  to  inform  victims  of  crime  on  all  their  rights,  available  protection  and  right  to 
compensation. Victims’ advocacy officers must provide support to victims of crime in filing 
requests for  compensation and should be  trained  accordingly.  A crime victim  compensation 
programme  has  been  in  place  since  2016.  In  2018,  the  Commission  responsible  for 
Compensation approved 7 requests and dismissed 14.  

Kosovo  has  an  adequate  institutional  and  legal  framework  for  the  rights  and  protection  of 
minorities, including relevant strategies and action plans, but implementation remains weak. 
Greater  coordination  is  needed  at  both  central  and  local  levels  in  support  of  minority 
communities. In order to promote a lasting inter-ethnic co-existence, the government needs to 
step  up  its  efforts  to  create  the  conditions  for  minority  communities  fully  to  exercise  their 
rights.  They  continue  to  face  challenges  regarding  a  secure  environment,  regaining  and 
accessing  property,  civil  registration,  being  able  to  use  their  own  language,  adequate 
provisions for education, employment opportunities and social welfare. 

The Office for Community Affairs under the Prime Minister’s Office focuses in practice on 
implementing  projects  for  minority  communities,  while  its  actual  mandate  is  much  broader, 
including in-depth involvement in policy-making regarding communities’ rights and interests. 
The  budget  of  the  Consultative  Council  for  Communities  in  the  President’s  Office  was 
increased in the reporting period. More use should be made of the Council’s expertise when it 
comes 
implement 
recommendations  based  on  the  Council  of  Europe’s  Framework  Convention  for  National 
Minorities met once in the reporting period. Implementation of the recommendations remains 
limited. 

technical  working  group  set  up 

to  formulating  policy.  The 

to 

The government has yet to approve the 2016 draft Strategy for the Promotion and Protection 
of  Language  Rights  and  the  implementation  of  the  Law  on  the  use  of  language  remains 
limited. Plans by the Prime Minister’s Office to establish a central translation cell to improve 
the quality and cost-effectiveness of translations have not yet materialised. Opportunities for 
learning  a  second  official  language  as  a  subject  remain  practically  non-existent  in  the 
education system, while extracurricular initiatives for language learning among students from 
different  communities  are  still  led  predominantly  by  civil  society  organisations  and 
international  donors.  The  Language  Commissioner  was  reappointed  in  January  2019  for 
another  6-year  term.  His  office  has  the  challenging  mandate  to  protect  and  promote 

30 

 
 
community languages and to ensure the fair use of all languages in Kosovo while less and less 
people speak the language of one of the other communities.  

The  overall  security  situation  for  minority  communities  remains  stable.  However,  there  are 
recurring incidents of property and livestock theft, which frequently affect Kosovo Serbs, as 
well as other minority communities. Such incidents, even when they are not clearly ethnically 
biased, negatively influence the security perceptions of the affected community. In addition, 
cases hindering freedom of movement have affected displaced Kosovo Serbs visiting religious 
sites.  Security  incidents  have  also  affected  non-Serb  communities  in  the  north  of  Kosovo. 
Increased  follow-up  by  judicial  authorities  is  required  in  order  to  bring  the  perpetrators  of 
such  incidents  to  justice.  Relevant  institutions  should  increase  their  efforts  to  record 
accurately  and investigate all potential  ethnically motivated incidents.  Increased recruitment 
of  minority  police  officers  would  contribute  to  an  enhanced  sense  of  security  among  the 
affected communities.   

Although  the  Law  on  the  civil  service  requires  that  10%  of  employees  at  central  and 
municipal levels of government be members of non-majority community, their representation 
remains  limited  and  generally  confined  to  lower-level  positions.  This  applies  especially  to 
smaller non-majority communities. 

The  pace  of  return  and  reintegration  of  refugees  and  displaced  persons  continues  to 
diminish, with 327 individuals returning in 2018. This is also due to the challenges they face 
in fully exercising their rights and lack of conditions for sustainable return (see also property 
rights and rights and protection of minorities). The Inter-Ministerial Commission for Return 
and Community Affairs, which should facilitate return and inter-community relations, did not 
convene in 2018. 

The  situation  of  the  Roma  and  Ashkali  communities  remains  challenging  and,  in  spite  of 
efforts,  they  still  suffer  from  marginalisation  and  discrimination,  with  women  particularly 
affected.  The  poverty  levels  of  these  communities  remain  high  compared  to  other 
communities  in  Kosovo.  Implementation  of  the  2017-2021  strategy  and  action  plan  for  the 
inclusion of the Roma and Ashkali communities in Kosovo society remains weak and policy 
interventions  are  not  systematically  evaluated.  The  coordination  of  government  and  donor 
assistance needs to be improved.  

Some improvements can be noted in the field of education. The enrolment rate at all levels is 
increasing,  although  it  is  still  significantly  below  the  average  and  many  young  Roma  and 
Ashkali  do  not  reach  higher  levels  of  education. The  Ministry  of  Education,  Science  and 
Technology  has  increased  the  number  of  scholarships  for  Roma,  Ashkali  (and  Egyptian) 
students  from  500 to 600 in  the current  academic  year and has allocated funds to the so far 
mainly donor-funded learning centres.  

In the absence of universal  health coverage, Roma and Ashkali communities face particular 
difficulties  to  access  health  services  due  to  their  difficult  socio-economic  conditions.  Only 
access to very basic services is free of charge. 

The  housing  needs  of  the  Roma  and  Ashkali  communities  are  met  mainly  through 
international donor funding. However, in 2018 the government allocated EUR 2.4 million for 
the  construction  of  social  housing  for  Roma,  Ashkali  and  other  vulnerable  communities  in 
selected  municipalities.  Additional  efforts  are  needed  to  facilitate  the  labour  market 
integration of members of the Roma and Ashkali communities. Kosovo has one of the highest 
rates  of  Roma  informal  work  in  the  region.  Access  to  employment  services  and  vocational 
training  provided  by  the  Ministry  of  Labour  and  Social  Welfare  and  other  organisations  is 
limited due to a lack of information. Government institutions should consider increasing the 

31 

 
 
number of employment counsellors from the Roma and Ashkali communities. Efforts need to 
be  made  to  prevent  child  labour  and  child  marriage,  which  affect  girls  in  particular.  Some 
people still face difficulties with civil documentation, often linked to return or repatriation. 

On cultural  rights, work has started on a new  Law on cultural  heritage. Furthermore, after 
almost  two  years  of  inactivity,  the  Implementation  and  Monitoring  Council  met  regularly 
in 2018. In March 2018, the government re-established the Council’s secretariat. The Ministry 
of Culture needs to continue to engage with the Serbian Orthodox Church on ways to support 
the  Reconstruction 
the  reconstruction  of 
Implementation Commission. It needs to ensure that the Church can exercise full discretion in 
the management of its properties, while following legal procedures.  

its  sites,  which  was 

left  unfinished  by 

Some violations were observed with respect to the implementation of the legal framework for 
special  protective  zones  (SPZs).  On  24  April  2018,  the  Ministry  of  Infrastructure  officially 
inaugurated  the  Deçan/Dečane-Plav  (Montenegro)  road  construction  in  the  Visoki  Dečani 
Monastery special protective zone. This triggered reactions from the international community 
in Kosovo and the Serbian Orthodox Church, and generated mistrust and suspicion on future 
road  construction  plans  within  the  zone.  The  works  were  halted  in  May  2018  and  the 
authorities  gave  reassurances  that  no  further  works  would  take  place  without  prior 
consultation with all members of the Implementation and Monitoring Council.     

Continued  vigilance  is  needed  to  safeguard  the  Prizren  Historic  Centre  special  protective 
zone.  In  June  2018,  the  Basic  Prosecution  office  filed  an  indictment  against  the  owner  of  a 
house that was demolished despite being listed as a protected monument. 

2.2.2  Justice, freedom and security 
Kosovo is at an early stage/has some level of preparation in this area. Some progress has 
been made, including in the fight against terrorism, violent extremism and radicalisation. The 
adoption of several laws important to the fight against organised crime marked a significant 
step forward. While more suspicious assets were identified and frozen, no progress was made 
in  making  financial  investigations  and  the  asset  confiscation  system  more  efficient  and 
effective.  The  authorities  continued  to  make  progress  in  managing  regular  and  irregular 
migration.  

Kosovo has partly followed the recommendations of the 2018 report, namely those related to 
the  fight  against  organised  crime,  and 
violent  extremism, 
confiscation-related legislation. Kosovo should continue to strengthen its track record and in 
the following year, it should in particular: 

track  record  on 

the 

  adopt standard operating procedures on conducting financial investigations and measures 
guaranteeing that financial investigations are automatically conducted when dealing with 
organised crime, terrorism, money-laundering and serious corruption cases;  

  ensure  that  all  organised  crime  cases  are  covered  by  the  Joint  Team  for  Selection  and 

Targeting of Serious Crimes; 

  continue implementing programmes on de-radicalisation, rehabilitation and reintegration, 

including through the full operationalisation of the Reintegration Division;  

  make the National Centre for Border Management fully operational, in order to strengthen 
inter-institutional and international cooperation and coordination in the field of migration. 

Fight against organised crime 

Kosovo is at an early stage in the fight against organised crime. Some progress was made, 
notably  through  significant  legislative  reforms  in  the  area  of  the  rule  of  law  (including  the 

32 

 
 
Criminal  Code),  on  the  investigation  and  prosecution  of  high-level  cases  and  on  the 
preliminary  freezing  of  assets.  Final  confiscations  of  assets  remain  low.  There  are  still  few 
financial investigations and final convictions. Measures are needed to ensure there is strictly 
no  political  interference  with  operational  activities  of  law  enforcement  bodies  and  the 
prosecution. The situation in the north of Kosovo with regard to organised crime continues to 
pose  challenges  for 
the 
recommendations  of  the  2018  report,  namely  on  the  track  record,  training  and  hiring  of 
prosecutors,  the  intelligence-led  policing  approach,  and  the  adoption  of  legislative  reforms. 
However,  some  of  the  recommendations  remain  valid,  while  others  will  now  require  robust 
implementation.  

law  enforcement  agencies.  Kosovo  has  partly  followed 

In the coming year, Kosovo should in particular:  

  prioritise the thorough implementation of the revised legislative framework in the area of 
the rule of law, including through training and awareness-raising, to make it an effective 
tool to combat organised crime; 

  further increase the number of prosecutors in the Special Prosecution Office investigating 
and  prosecuting  high-profile  organised  crime  cases,  and  provide  training  to  strengthen 
their capacity to conduct financial investigations, confiscate assets and effectively protect 
witnesses;  

  concretely implement the intelligence-led and community policing approaches, including 
through  more  relevant  criminal  intelligence  reporting  and  improved  tasking  within  the 
police directorates, to enable more proactive policing. 

Institutional set-up and legal alignment 

Key institutions in the fight against organised crime include the Special Prosecution Office 
and  the  serious  crimes  departments  of  the  Kosovo  Basic  Courts.  An  organised  crime 
directorate  (including  a  new  sector  for  cybercrime  investigations)  in  police  headquarters  is 
complemented by specialised units at regional level, assisted by forensic units and the Kosovo 
Forensic Agency. There are 436 Kosovo Police officers per 100,000 inhabitants, compared to 
the  EU  average  of  318  in  2016  according  to  Eurostat.  They  are  relatively  well  trained  and 
equipped,  and  have  modern  IT  infrastructure.  The  Kosovo  Academy  for  Public  Safety 
provides  a  good  level  of  initial  and  in-service  training  for  police  and  public  security  bodies 
such as correctional or customs services. 

Kosovo  Customs,  the  Financial  Intelligence  Unit  (FIU)  and  the  tax  administration  are 
responsible  for  monitoring  and  controlling  the  internal  and  cross-border/boundary  flow  of 
goods, materials and capital that might be involved in any form of organised crime. The FIU 
specifically  assists  with  analysing  and  disseminating  information  on  money  laundering  and 
terrorism financing. It also has the capacity to freeze suspicious financial transactions.  

The  Kosovo  Police  established  the  Asset  Recovery  Office  within  the  Directorate  for 
Economic  Crime  Investigations.  The  Office  should  be  fully  operationalised  and  further 
developed  by  all  responsible  parties,  as  it  has  received  limited  requests  to  date.  There  is 
operational cooperation between police, tax and customs services through mutual access and 
the interoperability of databases. However, faster, more direct access to the relevant databases 
is  needed.  There  is  still  a  need  for  better  cooperation  and  coordination  between  all  the 
institutions. The Special Prosecution Office remains the weakest link. 

Criminal  law  provisions  on  organised  crime  are  broadly  in  line  with  relevant  European 
standards.  The  newly  adopted  Criminal  Code  amended  several  provisions  on  organised 
crime.  It  now  contains  extended  statutory  limitation  periods  for  various  serious  crimes  and 

33 

 
 
increased  penalty  levels  for  corruption  and  many  organised  crime  acts  and  offences.  The 
revision has brought most provisions of the code into line with best European practices and 
the  acquis.  While  the  Criminal  Procedure  Code  was  substantially  revised  and  adopted  by 
the  government,  it  has  not  yet  been  passed  into  law  by  the  Assembly.  The  draft  Criminal 
Procedure  Code  includes  revised  provisions  on  search  and  confiscation,  on  admissibility  of 
evidence,  concerning  the  imbalance  between  the  defence  and  prosecution  at  trial,  on  the 
various appeal possibilities and on the prescribed time period for investigations into cases of 
organised crime and corruption. For related legislative reforms in the rule of law area, see the 
section on the fight against corruption.  

The  Law  on  money  laundering  and  terrorism  financing  is  not  fully  in  line  with  the  EU 
acquis  and  international  standards.  The  main  flaws  in  the  legal  and  institutional  framework 
remain;  i.e.  (i)  the  ambiguity  of  shared  supervisory  responsibility  of  the  financial  sector 
between  the  FIU  and  the  Central  Bank;  (ii)  the  lack  of  targeted  financial  sanctions  and 
measures  to  ensure  full  deprivation  of  terrorists’  assets;  (iii)  significant  deficiencies  with 
regard to the registration, monitoring and oversight of NGOs for the purpose of countering the 
financing of terrorism; (iv) significant  loopholes  in  the supervisory  regime, in  particular for 
the non-banking sector; and (v) uneven and ineffective suspicious transaction reporting in all 
sectors as regards preventive measures (see also section on freedom of movement of capital).  

The  implementation  of  the  Law  on  the  interception  of  telecommunications,  adopted  in 
May 2015,  was  finally  completed  by  May  2018,  with  the  installation  of  the  last  technical 
equipment. However, it remains unclear whether all internet providers are properly connected 
to  the  liaison  unit  in  the  Chief  State  Prosecution  Office.  Legislation  on  cybercrime  is 
generally in line with the EU acquis. The ongoing revision of the Law on the prevention of 
and the fight against cybercrime would benefit from available international experts to better 
respond  to  the  fast-changing  cybercrime  challenges.  Legislation  on  trafficking  in  human 
beings  is  broadly  aligned  with  the  relevant  EU  Directive,  but  implementation  could  be 
improved. 

Central  to  the  strategic  framework  on  the  fight  against  organised  crime  is  the  2018-2022 
strategy and action plan against organised crime. There are additional strategies and action 
plans  in  place  on  arms  control;  the  informal  economy,  money  laundering  and  terrorist 
financing;  terrorism;  the  prevention  of  violent  extremism;  trafficking  in  human  beings; 
narcotics; and cybersecurity.  

The  Kosovo  Police  has  produced  three  serious  and  organised  crime  threat  assessment 
(SOCTA)  reports  based  on  Europol’s  methodology  and  drafts  annual  crime  strategic 
assessment  reports.  It  is  important  that  the  threats  identified  are  translated  into  operational 
priorities backed up with adequate resources. The drafting of the 2016-2018 SOCTA in 2019 
will be an important exercise in this regard.  

Implementation and enforcement capacity 

On  the  track  record  in  the  fight  against  high  level  corruption  and  organised  crime,  the  IT 
tracking  mechanism  for  high-profile  cases,  including  organised  crime,  is  operational  (see 
fight against corruption). By April 2019, a total of 51 cases were included in the track record. 
There have been 38 indictments to date (although two indictments were later merged into one 
single case). Of these, 27 have been in relation to corruption and 11 in relation to organised 
crime. In total, 9 cases have received a final ruling, although none were related to organised 
crime.  In  July  2018,  the  European  Commission  confirmed  that  Kosovo  has  met  the 
benchmark in its visa liberalisation roadmap to strengthen the track record in the fight against 
high level corruption and organised crime. These efforts should continue and the Commission 
will continue to actively monitor the further development of the track record in the future. 

34 

 
 
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. 

Courts  and  prosecution  could  not  provide  consolidated  data  on  the  total  number  of 
indictments and final judgements for the charge of “organised crime” as defined in the United 
Nations  Convention  against  Transnational  Organised  Crime.  As  regards  those  organised 
crime-related  cases  currently  not  included  in  the  track  record,  in  the  reporting  period, 
indictments  were  filed  for  71  persons  and  4  were  found  guilty  in  relation  to  trafficking  in 
human  beings.  Also,  15 persons  were  indicted  and  5  were  found  guilty  for  arms  trafficking 
and 11 were indicted and 4 found guilty for money laundering. Only a fraction of all the cases 
involving  trafficking  in  human  beings,  trafficking  in  arms  and  money  laundering 
simultaneously  also  involve  charges  of  organised  crime.  Police  and  prosecutors  need  to  be 
more  proactive  in  investigating  and  prosecuting  potential  organised  criminal  groups  or 
organisations behind the initial perpetrators. Further efforts are needed to boost the number of 
final convictions for organised crime and organised crime-related cases.  

Police capacity for combating organised crime is good. However, the police are still subject to 
corruption  and  political  pressure,  which  hinder  the  investigation  of  organised  crime.  
Intelligence-led policing remains weakly implemented. A new strategy in this field is being 
drafted  for 2019-2023 and should be adopted soon. The Kosovo Police  Information  System 
(the new analytical tool to help investigate organised crime) is not yet fully utilised. There is a 
need  for  more  specialised  training  sessions  for  all  institutions  involved  in  fighting  more 
complex  organised  crime  and  a  need  for  closer  international  cooperation.  The  Special 
Prosecution Office needs to be strengthened (see sections on the functioning of the judiciary 
and the fight against corruption). 

Kosovo regularly exchanges information with Europol via EULEX and with Interpol via the 
United  Nations  Interim  Administration  Mission  in  Kosovo  (UNMIK).  Kosovo’s  application 
to join Interpol was rejected at the General Assembly meeting in November 2018. A working 
arrangement  concerning  strategic  cooperation  with  Europol  is  being  negotiated.  Kosovo 
Police  participated  in  joint  operations  with  EU  Member  States  under  the  European 
Multidisciplinary  Platform  Against  Criminal  Threats  (EMPACT),  including  operational 
activities related to migrant smuggling and firearms. Kosovo Police cooperates on a bilateral 
basis with some EU Member States. Kosovo has concluded 74 police cooperation agreements, 
including with 18 countries, a number of EU agencies and international organisations. 

Lack  of  trust  continues  to  hamper  effective  implementation  of  witness  protection 
mechanisms.  Regional  and  international  cooperation  need  to  be  improved,  with  more 
agreements  on  allocating  witnesses  abroad  and  sharing  information.  Prosecutors  and  judges 
need more training on how to protect witnesses effectively. 

The  fight  against  money  laundering  and  terrorist  financing  is  not  efficient  enough  to 
produce convincing results. Money laundering is often not prosecuted as a standalone crime, 
but in connection with other criminal offences, which hampers progress in this area. Financial 
investigations are not effective and not conducted systematically in parallel with the criminal 
procedure in corruption and organised crime cases. Inter-agency cooperation and coordination 
have to improve significantly. The Kosovo authorities should follow up on and implement the 
recommendations of recent expert reports (one based on Financial Action Task Force (FATF) 
and the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the 
Financing  of  Terrorism  (MONEYVAL)  standards;  the  other  based  on  the  Group  of  States 
against Corruption (GRECO) standards).  

35 

 
 
In the reporting period, the total value of preliminary asset confiscations rose to almost EUR 
28 million  (compared  to  EUR  10.9  million  in  2017),  while  the  value  of  assets  which  were 
finally  confiscated  amounted  to  EUR  49,394  (compared  with  EUR  700,000  in  2017).  The 
confiscation  of  criminal  assets  should  become  a  strategic  priority  in  the  fight  against 
organised crime, terrorism and high-level corruption in Kosovo. The adoption of the revised 
Criminal  Code,  the  pending  revision  of  the  Criminal  Procedure  Code,  and  especially  the 
adoption  of  the  Law  on  extended  powers  of  confiscation,  are  important  steps  forward  for 
Kosovo’s tools for freezing, managing and confiscating criminal assets, provided the laws are 
implemented effectively. The Law on extended powers of confiscation aligns Kosovo with the 
EU  Directive  on  freezing  and  confiscation.  It  gives  prosecutors  simple  and  robust  tools  to 
confiscate assets without the need to link them directly to  any given offence.  The new Law 
reverses the burden of proof, allowing for the confiscation of property acquired illegally and 
transferred to third persons, and introduces extended powers of investigation for confiscation 
purposes, including through ‘disclosure orders’. The revised legal framework should now be 
properly  implemented  to  produce  results.  Serious  consideration  should  be  given  to 
establishing an asset confiscation fund, which would allocate confiscated funds in part to law 
enforcement and in part to social re-use projects.  

As  regards  arms  trafficking,  Kosovo  is  implementing  its  strategy  and  the  Law  on  the 
legalisation  and  surrender  of  weapons,  ammunition  and  explosive  devices.  A  legalisation 
campaign  for  small  arms  and  light  weapons  is  being  carried  out.  The  Ministry  of  Internal 
Affairs has a database in which it registers all arms imported to Kosovo (these are marked on 
arrival). Kosovo has  signed the roadmap for a sustainable solution  to  the illegal  possession, 
misuse and trafficking of small arms and light weapons and their ammunition in the Western 
Balkans,  in  the  framework  of  the  Berlin  Process,  and  submitted  its  action  plan  within  this 
framework.  A  firearms  focal  point  in  the  Kosovo  Police  is  fully  operational  and  can  be 
regarded as an example of a regional best practice. The involvement of armed groups in arms 
smuggling  is  of  serious  concern.  Kosovo  has  improved  significantly  in  the  fight  against 
firearms trafficking, not only through normal investigation, but also through forensic work.  

Kosovo  remains  a  country  of  origin,  transit  and  destination  of  victims  of  trafficking  in 
human beings, notably for sexual exploitation. In 2018, 13 female victims and 1 male victim 
were identified; all except one were under the age of 18.  

While initial steps have been taken, a more effective law enforcement response focusing on 
the  detection,  traceability  and  prosecution  of  cyber  criminals  remains  to  be  established. 
Cigarette and tobacco smuggling in Kosovo remains at relatively low levels.  

Proactively  fighting  organised  crime  and  corruption  remains  fundamental  to  countering 
criminal infiltration of the political, legal and economic systems. 

Cooperation in the field of drugs 

Institutional set-up and legal alignment 

The 2007 Law on narcotic drugs, psychotropic substances and precursors governs Kosovo’s 
policy  on  drugs.  The  Law  is  being  revised  to  align  it  with  more  recent  EU  legislation. 
Drug-related offences are primarily covered by the Criminal Code. Kosovo’s legal framework 
is  broadly  in  line  with  European  legislation,  but  enforcement  remains  weak.  The  new 
2018-2022 strategy and action plan were approved and budget for. A coordination mechanism 
to prevent and fight drug trafficking and the abuse of precursors is in place. In line with the 
new strategy, a National Drugs Observatory was set  up in  the reporting period, although its 
resources remain limited. The position of head of the Observatory has been vacant since the 

36 

 
 
end of 2018. Kosovo should formally establish an early warning system to follow up on the 
two contact points already in place. Sustainable and routine data collection should be ensured. 

Implementation and enforcement capacity 

Kosovo continues to be a storage and transit country for heroin and cannabis. Around 800 kg 
of  marijuana,  120 kg  of  heroin  and  1 kg  of  cocaine  were  seized  in  2018.  While  marijuana 
seizures  dropped  significantly  compared  to  the  previous  reporting  period,  the  amount  of 
heroin seized rose substantially, mainly due  to  a single police operation  in  December 2018, 
which  seized  113 kg.  Overall,  drug  seizures  remain  low.  Organised  crime  groups  (mainly 
Albanian-speaking)  continue  to  play  a  dominant  role  in  large-scale  heroin  and  cocaine 
trafficking and its subsequent distribution in the EU. Some progress was made in increasing 
police  resources  and  strengthening  inter-institutional  and  international  cooperation.  Kosovo 
needs  to  further  intensify  the  identification  and  dismantling  of  organised  crime  groups 
trafficking  drugs  from  or  through  its  territory,  and  tackling  proceeds  of  crime  that  are 
laundered on its territory. The prosecution remains understaffed and not sufficiently trained to 
efficiently deal with drug-related offences. In the reporting period, there were 2,564 ongoing 
cases  involving  drugs  (concerning  3,394  persons),  1,614  cases  (concerning  2,065  persons) 
were solved and 385 persons were found guilty by the courts. Secure storage has been set up 
for  seized  drugs  awaiting  destruction,  although  a  protocol  for  the  handling,  storage  and 
destruction of drug precursors still needs to be drafted. 

Educational activities and public awareness-raising of the consequences of drug abuse need to 
intensify. The police, community safety officers and teachers continue to receive training on 
the dangers of drug abuse. Addiction treatment and methadone therapy is being offered.  

Kosovo  continues  to  cooperate  with  the  European  Monitoring  Centre  for  Drugs  and  Drug 
Addiction  and  provides  regular  reports  to  it  through  its  designated  focal  point.  Kosovo 
submitted a request at the end of 2018 to sign working arrangements with the Centre. Kosovo 
would benefit from an enhanced involvement in the EU Policy Cycle.  

Fight against terrorism  

Institutional set-up and legal alignment 

The main institutions involved in combating terrorism are the Office of the Prime Minister, 
the  Ministries  of  Internal  Affairs,  of  Justice  and  of  Foreign  Affairs,  the  Police,  the  Kosovo 
Intelligence  Agency,  the  Financial  Intelligence  Unit  (FIU)  and  the  prosecution  service, 
including the Special Prosecution Office. As the Coordinator for Countering Terrorism (CT), 
the  Minister  of  Internal  Affairs  is  in  charge  of  developing  policies  and  strategies  to  combat 
terrorism,  evaluating  strategic  intelligence  and  ensuring  coordination.  The  Coordinator  for 
Countering Violent Extremism (CVE) works in the Prime Minister’s Office.  

The FIU is a crucial part of the system to combat terrorism financing. However, its staff and 
resources should be increased to tackle this phenomenon effectively and they should be given 
the appropriate training. The Kosovo authorities set up an Inter-Institutional Committee for 
the handling of violent  extremism in the reporting period.  It  deals  exclusively with  cases of 
foreign  terrorist  fighters  and  non-combatant  returnees  (women,  children  and  the  elderly). 
Kosovo expressed interest in bringing back its non-combatant citizens from the conflict zone 
in Syria/Iraq and carried out such a return operation in April 2019. 

Kosovo’s legal framework is mostly in line with the EU acquis and international instruments 
on  anti-terrorism.  Kosovo  has  legislation  criminalising  the  phenomenon  of  foreign  terrorist 
fighters in line with UN Security Council Resolution 2178 (2014). The offence of terrorism 

37 

 
 
financing  is  included  in  the  Law  on  combating  money  laundering  and  the  financing  of 
terrorism. However, the Law is still not fully in line with EU and international standards.  

Kosovo has a strategy and action plan against terrorism (2018-2023) and a strategy and 
action  plan  on  the  prevention  of  violent  extremism  and  radicalisation  leading  to 
terrorism  (2015-2020).  The  strategy  against 
the  EU’s 
counterterrorism  strategy.  Governance  in  the  CT/CVE  area  is  highly  complex,  with  the  CT 
and CVE strategies covered by different  bodies, which could  communicate better with  each 
other.  In  a positive step, the authorities recently  appointed a single CT/CVE Coordinator to 
oversee the delivery and implementation of both areas. In the longer term, consideration could 
be given to a merger of the two strategies into a single strategy. A communication strategy 
to  raise  awareness  and  gain  the  wider  support  of  stakeholders  across  society  should  be 
finalised and adopted.  

line  with 

terrorism 

in 

is 

The Kosovo authorities and the EU signed the joint action plan on counter-terrorism for the 
Western  Balkans  in  October  2018.  The  EU  and  Kosovo  will  now  bilaterally  follow-up  on 
priority actions.  

Implementation and enforcement capacity 

Kosovo  has  further  stepped  up  its  efforts  to  fight  terrorism,  including  measures  to  prevent 
violent  extremism.  Since  2016,  there  have  been  no  new  reported  cases  of  Kosovo  citizens 
travelling to the conflicts in Syria/Iraq as foreign terrorist fighters. Since 2012 until today, 
an  estimated  355  Kosovo  citizens  (256  men,  52  women  and  47  children)  left  for  conflict 
zones  in  the  Middle  East,  mostly  as  foreign  terrorist  fighters.  71  children  were  born  in  the 
conflict zone. 242 Kosovo citizens have returned (124 men, 38 women, 80 children), 96 died 
(91 killed, 5 died of other natural causes), and 97 remain in the theatre (47 men, 8 women, 42 
children).  Out  of  the  242  returnees,  110  of  them  (4  men,  32  women  and  74  children)  were 
returned from  the conflict  zone  in an operation organised by the  government in  April 2019. 
Kosovo’s  law  enforcement  and  judicial  institutions  continue  to  respond  robustly  to 
terrorism. The police have arrested a substantial number of people who joined terrorist groups 
since 2012. A significant number of cases ended in convictions. In the reporting period, the 
Kosovo  Police  Terrorism  Directorate  initiated  4  new  cases  for  criminal  offences  related  to 
terrorism and arrested 12 suspects in 5 separate operations, including 6 arrested as a result of 
joint months-long investigations with the Belgian and German authorities. In 2018, final court 
in 
decisions  were  reached 
acquittals). Serious  consideration  should  be  given  to  establishing  a  Joint Threat  Assessment 
Centre, including a threat  level  grading system,  in  order to  keep all agencies and the public 
better informed and to enhance operational responses, including as regards the protection of 
critical  infrastructure.  The  fight  against  money  laundering  and  terrorist  financing  is  not 
effective  enough  to  produce  convincing  results  (see  section  on  the  fight  against  organised 
crime). 

terrorism  cases  (4  ended 

in  convictions  and  2 

in 6 

Despite these efforts, the authorities continue to face the challenge of violent extremism and 
radicalisation.  This  is  stoked  in  part  by  funding  from  foreign  organisations  that  preach 
extremist  ideologies.  Violent  extremist  groups  also  actively  use  social  media  to  spread 
propaganda and recruit followers. Kosovo should step up its efforts to counter these external 
influences,  including  through  increasing  its  investigative  capacities,  countering  terrorist 
content  online,  enhancing  the  resilience  of  local  communities  to  violent  extremism  and 
empowering civil society and faith-based organisations.  It should explore further how it can 
use  existing  local  security  councils,  and  the  pilot  multi-agency  approach  (where  individuals 
are assisted on a case-by-case basis) in the municipality of Gjilan/Gnjilane in the prevention 

38 

 
 
of  violent  extremism  and  radicalisation.  Social,  community-based  responses,  including  a 
gender-based perspective, aimed in particular at marginalised young people, are needed. 

Substantial progress was made in the reporting period with regard to creating better conditions 
for rehabilitation and reintegration. In 2018, the authorities established a programme within 
the Correctional  Service.  In  addition,  the Ministry  of  Internal  Affairs established a Division 
for Prevention and Reintegration of Radicalised Persons and developed a draft reintegration 
programme.  The  authorities  cooperate  with  the  Kosovo  Islamic  Community.  Regarding 
returned  fighters,  a  coherent  judicial  policy  combined  with  a  coordinated  and  dedicated 
approach by the authorities is needed. The performance of the newly established Division in 
the Ministry of Internal Affairs will be crucial in this respect, since it will work closely with 
all  actors  on  reintegration  on  an  individual  basis.  Improved  cooperation  among  law 
enforcement  and  intelligence  services,  especially  across  the  Western  Balkans  region,  is 
needed. The possible link between organised crime and terrorism should be assessed in more 
detail.   

Kosovo  should  focus  on  an  inclusive  educational  system  to  prevent  radicalisation  of 
vulnerable  young  people.  It  has  made  some  progress,  including  through  the  creation  of  a 
teachers’  manual  and  the  extensive  training  of  teachers  (see  section  on  education).  It  is 
actively participating in the Western Balkan Counter-Terrorism initiative (WBCTi). 

Legal and irregular migration 

Institutional set-up and legal alignment 

The Department of Citizenship, Asylum and Migration in the Ministry of Internal Affairs is in 
charge of implementing migration policy. The Directorate for Migration and Foreigners in the 
Kosovo Border Police deals with irregular migrants. Following past legal revisions, the legal 
framework  is  largely  in  line  with  the  acquis.  However,  a  number  of  administrative 
instructions are still awaiting approval. 

Kosovo  has  signed  readmission  agreements  with  24  countries,  including  20  EU  Member 
States and members of the Schengen area. No new readmission agreements were signed in the 
reporting period, but Kosovo sought to launch negotiations for readmission agreements with 
six more EU Member States and three non-EU countries. No agreement exists with the EU as 
a whole.  

The  adoption  of  a  new  2019-2023  strategy  and  action  plan  on  migration  is  pending.  It 
provides  for  an  enhanced  implementation  monitoring  mechanism,  with  contact  points  in  all 
participating institutions under the leadership of the Government Authority on Migration; this 
should  further  improve  the  exchange  of  information  and  inter-institutional  coordination. 
Migration profiles drafted and adopted in 2018 contain an extensive analysis of migration data 
and ‘push’ and ‘pull’ factors, together with recommendations and policy guidance. As a good 
first step, they were used in the formulation of the new strategy and action plan. However, the 
new strategy was drafted without any prior in-depth evaluation of the 2013-2018 strategy. The 
Government  Authority  is  well  positioned  to  take  a  more  proactive  leadership  role.  A  new 
statute for this body is being prepared and should be approved by the government. Its mandate 
should further strengthen its role and clarify its composition and function.  

Implementation and enforcement capacity 

A total of 595 migrants entered Kosovo irregularly in 2018, of whom 518 were sheltered in 
the  asylum  centre.  The  three  main  nationalities  represented  were  Syrian,  Palestinian  and 
Turkish. In all, 46 individuals were detained in the detention centre in 2018, of whom 42 were 
forcibly  returned  to  their  country  of  origin.  Two  asked  to  be  returned  voluntarily  to  their 

39 

 
 
country of origin; these were the first cases of assisted voluntary return from Kosovo. Most of 
the  individuals  were  returned  within  a  reasonable  period  of  time  (between  1  day  and  11 
months). Two were still at the detention centre at the end of 2018. Return operations continue 
to  be hindered by status-related issues. Nevertheless,  Kosovo should make further efforts  to 
establish a return mechanism for irregular migrants, in line with EU standards and practices.  

Providing  proper  care  and  security  for  the  most  vulnerable  groups  of  migrants  remains  a 
challenge. Measures are in place to prevent  migrant smugglers from infiltrating the centre.  
Smuggling networks from Kosovo facilitate secondary movements of irregular migrants from 
entry points along the Balkan route. In the reporting period, the Kosovo Police investigated 21 
cases of migrant smuggling and arrested 20 people.  

There  remain  gaps  in  enforcement,  in  particular  due  to  a  lack  of  coordination  between 
government agencies. Parts of the Department of Citizenship, Asylum and Migration remain 
understaffed,  despite  some  staff  increases.  Over  the  reporting  period,  staff  became  more 
specialised thanks to a number of training courses, ranging from advanced skills for detecting 
falsified  documents, return  escorts,  combating  trafficking  in  human  beings,  screening  and 
assumption of nationalities, to assisted voluntary return and reintegration. However, there is 
still  a  lack  of  sufficient  specialised  staff,  including  in  the  Kosovo  Police  and  the  Asylum 
(Reception)  Centre  and  Detention  Centre  for  Foreigners.  There  have  been  considerable 
improvements  in  data  management,  analysis  and  exchange,  including  the  ability  to  produce 
periodical  reports  based  on  Eurostat 
templates.  The  border  police  needs  further 
capacity-building in relation to protection-sensitive migration. 

Kosovo has a reception facility for irregular migrants in Vranidoll/Vrani Do that can host 70 
people and provide appropriate accommodation for vulnerable groups. Legal provisions are in 
place to uphold the fundamental rights of irregular migrants or foreigners hosted in the centre. 
However,  the  centre  is  facing  some  structural  issues,  mainly  relating  to  improper  housing 
units, a lack of secure areas and a lack of in-house medical facilities. There is also a lack of 
adequate  specialised  supervisory  staffing  to  ensure  basic  rights  and  needs,  especially 
psycho-social  support.  Challenges  remain  as  regards  communication  between  officials  and 
irregular migrants, despite the sharing of interpreters among countries of the region through 
the  Migration,  Asylum  and  Refugee  Regional  Initiative.  The  authorities  should  take  further 
action to find qualified interpreters to service both the asylum and detention centres. 

The readmission agreements with EU Member States and Schengen associated countries are 
being implemented smoothly. The number of asylum requests by Kosovo citizens in both EU 
and Schengen associated countries has fallen steadily, from 73 240 in 2015, 11 970 in 2016, 
7 575 in 2017 to 5 100 in 2018. Mirroring the trend in asylum requests, the overall number of 
Kosovo citizens readmitted has dropped from 18 789 in 2015, 11 030 in 2016, 4 509 in 2017 
to 2 395 in 2018 (1 668 forced and 727 voluntary). Kosovo achieved a return rate of 85.9% of 
Kosovo  citizens  ordered  to  leave  EU  territory  in  2017.  The  lack  of  a  screening  tool  for 
returnees makes it harder to identify vulnerable persons, including victims of trafficking. The 
implementation  of  Kosovo’s  2018-22  reintegration  strategy  and  action  plan  will  require 
proper evaluation. Following the de-centralisation of the reintegration process, municipalities 
continue to  face challenges in  providing services. While municipalities have improved their 
capacities  to  deal  with  reintegration  policy,  their  budget  allocations  are  still  insufficient. 
Overall, 
including  with 
municipalities,  better  cooperation  with  NGOs  and  international  organisations,  and  improved 
systemic  monitoring  and  evaluation.  In  the  reporting  period,  3  165  people  benefitted  from 
sustainable  assistance  services  provided  by  the  Reintegration  Fund.  Further  efforts  are  still 
needed  to  put  in  place  a  gender-sensitive  system  that  reaches  the  most  vulnerable  returnees 
(including  Roma  and  Ashkali)  and  focuses  more  on  sustainable  community  assistance, 

inter-institutional  coordination, 

is  a  need  for  better 

there 

40 

 
 
including  through  services  such  as  income  generation.  Many  returnees  do  not  receive 
sufficient information.  

Asylum 

Institutional set-up and legal alignment 

The institutions for handling asylum requests are in place. The Department for Citizenship, 
Asylum  and  Migration  is  the  first-instance  body  in  the  Ministry  of  Internal  Affairs.  The 
National  Commission  for  Refugees  reviews  appeals.  A  final  judicial  appeal  can  be  lodged 
with the Supreme Court. After rejection of a request for asylum or cessation of procedure, the 
Department’s Division for Return and Readmission is responsible for enforcing the decision. 

Following  past  legal  revisions,  the  legal  framework  on  asylum  is  largely  in  line  with  the 
acquis. However, important secondary legislation in the area remains to be adopted.  

Implementation and enforcement capacity 

For asylum procedures, the competent authorities have improved their capacity to  evaluate 
asylum claims on the basis of the merits of the application, but further training is required to 
ensure  better  assessments  on  merits.  In  addition,  further  capacity  should  be  provided  for 
procedures concerning unaccompanied minors. Interviews are often complicated by the lack 
of adequate interpretation. The number of asylum requests rose to 595 in 2018, from 147 in 
2017, an increase by over 300%. Following the forced deportation of six Turkish nationals at 
the end of March 2018 (see section on fundamental rights), there has been a marked rise of 
asylum requests from Turkish nationals already legally residing in Kosovo. In 2018, a total of 
50 applicants received a positive answer in the form of subsidiary protection; this represented 
a  significant  increase.  However,  Kosovo  is  still  mainly  a  transit  country.  Most  asylum 
requests  are  suspended,  as  applicants  disappear  without  completing  the  procedure.  Kosovo 
has the capacity to obtain and store asylum-seekers’ fingerprints. Although fully effective and 
protection-sensitive entry systems are not in place, no documented instances of refoulement or 
forced return have been identified in recent years. 

Staffing  levels  are  generally  adequate  for  the  number  of  asylum  requests.  However,  the 
Centre  for  Asylum-Seekers,  which 
the  reception,  registration, 
accommodation  and  movement  of  asylum-seekers  within  and  outside  the  Centre,  is 
understaffed.  There  is  also  a  lack  of  psychosocial  and  legal  support,  assistance  with  child 
development  and education, and  support from  social services. Although  a referral  system at 
the border/boundary, including access to legal aid, are provided for in secondary legislation, it 
is not yet in place.   

in  charge  of 

is 

Kosovo has a contingency plan to manage the potential flow of refugees and migrants, which 
is regularly updated. The roles of the various institutions in the plan should be better defined, 
while  institutional  coordination  should  be  improved.  The  reception  centres  identified  in  the 
plan  should  already  be  made  operational  where  possible.  The  European  Asylum  Support 
Office is helping the Kosovo authorities to harmonise practices by implementing the common 
European asylum system and coordinating with the European networks for receptions. 

Visa policy 

Kosovo  has  yet  to  fully  align  its  legislation  with  the  EU  visa    policy.  Under  a  2013 
government  decision,  Kosovo  imposes  visa  requirements  on  nationals  of  88  countries.  The 
number of Kosovo consulates issuing visas remained at 16. In the reporting period, 20 visas 
with a validity of 15 calendar days were issued at borders. The visa-issuing authorities have 
the  capacity  to  collect  biometric  identifiers  digitally  from  visa  applicants,  although  the 

41 

 
 
equipment needs upgrading. All granted visas and rejections are registered in Kosovo’s visa 
information system. 

The citizens of Kosovo remain the only citizens from the Western Balkans that have to apply 
for and obtain a visa to travel to the Schengen Area. A visa liberalisation dialogue started in 
2012.  In May 2016, the  Commission  issued a legislative proposal  for visa liberalisation, on 
the understanding that by the day of its adoption by the European Parliament and the Council, 
Kosovo  would  have  ratified 
the  border/boundary  agreement  with  Montenegro  and 
strengthened  its  track  record  in  the  fight  against  organised  crime  and  corruption.  After  the 
ratification  of 
the 
strengthening  its  track  record,  the  Commission  confirmed  in  July  2018  that  Kosovo  has 
fulfilled  all  the  benchmarks  of  the  visa  liberalisation  roadmap.  It  recommended  that  the 
Council  and  European  Parliament  move  forward  with  the  proposal.  In  March  2019,  the 
European  Parliament  voted  in  support  of  the  Commission  proposal  in  its  first  reading.  The 
proposal  is  pending  in  the  Council.  The  Kosovo  authorities  launched  a  public  awareness 
campaign  on  visa  liberalisation,  which  should  continue  in  order  to  educate  the  population 
about their rights and obligations under potential future visa liberalisation regime. 

the  border/boundary  demarcation  agreement 

in  March 2018  and 

Schengen and borders 

Institutional set-up and legal alignment 

The  National  Centre  for  Border  Management  has  a  joint  intelligence  risk  and  threat 
analysis  unit  collecting  data  and  information  from  the  agencies  responsible  for  integrated 
border management (IBM): police, customs and the Food and Veterinary Agency. The Centre 
is seen as one of the most important elements of Kosovo’s capacity to manage the security of 
its  border/boundary  effectively.  A  clear  political  commitment  is  needed  to  ensure  that  it 
operates to  its full potential,  including through implementation of the findings of the recent 
review through the associated action plan.  

The legislative framework for managing Kosovo’s borders/boundary is  largely in line with 
the  acquis  and  international  standards.  The  2013-2018  IBM  strategy  and  revised  action 
plan are aligned with the 2006 EU approach to IBM. A new IBM strategy and action plan for 
2019-2023 are under preparation. 

Implementation and enforcement capacity 

The Border Department of Kosovo Police is well staffed, with a total of 1 322 officers, and 
generally meets minimum EU standards for border controls. The infrastructure of border 
crossing points has improved and the border management system was completely upgraded. 
However,  its  effectiveness  remains  limited  by  the  lack  of  connection  to  important 
international networks such as Europol’s Secure Information Exchange Network Application 
(SIENA) and Interpol’s I-24/7, due to status-related issues.  

Kosovo has a working arrangement with the European Border and Coast Guard Agency, 
which  enables  close  cooperation  on  irregular  migration,  border  crimes,  border  security  and 
overall border management, including the daily exchange of data since October 2018. Kosovo 
participated actively in the Western Balkan risk analysis network. Inter-agency cooperation 
is  good,  but  it  could  be improved  at  the  highest  level  and  especially  as  regards  information 
exchange and joint risk analysis. A border police anti-corruption strategy is in place, but no 
cases of corruption at the border/boundary have been detected to date. 

On  cooperation  in  the  region,  Kosovo  has  concluded  23  IBM  agreements.  Kosovo  and 
Albania  operate  joint  border  controls,  with  one  Albanian  and  one  Kosovo  border  police 
officer  sharing  a  booth.  Two  common  cross-border  police  cooperation  centres  are  in 

42 

 
 
operation, one with Albania (Vermica) and one with North Macedonia (Hani I Elezit), as well 
as the common trilateral cross-border police cooperation centre (Plave) between Montenegro, 
Albania  and  Kosovo.  The  functioning  and  staffing  of  these  centres  should  be  improved,  so 
that they can operate at their full potential. Interim IBM common crossing-points with Serbia 
continue to be operational. There has been limited progress in establishing the six permanent 
IBM  common  crossing-points  between  Serbia  and  Kosovo,  as  stipulated  in  the  IBM 
agreement  in  the  context  of  the  EU-facilitated  Belgrade-Pristina  dialogue  (See  section  5  -
Normalisation  of  relations  between  Kosovo  and  Serbia).  Additional  measures  need  to  be 
taken to prevent illegal crossings and criminal activities, including corruption.  

Judicial cooperation in civil and criminal matters 

While  Kosovo  is  not  party  to  most  multilateral  treaties  governing  judicial  cooperation  in 
criminal  and  civil  matters,  it  unilaterally  applies  internationally  recognised  treaty  standards. 
As  regards  the  1980  Hague  Convention  on  the  Civil  Aspects  of  International  Child 
Abduction,  the  relevant  cases  are  dealt  with  by  the  Ministry  of  Justice.  Kosovo  unilaterally 
aligned with the 1961 Hague Convention on Abolishing the Requirement of Legalisation for 
Foreign Public Documents.  

Judicial  cooperation in  criminal  matters is  governed by the 2013  Law on international  legal 
cooperation  in  criminal  matters  and  24  bilateral  agreements  with  other  countries.  A  legal 
framework for judicial cooperation in  civil  matters would help clarify rules and procedures, 
and work has been done on the relevant draft Law. With countries with which Kosovo does 
not have a bilateral agreement cooperation is based on the principle of reciprocity. For judicial 
cooperation  in  civil  matters,  Kosovo  issued  199  requests  towards  EU  Member  States  and 
received 173 responses. It  received 364 requests from EU Member States and provided 347 
responses. The 2015 Procedures on Mutual Legal Cooperation agreed between Belgrade and 
Pristina  form  the  basis  for  judicial  cooperation  between  judicial  authorities  in  Kosovo  and 
Serbia.  Most  other  countries  that  do  not  recognise  Kosovo’s  independence  have  voluntarily 
accepted the EU’s facilitating role. However, a lack of cooperation by some non-recognising 
states has been observed, resulting in cases of impunity. Due to status-related issues, Eurojust 
cases can currently only be opened towards EULEX and UNMIK. No cases have been opened 
towards these entities since 2015.  

All aspects of customs cooperation are now covered in Chapter 29 - Customs union. 

Counterfeiting of the euro (criminal law aspects) 

Kosovo is broadly in line with the acquis on the suppression of counterfeit currency, and has 
established  competent  authorities  and  procedures  for  dealing  with  counterfeit  money. 
However,  the  Criminal  Code  is  only  partially  compliant  with  the  relevant  EU  Directive. 
Technical  analysis  of  counterfeit  money  (including  euro  banknotes  and  coins),  in  line  with 
international standards, is mainly carried out by the Forensics Agency within the Ministry of 
Internal  Affairs.  The  Forensics  Agency  has  concluded  an  agreement  with  the  European 
Commission on further cooperation on exchange, assistance and training for the protection of 
the  euro  against  counterfeiting  (the  Pericles  2020  programme)  (See  section  on  Financial 
control). 

43 

 
 
3.  

FUNDAMENTALS FIRST: ECONOMIC DEVELOPMENT AND COMPETITIVENESS 

In  line  with  the  conclusions  of  the  European  Council  in  Copenhagen  in  June  1993,  EU 
accession  requires  the  existence  of  a  functioning  market  economy  and  the  capacity  to  cope 
with competitive pressure and market forces within the Union. 

Economic  governance  has  become  even  more  central  in  the  enlargement  process  in  recent 
years.  The  Commission’s  monitoring  takes  place  in  two  processes:  the  Economic  Reform 
Programme exercise and the assessment (see below) of compliance with the economic criteria 
for  accession.  Every  year,  each  enlargement  country  prepares  an  economic  reform 
programme  (ERP),  which  sets  out  a  medium-term  macro-fiscal  policy  framework  and  a 
structural reform agenda aimed at ensuring competitiveness and inclusive growth. The ERPs 
are the basis for country-specific policy guidance jointly adopted by the EU and the Western 
Balkans and Turkey at ministerial level in May each year. 

3.1.  The existence of a functioning market economy 

Kosovo has made some progress and is at an early stage of developing a functioning market 
economy.  Economic  growth  was  robust  in  2018,  but  the  very  challenging  labour  market 
situation  remains  a  concern.  Labour  market  participation  and  employment  rates  did  not 
improve  as  compared  with  2017.  The  government  adhered  to  the  fiscal  rule,  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.  Despite  strong  growth  of  services  exports,  economic 
diversification has advanced slowly. 

In order to improve the functioning of the market economy, Kosovo should in particular: 

  ensure that the 2020 budget complies with existing fiscal rules, in particular the wage bill 

44 

 
 
 
rule; 

  improve  financial  oversight  and  accountability  of  publicly  owned  enterprises  and 

advancing their privatisation; 

  improve  further  the  access  to  finance  for  SMEs  by  addressing  the  underlying  legal  and 

institutional factors; 

  develop  active  measures  for  increasing  female  labour  market  participation  and 

employment. 

Economic governance 

Kosovo’s  rules-based  policy  framework  supports  fiscal  sustainability.  However,  new 
government initiatives pose risks to macroeconomic stability. Fiscal projections in the 2019-
2021 medium-term  expenditure framework (MTEF) and in the 2019 budget are in line with 
the  fiscal  rule.  At  the  same  time,  the  government  is  engaged  in  fiscal  initiatives,  such  as 
recently  adopted  the  Law  on  salaries  for  public  employees  and  social  transfers  for  specific 
groups 
impact  on 
macroeconomic stability. The policy guidance jointly agreed at the May 2018 Economic and 
Financial Dialogue between the EU and the Western Balkans and Turkey has been partially 
implemented. On the other hand, the recent introduction of 100% tariffs for all goods imports 
originating in Serbia and Bosnia and Herzegovina represents a direct violation of the Central 
European Free Trade Agreement (CEFTA). 

that  create  significant  fiscal  risks  with  a  potentially  negative 

Macroeconomic stability 

Economic  activity  has  been  growing  steadily  since  2015,  but  it  is  constrained  by  a 
narrow  production  base  and  significant  under-utilisation  of  labour.  Based  on  the 
aggregate of four quarters, real GDP growth reached 3.9%.3 In recent years, the economy has 
been  driven  by  public  investment  in  infrastructure  and  private  consumption,  the  latter 
financed  by  large  remittances  from  abroad  and  robust  wage  and  credit  growth.  The 
exceptional  (18.8%)  export  growth 
in 2017,  supported  by  goods  and 
services, slowed to 13.9% in 2018 due 
to  a  temporary  fall  in  base  metal 
exports.  Economic  diversification  is 
proceeding 
slowly.  Merchandise 
exports  remain  dominated  by  base 
metals  and  mineral  products,  which 
still  account  for  around  48%  of  total 
exports.  Services  exports  continued  to 
grow,  mainly 
tourism 
spending by the diaspora.   

linked 

to 

Kosovo’s  per  capita  GDP  is  the  lowest  in  the  region.  It  stood  at  EUR  3,566  in  nominal 
terms in 2017, which is about 26.3% of the EU average4 (the regional average is EUR 4,853). 
However, in terms of average gross wages (EUR 519 in 2016), Kosovo ranks second in the 
region (after Montenegro), which suggests weak competitiveness in an international context. 
Inequalities remain widespread due to a large informal sector, high inactivity rates and high 
wages in the public sector. 

3   The quarter-based annual estimate for 2017 is 3.7%. 
4   World Bank data. 

45 

-8-6-4-20246810201320142015201620172018Kosovo: Real GDP growth and contributions Priv. cons.Gov. cons.GFCFStocksNet exportsreal GDP growthSource: Macrobond, own calculations% y-o-y 
 
                                                           
The traditionally large current account deficit persisted in 2018.  The goods trade deficit 
increased  to  43%  of  GDP,  from  38.4%  in  2017,  pushing  up  the  current-account  deficit 
to 8.1%. This  was driven by strong  growth  in  imports (13.6%  year-over-year  (y-o-y)) and a 
decline  in  goods  exports  (7%  y-o-y).  The  widening  trade  deficit  was  partly  mitigated  by 
positive balances of services and remittances (1.4% and 12% of GDP, respectively). 

On the financing side, net foreign direct investment (FDI) fell by 16% y-o-y in 2018. The 
total  FDI inflow was  3.3% of GDP, covering less than a half of the current-account  deficit. 
The drop in FDI was due to higher repatriation of foreign firms’ profits for debt repayments, 
which  reduced  the  scope  for  reinvestment  of  earnings.  Reserve  assets  continued  to  decline, 
from 4.8 months of imports of goods and services in 2015 to 3.5 months in 2018.5  

Price  developments  are  driven  mainly  by  import  prices  for  food  and  energy.  Average 
annual  inflation  reached  1.1%  in  2018,  as  price  rises  recovered  gradually  over  the  year, 
from  -0.2%  y-o-y  in  January  to  2.9%  y-o-y  in  December.  The  key  driver  was  food  prices, 
which were on the rise from July and hit 5.5% y-o-y in December following the introduction 
of the 100% tariffs on goods imported from Serbia and Bosnia and Herzegovina. 

Despite the lack of progress in revising the war veterans’ benefits scheme, fiscal stability 
was  preserved  in  2018,  but  the  budget  composition  is  not  sufficiently  conducive  to 
growth. The 2018 budget deficit is estimated at 1% of GDP, well within the fiscal rule ceiling 
of  2%,  while  the  overall  fiscal  deficit  stood  at  2.8%  of  GDP.  Annual  growth  of  budget 
revenue  was  5.3%,  while  budget  expenditure  expanded  by 11.2%.  Higher  social  spending, 
caused by the failure to reform untargeted and costly war veterans’ benefits, was partly offset 
by  the  under-execution  of  the  capital  budget.  Spending  on  subsidies  and  transfers  has 
increased rapidly in recent years, reaching nearly 39% of current expenditure in the draft 2019 
budget,  while 
the  composition  of 
benefits shifted away from poverty and 
inequality-focused 
towards 
benefits for particular categories of the 
population.  Apart  from 
the  fiscal 
impact, this has negative repercussions 
on  labour  market  participation  and 
competitiveness. 
regional 
standards,  Kosovo’s  public  debt 
remained  relatively  low  (16.2%  of 
GDP) in 20186, but it has risen steadily 
from nearly 10.6% of GDP in 2014. 

transfers 

By 

Fiscal governance has made some progress with respect to the credibility of the MTEF and 
budgetary projections. The collection of revenue has performed better than the execution of 
expenditure, which reflects a deeply entrenched problem of overspending for social benefits 
and over-optimistic planning of capital expenditure. The macroeconomic forecast underlying 
the  2019  budget  is  still  considerably  higher  than  the  projections  of  other  organisations.7 
Moreover, quarterly GDP figures do not match annual data. 

IMF data. 

5  
6   The  simple average of public debt in the six Western Balkan economies  was estimated at 47.9% of GDP 
in 2018. Kosovo’s public debt does not include its share of the former Yugoslavia’s debt,  which the IMF 
has recently reclassified as contingent liability. 
The 2019 budget assumes real GDP growth of 4.7%, while the IMF and Central Bank of Kosovo forecast 
4.2%. 

7  

46 

05101520-4-2024201320142015201620172018Kosovo: Fiscal developmentsPrimary balance (lhs)Interest (lhs)GG balance (lhs)Public Debt (rhs)Source: IMF% ofGDP 
 
                                                           
Given  Kosovo’s  unilateral  euroisation,  sound  fiscal  and  financial  policies  are  essential 
for maintaining macroeconomic stability. The existing fiscal rule, which provides the main 
anchor for fiscal sustainability, was fully respected in 2018. The planned fiscal  expansion in 
the 2019 budget and likely additional spending, resulting from the recently adopted Law on 
salaries for public employees and from pension supplements for teachers, raise concerns as to 
the sustainability of public finances. Further downside risks stem from the currently discussed 
early  retirement  scheme  for  the  police  and  maternity  benefits  for  unemployed  and 
self-employed women. 

Functioning of product markets 

Business environment 

The number of newly registered and terminated firms is in line  with long-term trends. 
In 2017, the difference between new (9,223) and terminated firms (1,623) stood at 7,600, back 
in  line  with  the  historical  trend  after  an  exceptional  performance  in  2016,  when  the  gap 
widened to 8 048 due to higher numbers on both sides. 

Kosovo made some progress in improving the business environment. While it made some 
improvements as regards registering a business and getting a loan, its overall ranking in the 
World Bank’s Doing Business report fell to 44th in 2018 from 40th a year earlier. Legislative 
changes  contributed  to  a  more  favourable  business  environment.  The  new  Law  on  business 
organisations (adopted in May 2018) improved the provisions on the registration of business 
organisations and corporate governance, and strengthened the rights of minority shareholders. 
A  revamped  electronic  platform  should  speed  up  business  registrations.  The  new  Law  on 
accounting,  audit  and  financial  reporting  (adopted  in  April  2018)  streamlines  reporting 
requirements for companies and defines the interest of public entities in line with the acquis. 

Despite  progress  in  adopting  new  legislation  to  improve  the  business  environment,  the 
private  sector  faces  a  number  of  challenges  related  to  cumbersome  administrative 
procedures,  informality  and  corruption.  With  a  large  number  of  inspectorates,  poor 
coordination of procedures and legal  contradictions, the inspections process  often remains a 
barrier  to  doing  business  in  Kosovo.  A  new  Law  on  inspections  has  been  prepared  and  its 
adoption  and  implementation  would  help  to  address  these  concerns.  Similarly,  the  large 
number  of  licences  and  permits  still  poses  an  administrative  burden  for  businesses.  The 
central  register  for  permits  and  licences  is  still  being  updated.  Slow  and  inconsistent 
adjudication in economic disputes remains a challenge. In 2018, the Kosovo Investment and 
Enterprise Support Agency (KIESA) continued to operate with limited resources and without 
permanent  leadership.  A  further  strengthening  of  KIESA,  particularly  by  reinforcing 
after-care services for foreign investors and operationalising the high-level advisory board for 
the  promotion  of  foreign  investment,  would  be  a  key  step  towards  enhancing  prospects  for 
investments and exports. 

The large informal sector (estimated at around 30% of GDP) creates unfair competition 
and weakens labour rights. In May 2019, Kosovo adopted a revised strategy and action plan 
for fighting the informal economy including measurable indicators to monitor progress in this 
area. 

State influence on product markets 

Kosovo’s  state  aid  policy  is  not  underpinned  by  a  coherent  approach.  The  government 
lacks the compatibility assessment of state aid as well as a comprehensive strategy and cost-
benefit  evaluations  for  aid  and  subsidies  granted.  Most  publicly  owned  enterprises  remain 
reliant  on  public  funding  from  the  budget.  Kosovo  has  yet  to  meet  its  Stabilisation  and 
Association Agreement (SAA) obligations on state aid schemes and alignment with EU rules. 

47 

 
 
Financial support for the economic zones and industrial parks continued without a clear plan 
or  a  transparent  impact  or  gap  analysis,  raising  concerns  on  state  aid  compatibility.  The 
impact of the Law on strategic investment, adopted in 2017, did not visibly affect investment 
in 2018, although 11 investors applied, with investment plans for a total of EUR 1.8 billion. 

Privatisation and restructuring 
Progress in privatisation remained slow.8 Publicly owned enterprises remain inefficient and 
lack  transparency  in  their  financial  reporting  and  recruitment.  After  the  completion  of  the 
board of directors in mid-2018, the Privatisation Agency of Kosovo conducted six asset sales 
from  a  total  of  400  which  are  in  tendering  process.  Twelve  state-owned  enterprises’  assets 
were put into liquidation in 2018, which is very low given the total number of 511 enterprises 
under  the  liquidation  procedure  in  2005-2018.  The  decision  to  freeze  the  privatisation  of 
socially owned land has contributed to delays in the privatisation process. The socially owned 
Trepça mining complex was officially transformed and registered into a joint stock company 
in  March  2019.  Further  steps  to  operationalise  this  transformation  will  require  coordination 
among all affected stakeholders, with the overall aim to revitalise the enterprise. 

Functioning of the financial market 

Financial stability 

The  financial  sector  remained  stable,  with  adequate  capitalisation  and  substantial 
liquidity  buffers.  Profitability  remained  high,  with  return  on  average  equity  (as  of  October 
2018)  standing  at  18.8%  for  the  banking  sector,  18.7%  for  micro-financial  institutions  and 
17%  for  insurance  enterprises.  The  predominantly  foreign-owned  banking  sector,  which 
accounts for 64.8% of financial system assets, remained well-capitalised and liquid, with non-
performing loans standing at  2.7% of total  loans  at  the end of 2018 (the lowest  level  in  the 
region).  The  ratio  of  banks’  regulatory  capital  to  risk-weighted  assets  stood  at  16.1%  in 
October  2018,  well  above  the  regulatory  minimum  of  12%.  Banks  continued  to  be 
predominantly  financed  by  deposits,  but  the  loan-to-deposit  ratio  rose  to  83.9%  in  October 
2018  from  79%  a  year  earlier,  as  the  growth  of  loans  outpaced  deposit  growth.  Despite  the 
increasing activity, insurance and micro-finance companies still do not account for more than 
7%  of  financial  system  assets,  but  the  headline  financial  soundness  indicators  are  at 
satisfactory levels9. 

Access to finance 

Lending has continued to expand, but financial intermediation is still at low levels. Bank 
lending expanded by 11.6% in  January-October from 2017, facilitated by low interest  rates, 
eased  credit  standards,  guarantees  extended  by  the  Credit  Guarantee  Fund  for  lending  to 
SMEs,  and  strengthened  contract  enforcement.  Lending  to  firms  (11.8%)  and  households 
(11.3%)  registered  similar  rates  of  growth.  The  average  interest  rate  spread  declined  to 
5.2 percentage  points  (pps)  in  October  2018,  from  5.8 pps  the  previous  year,  pointing  to 
strengthening  competition  for  lending  opportunities.  Credit  penetration,  at  around  40%  of 
GDP,  is  low  by  Western  Balkan  standards,  and  channelling  savings,  including  remittances, 
through the formal financial system into productive investment remains a challenge. 

8   According to World Bank estimates, the public sector in Kosovo still accounts for around a quarter of gross 

value added (GVA) and employment. 

9   While  the  headline  figure  presents  a  satisfactory  picture,  there  are  a  number  of  issues  in  the  insurance 

sector, as some firms are still in the red and three of them are under-capitalised. 

48 

 
 
                                                           
Functioning of the labour market 

Despite robust economic growth since 2015, labour market conditions remain difficult. 
According to the labour force survey (LFS), labour force participation fell to 40.9% in the last 
quarter of 2018, from 42.8% a year earlier. The participation rate of women stood at 18.4%, 
with  more  than  a  third  of  economically  active  women  (33.4%)  unemployed.  The  overall 
employment  rate  stood  at  28.8%,  as  compared  with  29.8%  a  year  earlier.  The  wide  gap 
between male and female employment rates (45.3% and 12.3% respectively) persisted.  

youth 

Unemployment  slightly  fell  to 
29.6%  from  30.5%.  Persistently 
high 
unemployment 
(55.4%) points to a misalignment 
between  education  outcomes  and 
labour market needs. Brain drain, 
especially  of  educated  young 
a 
people, 
medium/long-term 
economic 
challenge.  Active  labour  market 
pre-qualification 
policies, 
schemes  and  vocational  training 

poses 

also 

programmes remain inadequate. 

The use of social benefits for specific groups of the population do not focus on poverty 
reduction  and  creates  disincentives  to  work.  The  untargeted  war  veterans’  transfers  not 
only undermine the soundness and fairness of the social benefits system, but also risk creating 
a  snowball  effect  whereby  other  specific  groups  request  similarly  generous  allowances, 
e.g. the recently adopted pension supplements for teachers. The relatively high salaries in the 
public sector, in particular in publicly owned enterprises, negatively affect the attractiveness 
of  private-sector  employment  and  exacerbate  the  skills  gap.  The  lack  of  childcare  facilities 
hinders female employment. 

3.2.  The  capacity  to  cope  with  competitive  pressure  and  market  forces  within  the 

Union 

Kosovo has made some progress and is at an early stage in terms of capacity to cope with 
competitive pressure and market forces in the EU. Kosovo made some progress in improving 
road  infrastructure,  but  there  are  large  gaps  in  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. 

In order to improve competitiveness and long-term growth, Kosovo should in particular: 

  increase the provision of vocational education and training for professions in demand; 

  improve energy efficiency incentives for firms and households; 

  make  the  support  schemes  for  renewable  energy  projects  more  cost  efficient,  by 

introducing competitive bidding for renewable support; 

49 

 
 
  ensure  the  implementation  of  the  new  Strategy  and  Action  Plan  2019-2023  to  fight  the 

informal economy in accordance with the prescribed timetable. 

Education and innovation 

The  education  system  is  not  responding  sufficiently  to  labour  market  needs.  While 
Kosovo’s  public  spending  on  education  (4.7%  of  GDP  in  2017)  is  broadly  in  line  with 
middle-income  countries  with  similar  age  profiles,  spending  per  student  in  primary  and 
secondary education is relatively low due to the large proportion of students (double the EU 
average)  and  is  dominated  by  the  wage  bill  for  teachers.  The  enrolment  rates  in  primary 
(96%) and secondary (88.1%) education are high, but low PISA10 scores and relatively high 
unemployment among tertiary education graduates (19.2% in Q2-2018) compared to the EU 
point to the poor quality and relevance of education. The work on vocational education reform 
is  still  at  an  early  stage,  focusing  mainly  on  analysing  the  current  situation  in  vocational 
education training (VET) schools. 

Spending  on  research  remains  virtually  non-existent,  currently  representing  only  0.1% 
of GDP.  A  new  Ministry  of  Innovation  was  established  in  2018  and  EUR  1.1 million  was 
allocated for specific labs and equipment at two regional innovation centres. 

Physical capital and quality of infrastructure 

Kosovo  made  progress  in  public  road  infrastructure  investments.  This  includes  the 
highway to Peja / Peć, the ongoing construction of a section of route 6 and preparatory work 
on  route 7.  Nevertheless,  the  transport  system  still  faces  a  number  of  challenges,  such  as 
inadequate  road  maintenance,  poor  status  of  railways  and  weak  administrative  capacity  of 
regulatory institutions. 

Unreliable energy supply remains a key bottleneck for Kosovo’s economic development. 
The government  has  taken steps to  join the Albanian Power Exchange, but  the new 400 kV 
transmission  line  and  load  frequency  control  with  Albania  are  not  operational,  because  of 
disagreements  between  Kosovo  and  Serbia  on  the  implementation  of  the  connection 
agreement reached in the EU-facilitated dialogue. Kosovo has no domestic gas infrastructure, 
but  a  pre-feasibility  study  on  connecting  Kosovo  and  Albania  to  the  trans-Adriatic  pipeline 
(TAP) project has been completed. The government has concluded a commercial agreement 
with  the  bidder  on  the  construction  of 
lignite 
the  Kosova e Re  500 MW 
power  plant,  which  is  due  to  start  in 
2019.  Following  the  World  Bank’s 
loan 
withdrawal 
guarantee,  financing  arrangements  for 
the  estimated  EUR  1  billion  plus 
project  are  still  to  be  settled.  It  may 
impact  on  public 
have  a  major 
finances,  tariffs  and  the  environment 
and this must be carefully reassessed. 

the  partial 

from 

Boosting  energy  efficiency  and  diversification  from  coal  remain  important  policy 
considerations.  Despite  investment  in  energy  network  infrastructure  (EUR  15 million), 
distribution  losses  remain  high  even  by  regional  standards,  reaching  nearly  24%  in  the  first 
half of 2018. The energy efficiency Law (adopted in 2018) established an Energy Efficiency 
Fund, which will support the relevant measures in public buildings. No progress was made on 

10   OECD programme for international student assessment. 

50 

02004006008001000KO, 2006EU, 2006KO, 2016EU, 201604812Kosovo: Selected indicators relative to populationElectricity production, GWh per 1000 inhabitantsRoad length, km per 1000 inhabitantsRail passenger-km per inhabitant, lhsSource: Eurostat 
 
                                                           
further  energy  efficiency  measures,  such  as  price  deregulation  for  the  household  sector. 
Electricity produced from renewables accounts for 3.2% of total production. 

The  digitalisation  of  the  economy  is  gradually  advancing.  Kosovo  had  achieved  the 
mid-term targets in the 2013-2020 digital agenda for Kosovo by mid-2018, as penetration of 
fixed broadband internet reached 91% and the number of mobile phone users stood at 103% 
of the population. 

Sectoral and enterprise structure 

The  services  sector  continues  to  dominate  the  economy  in  terms  of  GDP  and 
employment.  Wholesale  and  retail  trade  accounts  for  the  biggest  group  of  registered 
enterprises  (23.5%  of  the  total),  followed  by  manufacturing  (9.7%),  accommodation  (9.6%) 
and construction (8.5%). The sectoral structure of gross value added (GVA) shows a steady 
decline in the share of agriculture, from 14% in 2009 to 9% in 2017, followed by shrinking 
contributions  from  public  administration  and  real-estate  activities  (down  from  around  9% 
each in 2014 to around 7.5% in 2017). At the same time, the share of construction increased 
from its long-term average of 6.5% to 8% in 2017. The shares of wholesale and retail trades 
and  industry,  including  mining,  remain  around  their  long-term  averages  (over  12%  each), 
accounting together for nearly a quarter of GVA since 2012. These sectors also employed the 
largest  (quite  stable)  proportions  of  workers  (over  14%  each  over  the  last  four  years).  The 
proportion  of  workers  in  construction  rose  rapidly  from  9.5%  in  2012  to  nearly  13.9% 
in 2017.  Despite  agriculture’s  shrinking  contribution  to  GVA,  employment  in  the  sector 
resurged from 2.3% in 2015 to 4.4% in 2017, suggesting a shift to formal jobs, as this sector 
has a high rate of informal employment. 

Due to the dominance of micro-enterprises, Kosovo’s private sector cannot benefit from 
economies of scale. Although SMEs represent over 99% of registered enterprises, almost all 
of  them  are  micro-firms  employing  1-9  employees,  while  the  proportion  of  larger  firms 
(employing 10-249 workers) is only 1%. The entry into force of the Competitiveness of Small 
and Medium-Sized Enterprises (COSME) Agreement in 2018 should allow the effective use 
of the EU programme to support SMEs. 

Economic integration with the EU and price competitiveness 

The  EU  is  Kosovo’s  largest  trading  partner,  with  41.3%  of  overall  merchandise  trade 
in 2018.  It  is  followed  by  the  CEFTA  parties,  with  29%  of  total  trade.  The  CEFTA  parties 
account  for  nearly  48%  of  Kosovo’s  merchandise  exports  and  30%  go  to  the  EU.  On  the 
import  side,  the  EU’s  share  is  over  40%,  followed  by  28%  from  the  CEFTA  parties.  The 
recent  imposition  of  100%  import  tariffs  for  goods  originating  in  Serbia  and  BiH  is  in 
violation of CEFTA and hampers the development of a Western Balkans regional economic 
area  (REA).  The  EU  has  repeatedly  called  on  Kosovo  to  revoke  this  economically 
counterproductive measure. 

51 

051020102011201220132014201520162017Kosovo: Exports compositionEUCEFTAOtherSource: WiiW% ofGDP020406020102011201220132014201520162017Kosovo: Imports compositionEUCEFTAOtherSource: WiiW% ofGDP 
 
 
The EU remains the main investor in Kosovo. Its share stood at 36% of net FDI stock in 
the  third  quarter  of  2018.  Germany  and  Switzerland  (two  countries  with  large  Kosovar 
diasporas) accounted for 11% each, while a further 13% originated in Turkey. In terms of FDI 
flows  the  share  of  the  EU  was  at  47%  of  total  inflow  in  2018,  followed  by  30%  from 
Switzerland.11 

Overall trade openness increased to 79% of GDP in 2017 from 72% in 2013. Exports of 
goods and services increased from 22% to 27% of GDP due to a significant contribution from 
service exports. These remain dominated by travel services to the diaspora, but IT and other 
business  services  increased,  reaching  almost  10%  of  total  service  exports  in  2018.  Most  of 
Kosovo’s  goods  exports  still  consist  of  basic  raw  materials  and  mineral  products,  reflecting 
limited diversification of the production sector. 

4. 

GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION  

Good  neighbourly  relations  and  regional  cooperation  represent  an  essential  aspect  of 
Kosovo’s process of moving towards the EU. They contribute to stability, reconciliation and a 
climate  that  is  conducive  to  addressing  open  bilateral  issues  and  the  legacies  of  the  past. 
Kosovo maintained its engagement in a number of regional cooperation initiatives, such as the 
South-East  European  Cooperation  Process,  the  Regional  Cooperation  Council,  the  Central 
European Free Trade Agreement (CEFTA), the Energy Community Treaty, 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)  and  the  Brdo-Brijuni  process.  Kosovo  chaired  a  number  of  regional 
activities and events. Kosovo took part in the implementation of the Multiannual Action Plan 
(MAP) for the development of a Regional Economic Area in the Western Balkans, although 
more  attention  is  needed  to  secure  timely  adoption  of  the  incurred  measures  as  well  as 
streamlining regional commitments into domestic policies.  

However, the Kosovo government’s decision to impose a 100% tariff on imports from Serbia 
and Bosnia and Herzegovina has undermined regional cooperation efforts. 

Building  on  the  results  of  previous  summits,  the  July  2018  London  Summit  brought  a 
renewed  commitment  to  the  connectivity  agenda.  Dialogue  with  the  Western  Balkans 
continued in Skopje on the implementation of the Digital Agenda, to which all leaders of the 
region  had  committed  through  a  statement  of  support.  More  particularly  concerning  the 
negotiations on roaming fees, a regional agreement was signed at the Western Balkans Digital 
Summit  in  Belgrade  in  April  2019  enabling  Roam  like  at  Home  (RLAH)  as  of  July  2021. 
Kosovo  participated  in  the  European  Commission’s  regional  conference  on  media  (Media 
Days) in Skopje. Member States and the Western Balkan partners signed the Joint Action Plan 
on  Counter  Terrorism  for  the  Western  Balkans  at  the  Justice  Home  Affairs  Ministerial  in 
Tirana  in  October  2018.  Kosovo  chairs  the  governing  board  of  the  Regional  Youth 
Cooperation  Office  (RYCO)  in  2019.  Conditions  for  meetings  were  not  conducive  to  the 
adoption  of  decisions  necessary  for  the  functioning  of  RYCO.  In  February  2019,  at  the 
Ministerial  Meeting  on  Clean Energy  Transition held  in  Podgorica, the  Ministers of Energy 
and Environment of the Western Balkans committed to adopting concrete measures aiming at 
the implementation of the Paris Agreement and the Energy Community obligations based on 
the  EU  Clean  Energy  for  All  Europeans  Package.  Due  to  the  energy  dispute  with  Serbia, 
Kosovo’s Electricity Transmission Company is still not in a position to take full advantage of 
the regional electricity  market. Kosovo ratified the Transport Community Treaty in  October 
2018. Connectivity projects in the railway sector are under way.  

11   Data for January-October. 

52 

 
 
                                                           
Kosovo  should  urgently  complete  its  process  of  accession  to  the  Regional  School  of  Public 
Administration (ReSPA) Agreement, in  order to  be able to  continue to  benefit from  ReSPA 
activities on an equal footing with other ReSPA members. 

The  unresolved  fate  of  missing  persons  from  the  1990s  conflicts  remains  a  humanitarian 
concern  in  the  Western  Balkans.  As  of  February  2019,  a  total  of  10  247  persons  are  still 
missing across the region, according to the International Committee of the Red Cross (ICRC). 
Of  these  cases,  1  653  (84%  men,  16%  women)  relate  to  the  conflict  in  Kosovo  and  its 
aftermath. The Belgrade-Pristina Working Group on Missing Persons, chaired by the ICRC, 
held  several  sessions  and  in  October  2018  adopted  procedures  on  the  handover  of  human 
remains.  In  November  2018,  Bosnia  and  Herzegovina,  Croatia,  Kosovo,  Montenegro  and 
Serbia  signed  a  framework  plan  to  promote  regional  cooperation  in  addressing  the  issue  of 
persons  missing  from  conflicts  on  the  territory  of  the  former  Yugoslavia.  The  lack  of  new 
information  on  uncovered  gravesites  remains  the  main  obstacle  to  solving  cases.  Kosovo’s 
Government  Commission  on  Missing  Persons  has  conducted  assessment  excavations  in  20 
locations. Only seven cases of missing persons relating to the Kosovo conflict were solved in 
2018.   

Kosovo’s  efforts  in  resolving  the  fate  of  missing  persons  continues  to  be  undermined  by 
inter-institutional  and  administrative  issues.  However,  inter-institutional  coordination  and 
cooperation between the Institute of Forensic Medicine and the Governmental Commission on 
Missing  Persons  improved  in  the  reporting  period.  The  process  of  establishing  a  central 
register  of  missing  persons  has  stalled  again.  The  authorities  still  need  to  adopt  secondary 
legislation  on  the  establishment  of  such  a  register  and  on  the  closure  of  cases,  to  support 
implementation of the Law on missing persons.  

The post of Director of the Institute of Forensic Medicine was finally filled in August 2018. 
The  Institute  still  does  not  meet  the  required  standards  for  sustainable  forensic  practices, 
including  forensic  anthropology  and  archaeology.  More  needs  to  be  done  to  build  such 
capacity and to ensure continuous and sustainable funding of the Institute. Work has started 
on the creation of a functional case-management system. Hundreds of human remains stored 
at  the  Pristina  morgue,  for  which  all  possibilities  for  forensic  action  have  been  exhausted, 
remain unidentified.  

Kosovo’s commitment to maintaining good and constructive bilateral relations in the region 
was put  into question by the  government’s decision to  impose a  100% tax on imports from 
Serbia and Bosnia and Herzegovina.   

Kosovo  has  continued  to  develop  closer  relations  with  Albania.  Trade  between  the  two 
increased  by  slightly  above  20%  in  2018.  A  fifth  joint  government  meeting  took  place  in 
November 2018, with cooperation agreements signed in several areas. In December 2018, the 
governments of Kosovo and Albania signed an agreement entailing simplified procedures for 
border  crossing  and  joint  border  controls.  Under  a  previously  signed  agreement,  a  Kosovo 
customs office was opened in the Albanian port of Durrës, in order to simplify procedures for 
imports into Kosovo transiting through Albania. Any decision with respect to the management 
of border control must be in line with IBM standards. 

There has been no change in Kosovo’s formal relations with Bosnia and Herzegovina, which 
does  not  recognise  Kosovo’s  independence.  A  reciprocal  visa  regime  remains  in  place. 
Relations were negatively affected by Kosovo’s imposition of a 100% tariff on the import of 
goods from Bosnia and Herzegovina in November 2018.  

Kosovo continues to enjoy good relations with  Montenegro. The ratification by the Kosovo 
Assembly of the agreement on border/boundary demarcation with Montenegro in March 2018 

53 

 
 
was  an  important  achievement  and  it  came  into  force  in  June  2018.  An  agreement  on  the 
international transport of passengers and cargo was signed in August 2018. 

There  was  further  progress  in  relations  with  North  Macedonia.  Work  on  the  new 
crossing-point  at  Stancic-Belanoc  started  in  June  2018.  Contacts  between  government 
officials  continued  to  intensify.  Kosovo’s  political  leaders  have  welcomed  the  Prespa 
agreement as a positive contribution to the stability of the region. On 1 June 2018, a protocol 
related to the readmission agreement with North Macedonia entered into force. 

Kosovo has maintained good relations with Turkey and reciprocal high-level visits continue. 
The  arrest  and  forced  deportation  to  Turkey  of  six  Turkish  nationals  legally  residing  in 
Kosovo in March 2018 raised serious questions about the respect of due process (See section 
2.2.1 – Judiciary and fundamental rights).  

5. 

NORMALISATION OF RELATIONS BETWEEN KOSOVO AND SERBIA 

In the framework of the EU-facilitated dialogue, work continued with a number of high-level 
meetings  led  by  High  Representative/Vice-President  Mogherini  with  Presidents  Vučić  and 
Thaçi. This new phase aims to conclude a fully comprehensive and legally binding agreement 
between Serbia and Kosovo, in line with international law and EU  acquis and acceptable to 
EU Member States  and the region.  This  work  was interrupted in  November 2018 following 
the decision by the Kosovo government to impose customs tariffs of 100% on imported goods 
from Serbia and Bosnia and Herzegovina, on political and economic grounds.  

On  the  implementation  of  past  agreements,  further  consolidation  has  been  made  on  the 
implementation  of  the  April  2013  ‘First  agreement  of  principles  governing  the 
normalisation of relations’ with the full implementation of the justice agreement which has 
enabled  the  newly  integrated  judicial  personnel  to  address  the  judicial  backlog  with  their 
judicial colleagues.  

Implementation of the 25 August 2015 Agreements has overall remained slow. No progress 
has been made on the Association/Community of Serb majority municipalities and Kosovo 
has yet to engage constructively in its establishment. The  energy agreement between Serbia 
and  Kosovo  must  be  implemented  without  further  delay  in  order  to  avoid  this  longstanding 
dispute from having further consequences for energy stability and security in Serbia, Kosovo 
and  countries  across  Europe.  Following  the  completion  of  the  registration  of  Elektrosever, 
Serbia needs to file for the licensing process in Kosovo as a matter of urgency. The works on 
the  Mitrovica  bridge  are  completed  and  the  bridge  should  be  opened  to  vehicle  traffic 
without further delay or obstructions. The full implementation of the telecoms agreement has 
enabled the introduction of the new dialling code.   

As regards the Technical Dialogue Agreements (2011-2012), some are not or only partially 
being implemented. Both sides need to remain committed to the continued implementation of 
the agreement on representation and participation of Kosovo in regional forums. The issues 
of cadastre and university diplomas recognition are yet to be solved, as are the licence plate 
related  elements  of  the  agreement  on  freedom  of  movement.  Serbia  has  yet  to  address  the 
issue of re-located Serbian administrative customs structures with Kosovo denomination that 
operate from within Serbia, and to cease the issuance of documentation or affixing of stamps 
with  denomination  that  contravenes  the  related  agreement.  On  IBM,  the  interim  common 
crossing  points  with  Serbia  continue  to  be  operational.  There  has  been  limited  progress  in 
establishing the six permanent IBM common crossing points between Serbia and Kosovo as 
stipulated  in  the  IBM  agreement.  Serbia  did  not  engage  constructively  in  starting  the 
establishment  of  these  crossing  points  on  the  Serbian  side  (in  Jarinje,  Mucibabe,  and 
Konculj). This led to a suspension of EU funds in July 2018. At those hosted by Kosovo (in 

54 

 
 
Tabavije/Bërnjak,  Mutivodë/Mutivode  and  Merdarë/Merdare),  the  construction  at  Tabavije/ 
Bërnjak has never started due to  the failure of  Belgrade to  relocate the  electricity  pylons  to 
allow  for  construction  to  commence.  At  Mutivodë/Mutivode,  all  cooperation  by  Serbian 
technical  representatives  has  stopped  since  March  2018.  Finally,  the  refusal  of  Serbian 
authorities  to  vacate  the  provisional  premises  of  the  Merdarë/Merdare  crossing  point  and 
move into the new ones  significantly delays the traffic and puts at risk the implementation of 
EU-funded  projects.  There  has  also  been  no  progress  in  establishing  the  additional  interim 
common crossing points in Kapi/Kapija Vrapce and Rajetici/Izvor. Additional measures need 
to be taken by Serbia to close illegal crossings.  

Requests  for  mutual  legal  assistance  are  in  principle  being  processed.  In  some  instances, 
cooperation  by  Serbia  in  high-level  investigations  has  not  been  forthcoming.  Mutual  legal 
cooperation is extremely limited in war crimes cases. 

Overall,  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  and  contribute to  the establishment of 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. 

6. 

6.1 

European standards  

Free movement of goods  

Kosovo  has  some  level  of  preparation  on  the  free  movement  of  goods.  It  made  some 
progress  during  the  reporting  period  on  the  overall  legal  framework  and  some  sectoral 
legislation  in  the  “harmonised”  area.  Inter-institutional  coordination  to  enable  the  proper 
enforcement  of  legislation  still  needs  to  improve.  The  capacity  of  Kosovo's  quality 
infrastructure institutions needs to be strengthened. The recommendations in last year’s report 
have been partly addressed and in the coming year, Kosovo should in particular: 

  adopt  the  outstanding  secondary  legislation  relating  to  the  Laws  on  standardisation,  on 
metrology,  on  accreditation  and  on  technical  requirements  for  products  and  conformity 
Assessment;  

  continue  to  ensure  the  implementation  of  the  registration,  evaluation,  authorisation  and 

restriction of chemicals (REACH) Regulation. 

General principles 

With regard to the framework for the production, distribution and marketing of industrial 
products, further steps were taken to align with the acquis, including through the adoption in 
March  2018  of  the  Law  on  technical  requirements  for  product  and  conformity  assessment. 
The  National  Programme  for  Implementation  of  the  SAA  sets  out  the  planning  for  gradual 
approximation with the acquis and its implementation. 

Non-harmonised area 

So far, no action plan is in place to ensure compliance with Articles 34-36 of the Treaty on 
the  Functioning  of  the  European  Union  (TFEU).  A  new  governmental  regulation  on  the 
notification  and  exchange  of  information  on  technical  regulations,  conformity  assessment 
procedures  and  standards  was  adopted  in  January  2019,  with  a  view  to  harmonising  with 
requirements of the acquis. However, the recent Law on consumer protection  diverges from 
the acquis, notably as regards labelling, packaging and a declaration requirement, whereby the 

55 

 
 
seller has to indicate the origin of the product by means of a label with the flag of the country 
of origin. 

The  Ministry  of  Trade  and  Industry  is  the  competent  authority  for  follow-up  and 
implementation of Articles 34-36 TFEU, and has been identified as the body responsible for 
the obligation to notify technical regulations, in line with  the applicable EU requirements 
and international agreements. 

Harmonised area: quality infrastructure 

In 2018, some outstanding key legislation was adopted, providing a legal basis for technical 
regulations,  standards,  conformity  assessment,  accreditation,  metrology  and  market 
surveillance. However, institutional structures need to be strengthened further to fully enforce 
the laws. 

The Kosovo Standardisation Agency has been granted access to selected European standards 
through  licensing  agreements  with  the  European  Committee  for  Standardisation/European 
Committee for Electro-technical Standardisation (CEN/CENELEC). It adopted 554 European 
standards in  the reporting period.  However, obstacles limiting online sales of standards still 
need to be addressed.  

Four  secondary  regulations  have  been  adopted  since  the  entry  into  force  of  the  Law  on 
accreditation  in  2017.  Kosovo’s  accreditation  body  still  needs  to  address  several  non-
conformities to meet the necessary requirements for accession to the Multilateral Agreement 
of the European Cooperation for Accreditation. A Director-General was finally appointed in 
November 2018, but the delay disrupted the accreditation process and undermined confidence 
in the accreditation services. There are currently 39 accredited conformity assessment bodies 
in Kosovo (33 test laboratories and 6 inspection bodies), but their capacity and performance 
need to be strengthened.  

Kosovo  adopted  the  Law  on  metrology  in  March  2018,  as  well  as  secondary  legislation 
designed  to  align  with  the  EU  Directives  on  non-automatic  weighing  instruments  (NAWI), 
pre-packaging and bottles used as measuring containers. Additional secondary legislation on 
metrological  procedures  needs  to  be  adopted  in  order  to  implement  the  Law  and  the  other 
acts. The shortage of qualified staff and equipment undermines full implementation of these 
laws  and  regulations  in  several  sectors.  The  Kosovo  Metrology  Agency  is  a  liaison 
organisation,  pending  associate  member  status,  of  the  European  Association  of  National 
Metrology Institutes (EURAMET) and has taken steps to become an associate member of the 
International Bureau of Weights and Measures (BIPM). 

The main legal basis for market surveillance consists of the Law on Technical Requirements 
for Products and Conformity Assessment and the Law on General Product Safety, designed to 
be aligned with the acquis. However, the market surveillance bodies fail to enforce the laws 
due to a lack of resources and structural weaknesses. The fact that the market inspectorates act 
at  both  community  and  central  level  renders  coordination  difficult.  Inter-institutional 
monitoring has slightly improved with the establishment of the Coordination Body for Market 
Surveillance and the launch of the on-going inspection reform.  

In 2018, a total of 304 product safety inspections identified 16 harmful products, including 3 
types with serious risks; all harmful products were subsequently permanently withdrawn from 
the market. 

56 

 
 
Harmonised area: sectoral legislation 

On  the  “New  and  Global  Approach”  product  legislation,  Kosovo  adopted  legislation  to 
increase its alignment with the acquis on construction products. However, lack of capacity in 
the quality infrastructure prevents its full implementation. 

There  has  been  some  progress  on  alignment  with  the  acquis  on  “Old  Approach”  product 
legislation  and  procedural  measures.  Kosovo  adopted  legislation  designed  to  increase 
alignment with the acquis on pre-packaging and bottles used as measuring containers and on 
textile  labelling  and  mixtures.  It  has  started  aligning  and  further  strengthening  its 
administrative capacities to ensure effective implementation of the REACH Regulation.  

6.2  Movement of persons, services and right of establishment 

Kosovo is moderately prepared for the free movement of persons, services and the right of 
establishment.  Some  progress  was  made  by  enforcing  the  notification  procedure  and 
compliance assessment of draft normative acts falling under the scope of the Law on services. 
The recommendations in last year’s report have been addressed only partially.  

Over the coming year, Kosovo should in particular:  

  remove  the  identified  barriers  to  the  free  movement  of  services,  by  implementing  the 

action plan for the full implementation of the Law on Services;  

  align with the acquis on mutual recognition of professional qualifications;  

  continue to align with the acquis on postal services and further open the postal market. 

On movement of persons, regarding access to the labour market, the Ministry of Labour and 
Social  Welfare  has  issued  343  labour  certificates  for  periods  of  90  days  to  foreign  citizens 
over  the  reporting  period.  On  the  coordination  of  social  security  systems,  the  Kosovo 
Assembly ratified the Social Security Agreements with Belgium and Switzerland in October 
2018.  Kosovo  has  well-functioning  agreements  with  Montenegro  and  North  Macedonia  on 
confirmation of social security periods.  

On  the  freedom  to  provide  services,  the  Law  on  services  complies  only  partly  with  the 
Services  Directive  and  is  not  aligned  with  the  provisions  on  cross-border  services  and 
administrative cooperation. Following last year's screening of sectoral legislation, a five-year 
action plan for the full implementation of the Law on services was adopted in July 2018. It 
involves  amending  54  pieces  of  sectoral  legislation  (25  primary  and  29  secondary  acts)  in 
order to remove outstanding restrictions to the free movement of services by 2022. In March 
2018, the government established a notification procedure to ensure that draft normative acts 
comply  with  the  Law  on  services.  It  obliges  competent  authorities  to  seek  a  positive  legal 
opinion  prior  to  passing  any  future  draft  legislation  falling  under  the  scope  of  the  Law  on 
services. Finally, secondary law provides for the establishment of a Point of Single Contact by 
the  Ministry  of  Trade  and  Industry  in  2019,  to  facilitate  access  to  service  activities  and 
provide service providers with the information they need. In the coming year, Kosovo should 
launch a test phase for a fully functioning Point of Single Contact. 

On the right of establishment, general registration in the Kosovo business registry is binding 
for any individual or company wishing to do business. In a number of regulated professions 
such as law and auditing, there is a need to enrol in a separate sectoral registry or association. 
Foreign service providers are allowed to offer services if they establish an office in Kosovo.  

57 

 
 
Kosovo  has  gradually  aligned  its  legal  framework  on  postal  services  with  the  acquis.  In 
December 2018, a new Law on postal services was adopted by the Assembly, which is partly 
aligned with the EU postal acquis. Secondary legislation for the technical implementation of 
the law and a timetable to move forward with the legislative process should follow. 30% of 
the  territory  is  still  not  covered  by  the  universal  postal  service.  The  weight  limit  for  the 
reserved area is still 100 grams. There are plans to fully liberalise the postal market by 2021.  

On  the  mutual  recognition  of  professional  qualifications,  the  Law  on  the  regulated 
professions  in  Kosovo,  as  adopted  in  October  2016,  is  to  a  certain  degree  aligned  with  the 
acquis,  but  still  needs  further  harmonisation.  The  acquis  harmonises  rules  on  regulated 
professions to ensure the mutual recognition of qualifications and diplomas between Member 
States.  It  identifies  16  professions  as  “regulated”,  the  so-called  sectoral  professions,  (e.g. 
doctors,  dentists,  pharmacists,  veterinary  surgeons,  midwifes,  nurses  and  architects),  for 
which  the  Directive  prescribes  minimum  harmonised  training  and  sets  out  some  generic 
criteria for accessing and exercising them. The secondary legislation has yet to be adopted. In 
2018,  as  part  of  its  restructuring,  the  Ministry  of  Education  established  a  Division  for 
Examinations  and  Regulated  Professions,  which  will  be  responsible  for  organising  state 
exams and for establishing procedures to access regulated professions. 

Building on the progress made, Kosovo needs to continue developing the necessary structures 
and  rules  for  the  recognition  of  professional  qualifications  obtained  abroad,  in  order  to 
guarantee and facilitate the mobility of professionals and services. 

6.3 

Free movement of capital  

Kosovo has some level of preparation in this area. Some progress was made on payment 
services, with the entry into force of an amending regulation on charges for such services. 
Previous  report  recommendations  on  the  equal  treatment  of  EU  nationals  acquiring  real 
estate in Kosovo and on increased efforts to fight economic and financial crime, have not 
yet been addressed.  

In the coming year, Kosovo should therefore:  

  take concrete steps to grant national treatment to EU nationals acquiring real estate in 

Kosovo, in line with the SAA; 

  increase  efforts  to  fight  economic  and  financial  crime  and  align  the  Law  on  the 

prevention of money laundering and terrorist financing with the acquis. 

On  capital  movements  and  payments,  the  movement  of  capital  remains  largely  free  in 
Kosovo, with no restrictions on foreign ownership or on investment in the financial sector. 
Use of the International Bank Account Number (IBAN) is mandatory for both domestic and 
cross-border payments and functions well. The execution of payments and money transfers 
is limited to banking and non-banking financial institutions licensed by the Central Bank of 
Kosovo to perform such activities. 

The  government  has  started  to  address  the  issue  of  real  estate  acquisition  by  foreigners 
focusing  on  the  rights  of  EU  nationals.  A  proposal  to  amend  the  relevant  legislation  is 
scheduled for 2019. 

On payment systems, amendments to the Regulation on the interbank payment system that 
entered into force in August 2018 prohibit the charging of fees for local incoming transfers 
processed through the interbank payment system. 

On the prevention of money laundering and terrorist financing, the authorities conducted 
one general and three sectoral risk assessments in the construction and gambling sector and 

58 

 
 
on  non-profit  organisations.  The  Law  on  the  prevention  of  money  laundering  and  terrorist 
financing  complies  only  partly  with  the  acquis  and  Financial  Action  Task  Force 
recommendations. Inter-institutional cooperation in the fight against economic and financial 
crime must be strengthened to  ensure the proper investigation and prosecution of offences 
(See also section 2.2.2 - Justice, Freedom and Security). 

6.4. 

Financial services  

Kosovo is moderately prepared in the area of financial services. Some progress was made 
in  the  implementation  of  last  year’s  recommendations  with  the  adoption  of  the  Law  on 
accounting, financial reporting and auditing.   

In the coming year, Kosovo should, in particular:  

  fully  implement  and  enforce  Solvency  I  measures;  start  to    implement  Solvency   II 

measures; 

  advance on the incorporation of the Basel III framework (capital requirements Regulation 
and  Directive)  and  start  aligning  the  legal  framework  on  microfinance  institutions  and 
non-bank financial institutions with the acquis; 

  improve  inter-institutional  coordination  to  address  the  issue  of  uninsured,  unregistered 

vehicles.  

On  banks  and  financial  conglomerates,  some  additional  progress  has  been  made  in 
implementing  the  legislation  on  banking  supervision,  which  aims  to  strengthen  corporate 
governance  and  the  management  of  credit  risk.  The  European  Central  Bank’s  single 
supervisory  mechanism  and  the  Central  Bank  of  Kosovo  signed  a  memorandum  of 
understanding in  December 2018 aimed mainly  at  facilitating cooperation and the exchange 
of  information  in  the  field  of  banking  supervision.  The  Central  Bank  of  Kosovo  needs  to 
ensure  that  consumers  are  adequately  protected  and  to  prevent  unfair  banking  practices. 
Kosovo  still  needs  to  establish  an  independent  recovery  and  resolution  authority.  Potential 
changes to the Law on banks to grant this function to the Central Bank must guarantee that the 
authority  operates  with  full  functional  independence  within  the  Central  Bank.  On  the 
harmonisation  of  the  regulatory  framework  with  Basel  II  and  EU  standards,  the  chapter  on 
risk-weighted  exposure  amounts  for  credit  risk  has  yet  to  be  adopted.  The  Central  Bank 
requires banks to maintain a minimum capital adequacy ratio of 12%. The capitalisation level 
of  banks  is  considered  stable  and  well  above  the  required  minimum  capital  adequacy  ratio. 
The  Assembly  adopted  the  Law  on  accounting,  financial  reporting  and  auditing  in  March 
2018.  The  legislation  on  microfinance  institutions  and  non-bank  financial  institutions  is  not 
yet in line with the acquis. 

The Central Bank is Kosovo’s sole authority on insurance and occupational pensions, with 
full  competence  for  licensing,  regulating  and  supervising  insurance  companies  and 
occupational pension funds. Solvency I measures need to be fully implemented and enforced 
and the implementation of Solvency II should start. While the insurance Law is aligned with 
the acquis on the exercise and pursuit of the business of insurance, reinsurance and insurance 
mediation, the oversight and supervision of occupational pension funds needs to be improved. 
Stronger  inter-institutional  coordination  is  required  to  address  the  issue  of  uninsured, 
unregistered vehicles. As Kosovo is still not part of the ‘green card’ system, vehicle insurance 
is  still  required  for  foreign-registered  vehicles  entering  Kosovo  and  vehicles  with  Kosovo 
plates  leaving  Kosovo.  This  is  not  the  case  for  countries  with  which  Kosovo  has  bilateral 
vehicle insurance arrangements. The online sale of border insurance policies started in  May 

59 

 
 
2018  as  a  way  of  simplifying  procedures,  but  it  remains  a  financial  burden  for  frequent 
travellers.  

On securities markets and investment services, market development is at an early stage and 
there is no activity relating to undertakings for collective investment. Activity focuses on the 
government  securities  market.  The  Central  Bank  of  Kosovo  auctions  government  securities 
and maintains records, which are stored and processed electronically in the central depository 
securities system. 

6.5.  Customs  

Kosovo is moderately prepared in the area of customs. There has been  some progress, 
notably  in  enforcing  customs  measures  for  the  protection  of  intellectual  property  rights 
(IPRs). The recommendations in last year’s report have not been fully addressed and in the 
coming year, Kosovo should in particular: 

  further  align  customs  legislation,  including  the  customs  and  excise  code,  with  the 

Union customs code and the excise acquis;  

  step  up  coordination  between  Kosovo  Customs,  law  enforcement  agencies  and  other 

relevant institutions on fighting the informal economy and customs fraud. 

In  the  area  of  customs  legislation,  the  customs  and  excise  code  is  largely  aligned  with  the 
Union  customs  code,  but  further  alignment  is  still  needed.  Kosovo  has  formally  applied  to 
become  an  observer  in  the  Common  Transit  Convention.  It  has  not  ratified  the  Regional 
Convention  on  Pan-Euro-Mediterranean  preferential  rules  of  origin  but  it  applies  its 
provisions. Kosovo Customs continues to participate in the system for the exchange of excise 
data,  which  provides  for  the  systematic  electronic  exchange  of  data  among  Western  Balkan 
economies. The legislation on drug precursors, customs measures governing IPRs and export 
controls for cultural goods is still not fully aligned with the acquis. Some progress was made 
on procedures for authorised economic operators, but further harmonisation is still needed on 
customs  security  aspects.  Inland  customs  terminals  located  in  privately  owned  facilities 
charge a fee to every truck entering the terminal to discharge customs obligations. Such fees 
are not in line with the acquis.   

The  customs  administration  continued 
to  maintain  reasonable  administrative  and 
operational capacity; customs revenues in 2018 were 1.2% higher than in 2017. As regards 
administrative and technical development, Kosovo should consider applying to participate in 
the Customs 2020 programme, which focuses directly on implementing Union law and policy 
in  the  field  of  customs.  Kosovo  Customs’  paperless  approach  and  e-payments  system  have 
helped to eliminate bureaucratic administrative barriers, leading to a streamlining of customs 
clearance procedures.  

Customs’  performance  in  the  fight  against  illegal  cross-border  activities,  including  the 
smuggling of goods, such as narcotics and hazardous materials, continues to show progress. 
Further  efforts  are  needed  to  address  corruption  more  effectively,  including  by  conducting 
more investigations and strengthening checks on asset declarations filled by customs officials. 
The professional capacity of the customs department dealing with  IPRs is improving. In the 
reporting period, Kosovo Customs stepped up efforts to fight IPR infringements. The level of 
informality in the economy is still high and further coordination efforts are needed between 
relevant institutions and law enforcement bodies to fight the informal economy and customs 
fraud.  Further  efforts  are  also  required  to  address  the  backlog  of  unresolved  complaints 
against the customs administration in the fiscal division of the Basic Court in Pristina.  

60 

 
 
Kosovo and Albania signed an agreement entailing simplified procedures for border crossing 
and  the  elimination  of  double  controls.  On  the  basis  of  a  previously  signed  agreement  a 
Kosovo  customs  office  was  opened  in  the  Albanian  port  of  Durrës  in  order  to  simplify 
procedures for imports into Kosovo transiting through Albania.  

6.6 

Taxation  

Kosovo has some level of preparation in the area of taxation. There was some progress 
in  collecting  tax  revenues,  reducing  the  grey  economy,  further  aligning  secondary  tax 
legislation  and  concluding  new  double-taxation  agreements  (DTAs).  However,  the 
decision to introduce a discriminatory excise rate for cigarettes represents a clear violation 
of the SAA. Last  year’s recommendations were partially implemented and in the coming 
year, Kosovo should in particular:  

  withdraw  the  decision  on  discriminatory  excises  on  cigarettes  to  bring  the  legislation 

into line with the SAA; 

  systematically  implement  the  strategy  for  combating  the  informal  economy,  money 
laundering, financing of terrorism and financial crime (2019-2023) and its action plan;  

  increase  cooperation  with  the  existing  judiciary  framework  to  ensure  timely 
adjudication  of  tax  evasion  and  fraud  cases,  and  reduce  the  backlog  of  unresolved 
complaints against the Tax Administration in the fiscal division of the Basic Court in 
Pristina. 

On indirect taxation, the value-added tax (VAT) system is broadly aligned with the acquis. 
Kosovo’s  standard  rate  of  18%  and  reduced  rate  of  8%  are  in  line  with  the  acquis,  but  the 
application  of  the  latter to  supplies  and imports of  IT  equipment  is  not. Following  the  June 
2018 shift to a risk-based approach to refunding VAT, there has been progress in limiting the 
average time for a refund to less than 30 days. VAT reimbursement for goods contained in the 
personal luggage of travellers residing outside Kosovo is still not aligned with the relevant EU 
Directives.  As  regards  excises, 
introducing  a 
discriminatory  rate  for  cigarettes,  in  clear  violation  of  the  SAA.  The  authorities  should 
develop a plan for the tax treatment of evaporation and other kinds of material loss during the 
transportation,  production  or  storage  of  excise  goods.  On  direct  taxation,  transfer  pricing 
between enterprises under common ownership or control is in line with OECD guidelines for 
agreements on the elimination of double taxation.  

the  government  adopted  a  decision 

On administrative cooperation and mutual legal assistance, Kosovo signed one more DTA 
with Austria in 2018, bringing the total number of DTAs to 14 (11 of which had entered into 
force by 2018). It should consider adopting the standards enshrined in the OECD/Council of 
Europe Convention on Mutual Administrative Assistance in Tax Matters.  

On operational capacity and computerisation, modernisation of the tax authorities’ internal 
IT platform (and the utilisation of electronic services) should continue. There has been some 
progress in reducing the informal grey economy, and overall tax revenue collection in 2018 
increased by 10.2% compared to 2017 due to higher tax compliance and tax debt collection. A 
revised  strategy  and  action  plan  to  combat  informal  economy  introducing  qualitative  and 
quantitative indicators to better monitor the progress was adopted in May 2019. The Kosovo 
Tax  Administration  has  developed  a  good  taxpayer  service  focus,  in  particular  with  the 
widespread  use  of  e-filing  and  e-payment  systems.  Field  inspections  increased,  with  the 
Administration  conducting  306  anti-tax  evasion  operations  at  17  locations  in  2018.  Tax 
evasion  to  the  value  of  over  EUR  7  million  was  found  in  the  same  period.  However,  tax 
evasion  and  informality  continue  to  hamper  the  economy  and  further  efforts  are  needed,  in 

61 

 
 
particular  on  risk-based  field  inspections  and  inter-institutional  cooperation.  The  tax 
administration  should  further  strengthen  its  administrative  and  professional  capacity  and 
ensure  merit-based  and  transparent  selection  processes.  Financial  intermediaries  are  only 
required  to  inform  the  tax  authority  about  recipients  of  savings  income  only  when  asked. 
Allegations  of  serious  tax  fraud  need  to  be  properly  investigated.  Additional  efforts  are 
needed to address further the backlog of unresolved complaints against the tax administration 
in the fiscal division of the Basic Court in Pristina.  

6.7 

Competition 

Kosovo is at an early stage on competition. Some progress was made with further legislative 
alignment  and  the  development  of  the  institutional  capacities  of  the  Kosovo  Competition 
Authority. However, the Authority faces challenges as regards its investigative and decision-
making capacity. In the area of state aid, significant efforts are needed to improve legislative 
alignment and enforcement.  The State Aid Commission, whose members were  appointed in 
March 2019, needs to become operational.  

As  last  year's  recommendations  remain  largely  unaddressed,  Kosovo  should  pay  particular 
attention in the coming year to:  

  ensure the functional capacity and operational independence of the competition and state 
aid  institutions  and  increase  cooperation  and  coordination  between  relevant  ministries, 
institutions and stakeholders; 

  complete the alignment of secondary legislation on competition and state aid and ensure 

its enforcement; 

  fulfil SAA obligations regarding the state aid schemes inventory and public undertakings. 

Antitrust and mergers 

The legislative framework  is  broadly aligned  with  Article 101 (restrictive agreements)  and 
Article  102  (abuse  of  a  dominant  position)  TFEU.  The  legal  framework  is  in  place  for  the 
Kosovo Competition Authority to control antitrust and mergers. Amendments to the Law on 
competition are being prepared in line with the acquis. In addition, further progress was made 
by  adopting  secondary  legislation  relating  to  antitrust,  notably  several  administrative 
instructions. 

On  the  institutional  framework,  the  Kosovo  Competition  Authority  is  responsible  for 
implementing  competition  law.  The  Authority  is  governed  by  the  Kosovo  Competition 
Commission,  a  collegial  decision-making  body  appointed  by  the  Assembly.  Formally,  the 
Authority has powers to initiate investigations, conduct on-site inspections, impose fines and 
remedies  and  prohibit  anti-competitive  mergers.  However,  cooperation,  reporting  and 
coordination with government institutions, regulators and ministries should be strengthened.  

As  regards  its  capacity  to  enforce  legislation,  the  Authority  has  adequate  staffing  and  an 
adequate budget. The team requires appropriate training to handle cases more efficiently and 
implement  competition  rules  effectively.  Judges  and  court  staff  dealing  with  competition 
cases and merger control still lack adequate expertise in this field.  

Additional  progress  was made on  implementation,  notably on the adoption  of decisions on 
anti-competitive  agreements,  abuse  of  dominant  position  and  mergers.  The  Kosovo 
Competition  Commission  issued  10  professional  opinions  in  2018.  However,  awareness 
raising and understanding of competition policy among staff and especially judges needs to be 
stepped up significantly.  

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State aid 

The legislative framework is largely in line with the acquis. The Law on state aid is broadly 
aligned with Articles 107 and 108 TFEU. A Regulation on Procedures and Forms of State Aid 
Notification was adopted in October 2018.  

As  regards  the  institutional  framework,  the  members  of  the  State  Aid  Commission, 
responsible for implementing state aid control, were appointed in March 2019. Formally, the 
State  Aid  Department  in  the  Ministry  of  Finance  has  the  power  to  verify  notified  aid 
measures,  prohibit  aid,  carry  out  ex  post  control  of  aid  and  recover  incompatible  aid. 
However,  its  capacity  to  enforce  the  law  remained  inadequate  over  much  of  the  reporting 
period. As a result, there has been no effective enforcement. The State Aid Department has 
not adopted any decisions on state aid in the last five years and has been devoted to drafting 
secondary  legislation.  The  Department  did  not  have  the  capacity  to  screen  existing  aid 
schemes and establish a comprehensive inventory of aid schemes by the SAA deadline (April 
2019). Moreover, the identification of granting authorities is still ongoing, hindering  ex ante 
notifications and ex post control. A number of aid measures, granted at central or local level, 
in particular to large companies in various sectors (e.g. telecommunications) are not notified 
or  properly  investigated.  Awareness  of  state  aid  rules  among  aid  grantors  is  very  weak  and 
must be improved significantly.  

Liberalisation  

The  Law  on  competition  and  the  Law  on  state  aid  are  applicable  to  public  undertakings  in 
Kosovo. The rules on financing services of general economic interest are partly in line with 
the acquis. Monopolies of a commercial nature within the meaning of Article 37 TFEU exist 
in  Kosovo.  The  exclusive  agreement  with  a  private  company  regarding  mandatory  vehicle 
homologation for all imported cars raises concerns. 

6.8 

Public Procurement 

Kosovo has some level of preparation in public procurement. Some progress was achieved 
with  the  further  rollout  of  the  electronic  procurement  platform.  However,  more  efforts  to 
prevent irregularities and corruption during the procurement cycle are necessary. Kosovo still 
needs  to  address  the  weak  capacity  of  public  procurement  institutions  to  administer  public 
procurement, the insufficient monitoring and enforcement of contracts and the weak remedy 
systems, which are all vulnerable to corruption.  

As most of last year’s recommendations remain valid in the coming year, Kosovo should in 
particular:  

  further  align  its  legislation  with  the  acquis  on  public  procurement,  including  on  public-
private  partnerships  and  concessions,  and  ensure  proper  implementation  of  the  Law  on 
public procurement;  

  ensure that the Procurement Review Body (PRB) board is fully operational, and that staff 

capacity limitations are addressed;  

  increase  the  capacity  of  all  public  procurement  institutions  and  the  cooperation  between 
them  to  ensure  consistent  implementation  of  the  public  procurement  regulatory 
framework. 

Institutional set up and legal alignment  

Kosovo's  legal  framework  on  public  procurement  is  broadly  aligned  with  the  2004  EU 
Directives  on  classical  and  utilities  procurement  and  on  concessions  and  public-private 
partnerships.  Further  alignment  with  the  2014  EU  Directive,  including  on  public-private 

63 

 
 
partnerships  and  concessions,  is  still  required.  Relevant  principles  such  as  the  best  price-
quality ratio and full product life-cycle costs are not implemented, as they are not reflected in 
the  relevant  secondary  legislation.  Kosovo’s  legal  framework  has  not  yet  been  aligned  with 
the EU defence procurement Directive. All legal and financial instruments used in the area of 
public  procurement  and  concessions,  including  inter-governmental  agreements  concluded 
with  third  countries,  should  reflect  the  principles  of  transparency,  competition,  equal 
treatment and non-discrimination.  

Kosovo  has  a  strategy  (2017-2021)  and  action  plan  (2017-2019)  to  improve  the  public 
procurement  system. However, there are no arrangements  to  assess its implementation. Key 
objectives  of  public  procurement  are  also  reflected  in  the  2016-2020  Public  Finance 
the 
Management  Strategy.  Concrete  steps,  coordinated  activities  and 
implementation of the strategy and the action plan are lacking.  

timelines  for 

The public procurement institutions consist of three main bodies. The Public Procurement 
Regulatory  Commission  is  responsible  for  the  overall  coordination  and  supervision  of  the 
public procurement system and training. The Central Procurement Agency, under the Ministry 
of  Finance,  is  in  charge  of  central  and  coordinated  purchases.  The  PRB  examines  all 
allegations  of breaches  to  the public procurement  law. These institutions need to  coordinate 
more and face up to major challenges in exercising their functions and duties effectively and 
efficiently. 

Implementation and enforcement capacity 

In 2018, the public procurement share accounted for 9.4% of GDP (EUR 631.6 million). Of 
this,  89%  was  awarded  using  an  open  procedure.  However,  99%  of  public  contracts  were 
awarded  according  to  the  lowest-price  criterion,  rather  than  best  price-quality  ratio  in  line 
with the EU Directive on public procurement. Prices for the same items differ widely between 
contracting  authorities.  The  fact  that  the  contracting  authorities  lack  the  capacity  to  draft 
proper technical specifications, undermines the quality, efficiency, transparency and effective 
implementation and oversight of the procurement cycle. 

All 188 contracting authorities at central and local level have to use the e-procurement system 
for any type of procurement activity. Since January 2019, the electronic submission of bids is 
mandatory  for  all  procurement  types  and  values,  and  physical  submission  is  no  longer 
allowed.  Continuous  training  is  required  to  develop  the  ability  of  both  bidders  (especially 
SMEs) and buyers to use e-procurement. Around 6,000 economic operators and 15,000 users 
are currently registered and actively using the e-procurement system. 

Centralised procurement is mandatory for 14 categories of goods and services listed by the 
Ministry  of  Finance  and  applies  to  agencies  with  fewer  than  50  employees  that  are 
accountable  to  the  Assembly.  However,  the  Central  Procurement  Agency's  staff  and  other 
resources are not sufficient to meet demand. 

Monitoring  of  central  purchasing  activities  remains  particularly  important  due  to  their  high 
value  and  complexity.  Significant  delays  in  the  procurements  undertaken  by  the  Central 
Procurement  Agency  hampered  its  operations.  The  latter  failed  to  conduct  transparent, 
efficient  and  economically  advantageous  procurements  through  centralised  procedures  to 
secure  budget  savings.  The  shortcomings  stem  from  poor  planning  and  a  failure  by 
contracting authorities to conduct market research. Inadequate analysis and collection of data 
adds  to  the  poor  execution  of  contracts.  The  sole  use  of  the  ‘lowest  price’  criterion  when 
procuring  supplies  might  lead  to  higher  life-cycle  costs  and  poor  quality  purchases. 
Monitoring of contract management and implementation is deficient.  

Efficient remedies system  

64 

 
 
The regulatory framework and institutional arrangements are in place for the review of public 
procurement,  including  public-private  partnerships.  The  provisions  of  the  Law  on  public 
procurement on the scope of the review and remedies systems, the time limits for challenging 
decisions, the effects of filing a complaint and the mechanism for ensuring the effectiveness 
of contracts, are broadly in line with the acquis.  

By  October  2018,  the  PRB  had  received  614  complaints  and  reviewed  521  appeals.  Its 
decisions are published on its webpage, but its database is not user-friendly.  

Economic operators have the right to ask the PRB to review their complaints. In the event of 
non-compliance  with  its  decisions,  the  PRB  has  the  power  to  impose  fines  on  contracting 
authorities. Four such penalties were imposed in 2018.  

The PRB is not complete, as two of its five board members have been suspended since June 
2017, due to their indictment in a corruption case. Its staff consists of 18 civil servants and a 
number of external experts. Its decisions, which are made by the board, lack developed and 
consistent reasoning and are not always enforced. 

6.9 

Company law  

Kosovo has some level of preparation in the area of company law.  Good progress was 
made  on  the  2018  recommendations  through  the  adoption  of  the  new  Law  on  business 
organisations  and  the  entry  into  force  of  the  Law  on  accounting,  financial  reporting  and 
audit.  Legislative  changes  continued  to  provide  a  more  favourable  environment  for 
businesses.     

In the coming year, Kosovo should pay particular attention to:  

  ensure  the  proper  implementation  of  the  recently  adopted  Law  on  business 
organisations  and of the  Law on accounting, financial reporting  and audit and ensure 
further alignment in these areas. 

On company law, the Law on business organisations (adopted in May 2018), is partly aligned 
with the acquis. It outlines the role and responsibilities of the Kosovo Business Registration 
Agency  (KBRA)  and  includes  some  provisions  on  cross-border  mergers,  protection  for 
employees,  minority  shareholders  as  well  as  creditors  in  domestic  mergers  and  divisions.  It 
also provides for the adoption of a corporate governance code. The KBRA is responsible for 
online  business  registrations  and  publications,  including  company  financial  statements. 
Businesses can be registered electronically. Further alignment with the company law acquis is 
necessary,  including  on  the  minimum  capital  requirement,  shareholder  rights,  and  company 
takeovers.    

In  the  field  of  corporate  accounting  and  auditing,  the  new  Law  on  accounting,  financial 
reporting and audit was adopted in April 2018 entered into force in January 2019. It is partly 
aligned  with  the  acquis  and  regulates,  inter  alia,  the  responsibilities  of  the  competent 
authorities,  audit  requirements,  qualifications  and  the  licensing  of  accountants  and  auditors. 
Large  entities  must  apply  International  Financial  Reporting  Standards  (IFRS/IAS).  The 
requirement for SMEs to apply the IFRSs for SMEs goes beyond the requirements of the EU 
accounting Directive. The institutional audit oversight structures need to be strengthened, as 
do the professional  independence and objectivity of auditors and audit firms.  A  sustainable, 
long-term solution should be found for the financing of the Public Oversight Board.  

6.10 

Intellectual property law 

Kosovo has some level of preparation in this area. Some progress was made in aligning the 
legal framework with the acquis. The Industrial Property Agency and the Office of Copyright 

65 

 
 
and  Related  Rights  lack  adequate  funding,  staff  and  training.  Significant  efforts  are  still 
needed to ensure implementation, including effective means of enforcing Intellectual Property 
Rights (IPRs), in line with SAA obligations.  

In the coming year, Kosovo should in particular:  

  take concrete steps to increase the capacity and coordination of law enforcement agencies 
to enforce intellectual, industrial and commercial property rights and further align with the 
acquis;  

  address the lack of resources of the Industrial Property Agency and deal with the backlog 

of applications for IPRs; 

  raise awareness of the protection of industrial property rights. 

On copyright and related rights, two legal acts were adopted in 2018 regarding mediation of 
disputes and private copy levies. Mechanisms to issue fees for usage of copyrighted material 
between  collective  management  organisations  and  broadcasters  are  still  needed.  Kosovo 
committed  to  guarantee,  within  five  years  of  the  entry  into  force  of  the  SAA,  a  level  of 
protection of intellectual, industrial and commercial property rights, equivalent to that applied 
in the EU. This obligation is far from being met.  

On  industrial  property  rights,  the  legislative  framework  still  needs  to  be  further  aligned 
with the acquis, including on trade secrets. Some progress was made in reducing the backlog 
of  applications  for  IPRs.  The  Industrial  Property  Agency  continues  to  be  affected  by 
understaffing  and  insufficient  funding.  There  is  a  need  for  a  government  strategy  on  IPRs. 
More  awareness  raising  is  needed  among  IPR  holders  and  users,  mainly  in  the  business 
community.  The  Agency’s  industrial  property  automation  system  database  is  not  yet  fully 
operational. 

On  enforcement,  Kosovo  has  established  the  necessary  institutions,  including  at  Kosovo 
Customs, Kosovo Police, the Market Inspectorate and the Kosovo Prosecutorial and Judicial 
Councils. There is a lack of cooperation between policymaking institutions and enforcement 
institutions,  such  as  judiciary  and  prosecution.  In  2018,  Kosovo  Customs  carried  out  370 
operations  targeting  goods  that  breach  IPRs  –  these  concerned  208,841  items  worth  around 
EUR  2.6  million.  In  364  cases  (concerning  203,504  items  worth  around  EUR  2.4  million) 
action had been brought by the right holders. The remaining 6 operations (5,337 items worth 
EUR 172,075), were undertaken proactively ex officio by customs officials. The value of the 
goods seized was EUR 2.4 million. Overall, the customs department dealing with IPRs needs 
to  be  strengthened,  as  it  comprises  only  two  staff  members.  Capacity-building,  cooperation 
with law enforcement bodies and awareness raising are also needed to implement the recently 
adopted Law on customs measures for the protection of IPRs. An administrative requirement 
to  obtain  police  authorisation  prior  to  the  conduct  of  market  investigations  undermines  the 
effectiveness  of  the  market  inspectorate.  Mechanisms  are  still  needed  whereby  collective 
management  organisations  and  broadcasters  can  determine  the  fees  for  using  copyrighted 
material. This situation has not changed since at least 2014. 

6.11  Social policy and employment 

Kosovo is at an early stage of preparation on social policy and employment. There was no 
progress  during  the  reporting  period.  The  Employment  Agency  is  now  operational  but  its 
ability  to  deliver  services  is  limited.  Fatal  incidents  at  work  are  increasing  and  the  General 
Collective Agreement is still not implemented.  

As  most  of  the  2018  recommendations  have  not  been  implemented,  Kosovo  should  in 
particular: 

66 

 
 
  implement the 2018-2022 strategy for employment and social welfare, and monitor their 

results;  

  amend and enforce the Law on Labour, legislation on health and safety at work and the 

Law on Economic Social Council; 

  as a matter of urgency, take measures to reduce workplace accidents. 

Kosovo still needs to amend the Law on labour to align it with the EU acquis and improve 
its implementation, which is undermined by the low number of inspectors and lengthy court 
procedures. Implementation is most problematic in the private sector. According to the latest 
data from  April  2019, 49.5% of children are registered as benefiting from  social  assistance, 
whereas for children with special needs, this is roughly 10%. As many as 10.7% of children in 
Kosovo are involved in work, of whom 6.8% work in hazardous conditions. The problem is 
particularly pronounced in the Roma and Ashkali communities. Nevertheless, in the reporting 
period, the labour inspectorate did not report a single case of minors engaged in work. Only 
10% of children with disabilities benefit from the appropriate access to health, education and 
social services.   

On  health  and  safety  at  work,  Kosovo’s  legal  framework  covers  to  some  extent  specific 
areas which are regulated by EU Directives. Despite existing health and safety at work rules, 
there has been an increase in the number of fatalities related to workplace accidents from 14 
in 2017 to 21 in 2018. The labour inspectorate does not follow up on these cases properly and 
there  are  concerns  as  to  the  accuracy  of  data  on  workplace  accidents  and  occupational 
diseases,  and  the  under-reporting  of  fatalities.  This  undermines  the  effective  planning  and 
targeting of preventive measures and workplace inspections. As the majority of reported fatal 
accidents  took  place  in  the  construction  sector,  the  labour  inspectorate  should  target  this 
sector  more  effectively.  The  number  of  inspectors  increased  slightly  in  2018,  but  remains 
insufficient. 

On social dialogue, the 2014 General Collective Agreement, which is fundamental in laying 
down  employers’  and  employees’  rights  and  obligations,  is  not  being  implemented.  The 
Economic  Social  Council  has  started  negotiations  on  a  new  Agreement  instead.  The 
amendments to the Law on the Economic Social Council, aiming at improving the capacities 
of the Economic Social  Council, its decision-making process and overall performance, have 
not yet been adopted. Trade union rights, in particular in the private sector, are under pressure.  

On employment policy, the government did not take substantial steps to implement the 2018-
2022  sector  strategy  and  the  action  plan  to  tackle  youth  unemployment.  The  budget 
earmarked for active labour market measures albeit increasing, remains insufficient and still a 
large part comes from the donor community. The Employment Agency is operational but has 
limited  capacity  to  provide  services,  such  as  effective  and  efficient  active  labour  market 
measures.  The Agency is participating in  a bench-learning exercise based on the experience 
developed by the European public employment services network. 

High  inactivity  and  very  low  employment  remain  among  the  key  challenges.  The  overall 
activity rate stood at 40.9% in 2018 and the employment rate was low, at 28.8%. In addition, 
unemployment  was  still  very  high,  at  29.6%  in  2018.  It  continues  to  be  higher  for  women 
(33.4%) than for men (28.5%). The employment rate for women is only 12.3%, compared to 
45.3%  for  men.  Only  25.5%  of  the  employed  have  permanent  work  contracts,  while  74.5% 
work on temporary contracts. Unemployment is most prevalent among  young people (15-24 
years), of whom 55.4% are unemployed. Rates of unemployment are even higher, above 90%, 
in the Roma and Ashkali communities. The members of these communities usually work in 
the informal sector, holding insecure, low-skill and low-status jobs. Only few are registered as 

67 

 
 
unemployed. 

There  were  no  developments  as  regards  preparations  for  the  use  of  the  European  Social 
Fund (ESF). 

On  social  inclusion  and  protection,  Kosovo  has  a  legal  and  institutional  framework  for 
social  service  delivery  but  limited  financial  resources  and  human  capacities  and  a  lack  of 
proper  planning  by  public  institutions  (in  particular  municipalities)  result  in  inadequate 
provision of social services to the most vulnerable population. This is aggravated by a general 
lack of data collection on population numbers broken down by gender, age groups, ethnicity, 
ability and vulnerability.  

Municipalities are unwilling to allocate sustainable and long-term financing to the provision 
of social services. A provision earmarking specific funding from the general grant for social 
services  should  be  included in the upcoming draft Law on local finance.  This  grant,  to  be 
implemented  through  a  specific  financial  formula,  is  aimed  at  improving  the  funding  and 
long-term sustainability of social service delivery by the public and non-governmental sector. 
Municipal authorities have made limited progress in adopting three-year social housing plans 
and  this  had  prevented  the  central  authorities  from  concluding  a  Kosovo-wide  strategy  on 
social housing. 

Overall spending on social protection has risen significantly in recent years, mainly because 
of increases in pensions and war-related benefits. Furthermore, the expansion of programmes 
targeting  specific  population  groups  have  crowded  out  spending  of  the  social  assistance 
targeting  the  poor,  which  is  both  low  and  declining.  In  November  2018,  the  Assembly 
approved the Law on social enterprises, which aims to promote employment among socially 
vulnerable categories.  

On social inclusion, the municipalities do not have an integrated interdepartmental approach 
to  service  coverage,  so  as  to  take  appropriate  account  of  the  needs  of  the  most  vulnerable 
groups, in particular children. Kosovo needs to ensure that children with disabilities are able 
to  attend  public  schools alongside  their  peers.  Despite  poor  labour  market  outcomes  among 
marginalised  Roma  and  Ashkali  communities,  Kosovo’s  latest  revised  action  plan  on  the 
integration  of  these  communities  does  not  include  measures  specifically  targeting  these 
communities in active labour market policies, as is usual in the region. The proportion of the 
budget  allocated  to  promoting  their  inclusion  in  employment  is  also  low.  Increasing  female 
participation in the labour market, including among women from marginalised communities, 
should be a priority. The proportion of Kosovo’s population living below the poverty line has 
been  decreasing,  but  it  is  still  high,  at  17.6%.  The  General  Council  for  Social  and  Family 
Policy, in charge of licensing providers of social services, including foster care, has not been 
functioning effectively. There has been no progress in licensing new providers of foster care 
for children in need. 

As for non-discrimination in employment and social  policy, secondary legislation for the 
implementation  of  the  Law  on  Protection  from  Discrimination  has  not  been  adopted.  The 
authorities  must  address  discrimination  against  women,  especially  as  regards  hiring 
procedures in the private sector. In the reporting period, the Ombudsperson received a similar 
volume  of  cases  as  in  previous  years,  but  the  number  of  ex  officio  investigations  on 
discrimination grounds has doubled. Institutions continue to perform poorly in processing and 
investigating cases of discrimination. 

On  equality  between  women  and  men,  women  continue  to  experience  various  forms  of 
gender  discrimination.  Kosovo  should  reform  the  system  of  maternity  and  parental  leave, 
which presents an obstacle to the hiring of women, particularly in the private sector. Limited 

68 

 
 
access  to  child  care  and  to  flexible  work  arrangements  are  also  considered  barriers  to 
women’s  employment,  as  formal  options  for  care  beyond  maternity  leave  are  limited,  and 
family-friendly schedules are often not available. 

6.12  Consumer and health protection 

Kosovo is at an early stage of preparation in this area. There has been limited progress on 
consumer protection, notably by adopting the Law on consumer protection.  

In the coming year Kosovo should: 

  increase the involvement of civil society on consumer protection and consumer rights and  
adopt  the  necessary  secondary  legislation  for  the  enforcement  of  the  Law  on  consumer 
protection and coordinated market surveillance;  

  allocate more financial resources to  health, to  allow implementation  of the health sector 
reforms, including further roll-out of the electronic public health information system and 
to meet overall recommendations for funding health systems. 

The Law on consumer protection (adopted in June 2018) aims to regulate market conditions 
in  consumer-business  relations,  product  labelling,  price  indicators,  consumer  protection  in 
relation to contracts and the administrative and judicial protection of consumers. It is designed 
to  align Kosovo legislation  partly with  the  acquis, except  for the mortgage  credit Directive. 
However, the Law diverges from the acquis, notably on labelling, packaging and a declaration 
requirement that obliges the seller to indicate the origin of a product by means of a label with 
the  flag  of  the  country  of  origin.  A  total  of  11  pieces  of  secondary  legislation  need  to  be 
adopted  within  a  year  of  the  Law’s  adoption  in  order  for  it  to  be  enforceable.  Enforcement 
practices  have  not  yet  been  specified.  The  Central  Bank  needs  to  develop  a  complete 
framework for consumer credit.  

The new Law provides a legal basis for the advisory role of civil society organisations. The 
review of consumer complaints is not working properly due to lack of coordination among the 
various authorities in charge, which leads to difficulties in the assessment of complaints. 

With  regard  to  issues  relating  to  product  safety,  the  Law  on  technical  requirements  for 
products  and conformity assessment (approved in March 2018) further aligns the legislative 
framework with the acquis on the marketing of products and is designed to be fully aligned 
with the acquis on market surveillance. It lays down a more transparent and efficient system 
for market surveillance and supervision. 

No developments were noted on non-safety related issues. Although the Law on consumer 
protection  addresses  consumers’  economic  interest,  it  is  not  properly  enforced  due  to 
understaffing Consumer Protection Department and weak consumer organisations. 

On  public  health  policy,  the  Law  on  health  insurance  has  not  yet  been  amended. 
Implementation  of  the  communication  strategy  in  support  of  the  Law  has  been  further 
delayed. The start of premium collection has been further postponed.  

The  first  semi-annual  monitoring  and  evaluation  report  on  the  implementation  of  the 
2017-2021  action  plan  for  the  health  sector  strategy  was  adopted  in  November  2018.  No 
progress was registered in areas identified in the health sector strategy as shortcomings: low 
levels of productivity of health institutions, lack of reliable data and lack of adequate funding 
for  monitoring.  Around  20%  of  the  population  have  no  access  to  health  services  due  to 
extreme poverty. High level of private expenditure (estimated at 40 % of total medical costs) 
mean that the most vulnerable groups are disproportionately affected. 

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Public spending on health should be further increased. In January 2019, it was estimated that 
60%,  up  from  40 %  in  2016  of  annual  public  healthcare  needs  were  covered.  The  allocated 
funds  are  used  mainly  to  cover  fixed  costs,  leaving  less  for  direct  patient  costs  (diagnosis, 
treatment,  and  prevention).  Health  financing  continues  to  be  predominantly  based  on 
historical  expenditure.  Institutional  accountability  has  not  increased  and  no  incentives  have 
been introduced to improve productivity, efficiency and quality in the health sector.  

The comprehensive Law on tobacco control is still not enforced, because of a lack of political 
will and the poor performance of implementing authorities. 

On blood, tissues, cells and organs, a law on blood and blood components was adopted in 
August 2018 but, like the 2014 law on the transplantation of tissues and cells, it is only partly 
aligned with the acquis. Further alignment will depend on allocation of the necessary human 
and financial resources, and administrative and monitoring capacity.  

In the field  of  serious cross-border health  threats, including communicable diseases,  no 
progress was made in aligning with the acquis. Immunisation is lower than in previous years. 
Vaccination rates among school-age children are reported to vary between 95% and 98%. No 
updated antimicrobial  resistance action plan was adopted, and control on the prescription of 
antibiotics  to  prevent  antimicrobial  resistance  has  not  improved.  The  European  Centre  for 
Disease  Prevention  and  Control  conducted  an  expert  assessment  mission  in  Kosovo  in 
October  2018  in  the  field  of  communicable  diseases,  which  noted  weak  implementation  of 
primary legislation and an absence of secondary legislation. 

Kosovo's legislation is not aligned with the EU’s acquis on patients’ rights in cross-border 
healthcare.  The  Ministry  of  Health  has  delayed  the  further  development  and  rolling  out 
across all health institutions of the electronic health information system (eHIS) based on the 
European core health indicators which would capture data on patient admissions, discharges 
and  transfers.  Further  functionalities  (pharmacy,  pathology,  radiology,  blood  transfusion, 
vaccination and other interventions) need to be added to the system and coverage needs to be 
expanded  to  support  evidence-based  health  care  policy.  Kosovo  citizens  can  benefit  from 
special resources from the Health Insurance Fund for health services abroad, when specialist 
health  services  are  unavailable  in  Kosovo.  Kosovo  has  signed  agreements  with  Albania, 
Croatia and Turkey on implementing certain medical services, which are now accessible for 
its citizens. However, the available funds (EUR 6 million) cover only 45 % of the needs of the 
population.  

No  progress  has  been  made  in  aligning  Kosovo's  legislation  concerning  medicines  for 
human and veterinary use.  

Health  promotion  regarding  non-communicable  diseases  remains  weak.  A  strategy  on 
health promotion and education was prepared in 2018 and is due to be adopted in 2019. With 
regard  to  cancer  screening,  a  2014-2020  cancer  programme  is  in  place.  Registration  of 
cancer-related deaths is incomplete due to gaps in the legal framework and deficiencies in the 
administrative  procedures  in  the  civil  registration  system.  Funding  for  systematic  cancer 
screening is inadequate and there is an overall lack of reliable data on cancerous diseases. 

There  is  no  specific  legislation  on  nutrition  and  physical  activity.  A  nutrition  action  plan 
has been revised and is awaiting adoption by the government. 

No progress was made in addressing health inequalities. Kosovo does not provide universal 
health insurance and out-of-pocket spending for health services remains high. Around a third 
of the population still has no easy access to health care services or only limited access due a 
lack of funds. For economic reasons, around 18 % do not seek medical services in the event of 
illness. The  Roma  and  Ashkali communities remain a  concern  as regard immunisation. The 

70 

 
 
distribution  of  information  on  public  services  and  the  incidence  of  discrimination  have  not 
improved and this has a negative impact on access to health services.   

6.13  Education and culture 

Kosovo  is  at  an  early  stage  of  preparation  in  the  field  of  education  and  culture.  There  was 
limited  progress  in  the  past  year  and  the  quality  of  education  needs  to  be  improved 
considerably.  

As  the  previous  report’s  recommendations  have  not  been  addressed,  in  the  coming  year 
Kosovo should in particular: 

  adopt  the  new  Law  on  higher  education,  which  ensures  the  autonomy  and  independent 
operation  of  higher  education  institutions  and  quality  assurance  mechanisms,  based  on 
best standards;  

  improve access to quality education for pre-school enrolment and disadvantaged groups; 

  finalise  the  implementation  of  the  new  curricular  framework  for  primary  and  secondary 

education; 

  increase the provision of vocational education and training for professions in demand. 

On education and training, public spending on education (4.7% of GDP) should be managed 
more efficiently to provide a large number of young people with quality education. 

Enrolment  in  primary  and  lower  secondary  education  is  almost  universal  (95.6%)  and 
upper secondary overall enrolments stands at 85%. The number of children aged 0-5 attending 
licensed pre-school institutions remains very low (4.9%), some 19.1% attend preschool and 
pre-primary  (0-6  years),  while  92.4%  attend  the  pre-primary  year  (5-6  years).  Kosovo  has 
continued  to  invest  in  public  childcare  facilities,  but  enrolment  rates  have  not  yet  increased 
significantly.  Many  children  attend  private  childcare,  including  preschool  and  private 
institutions,  particularly  in  the  capital.  The  enrolment  rates  are  still  far  below  the  2020 
education and training targets of 95%. Data provided so far by the institutions are not reliable, 
not easily accessible and do not account for a large number of private pre-school institutions. 
The proportion of students in  higher education is nearly double the EU average. However, 
the graduation rate is low. Unemployment among university graduates is still relatively high, 
despite having declined to just above 20% in the last quarter of 2018, suggesting a mismatch 
between  higher  education  programmes  and  labour  market  needs.  The  Accreditation  Agency 
for  Higher  Education  takes  account  of  the  2015  European  standards  and  guidelines  and 
largely bases its internal policies on them.  

In  January  2018,  the  Kosovo  Assembly  instructed  the  Ministry  for  Education  to  take  all 
necessary measures to get the Agency readmitted to the European Quality Assurance Register 
for Higher Education, from which it had been excluded since September 2017 due to political 
interference. In June 2018, the Minister for Education appointed a new board for the Agency, 
following  an  open  competition  and  approval  by  the  Assembly.  Progress  on  securing  the 
Agency’s re-admittance to the European Quality Assurance Register for Higher Education is 
supposed to be addressed in the first half of 2019.  

Kosovo’s  qualifications  framework  is  based  on  the  European  Qualifications  Framework. 
Education (especially higher education) remains a high-risk sector for corruption and political 
influence.  Media  and  civil  society  organisations  continually  expose  cases  of  plagiarism  and 
academic  promotions  based  on  political  influence  and  nepotism  rather  than  merit,  often 
involving  professors  in  senior  management  positions.  A  lack  of  transparency  in  recruiting 
teachers and managing staff remains an issue across all educational institutions.  

71 

 
 
The  government  has  approved  the  draft  Law  on  higher  education  but  it  still  needs  to  be 
adopted by the Assembly. The law on the Education Inspectorate was adopted in July 2018. 
There  is  not  enough  progress  on  meeting  the  2017-2021  Kosovo  Education  Strategic  Plan 
targets  and  the  government  allocated  only  half  of  the  resources  necessary  for  its 
implementation.  A  functional  review  identified  problems  in  the  Ministry  of  Education’s 
structure and capacities that prevent it from moving forward with the many reforms that are 
needed. The new organisational structure has been approved, but not yet implemented.  

The government  needs to  implement  the quality  assurance strategy  and establish the quality 
assurance  mechanisms  at  municipal  level.  The  implementation  of  curriculum  reform  is 
undermined by a lack of qualified teaching  staff, teaching materials  and supplies, combined 
with an under-developed student assessment system. Kosovo needs to strengthen its training 
system  to  improve  the  quality  of  pre-  and  in-service  education.  The  quality  of  education 
continues to be a challenge at all levels.  

Around  half  of  all  students  in  upper  secondary  education  choose  vocational  education. 
Vocational education and training (VET) programmes lack practical and applied courses, with 
a  still  insufficient  number  accredited  by  the  National  Qualifications  Authority.  Overall,  the 
link  to  the  labour  market  remains  weak.  Kosovo  should  increase  the  quality  of  VET 
programmes  and  qualifications  also  by  developing  new  profiles  that  match  labour  market 
needs and are taken on board by the private sector. 

More efforts are needed to provide children with disabilities with access to quality education. 
The  first  cohort  of  54  assistants  for  children/students  with  special  needs  graduated  in  June 
2018.  At  present  there  are  only  83  support  teachers  for  children  with  disabilities;  they  are 
engaged and paid by families, rather than the education system.  

Measures should be taken to address the high dropout rate among Roma and Ashkali children, 
including by supporting and facilitating the work of the Learning Centres.  

Since  January  2018,  Kosovo  has  been  able  to  participate  in  all  activities  of  the  Erasmus+ 
Programme and join platforms and networks. Almost 2 000 students and staff from Kosovo 
have been involved in the exchanges since 2015. Institutions from Kosovo participated in 20 
capacity-building  projects  in  the  field  of  higher  education,  in  four  of  them  as  coordinating 
partners.  

Kosovo  participated  in  the  OECD  PISA  in  2018,  with  results  due  to  be  published  in 
December 2019. Kosovo will also participate in the Trends in International Mathematics and 
Science  2019  and  Progress  in  International  Reading  Literacy  Study  2021  international 
assessments.  

On culture, Kosovo needs to continue its work to meet the standards of the 2005 UNESCO 
Convention  on  the  Protection  and  Promotion  of  the  Diversity  of  Cultural  Expressions  and 
develop a track record showing good practice. In 2018, it joined Creative Europe as a partner 
in the culture sub-programme.  

On youth, the local antenna of the Regional Youth Cooperation Office (RYCO) continues its 
work and participated in or organised more than 30 events in 2018.  

Kosovo participated for the first time in the European Week of Sports by organising a large 
number of sports activities.    

6.14  Science and research 

Kosovo is at an early stage of preparation for science and research. Limited progress was 
made in the field of innovation.  

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In the coming year, Kosovo should in particular: 

  ensure higher government spending on research and seek to stimulate investment from the 

private sector by completing a Smart Specialisation Strategy; 

  focus efforts on increasing participation in the EU’s Horizon 2020 programme; 

  provide statistical  data on numbers of researchers, percentage of GDP spent on research 

and innovation, and performance related to the European Research Area priorities. 

Kosovo has made efforts to develop its research and innovation policy. However, the Law 
on scientific research activities is not being implemented due to lack of funding. Government 
spending on research amounts to only 0.1% of GDP. Kosovo has made some efforts to spend 
this limited amount more efficiently (e.g. building lecture rooms and laboratories, addressing 
plagiarism).  In 2018, EUR 1.1 million  was allocated for specific labs and equipment  at  two 
regional  innovation  centres.  In  higher  education,  the  quality  of  post-graduate  programmes 
preparing  for  research  careers  is  poor,  with  both  private  and  public  higher  education 
institutions  applying  very  uneven  criteria  for  promotion  based  on  scientific  research  and 
publications. Since the last Research Strategy expired in 2016, Kosovo has not developed new 
strategic  targets  to  support  the  development  of  research  activity.  The  new  Ministry  of 
Innovation  and  Entrepreneurship  should  build  up  its  administrative  capacity  and  adopt  an 
innovation  strategy  linked  to  the  Smart  Specialisation  Strategy  in  close  coordination  with 
other ministries.  

There has been no progress on integration into the European Research Area. Kosovo needs 
to submit reliable statistics to monitor progress in this field. 

On  framework  programmes,  Kosovo  participates  in  the  EU’s  Horizon  2020  research  and 
innovation programme (H2020) as a third party. It has so far participated in 11 Horizon 2020 
projects (10 in 2017 and a new one in 2018). The level of Horizon 2020 participation remains 
below  Kosovo’s  potential.  Kosovo  has  already  taken  some  initial  actions  to  improve  its 
Horizon  2020  performance  and  in  particular,  through  more  training,  better  linking  of 
researchers,  an  improved  National  Contact  Points  network,  exchanges  of  best  practices  and 
mentoring with other countries. Kosovo needs to continue and further strengthen these efforts.  

6.15  Trade issues  

Kosovo  is  at  an  early  stage  of  preparation  in  this  area,  with  some  progress  over  the  past 
year concerning trade relations with the EU. However, its decision to impose 100% tariffs on 
goods imports originating in Serbia and Bosnia and Herzegovina is in violation of the Central 
European  Free  Trade  Agreement  (CEFTA)  and  hampers  the  development  of  a  regional 
economic  area  (REA)  in  the  Western  Balkans.  The  EU  has  repeatedly  called  for  the 
revocation of this measure, which is also economically counterproductive.  

In the coming year, Kosovo should in particular: 

  implement  actions  under the multi-annual  action plan for the development  of a REA. In 
particular ratify and implement CEFTA Additional Protocol  5 on trade facilitation, adopt 
and  implement  Additional  Protocol  6  on  trade  in  services  and  negotiate  Additional 
Protocol 7 on dispute settlement; 

  strengthen  the  administrative  capacity  of  the  Ministry  of  Trade,  in  particular  in  view  of  

regional commitments on trade.  

73 

 
 
Kosovo  is  at  an  early  stage  of  preparation  for  applying  for  WTO  observer  status.  A 
memorandum on the foreign trade regime has been prepared for adoption by the authorities. 
In July 2018, the new Law on trade safeguard measures on imports has been adopted, with the 
aim of aligning with WTO rules.  

Some  progress  was  achieved  as  regards  the  free  trade  area  with  the  EU,  but  Kosovo  could 
improve opportunities for its exporters by making full use of trade preferences granted under 
the SAA. Kosovo abolished customs duties on a number of tariff lines, including industrial, 
agricultural  and  fishery  products.  Remaining  duties  will  be  reduced  progressively  in  the 
period to 2025. While the overall volume of trade with the EU continued to increase, and the 
positive trend in the export of services was maintained in 2018, the overall trade deficit with 
the EU grew wider.  

Kosovo continued to implement a multi-annual action plan for the development of a REA in 
the Western Balkans, aimed at deepening and widening economic integration in the region, on 
the  basis  of  EU  rules  and  standards.  In  the  first  part  of  2018,  Kosovo  authorities  played  an 
active  and  constructive  role  within  CEFTA,  which  helped  the  parties  to  reach  a  technical 
agreement  on  the  mutual  recognition  of  authorised  economic  operators,  and  on  the 
functioning  of  the  CEFTA  secretariat.  In  July,  however,  it  introduced  (and  then  revoked) 
unjustified  protective  measures  on  the  imports  of  dairy  products  and  fruit  and  vegetables. 
Moreover,  in  November,  Kosovo  imposed  100%  import  tariffs  on  goods  originating  from 
Serbia and Bosnia and Herzegovina, citing political and trade grievances. The measure goes 
against Kosovo’s obligations under CEFTA and undermines regional cooperation objectives, 
including the REA. 

Kosovo  remains  the  only  CEFTA  party  that  has  not  ratified  Additional  Protocol  5  (trade 
facilitation).  It  has,  together  with  the  other  CEFTA  parties,  to  adopt  Additional  Protocol  6 
(trade in services). It also has to appoint a negotiator and adopt a mandate for the negotiation 
of Additional Protocol 7 (dispute settlement mechanism). The government has approved the 
initiative  for  signing  the  Joint  Declaration  on  Cooperation  with  the  European  Free  Trade 
Agreement (EFTA) countries.  

6.16  Enterprise and industrial policy  

Kosovo  is  moderately  prepared  in  this  area.  It  made  some  progress  on  improving  the 
business environment. It intensified efforts to review and simplify business-related legislation 
through  the  updated  Better  Regulation  Strategy.  There  is  a  need  to  build  up  administrative 
capacity further and ensure stronger inter-ministerial coordination.  

The recommendations from the 2018 report were not fully implemented. In the coming year, 
Kosovo should in particular: 

  improve SMEs’ uptake of business support services by redesigning the schemes provided 
by  the  Kosovo  Investment  and  Enterprise  Support  Agency  (KIESA)  and  establish  an 
investor aftercare unit;  

  continue  implementing  the  recommendations  in  the  EU  Small  Business  Act  (SBA) 

assessment; 

  ensure the alignment of the Law on economic zones with the acquis. 

On enterprise and industrial policy principles, the new private sector development strategy 
incorporating industrial policy has yet to be adopted. However, the draft strategy is limited to 
sectors under the responsibility of the Ministry of Trade and Industry, and suitable synergies 
need to  be ensured with other relevant  policies such as energy,  education, and research and 

74 

 
 
development.  Much  stronger  coordination  is  needed  among  the  relevant  ministries  and 
agencies  responsible  for  enterprise  and  industrial  policy.  The  adoption  of  an  innovation 
strategy  is  still  pending.  Kosovo’s  Council  for  Innovation  and  Entrepreneurship  has  been 
charged with  coordinating the development a smart specialisation strategy.   

Kosovo  has  amended  its  Better  Regulation  Strategy,  which  provides  for  the  replacement  of 
the current system of ‘concept documents’ for drafting policy and legislative proposals by an 
impact assessment system, which would take greater account of the administrative burden on 
SMEs.  Kosovo’s  Economic  Reform  Programme  includes  a  measure  aimed  at  simplifying, 
merging and repealing licences and permits that business face. Tailored policies and targeted 
measures are needed to address the challenges experienced by female entrepreneurs. 

The Kosovo Credit Guarantee  Fund has helped to increase demand  for loans among SMEs. 
Scaling up the Fund and reforming the legislation to broaden the range of alternative financial 
instruments  would  further  enhance  external  finance  for  SMEs.  Introducing  the  planned 
factoring  law  will  also  help  improve  the  transparency  and  legal  enforceability  of  factoring 
services, which is instrumental for improving SMEs’ cash flow management.  

The  law  on  economic  zones,  which  regulates  the  establishment  and  financing  of  economic 
zones,  is  not  aligned  with  the  acquis.  There  are  no  specific  programmes  for  restructuring, 
whether for sector-specific development or the general modernisation of industry. The Law on 
interest  rights  in  trade  transactions  is  in  line  with  the  EU  Directive   on  combating  late 
payment in commercial transactions.  

The  legal  framework  on  insolvency  proceedings  has  been  strengthened.  Proceedings 
involving  an  SME  debtor  are  now  treated  as  reorganization  cases  in  which  an  appointed 
monitor is required to assist SMEs in their re-organisation plans. A legal framework and the 
necessary infrastructure to stimulate e-commerce are still lacking.  

On  enterprise  and  industrial  policy  instruments,  Kosovo  has  joined  the  COSME 
programme  and  is  eligible  for  funding  since  September  2018.  It  has  started  to  develop 
measures  to  raise awareness  among business  stakeholders.  In 2019, it plans  to  apply to  join 
the European Enterprise Network.  

6.17  Agriculture  

Kosovo  has  some  level  of  preparation  on  agriculture  and  rural  development.  Limited 
progress  has  been  made  on  improving  of  the  implementation  of  the  agriculture  and  rural 
development programme. 

In the coming year, Kosovo should in particular: 

→  improve  the  evaluation  and  monitoring  of  grants  and  direct  payments  under  the 

programme; 

→  revise and update the programme so that investments in the sector are more efficient; 

→  take  urgent,  effective  measures  to  stop  the  loss  of  agricultural  land  and  implement 

legislation on spatial planning. 

On  horizontal  issues,  the  budget  allocated  to  the  agricultural  sector  rose  from  EUR  46 
million  in  2017  to  EUR  48  million  in  2018  for  both  direct  payments  and  grants.  The 
ascending  trend  continues  in  2019.  A  special  measures  scheme  has  been  set  up  with  the 
purpose of supporting four municipalities in the north of Kosovo. In  order to make the best 
use of assistance in the sector and achieve maximum impact, the strategy and programme for 
agriculture  and  rural  development  (for  2014-2020)  requires  thorough  and  transparent 
evaluation    and  updating,  taking  into  account  the  developments  and  the  2015  agriculture 

75 

 
 
census.  The  Ministry  of  Agriculture  adopted  the  direct  payments  programme  and  rural 
development  programme  for  2018.  No  changes  were  made  to  the  mechanism  and 
requirements  for  direct  payments,  which  remain  coupled  to  production.  Cross-compliance 
measures still need to be introduced. While internal auditing has been strengthened, a lack of 
professional  capacity  for  evaluation,  monitoring  and  accounting  at  the  Agency  for 
Agricultural Development continues to slow down the proper processing of applications and 
the  execution  of  payments.  Kosovo  has  made  some  progress  on  establishing  an  Integrated 
Administration  and  Control  System  (IACS),  as  it  is  currently  upgrading  its  Land  Parcel 
Identification  System  (LPIS).  It  has  established  an  electronic  farmer  register,  an  animal 
identification and registration system and a Farm Accountancy Data Network (FADN). Farm 
advisory services are provided, but they need to be strengthened. 

No progress has been made in establishing  common market organisations.  Kosovo should 
take steps to draw up the legal basis for setting it up and provide for its functioning. 

No relevant changes were made in the area of rural development, where measures continue 
to  address  the  modernisation  of  farms  and  food  processing  facilities.  The  level  of  funding 
remains low and the efficiency of current rural development measures weak, in particular as 
regards concerning investments in farms, primary food processing, job creation in rural areas, 
building up and empowering local  communities, land consolidation,  access to  irrigation and 
farmer education updates. 

On  geographical  indications,  progress  was  made  by  adopting  legislation  which  allows 
products originating from Kosovo which are marked according to the designation of origin, to 
be labelled with the indication “protected geographical indication” and “protected designation 
of origin” or with the symbols that accompany them. 

On quality policy, there is little progress.  Legislation still has to be aligned with the acquis 
and properly implemented.  

On organic farming, Kosovo adopted a 2018-2021 action plan for organic agriculture, which 
identifies key areas of work with a view to supporting and developing the organic sector.  

No progress was made as regards the availability of arable land. The changes to the legislation 
on agricultural land use continue to limit its availability and farms’ productivity. There is no 
official information on how much agricultural land Kosovo loses each year and no strategy or 
action plan to address this issue. In cooperation with the Ministry of Environment and Spatial 
Planning,  the  Ministry  of  Agriculture  should  take  urgent  measures  to  stop  further  losses  of 
agricultural land and to implement legislation governing spatial planning. 

6.18  Food safety, veterinary and phytosanitary policy 

Kosovo  has  some  level  of  preparation  in  the  area  of  food  safety,  veterinary  and 
phytosanitary  policy.  Some  progress  was  made  in  adopting  legislation  on  food  safety  and 
veterinary.  

In the coming year, Kosovo should in particular: 

→  implement  an  integrated  food  control  system,  including  by  transferring  inspection 

responsibilities to the Food and Veterinary Agency; 

→  complete and launch the animal by-products collection and disposal system; 

→  establish  quality  infrastructure  for  food  safety  with  a  focus  on  obtaining  international 

accreditation for tests and laboratories. 

Progress  has  been  made  in  completing  the  legislation  governing  food  and  feed  safety.  The 

76 

 
 
registration and categorisation of food and feed establishments has been completed. The Food 
and  Veterinary  Agency  continues  to  perform  regular  checks  on  import  and  export  of  live 
animals, animal products, plants and plant products, but EU registered establishments do not 
require import licenses.  A drug  and residue monitoring plan is  being prepared. The  Agency 
has  prepared  a  multi-annual  control  plan  for  food  and  feed  safety  and  capacities  for  its 
implementation have increased.    

Efforts  need  to  continue  in  preparing  the  transfer  of  inspection  responsibilities  from 
municipalities to the Agency.  

On veterinary policy, some progress has been made in completing legislation. The Food and 
Veterinary Agency is currently upgrading its system for border inspection. The trade control 
and expert system is used for exports only. Infrastructure at the veterinary border inspection 
posts remains poor. None of the posts has quarantine facilities for live animals.  

There  were  no  relevant  developments  in  the  area  of  animal  health.  A  multi-annual  animal 
disease  control  and  surveillance  programme  is  in  place,  but  full  implementation  is  not 
ensured,  as  the  Agency  has  insufficient  funds  and  capacity.  As  part  of  regional  efforts  to 
control  and  eradicate  rabies,  the  Agency  resumed  vaccination  campaigns  with  EU  support. 
The  vaccination  programme  for  lumpy  skin  disease  is  ongoing.  The  Agency  still  has 
insufficient capacity for responding to disease outbreaks.  

As regards the management of animal by-products, progress is being made on building and 
equipping the category I rendering plant and the inspectors and slaughterhouse operators have 
been trained on compliance with  relevant  regulation.  However, further efforts  are needed to 
ensure that there is a proper collection system for animal by-products.  

No  progress  was  made  in  the  area  of  animal  identification  and  registration,  where  the 
under-reporting of  animal  movements  remains  a problem. The  Agency  has still not  adopted 
measures  to  enforce  the  regulation  on  animal  identification  and  registration  at  the  level  of 
livestock markets, slaughterhouses and livestock transport. 

Although the identification of basic  cross-compliance measures in  the areas of food safety 
and animal health and welfare remains a priority for the Agency, progress needs to be done on 
including them in the agriculture programme. 

With  regards  to  phytosanitary  measures,  preparatory  work  is  ongoing  to  support  better 
inspections, sampling and detection of plant diseases. Although some training is being carried 
out  on  monitoring  plant  health  and  the  management  of  plant  protection  products,  further 
efforts  are  needed  to  improve  the  implementation  and  the  operational  capacity  of  the 
institutions responsible for plant health, in  order to  ensure an effective plant disease control 
system. 

6.19  Fisheries 

Kosovo  is  still  at  an  early  stage  of  preparation  in  the  area  of  fisheries.  No  progress  was 
achieved since the last year’s report.  

Since  none  of  the  last  report’s  recommendations  were  implemented,  in  the  coming  year, 
Kosovo should:  

  further align its market policy with the acquis; 

  establish an inventory of fish species. 

As  the  fisheries  sector  consists  of  commercial  lake  fishing  and  aquaculture,  the  acquis  on 
catch quotas, inspection and control is of very limited applicability. Kosovo should focus on 

77 

 
 
drafting a market policy in line with the acquis, establishing an inventory of fish species and 
carrying out inspections as required under the acquis.  

6.20  Environment and climate change  

Kosovo  is  at  an  early  stage  of  preparation  on  environment  and  climate  change.  Some 
progress  was  achieved,  notably  through  the  adoption  of  the  relevant  strategies,  but  serious 
environmental  problems  continue  to  impact  people's  livelihoods  and  health.  The  growing 
environmental protection and climate change  challenges call for considerably more political 
will.  

In the coming year, Kosovo should: 

  establish an effective water monitoring system, publish the data and undertake urgent and 

permanent measures to reduce air and water pollution; 

  continue  to  increase  the  household  waste  collection  coverage  and  address  the  issue  of 

illegal dumpsites; 

  enforce  legal  provisions  on  environmental  liability,  damage  and  crime;  implement  the 

polluter pays principle and raise public awareness on environmental protection; 

  implement  the climate change  strategy  and the  action plan on climate change, prepare a 
roadmap  for  alignment  with  the  climate  acquis  and  start  the  work  on  an  energy  and 
climate plan, in line with Energy Community recommendations. 

Environment 

The  environment  strategy  has  still  not  been  updated  and  implemented.  Insufficient  funding 
and  a  lack  of  administrative  capacity  and  technical  skills  continue  to  undermine  the 
implementation  of  priority  measures.  Further  progress  is  needed  for  full  alignment  and 
implementation  of  the  remaining  directives.  The  lack  of  alignment  with  the  environmental 
liability  Directive  undermines  the  effectiveness  of  environmental  protection.  Progress  was 
made  on  strengthening  provisions  on  environmental  crime  in  the  newly  adopted  criminal 
code, but prosecutors and courts are ineffective and lack training in this area. Environmental 
inspectorates 
to  ensure  effective  enforcement.  The 
implementation  of  the  environmental  impact  assessment  and  strategic  impact  assessments 
Directives  needs  to  be  improved  considerably,  especially  in  the  sectors  with  significant 
impacts  on  the  environment  such  as  energy  and  transport.  Meaningful  involvement  and 
consultation of the public and civil society is necessary.  

lack  capacity  and  are  unable 

Air quality continues to pose a major threat to human health and efforts should be made in 
adopting measures to improve it, notably by enforcing the emission reduction plan, which was 
adopted  in  2018.  Kosovo's  strategy  for  air  quality  is  not  enforced.  An  action  plan  for  air 
quality and a law on air protection from pollution have to be adopted. Uncontrolled pollution 
from the energy sector (particularly from the Kosovo B power plant and household heating), 
but also from industrial complexes, road traffic and the incineration of waste and other toxic 
materials remains a serious problem and has not been addressed. Air quality plans for zones in 
which  pollutants  levels  visibly  exceed  limit  values  by  a  wide  margin,  especially  in  winter, 
have  still  not  been  prepared  and  adopted.  An  air  quality  monitoring  system,  with  eight 
measuring stations providing real-time data to the public, is now operational. Urgent measures 
and permanent solutions are needed to reduce household reliance on lignite and wood heating.  

The  solid  waste  management  system  in  Kosovo  continues  to  be  unsustainable.  The  legal 
framework is partially aligned with the acquis but implementation is lacking and most of the 
waste  ends  up  in  legal  and  illegal  landfills.  Collection  needs  to  increase  further  while 

78 

 
 
recycling of the different waste streams to be introduced. The 2013-2022 strategy and master 
plan for waste management are only partly reflected in municipal plans for solid waste. The 
responsible  authorities  should  move  towards  a  circular  economy  approach,  based  on  waste 
reduction, separation at source, recycling and recovery. Efforts are being made to address the 
high  number  of  illegal  dumpsites,  but  more  urgent  and  sustainable  measures  (including 
prevention and monitoring) are needed. Most existing landfills have reached the end of their 
storage capacity and pose considerable long-term environmental risks, especially groundwater 
contamination.  This  is  particularly  the  case  of  the  Mirash  landfill  in  Obiliq/Obilić  which 
requires urgent rehabilitation and permanent closure. 

Some progress has been noted on water, notably through the adoption of the Kosovo 2017-
2036  national  water  strategy  including  an  investment  action  plan.  However,  there  is  no 
progress  in  aligning  water  legislation  with  the  acquis.  Urgent  efforts  are  required  to  ensure 
that the river basin authority, which was established in July 2017, is operational and prepares 
the  management  plans.  There  was  some  progress  on  international  cooperation  on  integrated 
water management. Untreated sewage and discharge remain the main source of pollution. A 
monitoring  network  is  operational  for  groundwater  but  not  for  surface  waters.  No  drinking 
water  quality  reports  have  been  published  since  2015.  Agglomerations  and  sensitive  areas 
need  to  be  identified,  in  line  with  the  Urban  Waste  Water  Treatment  Directive.  Budget 
funding  needs  to  be  secured  for  priority  projects  in  this  area.  Tariff  collection  needs  to  be 
improved and technical water losses reduced.  

Some  progress  on  nature  protection  was  noted,  notably  by  the  adoption  of  the  2016-2020 
action  plan  on  biodiversity.  Steps  have  been  taken  to  start  the  inventory  and  mapping  of 
natural habitats types and of biodiversity, but the designation of Natura 2000 sites is still at a 
very early stage, due to a lack of technical and staff capacities in relevant institutions.  

Spatial  planning  documents  and  infrastructure  plans  need  to  ensure  that  nature  protection 
obligations are respected, particularly in already protected areas such as national and regional 
parks, and potential Natura 2000 sites.  

No developments were noted on alignment with the acquis on industrial pollution and risk 
management,  which  remains  at  an  early  stage.  Insufficient  enforcement  of  legislation  and 
polluter accountability is hampering progress in setting up a system for preventing industrial 
and  chemical  accidents.  Hazardous  mine  waste,  industrial  discharge  directly  into  rivers  and 
industrial  dumpsites  continue  to  pose  serious  threats  to  soil  and  water.  The  location  for  the 
future hazardous waste storage facility still need to be determined and an operator contracted. 

No progress has been registered on chemicals, where alignment with the acquis remains at an 
early stage. Kosovo is not party to the Rotterdam Convention and the regulatory framework 
on export and import of hazardous chemicals still needs to be implemented. A helpdesk and a 
centre for the control of chemical poisoning still need to be established.  

The draft law on noise has yet to be adopted. Strategic noise maps and action plans still need 
to be developed and effective action taken to implement the law (once adopted). 

Kosovo is not part of the Union civil protection mechanism but has been a beneficiary of the 
regional  programmes  on  civil  protection  under  the  Instrument  for  Pre-Accession  Assistance 
(IPA)  since  2010.  Significant  progress  is  still  necessary  in  important  areas  such  as 
establishing  an  operational  centre  and  emergency  communication  system.  The  preliminary 
flood risk assessment is at an early stage of preparation.   

Climate change 

79 

 
 
The  2019-2028  strategy  and  action  plan  on  climate  change  has  been  approved  by  the 
government  and  if  fully  implemented,  it  can  provide  a  sound  basis  for  tackling  climate 
change.    However,  no  progress  has  been  achieved  in  aligning  the  legislation.  The  National 
Council for the Environment and Climate Change and the Climate Change Coordinator took 
no concrete measures to mainstream climate action or raise public awareness. There is little 
evidence of climate change being mainstreamed in government projects.  

Although  Kosovo  is  not  a  signatory  to  the  UN  Framework  Convention  on  Climate  Change 
and  therefore  does  not  have  nationally  determined  contribution  (NDC)  to  the  2015  Paris 
Agreement,  full  implementation  of  its  climate  change  strategy  should  help  it  reach  the  low 
emissions and climate-resilient objectives of the agreement.  

As regards the transparency of climate action, the compiling of greenhouse gas inventory and 
reporting stopped after 2015. Kosovo still has to align with the climate acquis. Administrative 
capacity and awareness-raising activities need to be strengthened considerably. 

6.21  Transport policy 

Kosovo  is  at  an  early  stage/has  some  level  of  preparation  in  the  area  of  transport  policy. 
Some progress was achieved, in particular with the ratification of the Transport Community 
Treaty. 

In the coming year Kosovo should in particular:  

  urgently improve road safety by targeting the reduction of road fatalities and serious road 

traffic injuries and set up a system for continuous road crash data collection; 

  strengthen the capacity and professionalism of the railway regulator and ensure sufficient 

funding; 

  adopt  legislation  on  the  intelligent  transport  system  (ITS)  and  develop  a  strategic 
framework  for  the  implementation  of  the  ITS  on  core  networks,  ensuring  sufficient 
capacity and resources for its implementation.  

As  regards  transport  in  general,  progress  was  made  with  the  ratification  of  the  Transport 
Community Treaty in October 2018. The legal  framework is  not aligned with the acquis on 
summertime  arrangements.  Further  efforts  should  be  made  to  complete  alignment  with  the 
acquis  on  public  services  obligations,  including  on  procedures  and  criteria  for  the  award  of 
public  service  contracts  in  road  transport.  Further  efforts  are  required  to  implement  the 
connectivity  reform measures, with  a special  focus on measures related to border crossings, 
road safety and (road and rail) maintenance plans. The rail sector should be further developed 
and  its  services  improved.  Efforts  are  needed  to  align  with  the  intelligent  transport  system 
Directive  and  rail  interoperability  Directive.  Efforts  should  be  maintained  to  align  EU 
passenger rights legislation in all transport modes.  

There  were  no  significant  developments  as  regards  reducing  fatalities  and  serious  traffic 
injuries in road transport. The technical inspection of vehicles continues to be deficient and 
improvements  are  needed  on  roadside  checks  and  the  legal  competence  and  capacity  of 
inspection  officers.  Better  driver  information,  education  and  training  are  also  necessary. 
Alignment  with  the  acquis  on  social  legislation  and  road  safety,  which  is  crucial  to  reduce 
fatalities, remains incomplete. Further efforts  are needed to  establish a Kosovo-wide system 
for  continuous  road-crash  data  collection.  There  has  been  no  progress  on  aligning  the  legal 
framework on dangerous goods with the acquis or further aligning the legislation on access to 
the market for goods and passenger transport. The criteria for access to the occupation of road 
transport operator also requires further alignment. There has been no progress on aligning the 

80 

 
 
legislation on clean  and  energy-efficient road transport vehicles or on the deployment of  an 
alternative fuels infrastructure. Legislation or regulatory framework for the implementation of 
ITS needs to be put in place. Kosovo has  yet to  adopt and implement  rules on penalties for 
infringing  the  European  Agreement  concerning  the  Work  of  Crews  of  Vehicles  engaged  in 
International Road Transport. 

As  regards  rail  transport,  some  progress  was  made  in  aligning  legislation  with  the  acquis. 
The rehabilitation of rail route 10 is delayed and will require an increase in the capacity of the 
railway infrastructure company.  

On aviation, Kosovo has made progress in aligning with the acquis and has met nearly all the 
requirements  under  the  first  transitional  phase  of  the  European  Common  Aviation  Area 
Agreement (ECAA). Action is now needed to implement the few remaining provisions in the 
area of economic regulation, in particular relating labour law. The lack of revenue from upper 
air  space  management  constraints  Kosovo's  ability  to  invest  in  training  and  infrastructure 
development.  

The  Commission  has  engaged  with  Kosovo  using  the  appropriate  instruments  to  enhance 
understanding of the acquis in the field of aviation security and ensure gradual alignment. 

No  developments  were  noted  on  combined  transport.  Implementation  of  the  multimodal 
transport strategy should be prioritised. 

6.22  Energy 

Kosovo has some level of preparation  in the field of energy. There was some progress in 
this  area,  including  adoption  of  the  2018-2020  strategy  implementation  programme  and 
further  implementation  of  the  third  energy  package,  especially  alignment  with  acquis  on 
energy efficiency.  

In the coming year, Kosovo should: 

  prepare  for  the  decommissioning  of  the  Kosovo  A  power  plant  and  the  environmental 

upgrade of Kosovo B;  

  make  the  Energy  Efficiency  Fund  fully  operational  and  increase  energy  efficiency 

incentives for the private sector and households; 

  focus on renewable energy, including by introducing  market-based support schemes and 

addressing investments barriers;  

  adopt  a  plan  that  includes  the  gradual  adjustment  of  energy  tariffs  reflecting  expected 

increases in costs and mitigation measures for vulnerable consumers. 

Kosovo  approved  an  implementation  programme  for  2018-2020  to  operationalise  policy 
orientations  set  out  in  the  2017-2026  energy  strategy.  The  programme  is  meant  to  address 
some  energy  and  environmental  problems  in  the  medium  term.  Kosovo  continues  to  rely 
nearly  exclusively  on  lignite  as  a  source  of  energy  and  on  two  obsolete,  highly  polluting 
coal-fired power plants. This adds significantly to its heavy air pollution problems. 

No significant developments were noted on security of supply, although the reliability of the 
power  transmission  system  continues  to  benefit  from  investment  and  maintenance.  No 
progress  was  made on the operation of the new  transmission line to  Albania which remains 
non-functional  due  to  the  longstanding  energy  dispute  with  Serbia  and  the  lack  of  a 
connection agreement between the European Network of Transmission System Operators for 
Electricity and the Kosovo transmissions system operator. The lack of a political solution to 
the  dispute  also  led  to  power  deviations  originating  in  Kosovo  and  Serbia,  which  in  turn 

81 

 
 
resulted in frequency deviations in the entire synchronous area of continent Europe in winter 
2017/2018.  

Distribution  losses  remain  high  and  investment  in  and  maintenance  of  the  distribution 
network needs to be improved. There was no progress on aligning legislation with the acquis 
in  the  area  of  compulsory  oil  and  petroleum  reserves.  Current  estimated  oil  stocks  are 
sufficient for only four days.  

Apart from adopting an administrative instruction on security of natural gas supply, Kosovo 
made  little  progress  on  improving  its  record  of  compliance  with  the  gas  acquis.  The  pre-
feasibility study on linking a possible gas pipeline between Kosovo and Albania to the trans 
Adriatic  pipeline  (TAP)  project  was  completed  in  November  2018.  The  project  depends  on 
the  construction  of  the  Ionian-Adriatic  pipeline  and  the  gas  transmission  system  to  Fushë 
Kruje in Albania.  

As regards the internal energy market, there was progress in the implementation of the third 
energy package and the certification of the transmission system operator has been completed. 
However,  the  lack  of  regional  integration  and  the  longstanding  dispute  between  the 
transmission  system  operators  in  Kosovo  and  Serbia  is  limiting  the  scope  for  developing 
competition.  

As regards the new Kosova e Re coal-based power plant project, selection of a contractor for 
works is underway. Following the World Bank’s withdrawal from the partial loan guarantee, 
financing arrangements for the estimated EUR 1 billion plus project are still to be settled. It 
may  have  a  major  impact  on  public  finances,  tariffs  and  the  environment  and  this  must  be 
carefully  assessed.  The  contractual  framework  for  the  construction  of  the  new  plant,  which 
involves designating a single buyer of the electricity it produces, could negatively impact the 
opening of the market. 

Environmental  measures  are  urgently  required  at  Kosovo  B  to  reduce  the  level  of  gaseous 
emissions in the air and comply with emissions limit. The Kosovo Energy Corporation (KEK) 
needs  to  establish  the  timing  of  all  works  in  view  of  the  planned  EU  assistance  for  the 
refurbishment  of Kosovo B to  bring it into line with  the provisions of the large combustion 
plants  Directive  on  dust  and  NOx  emissions.  Preparations  also  need  to  be  made  for  the 
decommissioning  of  non-operating  units  at  Kosovo  A,  including  identifying  land  for  the 
disposal  of  hazardous  waste.  The  current  legal  framework  is  not  in  line  with  the  large 
combustion plants and industrial emissions Directives. Kosovo adopted an emission reduction 
plan in 2018.  

Kosovo has made some progress in phasing out cross-subsidies between different categories 
of customers, but tariffs for households do not yet reflect costs. In view of expected upward 
price  pressure  from  the  significant  investments  required  in  the  electricity  sector,  Kosovo 
needs  to  develop  a  programme  for  protecting  vulnerable  customers  in  line  with  Energy 
Community  requirements.  The  electricity  consumption  in  the  north  of  Kosovo,  which  was 
considered as a loss in the past and recovered through the retail tariff for customers who pay 
for electricity, is now treated as a loss of the transmission system operator. The capacity and 
independence  of  the  Energy  Regulatory  Office  have  been  undermined  by  political 
interference.  As  a  matter  of  priority,  the  Office  should  improve  its  monitoring  of  market 
functioning  and  competition.  Its  financial  stability  should  be  ensured  in  accordance  with 
applicable legislation and the third energy package. 

There  was  some  progress  on  renewable  energy  sources.  A  new  32  MW  wind  farm  and  2 
solar projects with a capacity of 6 MW have been put into operation. The revision figures of 
biomass used for heating by household customers puts Kosovo on track to achieving its 25% 

82 

 
 
target in 2020. While the legislation is partially aligned with the acquis, the electricity market 
should  be  restructured  so  as  to  facilitate  the  integration  of  renewable  energy  generation.  A 
market-based scheme for supporting independent producers should be introduced.  

There was no progress in meeting the requirements for the use of biofuels in transport. The 
adoption of an administrative instruction on biofuels aimed at aligning with the relevant EU 
Directives, has been pending for over three years. 

There was good progress on alignment with the energy efficiency acquis, with the adoption 
of the new Law on energy efficiency, which is partly aligned with the EU energy efficiency 
Directive.  The  secondary  legislation  on  the  energy  performance  of  buildings  has  to  be 
completed and services need to be developed for energy auditing and energy assessors. The 
Energy  Efficiency  Fund  has  been  established  and  its  board  has  been  appointed.  Kosovo 
should  ensure  sure  that  the  Fund  becomes  operational.  25  Municipalities  have  developed 
energy efficiency action plans. Investments in energy efficiency in public buildings have been 
made  but  incentives  for  the  private  sector  and  households  are  lagging  behind.  Kosovo 
achieved only about half of the 9% energy efficiency target by 2018. The Kosovo Agency for 
Energy  Efficiency 
the 
implementation  of  energy  efficiency  policy.  Kosovo  needs  to  bring  into  operation  the 
monitoring and verification platform for energy savings. 

is  understaffed  and  has  very 

limited  capacity 

to  monitor 

Some progress has been made on  nuclear safety and  radiation protection, notably by  the 
adoption of the new Law on radiation protection and nuclear safety. However further efforts 
are  needed  to  fully  align  the  legal  and  regulatory  framework.  The  licensing  and  inspection 
capacity of the Nuclear Safety and Radiation Protection Agency remains weak and its funding 
is insufficient for it to implement its mandate. No developments were noted on the monitoring 
of radiation (e.g. from depleted uranium) and there is no control of radioactive waste and no 
radiological emergency plan. Kosovo has still not found a solution for the temporary storage 
of radioactive waste. As regards international cooperation in this area, it signed memoranda of 
understanding  with  the  United  States,  Albania  and  North  Macedonia.  It  is  not  party  to  the 
Convention  on  Nuclear  Safety  or  the  Joint  Convention  on  the  Safety  of  Spent  Fuel 
Management and on the Safety of Radioactive Waste Management.  

6.23  Trans-European networks  

In the area of trans-European networks (TENs), Kosovo has some level of preparation and 
some  progress  was  achieved,  notably  with  the  ratification  of  the  Transport  Community 
Treaty. More needs to be done on energy and telecommunications networks.  

In the coming year, Kosovo should in particular: 

  proceed with harmonising the legal framework with the acquis (TEN-T and TEN-E) and 

implementation of the connectivity reform measures;  

  strengthen 

the 

institutional 

framework  and  administrative  capacities 

for 

the 

implementation of TEN, including the Transport Community Treaty; 

  improve 

the  capacity  of 

the  Regulatory  Authority  of  Electronic  and  Postal 

Communications to enforce telecommunications market regulations. 

On transport networks, the strategic framework for the development of the trans-European 
transport  network  (TEN-T)  is  covered  by  the  2015-2025  sectoral  and  multimodal  transport 
strategy,  which  includes  a  5-year  action  plan.  The  Kosovo  Assembly  ratified  the  Transport 
Community Treaty in October 2018.  

As  in  the  previous  period,  institutional  capacity  to  implement  strategic  projects  needs  to  be 

83 

 
 
strengthened  at  central  and  local  government  levels,  for  public  procurement,  investment 
project  planning,  preparation  and  management.  Priority  projects  in  core  and  comprehensive 
networks still need to be completed. Future infrastructure investments need to be implemented 
in compliance with EU standards on public procurement, state aid and environmental impact 
assessment.  Projects  should  be  channelled  through  a  single  project  pipeline,  confirming  the 
strategic  orientation  towards  the  TENs.  The  implementation  of  the  railway  route  10  project 
the  route  6-highway  project  is  slower  than  expected.  The  authorities  should  take  immediate 
measures to finalise the remaining rail border crossing protocols with North Macedonia. Also, 
additional efforts are required to ensure opening of the rail market on the indicative extension 
of  the  Orient/East-Med  corridor.  While  it  has  made  some  progress  on  the  adoption  of 
maintenance plans for the entire (road and rail) core network, Kosovo is still lagging behind 
in this respect and further efforts are needed.  

On  energy  networks,  there  is  no  progress  on  the  new  400kV  transmission  line  and  load 
frequency control with Albania, which are not operational because the connection agreement 
between  the  European  Network  of  Transmission  System  Operators  for  Electricity  and  the 
Kosovo transmissions system operator is not being implemented. A pre-feasibility study on a 
gas  pipeline  between  Kosovo  and  Albania  (Alkogap)  deriving  from  the  TAP  project,  was 
completed  in  November  2018.  The  investment  cost  is  estimated  at  EUR  211  million, 
including  EUR  61  million  in  Kosovo,  but  the  project  depends  on  the  construction  of  the 
Ionian-Adriatic pipeline and the gas transmission system to Fushë Kruje in Albania.  

On  telecommunication  networks,  no  progress  has  been  made  on  strengthening  of  the 
institutional capacity of the Regulatory Authority of Electronic and Postal Communications to 
design and enforce regulations.  

6.24 

Information society and media 

Kosovo has  some level  of preparation  in  this  area.  The legislative framework is  mostly in 
place but there was no progress on implementation. A sustainable solution for the funding of 
the  public  broadcaster  remains  to  be  adopted.  As  in  previous  years,  the  Independent  Media 
Commission  did  not  move  forward  with  the  process  of  switching  from  analogue  to  digital 
television.  

A majority of last report’s recommendations have not been followed up. In the coming year 
Kosovo should in particular: 

  ensure  that  telecoms  and  media  regulators  are  given  adequate  resources  to  fulfil  their 
mandates  independently and develop a solution for the sustainable funding of the public 
service broadcaster; 

  free the first digital dividend / liberate frequencies; 

  revise the Law on the Independent Media Commission so as to increase the availability of 
data  on  the  audio-visual  sector  and  extend  the  regulator’s  regulatory,  monitoring  and 
enforcement powers. 

On electronic communications and information and communication technologies (ICT), 
there  has  been  no  improvement  in  the  financial  and  organisational  independence  of  the 
Regulatory  Authority  of  Electronic  and  Postal  Communications.  The  Kosovo  Agency  of 
Statistics published data on the use of ICT. According to the survey, 93.2% of households had 
access  to  the  internet,  a  4.4  pps  increase  from  the  previous  year.  Some  90.2%  accessed  the 
internet  through  fixed  connections,  a  6.6  pps  increase  from  the  previous  year,  whereas  the 
number accessing the internet through mobile connections remained the same, at 24.6 %.  

84 

 
 
The mid-term targets of the 2013-2020 Digital Agenda for Kosovo have been fully achieved 
and  the  strategy  is  being  implemented.  The  telecom  regulator  postponed  implementation  of 
the +383 dialling code to January 2019 at the request of operators but the transition was only 
partially implemented by the deadline. The regulator is fining each operator EUR 10,000 for 
each  month  of  delay  following  the  January  deadline.  The  regulator  has  reviewed  pricing 
policies for frequency allocation and this has resulted in a 30 % price drop for the currently 
allocated frequencies for mobile telephony services. The regulator is also currently reviewing 
pricing  policies  for  new  frequency  allocations  and  annual  regulatory  fees.  Authorities  took 
part  in  the  preparations  of  the  Regional  Roaming  Agreement  and  signed  the  agreement  in 
April 2019.    

As regards the information society, several legal initiatives are ongoing. Kosovo is currently 
working  on  alignment  with  the  Electronic  Identification,  Authentication  and  Trust  Services 
Regulation,  the  Directive  on  the  Security  of  Network  and  Information  Systems  and  the 
Broadband Cost Reduction Directive. The computer security incident response team, set up in 
2014,  is  still  understaffed.  Modernisation  of  the  public  administration  is  a  key  element  for 
successful digitalisation. Kosovo should put more effort in implementation of e-government 
frameworks and services. 

On  audio-visual  policy,  the  Independent  Media  Commission  again  failed  to  make  any 
substantial  progress  in  implementing  the  digital  switchover,  even  though  the  International 
Telecommunications Union deadline expired in June 2015. No funds have been allocated or 
identified  to  implement  the  process.  The  Law  on  the  Independent  Media  Commission 
provides  it  with  sufficient  regulatory,  monitoring  and  enforcement  powers  to  foster  the 
pluralism and competitiveness of the market but it has not carried out any market analysis for 
years and does not sanction broadcasters efficiently for failure to comply with the law. This is 
partly due to a lack of data on the distribution of the advertising funds, the audience and the 
ownership structure of the TV and radio channels and the media outlets. The creation of the 
Media Registry could provide the regulator with the requisite data to carry out proper market 
analysis.  The  revision  of  the  Law  on  the  Independent  Media  Commission  should  extend  its 
regulatory  powers  to  audio-visual  media  services  available  online  (e.g.  video  on  demand, 
catch-up TV and webTV), which are covered by the audio-visual media services Directive. In 
addition, the Independent Media Commission needs adequate staffing and funding to operate 
independently. Kosovo needs to speed up its efforts and ensure that the digital switchover is 
carried out in full transparency and in line with EU standards. The public service broadcaster, 
Radio Television of Kosovo (RTK), remains directly state-funded, with its budget determined 
annually by the Assembly. This undermines its editorial independence, weakens its long-term 
sustainability and leaves it prone to political influence. The Assembly has drafted a new Law 
on the public broadcaster, including a potential solution for sustainable funding for RTK. 

6.25  Financial control 

Kosovo has some level of preparation in the area of financial control.  Good progress was 
made  with  the  adoption  of  the  public  internal  financial  control  (PIFC)  law  and  some  of  its 
secondary  legislation,  further  piloting  of  the  internal  control  quality  reviews  by  the  Central 
Harmonisation  Unit,  the  adoption  of  the  2018-2021  strategic  development  plan  of  the 
National  Audit  Office,  and  increased  performance  audit  work.  However,  further  efforts  are 
needed to implement managerial accountability, including the delegation of decision-making 
authority,  and  to  strengthen  functioning  of  internal  control  and  audit.  High  level  political 
support will remain instrumental  for implementation  of PIFC at  all levels  of administration. 
The  timely  implementation  of  internal  and  external  audit  recommendations  should  be 
improved.  

85 

 
 
In the coming year, Kosovo should in particular:  

  adopt  a  new  medium-term  strategy  document  on  PIFC,  with  a  specific  focus  on  the 

definition and implementation of managerial accountability; 

  adopt the outstanding secondary legislation under the new PIFC law; 

  ensure more systematic and timely implementation of external audit recommendations. 

Public internal financial control 

The strategic framework for PIFC is partially in place; its policy paper will expire at the end 
of  2019.  From  2020  onwards,  Kosovo  needs  to  develop  a  comprehensive  PIFC  policy 
document, focusing on the definition and implementation of managerial accountability. PIFC, 
public  administration  reform  and  public  financial  management  reform  strategic  framework 
need  to  be  aligned,  and  a  mechanism  needs  to  be  set  up  for  the  effective  coordination, 
monitoring and reporting of the reforms. 

Kosovo  needs  to  make  further  efforts  to  embed  managerial  accountability  in  the 
administrative  culture.  There  is  currently  little  delegation  of  decision-making  to  middle 
management  within  institutions.  Managerial  accountability  is  further  limited  by  a  primary 
focus  on  compliance  rather  than  on  performance.  The  government  has  started  to  implement 
the action plan for the  rationalisation of agencies, which was adopted in June 2018. This  is 
expected  to  improve  accountability  between  institutions  by  reducing  the  high  number  of 
(semi-)independent  agencies  and  introducing  better  supervision  and  reporting  lines  (See 
section on Public Administration Reform). 

The  new  PIFC  Law,  adopted  in  April  2018,  provides  a  good  basis  for  internal  control 
implementation,  and  is  in  line  with  international  standards.  Some  pieces  of  secondary 
legislation  still  needs  to  be  adopted.  The  application  of  risk  management  is  still  at  an  early 
stage, and irregularity management and reporting should also be developed further. The new 
law  on  whistle-blower  adopted  in  November  2018  contributes  to  the  internal  control 
framework. 

Internal  audit  practice  needs  to  be  improved.  Staffing  capacity  is  insufficient,  as  around 
40%  of  internal  audit  units  have  only  one  auditor.  Nevertheless,  most  internal  audit  units 
comply with the requirement to submit strategic and annual audit plans. Internal audit focuses 
mostly on compliance with existing rules and procedures. Internal audit recommendations are 
not systematically implemented. 

The  Central  Harmonisation  Unit  in  the  Ministry  of  Finance  is  responsible  for  developing 
internal  audit 
and  disseminating  methodological  guidance  on 
implementation in the public sector. It has undertaken quality reviews on both internal control 
and internal audit in the past year. It prepares an annual report on the implementation of PIFC 
based  on  replies  to  self-assessment  questionnaires  and  its  own  quality  reviews.  The  annual 
report contains recommendations, which should be more systematically implemented. 

internal  control  and 

External audit 

Kosovo’s constitutional and legal framework provides for the functional, organisational and 
financial  independence  of  the  National  Audit  Office  in  line  with  the  standards  of  the 
International Organisation of Supreme Audit Institutions. 

The institutional capacity has increased further to 164 staff, of whom 137 are audit staff. The 
Office  is  implementing  its  new  2018-2021  strategic  development  plan,  which  includes 
objectives, performance indicators and a monitoring framework. 

86 

 
 
The Office has introduced quality control and assurance procedures to improve the quality of 
audit work and continues to implement a certification programme for auditors. It finalised 13 
performance audit reports, compared to 11 reports in 2017 and 5 reports in 2016. 

The National Audit Office has recognised the need to improve the impact of audit work, as 
audited  institutions,  especially  at  local  level,  do  not  implement  audit  recommendations 
sufficiently or in a timely manner. According to the 2018 annual report, in 2017 only 34% of 
external  audit  recommendations  issued  in  2016  were  implemented  in  full,  26%  in  part,  and 
40% not at all. The Assembly has not yet established an efficient mechanism for the follow-
up  of  audit  reports.  The  National  Audit  Office  continues  to  strengthen  its  overall 
communication policy and engages more actively with civil society. 

Protection of the EU’s financial interests 

Alignment  with  the  acquis  in  this  area  still  needs  to  be  assessed.  No  anti-fraud 
coordination  service  has  been  established,  and  no  anti-fraud  strategy  has  been  adopted. 
Cooperation is governed by an administrative agreement between the Kosovo Police and the 
European  Anti-Fraud  Office  (OLAF).  It  is  designed  to  ensure  the  timely  transmission  of 
information  and  cooperation  in  cases  relating  to  alleged  fraud  and  other  illegal  activities 
affecting the financial interests of the EU.  

Protection of the euro against counterfeiting 

Kosovo  has  established  competent  authorities  and  procedures  for  dealing  with  counterfeit 
money, but alignment with the acquis in this area still needs to be assessed. The Law on the 
Central  Bank  prohibits  the  circulation  of  counterfeit  money.  The  Central  Bank  has  issued  a 
regulation  on  cash  operations  to  strengthen  rules  and  procedures  for  financial  institutions 
operating in Kosovo. Kosovo takes part in the actions of the Pericles 2020 programme. 

6.26  Statistics 

Kosovo has some level of preparation in the area of statistics. Good progress was made in 
addressing  some  of  last  year's  recommendations,  in  particular  by  amending  the  Law  on 
statistics,  improving  national  accounts  and  expanding  social  statistics,  notably  through  the 
first  full-scale  survey  following  the  methodology  of  the  EU  statistics  on  income  and  living 
conditions  (EU-SILC).  The  Kosovo  Agency  of  Statistics  (KAS)  has  adopted 
the 
recommendations  of  the  Eurostat  peer  review  and  developed  an  action  plan  for  their 
implementation.  However,  it  continues  to  suffer  from  insufficient  resources  and  capacities. 
Coordination  between  statistical  institutions  has  not  improved  much.  Significant  efforts  are 
still  needed  especially  to  ensure  the  alignment  of  macro-economic,  business,  and 
environmental statistics with European standards.  

In the coming year, Kosovo should in particular: 

  implement  the  recommendations  of  the  Eurostat  peer  review  according  to  the  adopted 

action plan;  

  improve statistical governance and coordination between the main statistical institutions; 

ensure better access to and use of available administrative data sources;   

  continue to make necessary preparations for the next (2021) population census, ensuring 

full coverage of the territory.  

On  statistical  infrastructure,  the  legal  framework  is  broadly  in  line  with  the  European 
statistics  code  of  practice.  Amendments  to  the  Law  on  statistics  were  adopted  in 
December 2018. While these strengthen the role of KAS within the statistical system, they did 
not fully address Eurostat’s concerns regarding the duration of the mandate of the head of the 

87 

 
 
Agency.  Despite  the  government  approval  of  10  new  positions,  which  are  in  the  process  of 
being filled, KAS still has inadequate human and financial resources to carry out surveys and 
data  analysis  independently:  this  hinders  the  timely  production  of  statistics.  In  order  to 
produce  more  and  better  statistics,  KAS  should  also  improve  its  efficiency  and  develop  a 
quality  management  system  and  new  data  collection  methods.  KAS  should  continue  to 
improve its communication with different administrative data sources,  so that it can reinforce 
its coordination role within Kosovo’s statistical system, provide timely and reliable statistics, 
and increase the number of statistics it publishes. Its current premises remain inadequate. Data 
transmission  to  and  data  disseminated  by  Eurostat  improved  further.  In  the  last  year,  the 
number of data points from Kosovo available in Eurobase increased by 30 %. KAS is using its 
web-based dissemination of statistics, but updates are not as timely and complete as the pdf 
publications,  which  reduces  the  usefulness  of  the  web-based  platform.  The  European 
classification  of  economic  activities  (NACE  Rev.2)  continues  to  be  applied  in  all  relevant 
statistical  areas.  Work  is  ongoing  to  align  the  statistical  business  register  more  closely  with 
the reality of economic activities in Kosovo. The electronic data transmission procedure was 
developed  with  the  Kosovo  Business  Registration  Agency  (KBRA)  and  the  Kosovo  Tax 
Administration  (TAK),  and  the  Statistical  Business  Register  is  automatically  updated  with 
data  collected  in  various  surveys.  The  population  register  needs  significant  improvement  in 
order to provide comprehensive and reliable information ahead of the planned 2021 census. In 
general, KAS should put more effort into aligning existing data with Eurostat requirements, in 
order to increase their visibility. 

On macroeconomic statistics, further alignment with the European System of National and 
Regional  Accounts  (ESA  2010)  is  ongoing.  KAS  publishes  quarterly  national  accounts  at 
T+90  days,  but  annual  and  quarter  sector  accounts,  supply/use  tables  and  regional  accounts 
are  not  compiled  regularly.  Fiscal  notifications  and  financial  accounts  are  not  yet  available. 
Monthly statistics for trade in goods and annual figures for trade in services are submitted to 
Eurostat. The Central Bank of Kosovo compiles balance of payments data broadly in line with 
the  acquis  and  submits  annual  and  quarterly  to  Eurostat.  Government  finance  statistics  are 
published quarterly.  Kosovo publishes a harmonised index of consumer prices based on EU 
standards  (ECOICOP  classification),  but  Eurostat  does  not  currently  publish  it  due  to 
problems of consistency in aggregation. 

Structural business statistics and some short-term statistics are partly in line with the acquis, 
but the availability of short-term statistics remains limited. Industry statistics are compiled on 
a quarterly basis, but no statistics are compiled on the construction and service sectors. The 
construction  cost  index  is  produced  on  a  quarterly  basis.  Industry  statistics  for  2017 
(according to the EU’s PRODCOM list of products) were published in December 2018. Some 
tourism statistics and transport statistics are transmitted to Eurostat, but they are not yet fully 
compliant  with  the  acquis.  Statistics  on  research,  development  and  innovation  are  not 
produced on a regular basis. KAS published the results of an information and communication 
technologies (ICT) survey for households in January 2019 but has still not conducted a survey 
on ICT usage by enterprises.   

In the area of social statistics, only demographic ones are broadly in line with the acquis. As 
a  matter  of  priority,  KAS  should  ensure  resources  and  continue  preparations  for  the  2021 
population  census,  with  full  coverage  of  Kosovo  territory.  In  2018,  for  the  first  time,  KAS 
conducted a full-scale survey of income and living conditions (regular EU-SILC) according to 
EU methodology and it intends to repeat the exercise on an annual basis. Some improvements 
have been made to the labour force survey (LFS): an annual and quarterly LFS are carried out 
and the publication timeframe has improved. However, Eurostat has not yet accepted the data. 
Some social protection statistics are produced but unemployment statistics remain unreliable. 

88 

 
 
Education  statistics  are  still  not  produced  according  to  international  education  classification 
standards  (ISCED  2011).  A  labour  cost  index,  structure  of  earnings  data  and  job  vacancy 
statistics are still not produced. Public health and crime statistics are not yet in line with EU 
standards. 

For  agricultural  statistics,  KAS  publishes  data  on  annual  agricultural  crops  and  livestock 
production, and orchard statistics. The agricultural holding survey is produced regularly and 
in  line with the  acquis. There are no plans to  conduct  a farm structure survey this  year, but 
KAS  is  carrying  out  a  crop  and  livestock  survey  instead.  Agricultural  price  indices  and 
economic accounts for agriculture are produced on a regular basis, but supply balance sheets 
and an agriculture labour index are not yet produced.  

Energy and environment statistics are partly in line with the acquis. KAS has increased the 
number of statistical products sent to Eurostat, but many required statistics either did not meet 
EU standards or were not produced at all. In April 2018, statistics on energy consumption in 
the residential sector were published for the first time, but only for reference year 2015, which 
is  of  limited  use.  Monthly  data  and  the  monthly  share  of  renewables  are  not  provided  to 
Eurostat.  The  first  report  on  energy  efficiency  statistics  was  published  in  March 2018 
according to Eurostat requirements. Such reporting should be improved further, which would 
also facilitate evidence-based planning of projects by the new Energy Efficiency Fund. Waste 
and  water  statistics  are  produced  regularly.  Greenhouse  gas  emission  statistics  are  collected 
but  the information is  not  published regularly.  Kosovo is  starting to  publish statistics on air 
pollution.  Environmental  statistics  on  environment-related  taxes,  protection  expenditure  and 
material flow balances are not yet produced. 

89 

 
 
 
 
 
ANNEX I – RELATIONS BETWEEN THE EU AND KOSOVO  

On 1 April 2016, the EU-Kosovo Stabilisation and Association Agreement (SAA) entered 
into force. The SAA constitutes the first contractual relationship between the EU and Kosovo. 
It is a comprehensive agreement that provides a framework for political dialogue and covers 
cooperation in a wide variety of sectors, including justice and home affairs, trade, education, 
employment, energy, environment and a range of other policy areas. Three Stabilisation and 
Association  Council  meetings,  and  three  cycles  of  subcommittee  meetings  took  place  since 
2016.  

To guide reforms under the implementation of the SAA, the Commission and Kosovo adopted 
in November 2016 the European Reform Agenda (ERA) for Kosovo. The Agenda outlines 
priority  actions  in  the  fields  of  good  governance  and  the  rule  of  law,  competitiveness  and 
investment climate, and employment and education.  

Since  2012,  the  Commission  has  issued  five  reports  on  Kosovo's  progress  towards  visa 
liberalisation  (the  most  recent  in  May  2016  and  June  2018).  On  18  July  2018,  the 
Commission  confirmed  that  Kosovo  has  met  the  two  outstanding  visa  liberalisation 
requirements on the ratification of the border demarcation agreement with Montenegro and a 
strengthened  track-record  in  the  fight  against  crime  and  corruption,  thus  fulfilling  all 
benchmarks  set  out  in  the  Visa  Liberalisation  Roadmap.  In  March  2019,  the  European 
Parliament voted in support of the Commission proposal in its first reading. The proposal is 
pending in the Council. 

As regards financial assistance, the Instrument for Pre-Accession (IPA) 2018 programme for 
Kosovo was adopted in December 2018 with an EU contribution totalling EUR 90.5 million, 
complemented by co-financing from Kosovo for an overall budget of EUR 94.8 million. Two 
sector  budget  support  operations  are  being  implemented  in  Kosovo:  public  administration 
reform  (PAR)  under  IPA  2016  (EUR  25  million)  and  public  financial  management  (PFM) 
under IPA 2017 (EUR 25 million). In 2018, the EU Office in Kosovo signed 139 contracts for 
a total amount of EUR 89 million. It continued to ensure the co-ordination of donors active in 
Kosovo by organising – together with the Kosovo Ministry of European Integration – regular 
donor co-ordination meetings.  

On  17  July  2017,  the  Council  approved  the  Framework  Agreement  between  the  European 
Union  and  Kosovo  on  the  general  principles  for  the  participation  of  Kosovo  in  Union 
programmes.  In  2018,  Kosovo  joined  the  Erasmus+,  COSME,  Europe  for  Citizens  and 
Creative Europe programmes.  

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. 

Since  2008,  the  European  Rule  of  Law  Mission  in  Kosovo  (EULEX)  has  been  assisting 
Kosovo authorities in establishing sustainable and independent rule of law institutions. Within 
its current mandate (June 2018-June 2020), the Mission undertakes monitoring activities and 
has limited executive functions.  

To  date,  according  to  the  government,  Kosovo  has  been  recognised  by  114  countries, 
including 23 EU Member States.  

During the reporting period, the UN Secretary-General continued to provide regular updates 
on the implementation of the UN's mission in Kosovo (UNMIK). He notably raised concern 
about  the  tension  between  Belgrade  and  Pristina  and  called  on  leaders  from  both  sides  to 

90 

 
 
avoid  any  action  that  could  further  raise  tensions,  encouraging  them  to  make  conciliatory 
gestures and seek ways to reengage and work towards progress in the EU-facilitated dialogue.  

The  NATO-led  Kosovo  Force  (KFOR)  has  continued  to  help  ensure  a  safe  and  secure 
environment in Kosovo. In February 2019, it had 3 525 personnel. 

91 

 
 
 
ANNEX II – STATISTICAL ANNEX 

STATISTICAL DATA (as of 29.04.2019) 

Kosovo 

Basic data 

Population (thousand) 

Note 

2006 

2013 

2 100 

1 816b 

2014 

1 821 

2015 

1 805b 

2016 

1 772 

2017 

1 784 

Total area of the country (km²) 

1) 

10 908 

10 908 

10 908 

10 908 

10 908 

10 905b 

National accounts 

Note 

2006 

Gross domestic product (GDP) (million euro) 

GDP (euro per capita) 

GDP per capita (in purchasing power standards (PPS)) 

GDP per capita (in PPS), relative to the EU average (EU-28 = 100) 

Real GDP growth rate: change on previous year of GDP volume (%) 

Employment growth (national accounts data), relative to the previous 
year (%) 

Labour productivity growth: growth in GDP (in volume) per person 
employed, relative to the previous year (%) 

Unit labour cost growth, relative to the previous year (%) 

**3 year change (T/T-3) in the nominal unit labour cost growth index 
(2010 = 100) 

Labour productivity per person employed: GDP (in PPS) per person 
employed relative to EU average (EU-28 = 100) 

Gross value added by main sectors 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

92 

2013 

5 327 

2 900 

: 

: 

2014 

5 568 

3 100 

: 

: 

2015 

5 807 

3 200 

: 

: 

2016 

6 070 

3 400 

: 

: 

2017 

6 414 

3 600 

: 

: 

3.4 

1.2 

4.1 

4.1 

4.2 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agriculture, forestry and fisheries (%) 

Industry (%) 

Construction (%) 

Services (%) 

Final consumption expenditure, as a share of GDP (%) 

Gross fixed capital formation, as a share of GDP (%) 

Changes in inventories, as a share of GDP (%) 

Exports of goods and services, relative to GDP (%) 

Imports of goods and services, relative to GDP (%) 

Gross fixed capital formation by the general government sector, as a 
percentage of GDP (%) 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

14.4 

20.3 

7.9 

57.4 

14.3 

19.4 

7.3 

59 

12.6 

20.8 

8.4 

58.2 

13.0 

21.5 

8.1 

57.4 

100.1 

102.9 

100.9 

100.0 

24.8 

2.8 

21.9 

49.7 

: 

23.2 

2.5 

22.5 

51.2 

: 

25.8 

1.8 

21.9 

50.4 

: 

25.5 

1.6 

23.7 

50.9 

: 

11.4 

21.8 

9.9 

56.9 

97.5 

27.0 

1.4 

26.7 

52.5 

: 

Business 

Note 

2006 

2013 

2014 

2015 

2016 

2017 

Industrial production volume index (2010 = 100) 

Number of active enterprises (number) 

Birth rate: number of enterprise births in the reference period (t) divided 
by the number of enterprises active in t (%) 

Death rate: number of enterprise deaths in the reference period (t) 
divided by the number of enterprises active in t (%) 

People employed in SMEs as a share of all persons employed (within the 
non-financial business economy) (%) 

Value added by SMEs (in the non-financial business economy) (EUR 
million) 

Total value added (in the non-financial business economy) (EUR 
million) 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

30 803 

31 420 

35 472 

33 274 

34 355 

8.5 

4.4 

9.0 

5.3 

11.7 

9.2 

8.7 

8.3p 

15.8p 

: 

74.8 

76.6 

78.3 

78.5 

78.8 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

93 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inflation rate and house prices 

Harmonised consumer price index (HICP), change relative to the 
previous year (%) 

Note 

2006 

2) 

0.6 

2013 

1.7 

2014 

0.4 

2015 

-0.5 

2016 

0.3 

2017 

1.5 

**Annual change in the deflated house price index (2010 = 100) 

: 

: 

: 

: 

: 

: 

Balance of payments 

Balance of payments: current account total (million euro) 

Note 

2006 

-226 

2013 

-179 

2014 

-385 

2015 

-497 

2016 

-481 

2017 

-383 

Balance of payments current account: trade balance (million euro) 

-1 164 

-1 996 

-2 059 

-2 109 

-2 291 

-2 464 

Balance of payments current account: net services (million euro) 

Balance of payments current account: net balance for primary income 
(million euro) 

Balance of payments current account: net balance for secondary income 
(million euro) 

Net balance for primary and secondary income: of which government 
transfers (million euro) 

**3 year backward moving average of the current account balance 
relative to GDP (%) 

**Five year change in share of world exports of goods and services (%) 

Net balance (inward - outward) of foreign direct investment (FDI) 
(million euro) 

Foreign direct investment (FDI) abroad (million euro) 

of which FDI of the reporting economy in the EU-28 countries (million 
euro) 

20 

159 

520 

122 

460 

114 

457 

93 

639 

75 

794 

127 

759 

1 175 

1 100 

1 062 

1 096 

1 161 

320 

370 

291 

202 

204 

196 

-7.3 

-5.4 

-6.3 

-7.8 

-7.5 

: 

289.2 

250.2 

5.6 

: 

30.0 

67.0 

11.51 

123.8 

27.3 

28.4 

6.03 

271.8 

37.1 

89.1 

6.86 

177.2 

42.7 

25.7 

25.61 

212.0 

43.4 

16.3 

: 

: 

Foreign direct investment (FDI) in the reporting economy (million euro) 

294.8 

280.2 

151.2 

308.8 

220.0 

255.4 

94 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
of which FDI of the EU-28 countries in the reporting economy (million 
euro) 

**Net international investment position, relative to GDP (%) 

Year on year rate of change in gross inflow of remittances (in national 
currency) from migrant workers (%) 

: 

: 

11.8 

88.5 

38.5 

100.2 

41.2 

123.5 

4.9 

11.0 

3.5 

8.5 

-0.7 

6.9 

-1.3 

3.8 

-1.8 

9.9 

Public finance 

Note 

2006 

2013 

2014 

2015 

2016 

2017 

***General government deficit / surplus, relative to GDP (%) 

***General government gross debt relative to GDP (%) 

Total  government revenues, as a percentage of GDP (%) 

Total government expenditure, as a percentage of GDP (%) 

: 

0.0 

: 

: 

Financial indicators 

Note 

2006 

Gross external debt of the whole economy, relative to GDP (%) 

Gross external debt of the whole economy, relative to total exports (%) 

Money supply: M1 (banknotes, coins, overnight deposits, million euro) 

Money supply: M2 (M1 plus deposits with maturity up to two years, 
million euro) 

Money supply: M3 (M2 plus marketable instruments, million euro) 

Total credit by monetary financial institutions to residents (consolidated) 
(million euro) 

**Annual change in financial sector liabilities (%) 

**Private credit flow, consolidated, relative to GDP (%) 

**Private debt, consolidated, relative to GDP (%) 

: 

: 

: 

: 

10.6e 

13.1e 

14.6e 

16.6e 

: 

8.9e 

26.8 

28.2 

2013 

30.2 

: 

: 

: 

: 

: 

: 

: 

: 

: 

26.3 

27.1 

2014 

31.2 

: 

: 

: 

: 

29.6 

28.0 

2015 

33.3 

: 

: 

: 

: 

637 

1 878 

1 957 

2 153 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

95 

: 

: 

: 

: 

2016 

33.2 

2017 

32.6 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rates: day-to-day money rate, per annum (%) 

Lending interest rate (one year), per annum (%) 

Deposit interest rate (one year), per annum (%) 

3) 

3) 

Euro exchange rates: average of period (1 euro = … national currency) 

Trade-weighted effective exchange rate index, 42 countries (2005 = 100) 

**3 year change (T/T-3) in the trade-weighted effective exchange rate 
index, 42 countries (2005 = 100) 

Value of reserve assets (including gold) (million euro) 

: 

14.50 

3.00 

1 

100 

: 

356 

External trade in goods 

Value of imports: all goods, all partners (million euro) 

Value of exports: all goods, all partners (million euro) 

Note 

2006 

1 315 

82 

: 

11.82 

3.43 

1 

102 

1.3 

694 

2013 

2 449 

294 

: 

10.61 

1.11 

1 

102 

0.9 

645 

2014 

2 538 

325 

: 

8.32 

0.90 

1 

102 

0.4 

: 

7.47 

1.01 

1 

102 

0.1 

: 

6.83 

1.04 

1 

103 

0.7 

706 

605 

683 

2015 

2 635 

325 

2016 

2 789 

310 

2017 

3 047 

378 

Trade balance: all goods, all partners (million euro) 

-1 233 

-2 155 

-2 214 

-2 309 

-2 480 

-2 669 

Terms of trade (export price index / import price index * 100) (number) 

Share of exports to EU-28 countries in value of total exports (%) 

Share of imports from EU-28 countries in value of total imports (%) 

: 

36.6 

36.3 

97 

40.1 

44.2 

107 

30.2 

42.6 

Demography 

Note 

2006 

2013 

2014 

Crude rate of natural change of population (natural growth rate): number 
of births minus deaths (per thousand inhabitants) 

Infant mortality rate deaths of children under one year of age (per 
thousand live births) 

Life expectancy at birth: male (years) 

Life expectancy at birth: female (years) 

12.6 

12.0 

: 

: 

: 

: 

: 

: 

13.2be 

: 

: 

: 

107 

32.6 

42.2 

2015 

9.2p 

101 

22.6 

43.1 

2016 

8.4p 

107 

24.9 

43.1 

2017 

8.2 

9.7 

8.5 

9.7 

: 

: 

75.9p 

81.6p 

: 

: 

96 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Labour market 

Note 

2006 

Economic activity rate for persons aged 20–64: proportion of the 
population aged 20–64 that is economically active (%) 

*Employment rate for persons aged 20–64: proportion of the population 
aged 20–64 that are in employment (%) 

Male employment rate for persons aged 20–64 (%) 

Female employment rate for persons aged 20–64 (%) 

Employment rate for persons aged 55–64: proportion of the population 
aged 55–64 that are in employment (%) 

Employment by main sectors 

Agriculture, forestry and fisheries (%) 

Industry (%) 

Construction (%) 

Services (%) 

People employed in the public sector as a share of total employment, 
persons aged 20–64 (%) 

People employed in the private sector as a share of total employment, 
persons aged 20–64 (%) 

Unemployment rate: proportion of the labour force that is unemployed 
(%) 

Male unemployment rate (%) 

Female unemployment rate (%) 

Youth unemployment rate: proportion of the labour force aged 15–24 
that is unemployed (%) 

2013 

46.4 

2014 

47.7 

2015 

42.8 

2016 

44.0 

2017 

49.0 

33.0 

31.3 

29.1 

32.3 

34.4 

51.5 

14.9 

30.8 

5.9 

16.8 

11.4 

65.9 

31.5 

48.4 

14.5 

29.8 

2.6 

17.7 

10.9 

68.8 

31.4 

44.9 

13.2 

27.2 

2.3 

18.7 

9.5 

69.5 

32.6 

49.9 

14.6 

29.6 

4.2 

18.0 

11.5 

66.3 

30.8 

54.0 

14.6 

32.7 

4.4 

17.4 

12.9 

65.3 

28.4 

68.5 

68.6 

67.4 

69.2 

71.6 

: 

: 

: 

: 

26.3 

21.4 

12.4 

8.1 

: 

: 

: 

44.9 

30.0 

35.3 

32.9 

27.5 

30.3 

34.6 

61.6 

75.5 

26.9 

38.8 

55.9 

33.1 

41.6 

61.0 

31.8 

36.6 

57.7 

26.2 

31.7 

52.4 

28.5 

36.4 

52.7 

97 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term unemployment rate: proportion of the labour force that has 
been unemployed for 12 months or more (%) 

Unemployment rate for persons (aged 25–64) having completed at most 
lower secondary education (ISCED levels 0-2) (%) 

Unemployment rate for persons (aged 25–64) having completed tertiary 
education (ISCED levels 5-8) (%) 

18.5 

20.7 

26.1 

23.8 

18.0 

21.7 

: 

: 

37.3 

44.0 

45.5 

29.6 

32.5 

13.4 

17.1 

17.4 

15.6 

22.6 

Social cohesion 

Note 

2006 

2013 

2014 

2015 

2016 

2017 

Average nominal monthly wages and salaries (national currency) 

Index of real wages and salaries (index of nominal wages and salaries 
divided by the inflation index) (2010 = 100) 

GINI coefficient 

Poverty gap 

*Early leavers from education and training: proportion of the population 
aged 18–24 with at most lower secondary education who are not in 
further education or training (%) 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

18.4 

16.5 

14.5 

12.7 

12.2 

Standard of living 

Number of passenger cars relative to population size (number per 
thousand population) 

Number of mobile phone subscriptions relative to population size 
(number per thousand population) 

Mobile broadband penetration (per 100 inhabitants) 

Fixed broadband penetration (per 100 inhabitants) 

Note 

2006 

2013 

69.9 

122.5b 

2014 

129.7 

2015 

156.1b 

2016 

146.8 

2017 

153.6 

: 

: 

: 

: 

: 

: 

464.3 

487.8 

545.0 

553.1 

: 

: 

: 

: 

: 

: 

1 

0 

98 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Infrastructure 

Density of railway network (lines in operation per thousand km²) 

Length of motorways (kilometres) 

Innovation and research 

Public expenditure on education relative to GDP (%) 

*Gross domestic expenditure on R&D relative to GDP (%) 

Government budget appropriations or outlays on R&D (GBAORD), as a 
percentage of GDP (%) 

Percentage of households who have internet access at home (%) 

Note 

2006 

: 

0 

Note 

2006 

: 

: 

: 

: 

2013 

30.9 

78 

2013 

3.8 

: 

: 

: 

2014 

30.9 

78 

2014 

3.7 

: 

: 

: 

2015 

30.9 

80 

2015 

4.5 

: 

: 

: 

2016 

30.9 

98 

2016 

4.6 

: 

: 

: 

2017 

30.9 

108 

2017 

4.4 

: 

: 

88.8 

Environment 

Note 

2006 

2013 

2014 

2015 

2016 

2017 

*Index of greenhouse gas emissions,  CO2 equivalent (1990 = 100) 

Energy intensity of the economy (kg of oil equivalent per 1 000 euro 
GDP at 2010 constant prices) 

Electricity generated from renewable sources relative to gross electricity 
consumption (%) 

Road share of inland freight transport (based on tonne-km) (%) 

: 

: 

: 

: 

: 

: 

: 

: 

: 

473.2 

448.3 

490.3 

504.6 

459.9 

3.7 

4.0 

3.6 

6.2 

4.4 

: 

: 

: 

: 

: 

Energy 

Primary production of all energy products (thousand TOE) 

Primary production of crude oil (thousand TOE) 

Note 

2006 

1 424 

0 

2013 

1 792 

0 

2014 

1 605 

0 

2015 

1 804 

0 

2016 

2 016 

0 

2017 

1 793 

0 

Primary production of solid fuels (thousand TOE) 

1 248 

1 532 

1 342 

1 536 

1 640 

1 412 

Primary production of gas (thousand TOE) 

0 

0 

0 

0 

0 

0 

99 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net imports of all energy products (thousand TOE) 

Gross inland energy consumption (thousand TOE) 

Gross electricity generation (GWh) 

Agriculture 

Agricultural production volume index of goods and services (at producer 
prices) (2010 = 100) 

581 

1 970 

4 434 

Note 

2006 

102.7 

Utilised agricultural area (thousand hectares) 

4) 5) 

Livestock numbers: live bovine animals (thousand heads, end of period) 

5) 6) 

Livestock numbers: live swine (thousand heads, end of period) 

Livestock numbers: live sheep and live goats (thousand heads, end of 
period) 

Raw milk available on farms (thousand tonnes) 

Harvested crop production: cereals (including rice) (thousand tonnes) 

Harvested crop production: sugar beet (thousand tonnes) 

Harvested crop production: vegetables (thousand tonnes) 

5) 6) 

5) 6) 

6) 

7) 

6) 

401 

382 

68 

113 

: 

392 

0 

142 

505 

2 312 

6 525 

2013 

117.6 

442 

321 

49 

160 

: 

540 

0 

158 

603 

2 217 

5 436 

2014 

93.3 

416e 

270e 

46e 

234 

: 

465e 

0 

170e 

697 

2 524 

6 119 

2015 

103.7 

411 

259 

44 

224 

: 

444 

: 

145 

638 

2 704 

5 981 

769 

2 569 

5 918 

2016 

2017 

: 

417 

265 

42 

212 

376 

563 

: 

186 

: 

417 

260 

41 

211 

332 

478 

: 

182 

: = not available 
b = break in series 
e = estimate 
p = provisional 
* = Europe 2020 indicator 
** = Macroeconomic Imbalance Procedure (MIP) indicator 
*** = The government deficit and debt data of enlargement countries are published on an "as 
is" basis and without any assurance as regards their quality and adherence to ESA rules. 

100 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Footnotes 

1)  The change of the total area between 2016 and 2017 reflects measurements made by the 

Kosovo Cadastral Agency. 

2)  2006, 2013 and 2014: consumer price index. 
3)  2013 and 2014: includes disbursement fee charged by banks. 
4) 
5)  2014: data from the 2014 agriculture census.  
6)  2014-2017: results for four municipalities in the north of Kosovo which did not participate 

Including agricultural common land. 

in the census/surveys are estimated. 

7)  Excluding rice. 

101