COMMISSION STAFF WORKING DOCUMENT Kosovo* 2020 Report Accompanying the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 2020 Communication on EU Enlargement Policy
Date: 2020-10-06
Institutions: Directorate-General for Neighbourhood and Enlargement Negotiations, European Commission
Subjects: Kosovo, accession criteria, accession negotiations, coronavirus disease, epidemic, 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, 6.10.2020  SWD(2020) 356 final  COMMISSION STAFF WORKING DOCUMENT Kosovo* 2020 Report                 Accompanying the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions   2020 Communication on EU Enlargement Policy {COM(2020) 660 final} - {SWD(2020) 350 final} - {SWD(2020) 351 final} - {SWD(2020) 352 final} - {SWD(2020) 353 final} - {SWD(2020) 354 final} - {SWD(2020) 355 final}  
 
 
Table of Contents 

1. 

INTRODUCTION .............................................................................................................. 3 

1.1.  

Context ......................................................................................................................... 3 

1.2 

2.  

2.1 

Summary of the report ................................................................................................. 4 

FUNDAMENTALS FIRST: POLITICAL CRITERIA AND THE RULE OF LAW ............................ 7 

Functioning of democratic institutions and public administration reform ................... 7 

2.2.1  Democracy ................................................................................................................... 7 

2.1.2 

Public administration reform ...................................................................................... 13 

2.2 

Rule of law and fundamental rights ........................................................................... 17 

2.2.1 

Judiciary and fundamental rights ............................................................................... 17 

2.2.2 

Justice, freedom and security ..................................................................................... 39 

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 

Fundamentals first: economic development and competitiveness ............................. 51 

The existence of a functioning market economy ....................................................... 51 

The capacity to cope with competitive pressure and market forces within the Union
 .................................................................................................................................... 58 

Good neighbourly relations and regional cooperation ............................................... 60 

NORMALISATION OF RELATIONS BETWEEN KOSOVO AND SERBIA ............................... 62 

European standards .................................................................................................... 63 

Free movement of goods ............................................................................................ 63 

Movement of workers, services and right of establishment ....................................... 65 

Free movement of capital ........................................................................................... 66 

Financial services ....................................................................................................... 67 

Customs ...................................................................................................................... 69 

Taxation ...................................................................................................................... 70 

Competition ................................................................................................................ 72 

Public procurement .................................................................................................... 73 

Company law ............................................................................................................. 76 

Intellectual property law ............................................................................................ 76 

Social policy and employment ................................................................................... 78 

6.12   Consumer and Health Protection ............................................................................... 81 

6.13  

Education and culture ................................................................................................. 83 

6.14 

6.15 

6.16 

Science and research .................................................................................................. 85 

Trade issues ................................................................................................................ 87 

Enterprise and industrial policy ................................................................................. 88 

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6.17   Agriculture ................................................................................................................. 90 

6.18 

6.19 

6.20 

Food safety, veterinary and phytosanitary policy ...................................................... 91 

Fisheries ..................................................................................................................... 92 

Environment and climate change ............................................................................... 92 

6.21  

Transport policy ......................................................................................................... 95 

6.22 

6.23 

6.24 

6.25 

6.26 

Energy ........................................................................................................................ 96 

Trans-European networks .......................................................................................... 98 

Information society and media ................................................................................. 100 

Financial control ....................................................................................................... 101 

 Statistics .................................................................................................................. 103 

ANNEX I – RELATIONS BETWEEN THE EU AND KOSOVO ......................................................... 106 

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KOSOVO 

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) 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.  The  Commission  continues  to  stand  behind  this 
assessment.  The  European  Parliament  confirmed  its  support  for  the  Commission’s  proposal 
for  visa  liberalisation.  The  proposal  is  pending  in  the  Council  and  should  be  treated  as  a 
matter of urgency.  

During the reporting period, Kosovo lifted the 100% tariff on imports from Serbia and Bosnia 
and  Herzegovina,  which  had  been  imposed  in  November  2018,  as  well  as  all  reciprocity 
measures. This has allowed for a restoration in trade with Serbia and Bosnia and Herzegovina 
and for the resumption of the EU-facilitated Belgrade-Pristina dialogue.  

The Kosovo authorities continued to demonstrate publicly their commitment to advance on its 
European path.  

The  COVID-19  pandemic  is  a  global  shock  that  has  not  spared  the  Western  Balkans.  It 
represents  an  unprecedented  burden  on  their  health  and  social  protection  systems.  The  final 
extent  of  its  footprint  in  terms  of  loss  of  human  lives  and  damage  to  the  economies  is  still 
difficult  to  assess,  but  early  Commission  estimates  foresee  a  drop  of  between  4  and  6%  of 
Gross Domestic Product in the region. Thousands of citizens are at risk of losing their jobs, 
and  temporary  government  support  measures  (unemployment  benefits,  deferrals/waivers  to 
tax and social security contributions, etc.) have an important fiscal impact.  

While the EU is itself heavily affected by the pandemic, it has spared no  time and effort  to 
provide  essential  and  unparalleled  support  to  the  Western  Balkans.  This  includes  financial 
support  of  more  than  EUR  3.3  billion  for  countries  in  the  region  to  address  the  immediate 
health crisis and resulting humanitarian needs, as well as longer term and structural impact on 
their  societies  and  economies.  Given  the  European  perspective  of  the  Western  Balkans,  the 
EU  is  also  treating  the  region  as  privileged  partners  by  associating  them  with  the  Union’s 
mechanisms  and 
the  Health  Security  Committee,  Joint 
include 
Procurement  Agreements,  Union  Civil  Protection  Mechanism,  Solidarity  Fund,  consular 
assistance  in  repatriation  or  exemption  from  temporary  EU  export  restrictions  of  medical 
equipment. These and other measures have provided immediate relief and are a clear message 
of the EU’s political commitment towards the region. 

instruments.  These 

In Kosovo, the government declared a public health emergency in March 2020 and introduced 
containment  measures  and  restrictions  to  prevent  the  spread  of  the  virus.  Measures  were 
gradually lifted from  early May 2020. However, in response to increasing numbers of cases 
from  early  June,  the  government  reintroduced  in  mid-July  several  public  health  measures, 
including  obligatory  wearing  of  facemasks,  curfews  and  testing  requirements  for  entry  into 
Kosovo. In August 2020, the Kosovo Assembly adopted a new Law on prevention and fight 
against the COVID-19 pandemic, in order to provide a solid legal framework for the required 
public health measures. 

In  order  to  mitigate  the  social  and  economic  effects  of  the  COVID-19  crisis,  an  initial 
emergency  package  of  EUR  180  million  was  adopted  in  April  2020  to  provide  support  for 

3 

 
 
businesses,  farmers  and  employees,  additional  social  protection  and  assistance  measures, 
flexibility  for  loans  and  tax  payments.  On  30  July,  the  Kosovo  Assembly  endorsed  an 
Economic Recovery Programme which includes an additional EUR 185 million for the year 
2020.  On  14  August,  the  Assembly  ratified  the  EU  Macro-Financial  Assistance  loan 
agreement worth EUR 100 million, which aims to help Kosovo limit the economic fallout of 
the pandemic. 

The  European  Commission  recommended  that  emergency  measures  taken  in  the  context  of 
the COVID-19 pandemic are proportionate, restricted to what is necessary and limited in time 
so that rule of law and democratic and human rights standards are respected. 

1.2 

Summary of the report  

As  concerns  the  political  criteria,  the  reporting  period  was  marked  by  early  legislative 
elections,  two  changes  of  government  and  relatively  long  periods  with  only  a  caretaker 
government  in  place.  Due  to  this  volatile  political  context  and  the  necessary  focus  on  the 
pandemic response, there was overall limited progress on EU-related reforms in Kosovo.  

Following the  resignation of the then Prime Minister Ramush Haradinaj  in  July 2019, early 
legislative elections took place in October 2019, with a higher turnout than for the previous 
elections.  The  new  Assembly  was  constituted  in  December  2019  and  a  new  government 
headed  by  Prime  Minister  Albin  Kurti  took  office  on  3  February  2020,  with  a  stated 
commitment to pursue EU-related reforms, foster economic development and the fight against 
corruption  and  organised  crime.  However,  this  government  was  dismissed  less  than  two 
months  after,  by  a  no-confidence  vote,  following  disagreements  between  the  coalition 
partners.  The  vote  of  no-confidence  led  to  a  political  crisis,  notably  over  the  constitutional 
procedures  regarding  the  formation  of  a  new  government.  After  the  Constitutional  Court 
clarified the issue, a new government led by Prime Minister Avdullah Hoti took office on 3 
June 2020.  

During the reporting period, the Assembly did not improve its overall performance as a forum 
for constructive political dialogue and representation, as demonstrated notably by the frequent 
lack of quorum. Under the new legislature, there have however been some improvements in 
the organisation of its work. The Assembly should  prioritise EU-related reforms  and ensure 
parliamentary best practices.  

The legislative elections of October 2019 were overall well-administered and transparent, but 
the vote-counting process exposed vulnerabilities. The campaign was competitive, except in 
the Kosovo Serb areas where the campaign environment was marred by intimidation against 
non-Srpska Lista candidates and supporters. Recurring election process shortcomings need to 
be urgently  addressed, in line with the recommendations of several EU  election observation 
missions.  

The  situation  in  the  north  of  Kosovo  remains  challenging,  in  particular  when  it  comes  to 
corruption, organised crime, and the conditions for freedom of expression. 

There is some level of preparation in the area of public administration reform. During the 
reporting  period,  limited  progress  was  made  in  increasing  transparency  in  the  public 
administration and of public procurement procedures. Implementation of the package of three 
public  administration  reform  laws  adopted  in  February  2019  was  stalled  as  a  result  of  the 
political situation and the request for constitutional review of the Law on salaries and the Law 
on public officials.  On 30 June 2020, the Constitutional  Court declared the  Law on salaries  
unconstitutional in its entirety and ruled that the Law on public officials needs to be amended 
for  it  to  fully  enter  into  force.  The  Law  on  organisation  and  functioning  of  the  state 

4 

 
 
administration  is  fully  in  force  and  its  implementation  should  continue.  Weak  central  and 
inter-ministerial  coordination  remains  a  challenge  for  the  overall  implementation  of  the 
reform. During the reporting period, non-merit based recruitments remained a concern, while 
inclusive  and  evidence-based  policy-making  was  hampered  by  ad  hoc  decisions,  often 
influenced by special interests. Kosovo authorities need to ensure that the reform of the public 
administration remains a priority and should build on the progress achieved so far.  

Kosovo's  judicial  system  is  at  an  early  stage  of  preparation.  Some  progress  was  achieved 
with  the  partial  implementation  of  rule  of  law  related  legislation  including  the  Law  on  the 
disciplinary  liability  of  judges  and  prosecutors  and  the  Law  on  mediation,  and  with  the 
advancement  of  the  roll  out  of  an  electronic  case  management  system  and  central  criminal 
record  registry.  The  judiciary  is  still  vulnerable  to  undue  political  influence.  The  ongoing 
Functional  Review  of  the  Rule  of  Law  Sector  has  provided  a  sound  basis  to  reform  and 
modernise various aspects of the judiciary. The Kosovo authorities should now take this work 
forward. The administration of justice remains slow and inefficient and rule of law institutions 
need  sustained  efforts  to  build  up  their  capacities.  The  COVID-19  pandemic  limited  the 
holding  of  court  hearings  in  Kosovo;  yet  the  Criminal  Procedure  Code  specifies  that  if  no 
hearings are held for 3 months, the trial has to re-start. An important number of criminal trials 
(including high-profile ones) may be affected by this rule. Kosovo authorities should follow-
up on this issue and take the necessary measures to ensure effective and efficient conduct of 
justice.  Kosovo  is  at  an  early  stage/has  some  level  of  preparation  in  the  fight  against 
corruption. Kosovo has made limited progress in this area, including on the investigation and 
prosecution of high level cases, on the confiscation of assets as well as through the creation of 
the Special Departments handling cases regarding high-level corruption (and organised crime) 
in  the  courts.  Final  confiscations  of  assets  and  the  overall  capacity  of  the  prosecution, 
including  as  regards supporting staff,  remain low. Corruption is  widespread and  remains  an 
issue  of  serious  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. The 
adoption  of  the  revised  Criminal  Procedure  Code  is  still  pending,  while  the  revision  of 
political party financing legislation was delayed.  

Kosovo  is  at  an  early  stage  in  the  fight  against  organised  crime.  Progress  has  included 
investigating  and  prosecuting  high-level  cases,  recruiting  additional  staff  for  the  special 
prosecution  office  and  training  and  awareness  raising  on  the  freezing  of  assets.  However, 
overall  progress  has  been  limited.  There  are  still  few  financial  investigations,  final 
confiscations of assets 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.  

In July 2020 Europol and the Kosovo Police concluded a Working Arrangement. Kosovo was 
the  only  partner  in  the  Western  Balkans  without  any  structured  and  formalised  cooperation 
with Europol, which created a significant  gap. The arrangement will constitute the basis for 
enhanced cooperation between Kosovo Police, Europol and EU Member States, in particular 
in addressing terrorism and extremism as well as organised crime. 

Progress was made in the fight against terrorism, in line with the objectives set out in the EU-
Kosovo  implementing  arrangement  for  the  Joint  Action  Plan  on  counter-terrorism  for  the 
Western  Balkans,  especially  with  regard  to  the  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.  

5 

 
 
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 large dependence on 
foreign  donors  remains.  The  adoption  of  the  Law  on  Child  Protection  fulfilled  one  of  the 
recommendations  of  last  year’s  report.  More  needs  to  be  done  to  effectively  guarantee  the 
rights of persons belonging to minorities, including Roma and Ashkali and displaced persons, 
to  ensure  gender  equality  in  practice,  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 need to continue efforts to follow-up on threats and attacks against journalists. 
The public broadcaster remains vulnerable to political influence and a sustainable solution for 
its funding still needs to be found.  

The  Kosovo  authorities  have  made  progress  in  managing  both  regular  migration  and  mixed 
migration flows. Kosovo activated its contingency plan due to the influx of asylum seekers 
and irregular migrants. Its efforts should be continued and built on.  

As regards the economic criteria, Kosovo is at an early stage and has made limited progress 
in developing a functioning market economy. Robust economic growth continued in 2019, but 
the  difficult  labour  market  situation  and  the  lack  of  economic  diversification  remain  a 
challenge. While the government adhered to the fiscal rule in 2019, the composition of public 
spending has further deteriorated. Decreasing capital spending, rising pressures related to non-
poverty-targeted social benefits and increasing public wages pose risks to public finances and 
hinder  private  sector  development.  The  business  environment  saw  limited  improvements. 
Private  sector  development  remains  constrained  by  a  widespread  informal  economy,  a  slow 
and  inefficient  judiciary,  a  high  prevalence  of  corruption  and  the  overall  weak  rule  of  law. 
Kosovo’s  economic  outlook  started  to  deteriorate  rapidly  in  spring  2020,  as  the  COVID-19 
quarantine measures disrupted the financial flows with diaspora. Kosovo is at an early stage 
and  has  made  limited  progress  in  terms  of  capacity  to  cope  with  competitive  pressure  and 
market  forces  in  the  EU.  The  quality  of  education  remains  a  concern.  Kosovo  made  some 
progress  in  improving  road  infrastructure,  but  there  are  large  gaps  in  railway  and  energy 
infrastructure. Although investments in renewables are gradually increasing, Kosovo remains 
reliant  on  a  predominantly  coal-based,  outdated  and  unreliable  energy  production  system. 
Kosovo  made  some  progress  as  regards  the  digitalisation  of  the  economy.  The  economy’s 
sectorial structure is shifting towards non-tradable activities, which weight on competitiveness 
and growth of merchandise exports. 

As  regards  good  neighbourly  relations  and  regional  cooperation,  Kosovo  continued  to 
participate  in  most  regional  fora.  In  April  2020,  the  Kosovo  government  lifted  the  tariffs 
imposed since November 2018 on imports from Serbia and Bosnia and Herzegovina and on 6 
June  all  reciprocity  measures  were  lifted.  This  has  allowed  for  a  restoration  in  trade  with 
Serbia  and  Bosnia  and  Herzegovina  and  for  the  resumption  of  the  EU-facilitated  Belgrade-
Pristina dialogue.  

Regarding the normalisation of relations with Serbia, the EU-facilitated dialogue resumed 
with high-level meetings on 12 and 16 July, and 7 September 2020. A number of expert level 
meetings  took  place  in  Brussels.  Kosovo  needs  to  make  further  substantial  efforts  and 
contribute  to  reaching  a  comprehensive  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 

 
 
As  regards  alignment  with  European  standards,  Kosovo  has  overall  some  level  of 
preparation.  Legislative  alignment  has  continued  in  some  areas  but  implementation  is  often 
weak.  Good  progress  was  made  in  the  area  of  taxation,  including  as  regards  revenue 
collection.  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. Some progress 
was also  made in  the  area of energy, notably with  energy  efficiency measures in  the public 
sector and a  gradual  increase of investments  in  renewable energy sources.  Limited progress 
was  achieved  in  addressing  environmental  issues.  No  progress  was  made  in  the  area  of 
education and the quality  of  education needs to  be improved considerably. Overall, Kosovo 
needs  to  improve  its  administrative  capacity  and  coordination,  across  all  sectors,  to  ensure 
effective implementation of the EU acquis.  

2.  

2.1 

FUNDAMENTALS FIRST: POLITICAL CRITERIA AND THE RULE OF LAW 

Functioning of democratic institutions and public administration reform 

2.2.1  Democracy 

The reporting  period  was marked by  early legislative elections, two changes of  government 
and  relatively  long  periods  with  only  a  caretaker  government  in  place.  The  elections  of 
October 2019 were competitive (except in Kosovo Serb areas), but the vote-counting process 
exposed vulnerabilities. The governing coalition that resulted from  these elections collapsed 
after a no-confidence vote less than two months after taking up office, leading to a political 
crisis in the middle of the COVID-19 pandemic and to the formation of a new government. 
The Assembly has continued to function during the pandemic crisis, albeit in a reduced mode. 
Two  local  by-elections  were  postponed  due  to  the  pandemic.  Due  to  the  volatile  political 
context and the necessary focus on the pandemic response, there was overall limited progress 
on EU-related reforms during the reporting period.  

Elections 

The  early  legislative  elections  of  October  2019  were  overall  well-administered  and 
transparent,  but  the  vote-counting  process  exposed  vulnerabilities,  in  particular  in  the 
handling  of  complaints.  The  campaign  was  competitive,  except  in  the  Kosovo  Serb  areas 
where  the  campaign  environment  was  marred  by  intimidation  against  non-Srpska  Lista 
candidates  and  supporters.  Kosovo's  electoral  process  needs  to  be  further  strengthened  by 
effectively  addressing  long‑ standing  weaknesses  throughout  the  electoral  cycle.  Recurring 
systemic  problems  with  the  election  process,  which  were  already  identified  by  EU  election 
observation  missions  in  2014,  2017  and  2019,  need  to  be  addressed  by  the  Assembly  and 
other  institutions.  The  legal  framework  governing  campaign  and  political  party  financing 
remains  in  need  of  substantial  amendments  in  line  with  Venice  Commission  guidance  and 
best international practice. 

Following  the  resignation  of  former  Prime  Minister  Ramush  Haradinaj  in  July  2019,  early 
legislative elections were held on 6 October.  

The elections were called with the longest possible notice of 45 days after the dissolution of 
the Assembly, as provided by the Constitution. Voter turnout was 44.5% (compared with 41.3 
%  in  2017).  The  two  opposition  parties  Vetëvendosje  and  Democratic  League  of  Kosovo 
(LDK) became the largest parties in the Assembly with 29 and 28 seats respectively, having 
won 26.27% and 24.55% of the vote. The Democratic Party of Kosovo (PDK) won 24 seats 
(21.23%),  the pre-electoral coalition of the Alliance for the Future of Kosovo (AAK) and the 
Social Democratic Party (PSD) won 13 seats (11.52%) and the pre-electoral coalition of the 
Social Democratic Initiative (Nisma), the New Kosovo Alliance (AKR) and the Justice Party 
(PD) won 6 seats (5.00%), just passing the parliamentary threshold. Srpska Lista won all 10 

7 

 
 
seats reserved for the Serb non-majority community of Kosovo with 6.40% of the total vote. 
The  remaining  10  seats  are  shared  between  eight  political  parties  representing  other  non-
majority communities.  

Election preparations and election day itself were generally well-administered and transparent 
and the EU Election Observation Mission has assessed the process positively. The campaign 
was  vibrant  and  competitive,  allowing  contestants  to  campaign  freely  in  most  parts  of 
Kosovo.  However,  there  was  a  lack  of  competition  in  the  Kosovo  Serb  areas  and  the 
campaign  environment  was  marred  by  intimidation,  targeted  at  non-Srpska  Lista  Serb 
candidates and supporters. Throughout Kosovo, cases of misuse of public resources and a lack 
of transparency in campaign financing resulted in an uneven playing field. The credibility of 
the  post-election  day  counting  and  tabulation  process  was  negatively  affected  by  several 
factors, most notably the inefficient handling of  complaints by the Election Complaints and 
Appeals Panel and controversial court decisions. These had an important impact on the final 
election results – one ruling in particular enabled one of the pre-electoral coalitions (NISMA-
AKR-PD)  to  pass  the  parliamentary  threshold  narrowly  –  and  significantly  delayed  their 
certification. Long-standing weaknesses of the election process in Kosovo 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 deficiencies in the process of out-of-
Kosovo  voting.  Kosovo  institutions  need  to  address  these  challenges  early  on  in  the  new 
legislative  period,  in  line  with  the  EOM  recommendations  and  in  close  collaboration  with 
international and local partners.  

The  joint  initiative  taken  by  the  Kosovo  Assembly  caucus  leaders  in  April  2019  to  address 
shortcomings  and  strengthen  the  electoral  process  in  line  with  the  recommendations  of  the 
electoral  observation  missions  led  to  the  Assembly  deciding  to  establish  an  ad  hoc 
parliamentary  committee  on  this  matter,  involving  local  and  international  experts  and 
stakeholders.  While  this  is  a  welcome  step,  no  concrete  steps  have  yet  been  taken  by  the 
Assembly Committee. The new legislature should start this work without delay. 

Women  candidates  did  not  receive  equal  financial  or  logistical  support  from  their  political 
entities for their campaigns, and they rarely spoke at rallies. The media gave priority coverage 
to  male  candidates.  Among  the  120  newly  elected  Members  of  Parliament,  39  are  women. 
Women remain underrepresented at all levels of participation and decision-making in political 
parties, electoral administration, and central and local assemblies. There are still discrepancies 
between  the  electoral  legal  framework,  which  mandates  a  30%  gender  quota  for  the 
Assembly, and the equal representation provision of the Law on Gender Equality (50%).  

In 2019, 10 out of 11 members of the Central Election Commission (CEC) were appointed, 
enabling the CEC  to  carry out  its work. The CEC has to  improve its internal  organisational 
structure with clear terms of references for each staff member in the secretariat and clear lines 
of hierarchical responsibility in order to avoid quality control failures.  

The legal framework and regulatory practice governing party and campaign finances does not 
ensure  complete  reporting,  timely  disclosure,  meaningful  oversight  or  accountability  for 
irregularities (see the ‘Parliament’ section, below).  

the  reporting  period, 

During 
in  Podujevë/Podujevo  and 
Mitrovica/Mitrovicë  North  (in  both  cases  triggered  by  the  resignation  of  mayors  after  their 
appointment as government members) were postponed due to the COVID-19 crisis.   

two  mayoral  by-elections, 

Parliament 

8 

 
 
During the reporting period, the Assembly did not improve its overall performance as a forum 
for  constructive  political  dialogue  and  representation.  This  has  continued  to  hamper  its 
legislative  activity.  However,  under  the  guidance  of  the  new  Speaker,  there  has  been  some 
improvement to the organisation of the Assembly’s work. The Assembly needs to address its 
shortcomings  and  reinforce  its  functioning,  notably  by  improving  its  regulatory  framework, 
including rules of procedures. The Assembly remained open during the pandemic crisis, while 
putting in place sanitary protection measures.  

Following the 6 October 2019 early elections, on 26 December 2019 the seventh legislature of 
the  Assembly  of  Kosovo  was  constituted.  For  the  first  time,  the  elected  Speaker  of  the 
Assembly  is  a  woman.  The  Assembly  has  120  deputies,  including  10  representing  the  Serb 
community  and  10  representing  other  non-majority  communities.  Kosovo  has  a  mandatory 
quota of 30% of Assembly seats reserved for women.  

On 3 February, the Assembly elected with a majority of 66 votes the new government headed 
by  Prime  Minister  Albin  Kurti,  based  on  a  coalition  between  Vetëvendosje  and  LDK.  Less 
than two months after, on 25 March, the Assembly (with 82 votes) voted for the dismissal of 
the government,  based on a motion of vote of no-confidence initiated by then junior coalition 
partner LDK. The coalition fell at a time of disagreements over the conditions for abolishing 
the  100%  tariff  on  goods  from  Serbia  and  Bosnia  and  Herzegovina  (introduced  by  the 
previous government), as well as regarding the handling of the COVID-19 pandemic. 

The vote of no-confidence led to a political crisis, notably over the constitutional procedures 
regarding  the  formation  of  a  new  government.  Vetëvendosje  considered  that  a  new 
government  should  only  be  formed  after  new  elections.  The  party  challenged,  before  the 
Constitutional  Court  the  President’s  decree  to  mandate  Avdullah  Hoti  (LDK)  to  form  a 
government. On 28 May, the Court validated the President’s decree, opening the way for the 
election  of  the  new  government.  The  Assembly  elected  the  new  Hoti  government  with  a 
narrow  majority  (61  out  of  120  votes),  based  on  a  coalition  between  LDK,  AAK,  Srpska 
Lista, NISMA, and non-majority community parties.  

During  2019,  under  the  previous  legislature,  the  Assembly’s  efficiency  was  reduced  due  to 
recurrent absence of deputies from Assembly proceedings and the irregular holding of plenary 
sessions,  with  items  dragging  from  one  session  to  another.  Due  to  the  polarised  political 
environment,  the  lack  of  majority  of  the  former  ruling  coalition,  frequent  boycotts  by 
opposition  parties,  the  absence  of  ruling  coalition  members,  the  Assembly  was  frequently 
unable  to  reach  a  quorum  to  adopt  laws  and  make  decisions.  Frequent  violation  of  the 
Assembly rules of procedure, improper management of the plenary sessions and an inability 
to use the ordinary/primary mechanisms to oversee the government’s work, were features of 
almost  every  plenary  session.  In  2019,  out  of  a  total  of  24  plenary  sessions,  only  6  were 
regular (i.e. not of an extraordinary, special or solemn nature).  

In 2020, the new legislature assumed its work in difficult circumstances due to the COVID-19 
pandemic.  The  Assembly  continued  to  meet,  however  in  a  reduced  manner  during  several 
months,  applying  public  health  prevention  measures.  Plenary  sessions  and  committee 
meetings  took  place  without  the  presence  of  media  and  visitors;  plenary  sessions  were  live 
streamed over the internet. In the first half of 2020, out of 16 plenary sessions, 7 were regular. 
Since the vote of no-confidence, including after the election of a new government in June, the 
Assembly  has  been  marked  by  a  lack  of  a  stable  majority,  high  political  polarisation  and 
important delays in decision-making, including on issues of major importance related to the 
COVID-19 crisis, such as the ratification of international financing agreements.  

9 

 
 
Under the new legislature, there has been some improvement in the management of plenary 
sessions, resulting in better compliance with the rules of procedures. In May 2020, measures 
were taken by the Assembly Presidency to improve financial control. 

Parliamentary oversight of the executive as well as other institutions remains weak overall, 
and  the  existing  parliamentary  instruments  for  oversight  of  the  executive  were  not  utilised. 
For  instance,  the  Assembly  needs  to  strengthen  the  work  of  parliamentary  committees  and 
create  follow-up  mechanisms  to  oversee  the  executive  as  well  as  other  institutions.  The 
Assembly's Committee on Oversight of Public Finances reviewed the reports provided by the 
Office  of  the  Auditor  General.  However,  there  was  no  effective  follow-up,  showing  that 
coordination  with  other  parliamentary  committees  needs  to  be  improved.  Although  the 
Parliamentary  Committee  on  European  integration  carried  out  its  work  correctly,  the 
Assembly's capacity to monitor the compliance of new legislation with the EU acquis and to 
ensure implementation remains limited. 

As  regards  parliamentary  inquiries,  in  June  2019,  the  Assembly  adopted  the  inquiry 
committee’s  report  on  the  illegal  deportation  of  six  Turkish  nationals  legally  residing  in 
Kosovo,  which  found  31  violations,  including  serious  breaches  of  human  rights  and  legal 
procedures. The prosecution followed up on some of those alleged violations by investigating 
and indicting several police officials involved in the operation. Most other inquiry committees 
did not finalise their work. The Assembly needs to build up specialist expertise to lend more 
effective support to parliamentarians and committees. 

The  Ombudsperson  Institution  of  Kosovo  continued  to  promote,  protect  and  uphold 
fundamental rights and freedoms, to assist the Assembly in its oversight function. During the 
reporting period, the Ombudsperson addressed 225 recommendations to public authorities, of 
which  only  71  received  a  response  from  institutions.  The  implementation  by  institutions  of 
recommendations  remains  stable.  Furthermore,  the  Ombudsperson  has  used  his  mandated 
powers to refer legislation adopted by the Assembly to the Constitutional Court. 

The financing and expenditures of political parties and electoral campaigns remains non-
transparent,  the  existing  legal  framework  is  largely  unenforced,  and  most  political  parties 
represented  in  the  Assembly  continue  to  exhibit  serious  weaknesses  in  internal  financial 
control. Political parties, oversight institutions and the CEC should assume responsibility for 
ensuring  transparency,  accountability  and  effective  use  of  enforcement  mechanisms.  The 
Parliamentary Committee on Oversight of Public Finances has conducted formalistic audits of 
parties'  annual  financial  reports  and  political  parties  have  provided  campaign  disclosure 
reports. However, even clear violations and breaches of legal limits as well as unidentifiable 
money  flows  have  not  been  followed  up  by  competent  authorities.  The  CEC's  Office  of 
Political  Parties  Registration  and  Certification  continues  to  need  significant  strengthening, 
additional  capacity  and  legally  guaranteed  operational  independence  in  exercising  its 
functions.  Furthermore,  better  cooperation  with  other  competent  authorities,  such  as  the 
Auditor General, the Anti-Corruption Agency, the prosecution and tax authorities are crucial. 
Legislative amendments, which were prepared by the government after consultation with the 
Venice Commission and would have addressed many of the severe weaknesses in the current 
legal framework, were not supported in the Assembly (under the previous legislative period) 
and  eventually  withdrawn.  The  new  government  should  work  with  the  new  legislature  to 
ensure  that  meaningful  and  substantial  progress  is  made  in  this  area,  building  on  the  work 
done previously.  

10 

 
 
Governance 

In  an  overall  context  of  political  instability,  only  limited  progress  was  made  in  further 
implementing  European  Reform  Agenda  (ERA)  commitments  and  availing  opportunities  of 
the  Stabilisation  and  Association  Agreement  (SAA)  during  the  reporting  period.  Kosovo 
institutions should urgently reinvigorate the reform processes. Since March 2020, government 
priorities have also been impacted by the COVID-19 pandemic. In April 2020, the caretaker 
government,  under  the  then  outgoing  Prime  Minister  Kurti,  lifted  the  100%  tariff  on  goods 
from  Serbia  and  Bosnia  and  Herzegovina,  while  introducing  gradual  trade  reciprocity 
measures,  later  revoked  by  the  successor  government  under  Prime  Minister  Hoti.  This  has 
allowed for restoration of trade with these two countries and paved the way for the resumption 
of the EU-facilitated Belgrade-Pristina dialogue in July 2020.   

The reporting period was marked with two changes of government and prolonged periods of 
caretaker  government.  In  July  2019,  Prime  Minister  Ramush  Haradinaj  announced  his 
resignation,  citing  his  summons  by  the  Kosovo  Specialist  Prosecutor's  Office.  During  the 
second  half  of  2019,  as  political  focus  shifted  to  early  elections,  the  Haradinaj  government 
continued  to  exercise  routine  functions  in  its  role  as  caretaker  government.  During  2019, 
overall  limited  progress  was  made  in  implementing  commitments  under  the  ERA  and  the 
Economic  Reform  Programme  (ERP).  The  government  maintained  overall  financial  and 
budgetary  stability,  notably  by  increasing  tax  revenues  and  carrying  out  tax  reforms. 
However,  it  failed  to  improve  the  conditions  necessary  to  address  structural  challenges 
undermining  private  sector  employment  and  did  not  bring  forward  educational  reforms. 
Furthermore, ad hoc decision-making that conflicted with stated reform objectives continued. 
This  included  decisions  with  significant  budgetary  implications  and  non-merit-based 
appointments. This further undermined overall public trust in government institutions.  

Following the  October 2019 legislative elections, the government  led by  Albin  Kurti, based 
on a coalition between Vetëvendosje and LDK, took office on 3 February 2020. It included 2 
deputy  prime  ministers,  15  ministers  and  31  deputy  ministers.  It  was  therefore  significantly 
smaller than the previous government, whose excessive size had become the subject of public 
concern. Women representation in senior government positions increased: of 18 government 
members, 5 were women.  

The short-lived government led by then Prime Minister Kurti had put forward a programme 
focused on the fight  against corruption and organised crime  and on economic development. 
Several  controversial  decisions  of  the  previous  government  under  Ramush  Haradinaj  were 
reversed (e.g. ad hoc increase of senior officials’ salaries, excise tax on tobacco, insufficiently 
costed infrastructure projects). The government also dismissed the boards of several publicly-
owned enterprises, on the grounds of irregularities and lack of performance identified in audit 
reports,  and  replaced  them  with  interim  boards.  Permanent  board  members  will  need  to  be 
appointed  following  open,  transparent  and  merit-based  selection  processes.  More  generally, 
the  governance  of  publicly-owned  enterprises  needs  to  be  significantly  improved.  Shortly 
after  taking  office,  the  Prime  Minister  Kurti’s  government  was  faced  with  the  COVID-19 
pandemic and declared a public health emergency. The government introduced a number of 
restrictive  measures  to  prevent  transmission  of  the  virus,  and  adopted  initial  economic 
emergency measures.  

After the collapse of the coalition, in April 2020 the caretaker government under Albin Kurti 
adopted a decision to lift the 100% tariff on goods from Serbia and Bosnia and Herzegovina, 
while introducing gradual trade “reciprocity measures”, initially limited and implemented in 
line  with  existing  agreements.  The  measures  were  however  significantly  expanded  on  30 

11 

 
 
May, before being completely revoked by the successor government of Prime Minister Hoti in 
early June.   

The government of Prime Minister Hoti, which took office on 3 June, adopted a programme 
which  prioritises  the  resumption  of  the  dialogue  with  Belgrade  and  the  post-COVID-19 
economic  recovery.  The  government  of  Prime  Minister  Hoti  includes  4  deputy  prime 
ministers,  16  ministers  and  46  deputy  ministers.  Out  of  21  government  members,  4  are 
women. As the central  institution in  charge of the legal  approximation process  with  the EU 
acquis, the Ministry of European Integration coordinated the implementation of the SAA and 
the  fulfilment  of  ERA  priorities  and  actions  and  prepared  regular  reports  on  ERA 
implementation.  The  Ministry’s  planning  and  monitoring  of  measures  and  activities  has 
improved.  However,  coordination,  planning  and  monitoring  of  donor  assistance  needs  to  be 
strengthened. The new government decided to dissolve the Ministry of European Integration 
and  to  put  EU  coordination  functions  under  the  Office  of  the  Prime  Minister,  under 
institutional arrangements that are yet to be defined. It will be of critical importance that the 
knowledge  and  expertise  built  up  to  coordinate  all  EU-related  matters,  the  Stabilisation  and 
Association Agreement and EU financial assistance, is preserved.  

Local  government  improved  its  performance  and  service  delivery.  However,  significant 
disparities  between  municipalities  persist  and  human  and  financial  resource  constraints 
continue  to  negatively  impact  municipalities’  ability  to  carry  out  their  mandates.  Municipal 
assemblies  have  limited  effective  budgetary  powers  and  exercise  insufficient  oversight  over 
municipal  administrations,  while  excessive  political  influence  over  local  administrations 
weakens  local  governance.  Legislative  reforms  are  necessary  to  realign  funding  and 
competences  between  central  and  local  government  and  to  create  a  specific  grant  for  social 
services.  Apart  from  regular  transfers  in  the  form  of  a  general  grant,  municipalities  receive 
significant funding for capital investments at the discretion of line ministries. In this context, 
the  Ministry  of  Local  Government  Administration’s  creation  of  a  municipal  performance 
grant,  which  puts  in  place  non-politicised  rules  for  grant  disbursement,  is  a  welcome  step. 
Other  ministries  should  also  develop  ways  to  disburse  their  grants  in  a  rule-based,  fair  and 
transparent way. 

Women remain underrepresented in local decision-making and there are currently no female 
mayors  in  any  of  Kosovo's  municipalities.  Out  of  Kosovo's  38  mayors,  27  are  from  the 
Albanian community, 10 from the Serb community and 1 is from the Turkish community. All 
municipalities  have  fulfilled  their  obligation  to  appoint  deputy  mayors  from  non-majority 
communities.  

Civilian oversight of security services 

As regards parliamentary oversight of security forces, there have been some improvements in 
the work of the parliamentary  committee on internal  affairs, security  and  supervision of the 
Kosovo Security Force and of the oversight committee for the Kosovo Intelligence Agency. 
However,  parliamentary  oversight  of  security  forces  expenditure  remains  insufficient.  The 
Assembly’s  Inquiry  Committee  on  the  illegal  deportation  of  six  Turkish  nationals  legally 
residing in Kosovo, whose report was adopted in June 2019, found alleged wrongdoings by 
Kosovo’s security institutions involved in the operation. 

Civil society 

The  environment  in  which  civil  society  operates  continued  to  improve  and  government 
authorities  continue  to  make  efforts  to  enhance  the  ability  of  civil  society  to  contribute 
meaningfully  to  policy  development.  However,  further  efforts  are  needed  to  enhance 
transparency of public funding for civil society organisation.  

12 

 
 
An empowered civil society is a crucial component of any democratic system and should be 
recognised  and  treated  as  such  by  public  institutions.  Civil  society  organisations  (CSOs)  in 
Kosovo  continue  to  play  an  important  role  in  the  democratic  debate  and  in  the  design  and 
implementation  of  public  policy.  They  play  an  active  and  critical  role  in  promoting  civil, 
political, economic, social and cultural rights, and do so largely free from undue pressure by 
Kosovo authorities. 

The Law on freedom of association approved in April 2019 aligned the legal framework for 
CSOs to the best international standards and practices.  

The  strategic  framework  for  cooperation  between  the  Kosovo  government  and  civil  society 
for  the  2019-2023  period  was  approved  in  February  2019  following  extensive  consultations 
with  CSOs  and  the  general  public.  Based  on  this  strategic  framework,  a  new  Government 
Council for Cooperation with Civil Society was set up and started work in July 2019.    

Public  consultations  launched  by  the  central  government  are  becoming  more  regular  but 
should be further improved with easier access to data and more regular feedback from public 
authorities. Awareness and promotion of consultation platforms is crucial in order to broaden 
the engagement of CSOs and citizens.  

The  transparency  of  CSOs’  public  financing  needs  to  be  further  improved.  Despite  some 
improvements in the last two years, the limited capacity of both local and central authorities 
to correctly implement new transparency and accountability standards means that the public 
funding of CSOs remains at risk of corruption and conflicts of interest. Easy access to detailed 
information  regarding  public  funds  disbursed  to  CSOs  by  any  public  body  should  be  made 
publically  available.  At  the  same  time,  access  banking  services  is  determined  by  the  legal 
framework for preventing money laundering and terrorism, which creates several limitations 
to  the  financial  viability  of  CSOs.  The  sectorial  risk  assessment  of  money  laundering  and 
terrorist  financing  of  the  CSO  sector  needs  to  be  comprehensively  updated  so  that  the 
legislation can be revised to allow for a flexible approach to lower-risk CSOs (see section on 
the fight against organised crime and section 6.3 on the free movement of capital). 

More  transparent  and  better  harmonised  procedures  for  CSOs’  public  service  are  needed  in 
order to  improve their financial viability. A comprehensive legal  framework and favourable 
tax regime for individual and corporate philanthropy should be considered. There should be 
standard criteria and procedures for allocating public property and confiscated assets for use 
by CSOs, and these should be implemented at central and local level.    

Volunteering  should  be  further  promoted  through  dedicated  programmes,  and  volunteer 
standards  and  practices  should  be  aligned  with  international  standards.  Work  on  a 
comprehensive legal framework on volunteering has started.  

2.1.2  Public administration reform 

Kosovo  has  achieved  some  level  of  preparation  in  the  reform  of  its  public  administration. 
Limited  progress  was  made  in  increasing  transparency  of  the  public  administration  and  of 
public  procurement.  Implementation  of  the  package  of  three  public  administration  reform 
laws adopted in February 2019 stalled. Two of the laws, the Law on public officials and the 
Law on salaries, were temporarily  suspended by  the Constitutional  Court almost  as soon  as 
they  entered  into  force.  The  Court,  in  June  2020,  declared  the  Law  on  Salaries 
unconstitutional, while requiring amendments to the Law on Public Officials by the Assembly 
for  it  to  fully  enter  into  force.  Overall,  weak  central  and  inter-ministerial  coordination 
continues  to  hamper  the  implementation  of  cross-cutting  reforms.  Delays  in  harmonising 
special  laws  with  the  Law  on  General  Administrative  Procedures  continue  to  cause  legal 
uncertainty  for  citizens  and  businesses.  The  government  should  ensure  that  the  public 

13 

 
 
administration  reform  remains  a  priority  and  follow  on  the  reform  efforts  of  the  previous 
government.  

Instances  of  political  influence  on  recruitments  to  senior  civil  service  positions  and  non-
merit-based recruitments continue to undermine citizens trust in the public administration. Ad 
hoc policy-making, in cases influenced by special interests, remained an obstacle for inclusive 
and evidence-based policy-making. These issues were among the central concerns expressed 
by citizens during the campaign for the legislative elections in October 2019. It is of utmost 
importance  that  Kosovo  institutions  ensure  integrity  and  transparency  in  recruitments  in  the 
public service.   

As last  year's  recommendations were not sufficiently mplemented, they remain valid. In the 
coming year, Kosovo should in particular: 

  make the necessary legislative amendments to the Law on public officials in line with the 
Constitutional  Court  ruling,  finalise  outstanding  sub-legal  acts  and  start  effectively 
implementing the law;  

  align contradictory special laws with the Law on General Administrative Procedures and 

address the current backlog of administrative court cases; 

  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, in  line with  the new  Law on 
organisation and functioning of state administration and independent agencies;  

  ensure full respect for merit-based recruitment and dismissal of public officials, especially 

senior management. 

Strategic framework for public administration reform 

Progress in the implementation of the three public administration reform strategies slowed 
down following the resignation of Prime Minister Ramush Haradinaj, due to lack of decision-
making on key implementing legislation. Implementation of the 2016-2020 public financial 
management  reform  strategy  continued.  The  government  continued 
to  monitor 
implementation  of  the  strategies  and  published  annual  monitoring  reports.  Reporting 
improved further. However, monitoring of the public administration reform strategies focused 
primarily on the implementation of individual activities without a proper analysis of specific 
results, which made real assessment of progress difficult. Further progress on linking strategic 
priorities with government budgeting will improve both implementation and monitoring. Civil 
society continues to monitor the government’s reform efforts.  The lead central institutions are 
working well together to efficiently coordinate the reform process and ensure an appropriate 
monitoring and reporting system. There is  a need to  improve administrative data collection, 
storage and quality control.  

The Minister for Public Administration and the National Coordinator for State Reform in the 
Haradinaj  government  demonstrated  political  support  for  the  implementation  of  reforms. 
However,  during  the  political  transition  following  the  resignation  of  former  Prime  Minister 
Haradinaj,  such  political  commitment  was  lacking,  which  slowed  down  reforms.  The  Albin 
Kurti  government’s  decision  to  decrease  the  number  of  ministries  and  therefore,  merge  the 
Ministry  of  Public  Administration  with  the  Ministry  of  Internal  Affairs  further  delayed 
implementation  of  reforms.  Under  the  new  government,  responsibilities  for  the  public 
administration reform remain within the Ministry of Internal Affairs, while the Deputy Prime 
Minister has been put in charge of the overall political coordination of reforms, including the 
public administration reform. It is important that the new government builds on the progress 

14 

 
 
already  achieved  and  demonstrates  commitment  to  and  ownership  of 
administration reform. 

  the  public 

Policy development and coordination 

The  policy-making  system,  including  for  EU-related  reforms,  is  complex  and  is  currently 
being reviewed, to better link strategic priorities with the budgeting process. A new national 
strategic management framework is being developed, and  will accompany the administrative 
instruction on strategic planning, development  and monitoring. The new framework aims to 
reduce  overlaps  between  sector  strategies  and  should  improve  prioritisation  and  budget 
planning,  as  well  assimplify  reporting.  The  Office  of  the  Prime  Minister  has  to  ensure  that 
there is strong quality control and monitoring to support implementation.  

Some  aspects  of  inclusive  and  evidence-based  policy  and  legislative  development  are  in 
place,  though  ad  hoc  policy-making  persists,  and  in  many  cases  is  influenced  by  special 
interests. The Office of the Prime Minister should take a stronger leadership role in ensuring 
that  regulatory  and  budgetary  impact  assessments  and  EU  acquis  alignment  opinions  are 
systematically  considered  and  addressed  in  adopted  government  decisions.  Improved 
administrative  data  collection  and  its  systematic  use  for  policy-making  remain  necessary 
across  the  administration.  Public  consultations  are  organised  regularly,  but  the  minimum 
standards for such consultations are not being followed consistently. In 2019, more than 82% 
of  all  primary  policy  documents  and  draft  laws  were  published  for  consultation  on  the  web 
portal.  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 improving with the increased availability of public 
data  on  the  government’s  open  data  platform.  By  the  end  of  2019,  195  data  sets  were 
published in  the Open Data Portal. Consistent implementation  of the new  Law on access  to 
public  documents  should  further  improve  the  public’s  ability  to  hold  the  government  to 
account.  The  government    continued  to  make  efforts  to  increase  the  possibility  for  civil 
society  to  contribute  meaningfully  to  policy  design,  monitoring  and  the  evaluation  of 
government  plans  and  programmes.  Parliamentary  scrutiny  of  the  government  remains 
inadequate (see section 2.1.1 – Democracy). 

Public financial management 

The 2016-2020 Public Financial Management Reform Strategy  sufficiently addresses the 
most pressing challenges facing  the  government in  this area.  The 2019-2020 Action Plan is 
well developed and includes detailed costing.  

Work to improve the relevance of the medium-term expenditure framework linking national 
development priorities and budget planning is ongoing.  

Public  procurement  procedures  are 
transparent.  However,  contract 
implementation  remains  prone  to  irregularities  and  vulnerable  to  corruption.  Domestic 
revenue  collection  increased  during  2019,  albeit  still  falling  short  of  budgeted  projections. 
(see also Chapters 5, 16, 29 and 32)  

increasingly 

To improve budget transparency, the Ministry of Finance launched a  regularly maintained 
and well functioning ‘transparency portal’ containing budgetary information from central and 
municipal level institutions. The government continues to publish the citizen-friendly budget. 
However, the IT systems available 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.     

15 

 
 
Public service and human resource management 

The  legal  framework  for  the  merit-based  recruitment,  promotion,  dismissal,  and  the 
remuneration of civil servants improved with the adoption of the Law on public officials and 
the Law on salaries in February 2019. However, application of the laws was suspended after 
the  Ombudsperson  challenged  them  in  front  of  the  Consitutional  Court.  In  June  2020,  the 
Court took its final decision on the application of the two laws, declaring the Law on salaries 
unconsitutional and proposing further legislative amendments to the Law on public officials. 
The merger of the Ministry of Public Administration into the Interior Ministry has delayed the 
development of organisational capacities to manage the new system of public officials as set 
out in the Law on public officials. Some secondary legislation, including the classification of 
public officials, still needs to be finalised to fully implement the Law. .  

Although  the  procedures  for  the  recruitment  of  senior  civil  servants  improved,  political 
influence  over  such  appointments  and  dismissals  remained  a  serious  concern.  Non-majority 
communities remain underrepresented in central public institutions and women are still highly 
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, is currently not functional due to a lack of board members. 
As  a  result,  hundreds  of  complaints  regarding  employment  disputes  of  civil  servants  and 
candidates for admission to the civil service have not been reviewed. Cases are ending up in 
courts instead. 

The  capacity  of  the  Kosovo  Institute  for  Public  Administration  with  a  limited  budget  and 
ability  to  provide  the  necessary  training  remains  weak,  which  continues  to  hamper  the 
recruitment  process  and  professional  development  of  civil  servants.  Performance 
appraisals  continue  to  have  little  impact  on  career  development.  This  undermines  the 
implementation of the Law on public officials, in particular for the recruitment, initial training 
and professional development of civil servants.  

Also,  line  institutions’  human  resources  management  units  need  to  be  improved.  An 
information  system  was  set  up  to  manage  human  resources,  but  not  all  modules  are 
operational and there is still no interoperability with the payroll system. 

Although  measures  such  as  integrity  plans  are  in  place  to  promote  integrity  in  the  public 
service, they are not systematically implemented across the administration. Implementation of 
the Law on conflicts of interest remains patchy. Progress was made in the implementation of 
whistle-blower  protection  rules  with  the  appointmenmt  of  officers  tasked  with  handling 
whistle-blower  complaints  in  over  175  public  institutions.  However,  whistle-blowing 
mechanisms  and  protection  requirements  now  need  to  be  strengthened  in  practice.  Annual 
reports  on  disciplinary  measures  taken  against  civil  servants  are  being  regularly  published 
(see section on the fight against corruption). 

Accountability of the administration 

Kosovo  demonstrated  its  commitment  to  strengthening  the  lines  of  accountability  in  its 
administration.  Despite  this  commitment,  however,  there  was  no  progress  on  implementing 
the  action  plan  on  the  rationalisation  of  agencies  adopted  in  June  2018,  due  to  the  political 
situation in Kosovo. Implementation of the Law on the organisation and functioning of public 
administration  and  independent  agencies  which  paves  the  way  for  a  more  efficient 
administration respecting the principles of merit and transparency, is currently hampered by 
the  absence  of  approved  implementing  legislation.  It  is  important  that  the  implementing 
legislation is effectively enforced throughout the administration once it is in place. Although 
the new law introduces clearer administrative, budgetary and decision-making lines within the 

16 

 
 
administration,  Kosovo  still  needs  to  make  considerable  further  efforts  to  implement 
managerial  accountability,  put  in  place  better  performance  management  mechanisms,  and 
delegate decision-making responsibilities within the public administration (see section 6.25 – 
Financial control). 

The  independent  oversight  institutions,  especially  the  Ombudsperson  and  the  Kosovo 
National  Audit  Office,  continue  to  address  citizens’  right  to  good  administration.  The 
government should ensure more efficient implementation of their recommendations. The Law 
on  access  to  public  documents  was  adopted  in  May  2019,  thus  ensuring  citizens’  right  to 
access  public  information.  The  judiciary  needs  to  increase  its  efficiency  in  handling 
administrative dispute cases in order to support citizens’ right to administrative justice. The 
Basic Court in Pristina still struggles with a large backlog of administrative cases as well as 
many incoming minor offence cases. The backlog in administrative cases dropped from 1,511 
cases in 2018 to 950 cases in 2019, but had by the end of June 2020 climbed back up to 1,415, 
likely  due  to  the  courts  only  dealing  with  urgent  cases  during  the  COVID-19  pandemic. 
Likewise, the Basic Court in  Pristina received 301 minor offence  cases  while by the end of 
June  2020  the  number  was  at  1,705.  .  The  liability  of  public  authorities  in  cases  of 
wrongdoing and the right to seek compensation are affected by fragmented legislation. The 
Law on general administrative procedures is not correctly enforced by the justice system. No 
data is collected to monitor implementation. 

Service delivery to citizens and businesses 

Although the government promotes a user-oriented administration, there are weaknesses in 
the  leadership,  policy  direction  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. Ways to collect 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  continued  to  make  limited  progress  on  the  simplification  of  administrative 
procedures. An inventory of laws with special administrative procedures now exists, but only 
limited progress was made on aligning the sector laws with the Law on general administrative 
procedures.  Considerable  efforts  are  needed  both  from  the  administrative  justice  sector  and 
the  public  administration  to  uphold  the  obligations  and  rights  under  the  Law  on  general 
administrative procedures.  

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 EU acquis and 
the  European  standards  in  this  area.  Some  progress  has  been  made,  including  in  the 
investigation  and  prosecution  of  some  high-level  corruption  and  organised  crime  cases  and 
with the partial implementation of some rule of law-related legislation concerning judiciary, 
corruption  and  organised  crime.  Problems  with  the  capacity  of  judiciary  and  prosecution 
persist.  As  regards  fundamental  rights,  strategies  and  policies  need  to  be  streamlined  and 
proper oversight provided. The government needs to take fundamental rights more seriously 
and include it higher on the political  agenda. Existing human rights  mechanisms  need to  be 
strengthened.   

17 

 
 
Functioning of the judiciary  

Kosovo  is  at  an  early  stage  in  developing  a  well-functioning  judicial  system.  The 
administration of justice remains slow and inefficient. Some progress was achieved in 2019. 
As  regards  last  year’s  recommendations,  the  Law  on  disciplinary  liability  of  judges  and 
prosecutors started being implemented efficiently. This work should continue. The roll-out of 
an  electronic  case-management  system  and  the  establishment  of  a  central  criminal  records 
system have advanced well. The Kosovo Judicial Council and Kosovo Prosecutorial Council 
have  made  efforts  to  implement  the  legislation  relevant  to  their  functioning,  which  entered 
into  force  in  early  2019.  The  ongoing  Functional  Review  of  the  Rule  of  Law  Sector  has 
provided  a  sound  basis  to  reform  and  modernise  various  aspects  of  the  judiciary.  The 
government  should  take  this  work  forward.  Work  on  the  implementation  of  the  Law  on 
Mediation has progressed, however some secondary legislation remains to be adopted. There 
were  cases  of  political  interference  in  the  judiciary.  Rule  of  law  institutions  need  sustained 
efforts  to  build  up  their  capacities.  The  COVID-19  pandemic  limited  the  holding  of  court 
hearings in Kosovo; yet the Kosovo Criminal Procedure Code provides that a trial has to re-
start  after  3  months  without  any  hearing.  An  important  number  of  criminal  trials  criminal 
trials  (including  high-profile  ones)  may  be  affected  by  this  rule.  Kosovo  authorities  should 
follow-up  on  this  issue  and  take  the  necessary  measures  to  ensure  effective  and  efficient 
conduct of justice in Kosovo. Among the lessons learned from the crisis, it appears necessary 
to  have  measures  in  place  for  the  organisation  and  work  of  courts,  including  through  IT 
connections, as well as for communication of the judiciary with the wider public during states 
of emergency. 

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 the full roll-out of the National Centralised 
Criminal  Records  System  as  well  as  the  Case  Management  Information  System 
throughout Kosovo with the latter system able to  perform random case allocation and to 
provide reliable statistical data, in line with the European Commission for the Efficiency 
of Justice (CEPEJ) methodology; 

  finalise the work on the Functional Review of the Rule of Law Sector and put in place a 
comprehensive  sector  strategy  aiming  at  strengthening  the  independence,  impartiality, 
integrity, accountability as well as the overall capacity of judiciary and prosecution, with a 
specific focus on fighting corruption and organised crime; 

  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  

The Kosovo Prosecutorial and Judicial Councils have adopted strategic plans and objectives 
for judiciary and prosecution system. However, overall these documents only set the general 
objectives and should be accompanied by detailed annual action plans for such objectives to 
be  actually  met.  Kosovo  lacks  a  proper  mechanism  for  inter-institutional  coordination. 
Kosovo institutions should have more effective mechanisms to ensure proper coordination of 
the  many  rule  of  law  programmes  supported  by  various  donors  in  order  to    avoid 
inefficiencies,  incoherence  and  duplication  of  efforts.  Kosovo  still  has  no  comprehensive 
strategy for the rule of law sector. The functional review of the rule of law sector, which is 
expected to produce such a strategy, has stalled due to the parliamentary elections and change 
in governments. The government should continue to support the drafting of a strategy in the 

18 

 
 
rule  of  law  sector,  including  an  action  plan,  prioritise  the  functional  review  and  support 
continuous work on its completion. Activity related to the Justice 2020 initiative was halted 
when the Haradinaj government resigned in the summer of 2019.  

Management bodies  

The  Kosovo  Judicial  and  the  Prosecutorial  Council  are  the  key  bodies  in  charge  of 
ensuring the independence and impartiality of the judiciary and managing the judicial system 
and  careers  of  judges  and  prosecutors.  Their  composition  and  appointment  procedures  are 
broadly in line with European standards. 

The judiciary has elected its remaining members of the Kosovo Judicial Council. After some 
delays, in August 2020, the Assembly also elected two members of the Judicial Council. One 
position,  a  representative  from  the  non-majority  communities,  remains  open.  Likewise,  the 
Assembly  elected  one  member  of  the  Kosovo  Prosecutorial  Council  (representing  the  law 
faculty). Two other members, out of 13,  (representing the Bar Association and Civil Society) 
have  still  not  been  appointed  by  the  Assembly.  The  Assembly  should  ensure  a  full 
constitution of both Councils, without delay. 

Both  Councils  took  steps  to  implement  the  2018-2019  laws  on  the  Judicial  Council,  the 
Prosecutorial  Council,  courts  and  the  disciplinary  liability  of  judges  and  prosecutors.  This 
included  adopting  the  necessary  secondary  legislation  and  setting  up  special  departments 
within the Basic Court of Pristina and Court of Appeals. The budget allocated to the Judicial 
and  Prosecutorial  Councils  was  further  increased  in  2020,  although  the  wage  increase  for 
prosecutors and judges during 2019 put a strain on the budget leading to the unavailability of 
a number of support positions. The Councils have made limited progress on making statistics 
accessible to the public and other relevant interlocutors. More effort is needed, and the use of 
these statistics by the Councils for policy analysis should be increased.  

The formal process of integrating Kosovo Serb judges and prosecutors in the judicial system 
was concluded in 2017. Continuous efforts are necessary to uphold provisions on composition 
of panels for cases coming from Serb-majority municipalities, in particular in appeal, and to 
ensure that judicial proceedings can be accessed in all official languages across Kosovo. The 
number  of  qualified  translators  is  insufficient,  however,  and  poor  translation  of  legislation 
remains an issue. There  is  a problem of access  to  judgments and decisions,  rendered by the 
Serbian  courts  in  Kosovo  between  1999  and  up  until  the  integration  of  Serbian  judges  in 
October 2017, and there is  no  procedure in  place to  implement the agreement providing for 
the recognition of such judgements and decisions..  

Independence and impartiality 

The  Constitution  and  legal  framework  provide  clear  safeguards  for  the  independence  and 
impartiality  of  the  judiciary.  In  order  to  ensure  this  in  practice,  more  efforts  are  needed  to 
effectively  shield  the  judicial  system  from  undue  pressure  and  interference.  The  Councils 
should  react  more  efficiently  and  actively  in  cases  of  alleged  political  interference  in  the 
prosecution and the judiciary. 

Under  the  existing  legal  framework,  judges  and  prosecutors  cannot  be  transferred  without 
their  consent.  The  Regulation  on  Internal  Organisation  of  Courts  provides  for  random 
allocation  of  cases,  which 
information 
system since  mid-February  2020.  However,  in  practice  cases  are  not  always  randomly 
assigned to either prosecutors or judges. A random assignment of all cases through the case 
management  information  system  is  not  yet  possible  as  this  system  has  yet  to  be  fully 
introduced in the justice system. High profile and sensitive cases are not always processed in 
a timely manner. 

is available through the  case  management 

19 

 
 
Protective measures to ensure the safety of judges and prosecutors are the responsibility of the 
two Councils. There were no new requests in 2019; one prosecutor was granted protection at 
the beginning of 2020. Two other prosecutors are still under close protection granted earlier.   

Accountability  

Codes  of  ethics  are  in  place  for  judges,  prosecutors  and  attorneys.  Continuous  efforts  are 
needed to  ensure effective implementation.  The new Code of Ethics for  prosecutors entered 
into  force  in  March  2019.  As  of  July  2019,  disciplinary  procedures  are  conducted  in 
accordance  with  the  2018  Law  on  Disciplinary  Liability  of  Judges  and  Prosecutors,  which 
provides  for  more  robust  and  clear  disciplinary  mechanisms  with  set  deadlines  and  a  clear 
division  of  powers  and  responsibilities.  The  Councils  enacted  the  relevant  secondary 
legislation to implement this law in a timely manner.  

Several  disciplinary  investigations  against  judges  and  prosecutors  were  conducted  by  the 
respective  panels.  In  the  reporting  period,  the  Judicial  Council  took  immediate  action  to 
suspend  two  judges  who  had  been  arrested  on  suspicion  of  having  committed  criminal 
offences.  One  prosecutor  was  dismissed  based  on  a  proposal  of  the  Prosecutorial  Council. 
Most of the other investigations resulted either in the decision that there was no violation of 
the  rules,  or  in  the  disciplinary  measures  of  non-public  written  remarks  and  temporary 
reductions of salary. 

Although  there  has  been  some  progress  in  the  implementation  of  the  legal  framework  on 
disciplinary  measures,  efforts  are  still  needed  to  ensure  more  consistent  and  effective 
application  of  disciplinary  proceedings  against  judges  and  prosecutors.  This  includes  the 
provision  of  reliable  and  accurate  information  on  on-going  and  finalised  disciplinary 
proceedings carried out by both Councils.  

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 2019, they all did 
so in a timely manner. 

Professionalism and competence  

The Councils independently organise recruitment processes for judges and prosecutors on 
the  basis  of  merit-based  criteria  after  which  successful  candidates  are  appointed  by  the 
President  for  an  initial  three-year  term.  During  the  reporting  period,  12  Basic  Prosecution 
Offices prosecutors were appointed. However, 27 vacancies for judges remain unfilled. The 
Councils need to ensure that the evaluation and background checks of judges and prosecutors 
have a clear legal basis and do not interfere in the private lives of judges and prosecutors.  

The Councils are required to  carry out  performance evaluations  of prosecutors and judges 
with a permanent mandate every three years. In 2019, the Prosecutorial Council evaluated 90 
prosecutors and the Judicial Council evaluated 74 judges. The results of the evaluation (95% 
of prosecutors and 99% of judges with permanent mandates were rated ‘good’ or ‘very good’, 
and  none  were  rated  ‘insufficient’)  are  in  stark  contrast  to  the  public  perception  of 
prosecutors’ and judges’ professionalism. The quality of performance evaluations conducted 
by  both  Councils  remains  an  issue,  and  there  is  no  realistic,  effective  and  systematic 
evaluation based on clear criteria. The level of professionalism and competence, especially 
of  prosecutors,  remains  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.  

Quality of justice  

The Academy of Justice is responsible for delivering initial in-service training for judges and 
prosecutors  and  the  legal  and  administrative  staff  of  courts,  prosecution  offices  and  both 

20 

 
 
Councils. It also provides training for the free legal professions. Further in-service training is 
needed, including on values and professional skills. In particular in specialised areas such as 
economic  crime  including  money 
laundering,  confiscation  and  public  procurement, 
mediation, the new provisions of the revised Criminal Code (including on domestic violence 
and sexual harassment), and European Court of Human Rights case law, more work is needed. 
Judicial education needs to play a more prominent role in the performance evaluation process. 
Oversight and reporting lines of the Academy of Justice should be strengthened in line with 
European best practices. 

On jurisprudence, despite the adoption of sentencing guidelines by the Supreme Court, there 
are  still  cases  of  lenient  sentencing  (in  particular  in  the  area  of  high-level  corruption  and 
organised  crime),  with  a  prevalence  of  fines  and  suspended  sentences.  The  2018  Law  on 
Courts  aims  to  increase  transparency  by  making  it  obligatory  for  all  courts  to  publish  their 
judgments  on  an  accessible  and  searchable  web  portal  within  60  days.  Some  progress  has 
been  made  but  publications  have  not  always  been  consistent  or  timely  due  to  a  lack  of 
resources. The prosecution offices publish relevant information on indictments on the website 
of  the  State  Prosecutor  within  24  hours.  The  Academy  of  Justice  maintains  a  database  of 
legislation, commentaries and other legal material accessible to all judges and prosecutors.  

Following  the  appointment  of  37  judges  in  January  2019  and  12  prosecutors  in  May  2019, 
Kosovo now has 416 judges (137 women and 279 men) and 181 prosecutors (78 women and 
103  men),  which  means  around  23  judges  and  10  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  and  11  prosecutors  per  100,000  inhabitants. 
Kosovo still has a low percentage of female judges and prosecutors in comparison with most 
other European countries. 

The initially approved budget for the judiciary (including prosecution, courts, the Academy 
of  Justice  and  the  Correctional  and  Probation  Service)  was  EUR  59.2 million  in  2019  and 
EUR 59.5 million in 2020 (up from   EUR 48.9 million in 2018), or respectively 2.53% and 
2.49% of the general budget (2.35% in 2018).  

For e-justice tools, the implementation of the case management information system (CMIS) 
is  ongoing.  The  CMIS  enables  both  judiciary  and  prosecution  systems  to  process  all  cases 
electronically, which will end manual registrations. Data for all parties in proceedings must be 
correctly  verified.  Efforts  are  underway  to  connect  the  police  information  system  to  CMIS 
(see section on the fight against organised crime). Continued commitment is needed to ensure 
that the systems are used systematically and that the data entered is accurate, in particular so 
that  it  is  possible  to  automatically  obtain  reliable  statistical  data  on  the  performance  of  the 
judiciary and prosecution (in line with the recommendations and methodology of the CEPEJ).  

Work on a central criminal records registry has shown very good progress with almost 100% 
of  cases  and  convicted  people  entered  into  the  system.  Verification  of  the  real  identities  of 
convicted people is ongoing. However, more commitment from the courts is needed to ensure 
the system’s sustainability and full involvement of court staff. There is a tracking mechanism 
for high-level corruption and organised crime cases; it currently includes 61 cases. 

The mediation system has been operational since 2008. The new Law on Mediation, which 
entered into force in September 2018, was followed up in April/May 2019 with both Councils 
adopting  the  Regulation  on  Mediation  for  their  respective  organisations.  Mediation  clerks 
were  assigned in  all basic courts and prosecution offices.  In 2019, the  courts  referred 2,846 
cases  to  mediation  and  prosecution  offices  referred  2,244  cases,  a  significant  increase 
compared with  2018. The 189 licensed mediators (67 women, 122 men),  of whom 14  were 
from  the  Serb-majority  municipalities,  solved  3,859  cases.  Public  awareness  and  familiarity 

21 

 
 
with alternative dispute resolution tools remains low. Several awareness-raising campaigns 
and  training  activities  were  carried  out  in 2019.  The  mediation  system  needs  further 
strengthening, and this can be achieved through full implementation of the recently adopted 
Law and allocation of a sufficient budget. Positive first steps on online mediation were started 
in early 2020. 

Efficiency  

The  efficiency  of  criminal  justice  is  seriously  hampered  by  shortcomings  in  criminal 
legislation.  The  outstanding  revision  of  the  Criminal  Procedure  Code,  which  would  address 
many of the existing issues, remains to be adopted by the Assembly. The capacity of judges to 
manage  court  proceedings  efficiently  needs  to  be  significantly 
improved  to  avoid 
unreasonably  protracted  proceedings  and  ultimately  low-quality  decisions.  Judges  do  not 
make  full  use  of  the  tools  available  to  them,  such  as  the  possibility  to  impose  punitive  and 
disciplinary  measures  on  parties  absent  at  hearings.  Frequent  transfers  of  cases  between 
administrative  bodies  and  basic  and  appeal  courts  further  lengthen  court  cases  and  place 
additional  administrative  burden  on  court  officials.  Scheduling  conflicts,  leading  to  the 
absence  of  a  judge  or  a  prosecutor,  means  to  a  further  amount  of  hearings  fail.  The 
organisation of judges in fixed panels within the special departments should be avoided. 

Overall,  all  this  leads  to  long  disposition  times  (i.e. the  average  time  from  filing  an 
indictment  to  receiving  a  judgment).  Furthermore,  these  delays  in  proceedings,  in 
combination with a preference for detention over other restrictive measures, have led to cases 
of  overly  long  detention.  In  the  reporting  period,  the  Ombudsperson  again  received  a  high 
number of complaints concerning delays in judicial proceedings. Authorities need to consider 
introducing an effective judicial legal remedy to address such delays, including compensation.  

There is a need to improve strategic planning, which also requires efforts to introduce reliable 
statistical systems for the judiciary based on CEPEJ indicators, and to use the findings for the 
management and policy-making purposes. Although the number of professional associates in 
all  Kosovo  courts  has  increased  in  2019,  the  number  of  legal  staff  directly  assisting  judges 
and prosecutors is still insufficient. A number of vacancies remain open and not all positions 
needed were budgeted in the 2020 budget.  

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,  however.  Enforcement  agents  must  be  given  easy  access  to  public 
registers  pertaining  to  their  work.  Institutions  are  often  not  aware  of  the  possibility  to  send 
cases to the private enforcement agents, despite attempts at raising awareness. 

Due  to  the  COVID-19  pandemic,  courts  and  prosecution  offices  have  functioned  with 
significantly  reduced  capacities  since  mid-March  2020.  However,  on-duty  staff  still  duly 
process urgent actions (in line with applicable legislation). In order to address the risk of an 
increased  backlog  of  cases  and  cases  reaching  their  statutory  limitations,  both  the  Kosovo 
Judicial  Council  and  the  Kosovo  Prosecutorial  Council  have  developed  emergency  plans, 
which also include measures to return to work and some virtual court hearings in individual 
cases.  The  COVID-19  pandemic  limited  the  holding  of  court  hearings  in  Kosovo;  yet  the 
Kosovo Criminal Procedure Code provides that a trial has to re-start after 3 months without 
any  hearing.  An  important  number  of  criminal  trials  (including  high-profile  ones)  may  be 
affected by this rule. Kosovo authorities should follow-up on this issue and take the necessary 
measures  to  ensure  effective and efficient conduct  of  justice in  Kosovo.  Among the lessons 
learned from the crisis, it appears necessary to have measures in place for the organisation and 

22 

 
 
work  of  courts,  including  through  IT  connections,  as  well  as  for  communication  of  the 
judiciary with the wider public during states of emergency. 

Domestic handling of war crime cases  

The Kosovo Prosecutorial Council adopted the strategy on war crimes in February 2019, but 
its implementation is severely hampered by political issues, a lack of resources and the lack of 
international  and  regional  cooperation.  In  the  reporting  period,  the  Kosovo  Police  arrested 
seven people suspected of war crimes and several investigations were opened. Following two 
acquittals in the beginning of 2019, in June 2019 the Basic Court of Prizren delivered the first 
conviction  for  a  war  crime  since  the  end  of  EULEX’s  executive  judicial  mandate  in  June 
2018. Significant concerns remain about the willingness to investigate, prosecute, judge and 
effectively enforce convictions in war crime cases involving former Kosovo Liberation Army 
members. 

The Kosovo police introduced some reforms in this area, including the installation of a new 
electronic  war  crimes  database  and  a  reconfiguration  of  the  War  Crimes Investigation  Unit. 
This constitutes significant progress in the field of case management, case building and case 
analysis.   

The Special Prosecution Office of Kosovo filed  its first  war crimes indictment  only in  May 
2019.  Its  war  crimes  department  continues  to  face  significant  challenges,  after  its  workload 
substantially  increased  with  the  various  cases  handed  over  by  EULEX.  The  department 
operates with only three prosecutors, which is not sufficient. There is a need for more training 
and more support staff.  

Mutual  legal  cooperation  between  Kosovo  and  Serbia  in  war  crimes  cases  is  extremely 
limited. Cooperation with the United Nations International Residual Mechanism for Criminal 
Tribunals  in  The  Hague,  which  possesses  a  lot  of  evidence  and  prosecutorial  know-how, 
remains difficult due to status-related issues.  

The  Kosovo  Specialist  Chambers  and  Specialist  Prosecutor's  Office  (SPO),  set  up  to 
investigate  and  prosecute  allegations  stemming  from  the  2011  Council  of  Europe  Report, 
which alleges serious violations of international law, stepped up their work with interviews of  
dozens  of  potential  witnesses  and  suspects.  In  February  and  April  2020,  the  SPO  formally 
notified the Specialist Chambers of his intent to initiate proceedings, subject to confirmation 
of a pre-trial judge. On 24 June 2020, the SPO made public that the latter request concerns a 
ten-count indictment, including against Kosovo President Hashim Thaçi and the leader of the 
opposition  party  PDK,  Kadri  Veseli.  In  September,  the  SPO  conducted  several  arrests.  Full 
cooperation  with  the  Specialist  Prosecutor’s  Office  and  Specialist  Chambers  remains 
essential. It is crucial that the Specialist Chambers and the Specialist Prosecutor’s Office are 
able to continue to do their work independently, without any outside interference. 

A  working  arrangement  establishing  cooperation  between  the  Kosovo  Specialist  Chambers 
and Specialist Prosecutor’s Office and Europol entered into force on 4 July 2020. 

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 August 2020, 1,283 individuals 
had  submitted  applications,  of  which  846  were  accepted  and  262  were  rejected.  The 
timeframe  of  the  law  excludes  those  who  suffered  conflict-related  sexual  violence  after  20 
June  1999.  Often,  in  addition  to  problems  regarding  access  to  justice,  survivors  of  sexual 
violence also face societal stigma. The legislation does not address this aspect. 

23 

 
 
Kosovo  needs  to  develop  an  overarching  strategy  for  transitional  justice,  including  a 
comprehensive approach to addressing its past. The preparatory team in charge of drafting a 
normative  act,  which  will  serve  as  the  basis  for  a  future  Truth  and  Reconciliation 
Commission,  met  on  a  weekly  basis  throughout  2019.  A  round  of  consultations  with  civil 
society, religious groups, legal professionals, former political prisoners, artists, organisations 
advocating  for  missing  persons,  veterans  and  women  victims  of  sexual  violence  during  the 
war  was  concluded  in  May  2019.  The  preparatory  team  should  make  sure  that  the  future 
Commission  is  a  gender  sensitive  and  inclusive body  in  which  all  Kosovo  communities  are 
adequately  represented.  This  Commission  should  enjoy  cross-party  support,  in  accordance 
with EU and international standards. Other reconciliation initiatives are taking place as well. 
In  May  2019,  the  Kosovo  Coalition  for  Reconciliation,  led  by  three  Kosovo  civil  society 
organisations, started its activities. At the regional level, Kosovo maintained its participation 
in the Coalition for the Commission tasked with establishing the Facts about All Victims of 
War  Crimes  and  Other  Serious  Human  Rights  Violations  committed  in  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,  limited  progress  was  made,  including  on  the  investigation  and 
prosecution of high level cases, on the confiscation of assets as well as through the creation of 
the Special Departments handling cases regarding high-level corruption (and organised crime) 
in the courts. Additional special prosecutors have been recruited, but the overall capacity of 
the  prosecution,  including  as  regards  supporting  staff,  remains  low.  The  revised  Criminal 
Procedure Code is still not adopted, while the revision of political party financing legislation 
was  delayed.  Overall  results  achieved  by  prosecution  and  courts  remain  poor  and  final 
confiscations of assets remain low. 

Kosovo has partly followed some recommendations of the 2019 report (capacity of the special 
prosecution  office,  partial  implementation  of  legislation).  Most  of  the  recommendations 
remain  valid.  Robust  implementation  of  the  previously  revised  legislation  remains  crucial. 
Overall,  corruption  is  widespread  and  remains  an  issue  of  serious  concern.  Despite  efforts 
made, there is a need for strong and continual 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: 

  strengthen  the  efficiency  of  confiscation  regime  by  promoting  systematic  use  of  both 
extended  and  ‘regular’  confiscation  by  prosecution  and  police,  by  the  creation  of  a 
confiscation  fund  and  by  improving  the  sales  process  of  sequestrated  and  confiscated 
assets managed by Agency for the Management and Sequestrated and Confiscated Assets 
(AMSCA);  

  adopt  the  revised  Criminal  Procedure  Code,  including  provisions  on  the  suspension  of 

public officials indicted for corruption-related offences; 

  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. 

Track record  

24 

 
 
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 to  actively 
monitor the further development of this specific track record. The track record mechanism for 
visa liberalisation, established in 2015 to monitor and coordinate high-level corruption and 
organised  crime  cases  includes  66  cases  by  July  2020.  There  have  been  56  indictments  so 
far, of which 36 cases concern corruption and 20 cases concern organised crime. 13 cases had 
a final verdict, out of which 8 ended with a (partially) guilty verdict, leading to 15 individuals 
being convicted of corruption-related offences.  

This  track  record  was  designed  in  the  specific  context  of  visa  liberalisation  benchmarks 
Eventually, there should be one, comprehensive track record which covers all high-level cases 
relating  to  organised  crime  and  corruption.  As  such,  the  rules  governing  inclusion  of  cases 
within  this  mechanism  (standard  operating  procedures)  should  be  revised  to  allow  all  cases 
against high-level officials to be prioritised and be handled with the highest level of scrutiny 
within a single comprehensive and overall track record. 

Since  it  was  set  up,  the  Anti-Corruption  Agency  has  sent  more  than  1,000  cases  to  the 
prosecution, including more than 100 referrals in 2019. Of the 126 cases pending in 2019 (55 
pending  from  previous  periods,  71  new  referrals  in  2019),  the  prosecution  has  filed 
indictments in 42 cases. There were 11 court decisions in 2019. Many of the reports submitted 
by  the  Agency  still  suffer  from  poor  quality.  The  prosecution  should  demonstrate  more 
willingness to pursue cases related to corruption.  

In 2019, 419 new cases  of criminal offences against  official duty involving 896 individuals 
were reported. There were 6 new cases related to corruption in public procurement and 502 
new cases related to economic crimes.  

Asset confiscation continues to be seen as only  an auxiliary aspect of criminal proceedings 
with insufficient focus and resources put into it. Although in general the institutional and legal 
framework  is  in  place  and  has  been  significantly  improved  with  the  entry  into  force  of  the 
new  Law  on  Extended  Powers  of  confiscation  in  January  2019,  this  has  not  yet  delivered 
results.  The  concept  of  asset  confiscation  is  poorly  understood  amongst  prosecutors  and 
judges, including a restrictive interpretation of legal principles. The willingness to confiscate 
assets is low. The prosecution remains the weakest link in this regard. It should improve its 
technical shortcomings.  

The total amount of confiscated assets remains low. Preliminary confiscation of assets fell 
to  EUR  8.7  million  in  2019  (compared  with  EUR  28  million  in  2018).  The  value  of  final 
confiscation rose substantially (EUR 991,593) compared to 2018 (EUR 49,394), albeit in the 
context of only one case. Furthermore, the Agency for the Management of Sequestrated and 
Confiscated Assets (handling more than EUR 1.3 million in various assets in 2019) struggles 
to manage the assets in its portfolio, partially due to the courts not allowing asset sales (it has 
only  managed  to  sell  assets  totalling  EUR  74,166).  Work  on  the  creation  of  a  Confiscation 
Fund,  which  would  allocate  confiscated  funds  in  part  to  law  enforcement,  prosecution  and 
courts  and  in  part  to  social  projects,  has  not  progressed  and  should  be  taken  up  by  the 
government.   

In  2019,  almost  99%  of the  4,819  officials  obliged  to  submit  annual  declarations  of  assets 
did so on time (only 60, less than 1.25%, failed to do so). The Anti-Corruption Agency has 
974  officials  under  the  full  assets  control  procedure  and  more  than  62  cases  under 
investigation  for  false  declarations.  In  the  reporting  period,  prosecution  offices  received  a 
number  of  cases  on  irregularities  detected  in  asset  declarations  concerning  60  persons;  the 
cases  of  60  people  were  solved  during  this  same  period.  The  system  for  declaring  and 

25 

 
 
assessing the origin of property belonging to senior public officials remains incomplete. The 
Agency  still  lacks  tools  and  resources  to  verify  asset  declarations.  The  long-proposed 
amendments  to  the  relevant  legislation,  together  with  amendments  to  the  Law  on  the  Anti-
Corruption  Agency  remain  to  be  adopted.  Furthermore,  these  checks  require  closer 
cooperation  and  the  exchange  of  data  with  the  police,  the  tax  administration,  the  Financial 
Intelligence Unit, the land registry and municipal authorities. An e-declaration system would 
simplify filing and monitoring, increase transparency and decrease instances of human error.  

In  2019,  the  Agency  handled  more  than  167  cases  of  conflict  of  interest,  of  which  2  were 
addressed  using  the  minor  offence  procedure  and  3  were  sent  for  further  criminal 
investigation. In 26 cases, a conflict of interest was avoided.  

Funding for political parties and campaign financing lacks transparency and the regulatory 
framework remains inadequate. Overall, the regulatory framework does not ensure complete 
reporting, timely disclosure, meaningful oversight or accountability for irregularities. Political 
entities are required to submit campaign finance reports to the Central Election Commission 
only  within  45  days  after  election  day,  which  does  not  facilitate  transparency  or  oversight. 
Furthermore, auditors are required to verify the content of financial reports submitted but not 
to  identify  unreported  income  or  expenditure,  which  limits  the  scope  of  oversight.  Past 
auditing  reports  identified  inaccuracies  in  political  party  financial  reports,  but  no  sanctions 
were imposed. Existing sanctions (mostly fines ranging from EUR 1,000 to EUR 5,000) are 
not dissuasive or effective.  

Institutional framework  

There  are  19  different  anti-corruption  institutions  in  Kosovo.  Coordination  between  them 
remains  weak  and  therefore  responsibilities  frequently  overlap.  Strengthening  inter-
institutional coordination, including securing access to relevant databases, is key to effectively 
fighting corruption in Kosovo. 

Prevention measures 

implementation  of 

The  Anti-Corruption  Agency  is  responsible  for  preparing,  monitoring  and  supervising  the 
adoption  and 
the  anti-corruption  strategy  and  action  plan.  Its 
responsibilities include: (i) supervising and verifying the asset declarations of state officials, 
(ii)  supervising  and  preventing  conflict  of  interest  cases  and  the  acceptance  of  gifts,  (iii) 
deciding  on  restrictions  on  the  performance  of  other  activities,  (iv)  providing  advice  on  the 
implementation of the related laws and on anti-corruption issues, and (v) assisting public and 
private  sector  institutions  in  developing  codes  of  ethics.  The  Auditor-General,  the  tax 
authorities,  the  customs  authorities  and  the  Financial  Intelligence  Unit  also  have  inspecting 
and auditing powers.  

Training must be provided for staff of the main anti-corruption bodies, especially training on 
risk assessment. The Academy of Justice has integrated the anti-corruption programme into its 
training  curriculum,  including  a  specialised  capacity  building  training  programme  on 
combating  corruption,  sequestration  and  confiscation,  public  procurement  and  financial 
investigation  and  money  laundering.  The  existing  trainings  on  asset  confiscation  need  to  be 
better attended. Overall, more training is needed, especially on asset confiscation.  

There is a continuous need to promote integrity in the public service as a tool for preventing 
corruption  and  ensuring  discipline.  The  Anti-Corruption  Agency  did  not  continue  further 
work on integrity plans for municipalities.  

Law enforcement 

26 

 
 
Kosovo  has  specialised  institutions  for  fighting  corruption:  the  National  Coordinator  for 
Combating Economic Crimes within the prosecutorial system and the Police Directorate for 
the Investigation of Economic Crimes and Corruption, which maintains anti-corruption units 
at police stations and headquarters.  

The organisational restructuring of the Kosovo Police in February 2019 also brought changes 
to  the  structure  and  staffing  of  the  Economic  Crime  Directorate.  The  Anti-Corruption  Task 
Force operates as  a specialised unit within the Kosovo Police  Investigation Department  and 
aims to prevent, investigate and detect criminal offences against the economy and finances, as 
well  as  any  corruption.  The  police  has  been  involved  in  some  investigations  of  corruption 
within the institutions of the Kosovo government and as a result, some high-profile cases have 
been presented to the prosecution. Separately, a complex investigation using covert measures 
has led to the indictment of two serving judges in two different regions. During the reporting 
period,  the  number  of  financial  investigators  working  on  organised  crime  and  corruption 
investigations  has  increased.  Financial  investigations  need  to  be  carried  out  systematically, 
independently and in parallel with the criminal procedure for corruption and organised crime 
cases.  

The  quality  of  investigations  and  indictments  still  often  remains  insufficient.  Despite  some 
progress,  the  Special  Prosecution  Office  continues  to  suffer  from  a  lack  of  sufficiently 
specialised staff with the required level of training and competence to deal specifically with 
financial  and  procurement  cases.  The  Office  still  needs  to  be  connected  to  the  case 
management information system; this is planned for 2020. It is still not fully staffed with 15 
prosecutors  out  of  a  planned  number  of  18.  The  position  of  Chief  Special  Prosecutor,  who 
leads the Office, was vacant for nine months before a new Chief was appointed in December 
2019.  The  Office  has  four  prosecutors  working  in  a  new  specialised  section  handling  high-
level  corruption  cases.  The  Basic  Prosecution  Office  in  Pristina  has  a  Special  Unit  for 
Financial and Corruption cases, to which 10 prosecutors (3 from the General Department and 
7  from  the  Serious  and  Organised  Crime  Department)  are  assigned.  Each  basic  prosecution 
office has a designated anti-corruption prosecutor.  

Following their establishment by the new Law on Courts, special departments in the Basic 
Court  of  Pristina  and  the  Court  of  Appeals  handle  all  cases  of  the  Special  Prosecution 
Office, including corruption cases. 

Legal framework  

Criminal law provisions on corruption are generally in line with relevant European standards. 
Due  to  status-related  issues,  Kosovo  is  not  a  party  to  international  anti-corruption 
conventions.  This  includes  most  notably  the  United  Nations  Convention  against  Corruption 
and the Council of Europe’s Criminal Law Convention on Corruption. However, Kosovo has 
made substantial efforts to align its legislation with these instruments. 

The  new  Criminal  Code,  which  entered  into  force  in  April  2019,  harmonised  several 
provisions with European best practices and introduced the mandatory removal from office of 
public officials convicted of corruption. Substantial amendments to the Criminal Procedure 
Code, such as provisions on the suspension of public officials indicted for corruption, have an 
important potential for the anti-corruption field, but they still remain to be adopted by the new 
legislature. The new Law on Extended Powers of Confiscation entered into force in January 
2019 and gives Kosovo prosecutors more effective tools, which should now should be used. 

Although  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, this 

27 

 
 
principle still remains unclear to both judges and prosecutors. As a result, many stand-alone 
money laundering cases are dismissed by the Special Prosecution Office. 

The  Law  on  the  Prevention  of  Conflicts  of  Interest,  revised  in  2018,  should  be  fully 
implemented  by  the  authorities.  659  senior  public  officials  still  occupy  two  or  more  posts, 
with several officials holding as much as five posts simultaneously, in direct violation of the 
law. Kosovo has no specific legislation on lobbying. 

The  Law  on  the  Protection  of  Whistle-Blowers  is  broadly  in  line  with  international 
standards,  including  the  new  EU  legislation  in  this  area.  Officers  tasked  with  handling 
whistle-blowers’ complaints were appointed in over 175 public institutions, but the secondary 
legislation  detailing  the  procedure  for  such  handling  is  yet  to  be  adopted.  Strengthened 
whistle-blowing  mechanisms  and  protection  requirements  still  need  to  be  implemented  in 
practice. 

In  2019,  the  Assembly  failed  to  adopt  amendments  to  the  legal  framework  on  political 
parties and election campaign finances prepared by the government after consultation of the 
Venice  Commission.  Kosovo  continues  to  need  better  functioning,  more  accountable,  more 
transparent and enforceable party finance and campaign finance legislation. The government 
and Assembly should take this forward on the basis of the existing draft law.  

Strategic framework 

The anti-corruption strategy and action plan for 2018-2022, adopted by the government in 
March  2018,  were  submitted  to  the  Assembly  only  in  October  2018  and  have  not  yet  been 
approved.  In  parallel,  the  government  started  reviewing  its  strategic  framework  on  anti-
corruption  in  the  context  of  the  functional  review  (see  section  on  the  functioning  of  the 
judiciary).  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 set up to regularly assess the impact of a new 
strategy and action plan. 

Fundamental rights  

The  legal  framework  guarantees  the  protection  of  fundamental  rights  and  is  in  line  with 
European  standards.  The  adoption  of  the  new  Law  on  Child  Protection  fulfilled  one  of  the 
recommendations  of  last  year’s  report.  More  needs  to  be  done  to  promote  and  ensure  full 
implementation  of  human  rights  legislation  and  policies.  The  government’s  coordination  of 
human rights and minority protection mechanisms, both at the central and local levels, needs 
to  improve  and  fundamental  rights  issues  need  to  feature  higher  on  the  political  agenda. 
Human  and  financial  resources  are  lacking  and  relevant  authorities  are  still  dependant  on 
donor  support  and  guidance  and  need  to  assume  greater  ownership.  Inter-ministerial 
coordination mechanisms are often treated as a formality and have proven to be ineffective in 
advancing human rights.  

More efforts need to be undertaken to address recommendations of the 2019 report, which are 
still applicable. In the coming year, Kosovo should in particular: 

  re-assess  and  strengthen  the  efficiency  and  effectiveness  of  the  mechanisms  for  the 
coordination  and  implementation  of  human  rights  policies  and  strategies.  Strengthen  the 
role of the anti-discrimination officers in ministries and municipalities; 

  strengthen the implementation of the Law on Gender Equality and take concrete actions to 

ensure the functioning of the shelters for victims of gender-based violence;  

  adopt the Strategy for Return and Communities and ensure proper implementation of the 

28 

 
 
Strategy  for  the  Inclusion  of  Roma  and  Ashkali1  communities  in  Kosovo  society  2017-
2021; 

  adopt  the  Law  on  Cultural  Heritage  and  the  Law  on  Religious  Freedom  and  ensure 
consistent functioning of the Implementation and Monitoring Council. Advance protection 
of  cultural  heritage  by  fully  enforcing  legislation  on  special  protective  zones  and  illegal 
construction. 

International human rights instruments form an integral part of Kosovo's legal framework 
and are directly applicable, as provided for in the Constitution of Kosovo. Kosovo continued 
to align its legislation with these instruments and maintained its practice of ad hoc reporting.  

During  the  COVID-19  pandemic,  public  health  measures  involving  restrictions  of  certain 
fundamental rights were taken on the basis of the Law on prevention of infectious diseases. 
Some of the measures were adapted after the Constitutional Court ruled that they were partly 
unconstitutional. The Assembly eventually adopted in August 2020 a new law on preventing 
and combating the COVID-19 pandemic, which provides a solid legal basis for public health 
related restrictions of fundamental rights. As regards the economic and social consequences of 
the COVID-19 pandemic, it is expected that women will be affected more severely, because a 
larger part of them is employed in the informal economy and has in consequence no access to 
the mitigating measures taken by the government. The Kosovo government actively protected 
women  victims  of  domestic  violence  during  the  outbreak  of  COVID-19,  including  with  an 
institutional campaign informing them of their rights, exemptions to restrictions of movement 
and ensuring shelter for new cases. While special plans related to the pandemic were in place 
for  prisons,  a  number  of  infections  among  prisoners  and  correctional  staff  were  reported 
during August 2020.  

On  the  protection  and  promotion  of  human  rights,  the  implementation  of  human  rights 
legislation  and  oversight  and  coordination  of  existing  human  rights  mechanisms  remains  a 
challenge.  Authorities  are  drafting  an  overarching  human  rights  strategy  for  2020-2024,  a 
process that has been delayed for a few years now. Any such strategy needs clear objectives, 
timelines  and  clarity  on  the  responsible  institutions.  Ministry  Secretaries-General  should  be 
empowered  to  advance  fundamental  rights  policies  at  the  central  level  and  should  improve 
coordination  with  municipalities.  The  Office  of  Good  Governance  in  the  Prime  Minister's 
Office lacks proper human, financial and administrative resources to fulfil its broad mandate, 
which includes drafting, implementing and overseeing policies in the areas of human rights, 
good governance and anti-discrimination. It needs to play a more active part in strengthening 
the  role  of  anti-discrimination  officers  in  municipalities  and  ministries;  they  need  to  have 
clear reporting lines and be actively consulted and engaged in legal and policy drafting. 

The  Inter-Ministerial  Coordination  Group  for  Human  Rights  rarely  meets  and  neither  takes 
decisions nor properly follows up on previous government commitments.  

The  Ombudsperson  continues  to  play  an  important  role  in  the  promotion  and  protection  of 
human  rights  in  central  and  local  level  institutions  in  Kosovo.  It  has  further  increased  its 
capacity  to  review  cases  and  continued  its  efforts  to  increase  awareness  on  human  rights 
protection  and  promotion.  Implementation  of  the  Ombudsperson’s  recommendations  by  the 
Kosovo  institutions  remains  a  challenge.  The  overall  number  of  complaints  received  by  the 
Ombudsperson in 2019 was 2,014. Out of those, 943 have been opened for investigation, and 
54 cases were opened ex officio. Law enforcement bodies and the judiciary need to become 
more  responsive  in  protecting  society’s  vulnerable  groups,  such  as  children,  victims  of 

1 All these groups are considered under the wider ’Roma‘ umbrella term under the EU framework for National 
Roma Integration Strategies. 

29 

 
 
                                                           
gender-based  violence,  Roma,  Ashkali,  as  well  as  other  vulnerable  communities.  The 
Assembly  of  Kosovo  needs  to  take  a  more  proactive  role  in  the  oversight  of  the 
implementation of human rights legislation. 

While the mandate of the previous Ombudsperson ended in July 2020, the selection process of 
the new Ombudsperson was finalised end of September with the Assembly’s election of Naim 
Celaj. New initiatives to address the needs of social services, which are key in various areas 
related  to  fundamental  rights,  have  been  launched  (see  sections  on  social  policy  and  public 
administration reform). 

On  the  prevention  of  torture  and  ill  treatment,  the  situation  remains  satisfactory  and  the 
Kosovo  authorities  have  shown  a  sustained  commitment  to  preventing  these  practices  in  all 
circumstances.  However,  there  have  been  some  complaints  to  the  Ombudsperson  about  the 
incorrect  treatment  of  prisoners  by  correctional  staff  in  2019  (15  individual  complaints  and 
two cases openend ex officio). After investigation, 4 such cases were forwarded to the Police 
Inspectorate for further action. Representatives of the National Preventive Mechanism (NPM) 
regularly visit  all places of deprivation of liberty in Kosovo. In 2019, the NPM carried out 86 
regular and ad hoc visits to places of deprivation of liberty, including psychiatric and social 
care  institutions.  In  all  cases,  it  received  full  cooperation,  was  granted  rapid  access  to  all 
visited facilities, and was allowed to  access  all relevant  documents.  Its  representatives were  
able to speak privately with detainees, inmates and those placed in psychiatric and social care 
homes.  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. Efforts  to  address  the recommendations issued by the European Committee for the 
Prevention  of  Torture  and  Inhuman  or  Degrading  Treatment  or  Punishment  in  2015  are 
ongoing (see section on the prison system). 

The prison system  continues to  comply broadly  with  the UN Standard Minimum  Rules for 
the Treatment of Prisoners and with the European Prison Rules. There is no specific strategic 
framework in place for the prison system. Prison conditions vary widely among the different 
establishments  of  the  Kosovo  Correctional  Service  (KCS).  More  prisoners  are  now 
accommodated  in  adequate  facilities,  although  plans  to  close  old  facilities  have  not  yet 
materialised.  Overcrowding  is  generally  not  a  problem.  While meaningful  activities  such  as 
rehabilitation programmes remain limited, the KCS has focused more on engaging prisoners 
in  work  vocational  training  programmes  and  education.  The  Prison  Inspectorate  continues 
working  with  a  methodology  based  on  the  ‘Mandela  rules’.  Political  pressure  continued  to 
affect  decisions  on  the  categorisation  of  prisoners,  which  would  allow  for  preferential 
treatment of high profile prisoners. The planned amendments to the Law on the Execution of 
Penal  Sanctions  should  not  compromise  progress  achieved  by  previous  amendments 
preventing  such  preferential  treatment.  Alternative  sanctions  and  measures  are  possible  and 
are  imposed  mainly  on  juveniles.  Many  judges  and  prosecutors  remain  reluctant  to  impose 
alternative measures to detention on adults. 

On  personal  data  protection,  the  law  remains  broadly  in  line  with  the  EU  General  Data 
Protection  Regulation  and  the  Law  Enforcement  Directive.  It  envisages  compliance 
inspections, which should be carried out. Finalising the process of appointing a commissioner 
to lead the new Information and Privacy Agency – to be selected by the Assembly based on 
merit  and  competences  –  is  a  crucial  first  step  towards  making  the  Agency  operational.  In 
addition, the adoption of new, duly updated, implementing legislation that is aligned with the 
EU acquis is necessary. Both of these steps are crucial in order to effectively implement the 
legislation governing personal data protection and access to documents.  

30 

 
 
As  regards  the  freedom  of  thought,  conscience  and  religion,  although  there  are  legal 
provisions in  place,  the  Kosovo Assembly  still needs to  adopt  the long outstanding  Law on 
Religious Freedom, incorporating the recommendations of the Venice Commission. 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.  Incidents  of  cemetery  desecration  across 
different  regions  in  Kosovo,  targeting  Orthodox,  Muslim  and  Catholic  graveyards,  were 
frequent in 2019. Such acts of vandalism show that more efforts are required from the Kosovo 
Police, prosecution and judiciary to ensure the protection of religious sites.   

----------------------------------------------------------------------------------------------------------------- 

Freedom of expression 

Kosovo  has  some  level  of  preparation  regarding  freedom  of  expression.  Kosovo  benefits 
from a lively and pluralistic media environment. The legal framework is mostly in line with 
European  standards.  However,  limited  progress  has  been  made  in  addressing  the 
recommendations of the previous report. Concerns remain regarding public smear campaigns 
and threats against journalists. There are particular concerns regarding freedom of expression 
in the north of Kosovo, including self-censorship. 

Legal  initiatives  of  the  Assembly  of  Kosovo  Committee  on  Public  Administration,  Local 
Governance and Media (draft laws on the public broadcaster and on the Independent Media 
Commission)  lacked  transparency.  The  public  broadcaster  remains  vulnerable  to  political 
pressure  and  influence.  The  lack  of  financial  self-sustainability  leaves  media  vulnerable 
towards political  and business  interests. This  is further amplified by the lack of information 
and  data  on  the  final  beneficiary  of  media  ownership  –  provisions  on  this  are  still  not 
enshrined into law.  

In the coming year, Kosovo should: 

  further  improve  the  response  of  the  responsible  institutions  to  physical  attacks  against 
journalists,  and  other  forms  of  pressure,  including  through  better  inter-institutional 
cooperation; 

  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  audio-visual  media  in  line  with  Audio-visual  Media  Services 
Directive; 

  increase availability of data on the audio-visual market, especially when it comes to media 

ownership.  

Intimidation of journalists 

According to the Association of Journalists in Kosovo, there were 13 cases of verbal attacks 
and three physical attacks against journalists in 2019 (similar level as 2018). In at least two 
instances,  high-level  politicians  were  involved.  While  the  overall  number  of  threats  and 
attacks remained stable, according to the Kosovo Association of Journalists, there has been an 
increase  in  derogatory  statements  and  smears  made  by  politicians  and  aimed  at  the  media, 
publicly undermining trust in journalistic reporting and the safety of journalists. Adjudication 
of cases remains slow.  

31 

 
 
Legislative environment  

The  Constitution  and  legislation  provide  for  freedom  of  expression  and  media  freedom.  In 
general, media laws are in line with standards of the Council of Europe and the case law of 
the European Court on Human Rights. Defamation and insults are a civil offence. The Law on 
Protection of Journalistic Sources needs to be amended to clarify provisions related to court 
decisions  obliging  journalists  to  declare  a  source,  to  be  brought  in  line  with  European 
standards and best practices.   

The new whistle-blower legislation strengthens the protection of journalists’ sources, but the 
Ministry of Justice is yet to draft the implementing legislation. The Law on Access to Public 
Documents has been adopted, but implementation remains on hold until the Information and 
Privacy Agency starts its work (see section on data protection).  

The Assembly Committee on Public Administration, Local Governance and Media – the sole 
body with the right of legislative initiative on issues related to freedom of expression and the 
media  –  continued  to  operate  in  a  non-transparent  and  non-inclusive  manner,  including  as 
regards  the  draft  laws  on  the  public  broadcaster  and  the  Independent  Media  Commission. 
Building  administrative  capacity  within  the  government  to  deal  with  freedom  of  expression 
and media-related issues should be considered.  

Implementation of legislation/institutions  

The  implementation  of  existing  legislation  remains  insufficient.  The  Kosovo  Press  Council 
acts  as  a  self-regulatory  body  for  print  and  online  media,  mainly  by  reacting  to  complaints. 
The number of members is increasing and the Council’s financial sustainability is crucial. The 
Independent  Media  Commission  (IMC)  does  not  have  the  power  to  licence  and  monitor 
audio-visual media services online, although these were already covered by the Audio-Visual 
Media  Services  Directive.  The  2016  Code  of  Ethics  for  Media  Service  Providers,  a  legally 
binding secondary legislation issued by the IMC, sets provisions for broadcasting in relation 
to  content,  such  as  the  need  for  balanced  and  unbiased  news  coverage.  However,  the  IMC 
only monitors content during election campaigns.  

As  regards  the  coverage  of  the  October  2019  legislative  elections,  the  EU  Election 
Observation Mission concluded that, in general, media were able to freely cover the elections, 
but  raised a number of issues such as the lack of effective oversight  by the  IMC during the 
election campaign (see section on elections). 

Public Service Broadcaster  

The  public  broadcaster  Radio  Television  of  Kosovo  (RTK)  remains  vulnerable  to  political 
pressure  and  influence.  In  2019,  on  two  separate  occasions,  whistle-blowers  publicly 
denounced  political  influence  on  the  public  broadcaster.  RTK’s  shortcomings  should  be 
addressed including non-merit-based recruitment, non-transparent remunerations, insufficient 
sustainability  of  programmes  in  non-majority  languages  and  poor  online  presence.  To  date, 
the  broadcaster  remains  directly  state-funded,  with  its  budget  determined  annually  by  the 
Assembly. This undermines its independence, weakens its long-term sustainability and leaves 
it prone to political influence. 

A review of the current Law on RTK was launched in 2019. Steps should be taken to ensure 
that appointment and dismissal procedures of members of the respective governing bodies are 
transparent  and  inclusive  and  that  the  new  law  includes  a  realistic  and  sustainable  funding 
model  for  RTK.  In  2019,  legislative  initiatives  made  by  the  Assembly  to  regulate  online 
media, including authorisation requirements for online news sites, were halted after a public 
backlash.  

32 

 
 
Economic factors 

The  sector  remains  heavily  dependent  on  donors  and  advertising,  including  from  the 
government and political parties. Media companies struggle to sustain themselves financially 
through commercial means. Private broadcasters depend on other sources of funding and few 
are  able  to  operate  without  strong  links  to  political  and  business  interest  groups.  There  is  a 
lack of data on the advertising market and financing remains largely non-transparent. There is 
also no audience measurement system.  

Information  on  media  ownership  structures,  in  particular  for  online  media,  remains  unclear 
and  often  fictitious,  as  most  media  do  not  provide  information  on  their  finances  or  real 
ownership. Consequently, there is neither transparency nor a fair distribution of the sources of 
financing among the media outlets and no way of knowing whether they are concentrated in 
the hands of just a few people.  

The negative impact of the COVID-19 crisis on the financial stability of media sector remains 
one  of  the  main  concerns  (including  potential  job  losses),  even  if  media  professionals  were 
included  in  the  initial  financial  package  of  the  government  intended  to  ease  the  economic 
impact of the pandemic. 

Professional organisations and working conditions 

Associations  of  journalists  have  been  active  in  condemning  cases  of  threats  and  attacks 
against  journalists.  They  have  kept  up  a  constructive  dialogue  with  the  Kosovo  Police  and 
have been vocal in defending journalists against political pressures. The working conditions 
of  media  professionals  and  the  implementation  of  labour  laws  in  the  newsroom  remain  a 
concern. Many journalists work either with no contracts or only with service contracts. This 
situation encourages self-censorship and makes journalists vulnerable to pressure.  

(See also section 6.24 on information society and media)  

----------------------------------------------------------------------------------------------------------------- 

Freedom  of  assembly  and  association  is  guaranteed  by  the  Constitution  and  generally 
respected.  A  number  of  demonstrations  took  place  during  the  reporting  period.  The  Police 
Inspectorate  of  Kosovo  is  investigating  one  case  of  police  officers,  in  charge  of  providing 
security for a high-level politician, allegedly using violence against a non-violent protester.  

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 section 6.11 on social policy 
and employment.  

On  property  rights,  although  the  legislative  and  institutional  framework  governing  the 
resolution of conflict-related property claims is overall adequate, the reporting period marked 
no  real  progress  in  implementing  the  2017  strategy  on  property  rights.  The  resolution  of 
conflict-related claims continues to be hampered by political obstacles. A revised law on the 
Kosovo  Property  Comparison  and  Verification  Agency  (KPCVA)  was  prepared,  but  it  was 
not adopted by the Assembly. Provisions to ensure that property rights are fully realised, such 
as the extension of the deadline for the voluntary rental scheme which expired in Spring 2018 
(as  recommended  by  the  Ombudsperson),  and  the  extension  of  the  Agency's  authority  to 
include execution of more than two evictions in order to stop continuous illegal re-occupation 
of  properties,  need  to  be  included.  Judicial  decisions,  including  Constitutional  Court 
decisions, on conflict-related property cases must be fully observed and swiftly implemented. 
The Administrative Instruction on Demolition of Illegal Structures has been adopted in April 

33 

 
 
2020. This is a positive step in improving the implementation of decisions for demolitions as 
legal remedy. After several  years of stalemate, the KPCVA’s Property Claims Commission, 
the  first  instance  adjudication  body  to  resolve  the  2,782  conflict-related  claims  that  are 
pending, has been re-activated and completed its work as of May 2020, addressing all pending 
cases. For 70 cases, the decision of the second instance Appeal Panel of the Supreme Court is 
still pending. This Commission has started distributing allocated funds for the compensation 
scheme;  all  143  owners  of  former  socially  owned  residential  property  have  been 
compensated.   

Concerns  about  fraudulent  property  transactions  and  illegal  transfers  of  ownership  of 
properties mainly belonging to displaced persons remain. Increased access to and publication 
of key property data from the Kosovo Cadastral Agency could increase the public’s trust in 
land  and  property  transactions  and  improve  land  management.  There  has  been  limited 
progress on the issue of 350,000 buildings constructed without a permit, through adoption of 
necessary secondary legislation in July 2019 following the 2018 amendments to the Law on 
the  Treatment  of  Buildings  Constructed  without  a  Permit.  Their  legalisation  process  is 
ongoing. As regards large-scale informal settlements, there is a continued lack of political will 
to address the issue. In addition, women continue to face many challenges as regards property 
ownership and inheritance despite the fact that, through a special measure, they can register 
their real estate free of charge.  

On  non-discrimination,  the  Law  on  Protection  from  Discrimination  is  broadly  in  line  with 
European  and  international  standards,  but  its  implementation  remains  limited.   Although  it 
sets  out  a general  framework for preventing and combating discrimination,  both  rule of law 
institutions and victims have difficulties in identifying situations in which its provisions can 
be  applied.  A  lack  of  data  and  case  law  prevents  the  police,  prosecution  and  courts  from 
effectively  preventing  and  responding  to  most  forms  of  discrimination.  119  out  of  2,014 
complaints made to the Ombudsperson in 2019 related to discrimination. During the reporting 
period, the Ombudsperson became a member of the European Network  for Equality  Bodies 
(EQUINET). The establishment of an efficient data recording and a collection system on hate 
crime,  would  enable  their  recognition  and  registration.  The  Kosovo  Prosecutorial  Council 
continues  to  maintain a tracking mechanism on hate crimes. Hate speech  against vulnerable 
communities persists, especially on social media, and the police fails to respond to it on time.  

Legislation and institutional mechanisms for equality between women and men are in line 
with  international  and  EU  standards.  Despite  institutional  efforts,  women  continue  to  face 
discrimination  in  the  labour  market,  access  to  finance,  ownership  of  property  and  access  to 
justice. Women are underrepresented, especially in decision-making positions, both in private 
and  public  institutions.  Civil  society  organisations  continue  to  play  a  critical  role  in 
advocating  for  women’s  rights  and  advancing  gender  equality.  The  Agency  for  Gender 
Equality  (AGE)  plays  a  central  role  in  advancing  the  principles  of  gender  equality,  and  in 
mainstreaming gender in institutions' policies and actions. The Kosovo programme for gender 
equality (2020-2024) was  adopted by the government in  May 2020. AGE continues  to  train 
civil servants on gender impact analysis, which is increasingly being used during the drafting 
of  legislation  and  policies.  However,  coordination  with  gender  equality  officers  in  the 
ministries  and  municipalities  needs  to  be  strengthened.  More  coordination  and  stronger 
leadership from the government as well as efforts across the institutions are needed to make 
progress  on  implementing  the  Law  on  Gender  Equality.  Institutions  need  to  improve  their 
collection, maintenance and transparent reporting of gender-disaggregated data.  

Domestic  violence  continues  to  be  the  most  prominent  form  of  gender-based  violence  in 
Kosovo.  The  legal  and  institutional  framework  in  this  area  is  largely  in  line  with  EU  and 
international  standards.  The  amendments  to  the  criminal  legislation,  which  see  domestic 

34 

 
 
violence as a stand-alone offense, entered into force in April 2019. However, the lack of case 
law and lack of familiarity of judges and prosecutors with the new legislation resulted in its 
slow  application.  Efficient  prosecution  and  adjudication  of  cases  (including  appropriate 
sentencing) remain limited. The Law on Domestic Violence needs to be aligned with the new 
criminal  code.  In  September  2020,  the  Assembly  adopted  an  amendment  to  the  Kosovo 
Constitution that gives direct effect to the Council of Europe Convention on preventing and 
combating  violence  against  women  and  domestic  violence  (Istanbul  Convention).  This  is  a 
positive step to guarantee fundamental rights, protect women’s rights and in the fight against 
domestic  violence..  The  2016-2020  strategy  and  action  plan  on  protection  against  domestic 
violence continue to be implemented. An integrated database for cases of domestic violence 
has  been  created  and  is  accessible  to  police,  victim  advocates,  prosecutor,  courts  and  social 
workers at centres for social services. The authorities need to ensure sustainable funding for 
the database.  Reporting of domestic violence remains low, but has substantially increased in 
2019 to 1,915 cases (an increase by 382 cases). Reported cases of domestic violence increased 
slightly  during  the  first  semester  of  2020,  due  to  both  the  consequences  of  the  COVID-19 
pandemic and greater awareness of the issue. There has been limited progress in preventing 
domestic  violence  and  protecting  and  reintegrating  victims,  including  adequate  victims’ 
compensation.  Sufficient budget  should be allocated for centres of social  work and victims’ 
advocates.  The  functioning  of  the  eight  shelters  for  victims  of  domestic  violence  and 
trafficking in human beings is uneven mainly due to the lack of sustainable funding. A new 
shelter in Zubin Potok opened in summer 2020, covering the four northern municipalities and 
completing the network of protection institutions.  

On  the  rights  of  the  child,  Kosovo’s  legal  framework  is  largely  in  line  with  EU  and 
international  standards,  but  implementation  remains  limited.  In  June  2019,  a  new  Law  on 
Child Protection was adopted by the Assembly. The law entered into force one year following 
its publication. The main innovation is the establishment of a new integrated system of child 
protection, at both central and local levels. The law also includes a formal prohibition against 
corporal punishment. Authorities now need to adopt sub-legal acts and organise an awareness 
raising campaign on the Law. A strategy and action plan on children’s rights 2019-2023 is in 
force.  

Kosovo does not host children in large residential institutions, and developed alternative care 
solutions for children deprived of parental care. However, foster care for such children is not 
possible in all municipalities and often does not meet internationally recognised requirements. 
The social integration of children with disabilities remains a problem and many of them have 
very  limited  access  to  social,  health  and  educational  services.  In  addition,  authorities  have 
been  inefficient  in  providing  adequate  care  for  street  children  and  have  failed  to  properly 
address the issue. In 2019, the first day-care institution for street children was inaugurated in 
Pristina.  Begging  and  child  marriage  among  Roma  and  Ashkali  children  is  still  prominent. 
There is also a lack of services and programmes for the prevention and reintegration of child 
victims  of drug abuse.  Overall, a considerable  number of children in  Kosovo are victims of 
physical  or  psychological  violence  and  efforts  to  prevent  all  forms  of  violence  against 
children remain insufficient.  

The  institutional  framework  for  juvenile  justice  has  significantly  improved  in  recent  years. 
However, authorities should further strengthen the capacity of Kosovo institutions to sustain 
the  progress  achieved  in  this  area,  including  the  implementation  of  the  revised  legal 
framework and developed curricula.  

On  the  rights  of  persons  with  disabilities,  the  existing  legislation  is  following  the  most 
recent international standards. A comprehensive new law on persons with disabilities has not 
yet  been  adopted.  Overall,  authorities  are  not  effectively  implementing  existing  legislation, 

35 

 
 
including, the Law on Paraplegic and Tetraplegic Persons. The administrative instruction on 
rehabilitation and supporting equipment for persons with disabilities also needs to be drafted 
and adopted. The implementation of the Law on Blind Persons and the Law on Employment 
(of  which  a  part  regulates  the  employment  of  people  with  disabilities  in  the  public 
institutions)  is  equally  limited.  A  strategy  for  people  with  disabilities  is  in  place  but  a  new 
action plan for the 2020-2023 period remains to be adopted. The National Council for People 
with Disabilities has failed to meet for the past two years. People with disabilities in Kosovo 
experience  exclusion  due  to  limited  support  and  inadequate  health  and  social  services 
Physical  access  to  public  buildings  and  transport  also  remains  limited.  Children  with 
disabilities are especially vulnerable (see above). Authorities should increase financial support 
to  scale  up  community-based  social  and  health  services  and  increase  efforts  to  effectively 
integrate people with disabilities into the educational system. 

On  the  rights  of  lesbian,  gay,  bisexual,  transgender  and  intersex  (LGBTI)  persons,  the 
Constitution protects against discrimination based on sexual orientation. During the reporting 
period,  the  Advisory  and  Coordination  Group  on  the  LGBTI  community  developed  a  new 
action  plan  2019-2022.  However,  there  is  little  will  to  implement  this  plan  and  no  progress 
has been  achieved so  far. At the initiative of the President, a new  LGBTI action committee 
with the involvement of civil society was set-up in January 2020. There is a strong need for 
Kosovo to ensure full implementation of the existing anti-discrimination legal framework and 
the  2019-2022  action  plan.  In  October  2019,  the  third  Pride  Parade  took  place  in  Kosovo 
without  any  incidents,  and  included  high-level  political  participants.  Despite  these  positive 
developments,  public  awareness  and  general  acceptance  of  the  rights  of  LGBTI  persons 
remains low. There have also been incidents of hate speech towards the LGBTI community, 
especially  on  social  media.  The  recent  amendments  to  the  Criminal  Code  offer  LGBTI 
persons  better  legal  protection;  but  cases  of  hate  crime  against  LGBTI  persons  are  still  not 
always  properly  investigated  and  brought  to  justice.  During  2019,  for  the  first  time,  the 
prosecution of Kosovo initiated a case ex officio against an official of the Ministry of Justice, 
on the grounds of hate speech against LGBTI persons. In 2019, the Courts in Kosovo ruled on 
two  cases  of  legal  gender  recognition  (in  first  instance).  Following  one  such  case,  the  Civil 
Registration  Agency  was  obliged  to  legally  recognise  a  person’s  gender  based  on  self-
determination.  

On  procedural  rights,  those  who  are  accused  and  suspected  of  crime  and  the  victims  of 
crime are protected with  procedural  safeguards stipulated in  the 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.  The 
injured parties, however, often lack the capacity to protect and pursue their legal interests in 
criminal  proceedings,  tend  to  receive  insufficient  legal  information  on  their  rights  and  are 
rarely assisted during criminal proceedings by professional legal representatives. The level of 
legal  aid  provision  in  practice  is  not  adequate  due  to  conflicting  legislation,  lack  of  public 
awareness and different systems in place for providing free legal aid. In addition, there is no 
system of quality assurance in the provision of legal aid. Out of 2,014 complaints received by 
the Ombudsperson in  2019, 409 concerned the  right  to  a fair trial within  a reasonable time. 
The  Law  on  Crime  Victim  Compensation  is  broadly  aligned  with  the  EU  Directive  on 
Compensation  for  Crime  Victims.  However,  authorities  should  ensure  that  victims  of  crime 
are  duly  informed  about  their  rights  and  available  protection,  including  the  right  to 
compensation.  Victims’  advocacy  officers  should  increase  the  quality  of  services.  A  crime 
victim  compensation  programme  is  operational  since  2016. In  2019,  the  Commission 
responsible  for  compensation  received  ten  requests  out  of  which  six  were  approved  and 

36 

 
 
compensated  for  the  total  amount  of    EUR  14,260.  However,  since  August  2019  the 
Commission has not been functional due to the expiry of the mandate of five commissioners.    

legislation.  Implementation  of  minority  related  policy  could  advance 

Kosovo has well established mechanisms at the central and local level to protect  minorities 
and their rights. It also has an adequate legal framework and relevant strategies and action 
plans.  However,  insufficient  inter-institutional  coordination,  both  at  the  central  and  local 
levels,  continues  to  undermine  the  effective  delivery  of  services  and  implementation  of  the 
applicable 
if 
coordination between the Office for Community Affairs (OCA) and the Advisory Office for 
Good  Governance  (both  work  under  the  Prime  Minister's  Office)  was  more  efficient.  These 
offices remain mainly project driven and donor dependent. Significant efforts are still required 
to  create  the  conditions  for  a  truly  multi-ethnic  society,  a  lasting  peaceful  coexistence  and 
integration  of  all  communities  Kosovo-wide.  These  include  creating  a  secure  environment, 
especially  in  areas  where  returnees  live,  that  ensures  access  to  property,  personal 
documentation,  language  rights,  and  adequate  provisions  for  education,  employment  and 
social welfare. 

The Technical Working Group for the implementation of the recommendations based on the 
Council  of  Europe’s  Framework  Convention  on  National  Minorities  (FCNM)  set  up  by  the 
government  met only once in  2019. The implementation  of these recommendations remains 
limited. The Consultative Council for Communities met regularly during the reporting period 
and  issued  recommendations  addressing  specific  community-related  issues  to  relevant 
institutions.  However,  from  the  50  recommendations  sent,  only  8  have  received  a 
response.  There is still no government representative appointed to the Council. The Office of 
Language Commissioner under the Prime Minister’s Office continues to work efficiently with 
the aim of overseeing and overcoming the challenges posed by the limited implementation of 
the Law on the Use of Languages, including efforts to improve translation and interpretation 
into all official languages.  

Kosovo  is  characterised  by  a  growing  trend  towards  monolingualism  in  one  of  the  official 
languages  and  the  lack  of  platforms  in  which  members  from  different  communities  can 
interact  is  a  matter  of  concern.  Young  people  in  particular  are  not  exposed  to  each  other’s 
language  or  those  of  other  local  communities.  Such  a  trend  can  only  be  countered  in  the 
longer  term  via  the  education  system.  In  non-majority  communities,  education  at  pre-
university levels continues to face challenges mainly due to the lack of textbooks in languages 
of  respective  communities.  Concerns  remains  over  the  provision  of  higher  education  in  the 
languages  of  minority  communities,  too.  Employment  of  people  from  non-majority 
communities  in  the  public  sector  remains  below  the  10%  threshold  stipulated  by  relevant 
legislation.  Members  of  non-majority  communities  remain  underrepresented  in  the  civil 
service at both the central and municipal levels.   

While  the  overall  security  situation  of  minority  communities  remains  stable  and  security 
incidents  are  limited,  such  potentially  ethnically  motivated  incidents  proportionally  affected 
the Kosovo Roma and Ashkali community more compared to the previous reporting period. 
There  are  also  recurring  incidents  of  property  and  livestock  theft,  which  frequently  affect 
Kosovo Serbs, as well as other minority communities. Increased follow-up of such incidents 
by judicial institutions is still needed. Further recruitment of police officers from non-majority 
communities,  as  well  as  the  strengthening  of  community  policing  is  needed  in  order  to 
contribute to a strengthened perception of security among affected communities.  

Security  is  a  main  prerequisite  for  the  return  and  reintegration  of  refugees  and  displaced 
persons. This number continues to diminish with a total of 191 people who have returned to 
Kosovo in 2019. The decrease is partly due to the challenges refugees and displaced persons 

37 

 
 
face in fully exercising their rights and lack of conditions for sustainable return (see also the 
sections  on  property  rights  and  rights  and  protection  of  minorities).  The  Ministry  for 
Communities  and  Return  needs  to  develop  and  adopt  a  new  strategy  for  communities  and 
return  covering  the  2019-2023  period.  The  Inter-Ministerial  Commission  for  Return  and 
Community  Affairs,  which  should  facilitate  return  and  inter-community  relations,  did  not 
convene in 2019.  

the  most  marginalised  communities 

The situation of the Kosovo Roma and Ashkali communities has remained unchanged. The 
implementation  of  the  2017-2021  strategy  for  the  inclusion  of  the  Roma  and  Ashkali 
communities  in  Kosovo  society  has  still  not  been  systematically  evaluated  and  its 
implementation remains limited. Members of Kosovo Roma and Ashkali communities remain 
in  Kosovo,  hindered  by  poverty  and 
among 
unemployment. Many of them have low levels of education and unemployment rates are high. 
Additional efforts are needed to facilitate their labour market integration and combat informal 
work. Members of these communities, in particular displaced persons and returnees, continue 
to face dire living conditions. One of the main challenges in terms of housing for the Roma, 
and  Ashkali  Internally  Displaced  Persons  (IDPs)  and  returnees  is  the  resistance  of  some 
municipalities  to  allocate  land  and  recognise  tenancy  or  possession  rights  in  informal 
settlements  to  the  families  who  lived  there  prior  to  the  conflict.  However,  there  are  other 
municipalities  that  have  allocated  land  for  housing  purposes.  In  education,  the  number  of 
students from the Kosovo Roma and Ashkali  communities in universities has been steadily 
increasing  over  the  past  years.  However,  the  pre-university  learning  centres,  which  remain 
instrumental  in  supporting  education  for  these  communities,  risk  being  closed  down    as  a 
result  of  the  government’s  failure  to  allocate  the  necessary  funds  for  their  continued 
functioning.  Roma  and  Ashkali  communities  face  particular  issues  with  access  to  health 
insurance, too. There are still concerns about discrimination in health services. Some people 
still face difficulties with civil documentation and personal identity documents, often linked to 
return or repatriation. Kosovo needs to introduce measures and systemic solutions to address 
the problem of unregistered births in these communities.  

The government endorsed the Declaration of Western Balkans Partners on Roma Integration 
within  the  EU  Enlargement  Process  (Poznan  Declaration),  but  only  very  limited  follow-up 
steps  have  been  taken  to  implement  it.  The  Roma  Seminar  conclusions  are  also  yet  to  be 
implemented. 

On  cultural  rights,  no  developments  were  noted  with  regards  to  the  draft  Law  on  cultural 
heritage during the reporting period. The Implementation and Monitoring Council remains the 
only  formal  mechanism  for  dialogue  between  the  Government  and  the  Serbian  Orthodox 
Church (SOC), and has met regularly. In August 2020, the restart of the construction on the 
Deçan/Dečani-Plav  Special  Protective  Zone  (SPZ)  increased  tensions  between  the  SOC,  the  
municipality of Deçan/Dečani and the Kosovo Government. Construction works were halted 
the same month, under direct order of the Kosovo Prime Minister, but tensions remain. There 
were  no  further  construction  activities  on  the  rehabilitation  of  the  Lumbardhi  riverbed.  The 
municipality  of  Prizren  was  proactive  in  removing  several  unpermitted  structures  within 
Prizren’s  historic  centre,  an  SPZ.  Some  protected  sites  were  demolished  by  individual 
building  owners,  but  the  Prizren  municipality  and  the  Basic  Court  were  efficient  in 
responding  to  such  violations.  The  government  should  be  more  proactive  in  ensuring  the 
rights and protection of the SOC throughout Kosovo.  

Interfaith relations between the SOC and the Roman Catholic Diocese became more strained, 
after  the  Roman  Catholic  Diocese  in  Kosovo  served  a  catholic  mass  on  the  ruins  of  the 
controversial archaeological site within the Novo Brdo/Novobërdë’s SPZ, prompting a strong 
reactions and condemnations from the SOC. The protection and promotion of cultural heritage 

38 

 
 
in  Kosovo  still  remains  weak  and  donor  driven.  Such  projects  require  long-term  financial 
support in order to have a lasting impact. 

2.2.2  Justice, freedom and security 

Kosovo is at an early stage/has some level of preparation in this area. Some progress was 
made, including on the fight  against violent  extremism  through the management  of a  return 
operation of foreign terrorist fighters and their families from the conflict zone. However, the 
entry  into  force  of  several  laws  important  to  combatting  organised  crime  has  not  yet  led  to 
tangible  results.  Results  achieved  by  prosecution  and  courts  remain  poor.  Overall, 
confiscation of assets remains low. The authorities continued to make progress in managing 
regular  and  irregular  migration,  despite  the  unexpected  increase  in  the  number  of  irregular 
migrants arriving to Kosovo.  

Kosovo  has  only  partly  followed  the  recommendations  of  the  2019  report,  namely  the 
recommendations  related  to  violent  extremism  and  on  the  National  Centre  for  Border 
Management, hence the other recommendations are repeated.  

In  July  2020,  Europol  and  the  Kosovo  Police  concluded  a  Working  Arrangement.  The 
arrangement  will  constitute  the  basis  for  enhanced  cooperation  between  Kosovo  Police, 
Europol and EU Member States. 

In the coming year, Kosovo should in particular: 

  adopt a protocol for the handling, storage and destruction of drug precursors and start to 

effectively implement it; 

  continue implementing programmes on rehabilitation and reintegration, inside and outside 
the prison system by safeguarding coordination of pre-release and post-release processes, 
and  ensuring  that  the  Reintegration  Division  of  the  Ministry  of  Internal  Affairs,  is  fully 
funded, staffed and trained; 

  establish  a  Joint  Threat  Assessment  Centre,  including  a  threat  level  grading  system  on 

terrorism related risks; 

  fully  implement  the  relevant  action  plan  to  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. Limited progress was made 
on the investigation and prosecution of organised crime cases. While the Criminal Code and 
the  Law  on  the  extended  powers  of  confiscation  entered  into  force,  this  has  yet  to  lead  to 
tangible results. Measures are needed to strengthen the prosecution as well as to ensure that 
there  is  no  political  interference  in  the  operational  activities  of  all  law  enforcement  bodies. 
The  situation  in  the  north  of  Kosovo  with  regard  to  organised  crime  continues  to  pose 
challenges for law enforcement agencies.  

Kosovo has partly followed the recommendations of the 2019 report, namely on the training 
and  awareness  raising  regarding  new  legislation,  including  the  one  regarding  confiscation,  
capacity  of  the  Special  Prosecution  Office,  the  intelligence-led  policing,  and  partial 
implementation of the laws adopted in 2018. Other recommendations however remain valid.  

In  addition  to  recommendations  to  strengthen  confiscation  of  assets  and  to  adopt  the  new 
Criminal  Procedure  Code  (see  section  on  fight  against  corruption),  in  the  coming  year, 
Kosovo should in particular:  

39 

 
 
  within  the  police,  effectively  implement  the  intelligence-led  and  community  policing 
approaches,  including  through  the  presence  of  officers  at  community  level,  enabling 
confidence building and proactive policing; 

  adopt  standard  operating  procedures  to  run  financial  investigations  in  line  with  FATF 

recommendations; 

  further  increase  the  capacity  of  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. 

Institutional set-up and legal alignment  

Key  institutions  involved  in  the  fight  against  organised  crime  include  the  Special 
Prosecution Office and the newly established Special Department of the Basic Court and 
the Court of Appeals in Pristina. The creation of the latter and staffing both with specialised 
judges and prosecutors should ensure stronger centralisation and greater judicial specialisation 
in response to serious crime.  

The police has an organised crime directorate, complemented by specialised units at regional 
level,  and  assisted  by  forensic  units  and  the  Kosovo  Forensic  Agency.  The  police’s 
investigation department, with a total number of 567 personnel at central and regional level, is 
responsible for the fight against organised crime. During the reporting period, the police has 
the  operational 
undergone 
communication between the General Director and department directors. The restructuring has 
increased the amount of officers at the regional and station level, which has resulted in more 
capacity to prevent and fight crime at local level (e.g. a decrease in armed robberies). Kosovo 
Police should continue with its reform programme under EU expert advice. 

initial  organisational  restructuring,  which  has 

improved 

There were 471 police officers per 100,000 inhabitants in 2019, compared with 436 in 2018 
and  a  326  EU  average  in  2017  according  to  Eurostat.  Police  performance  is  affected  by  a 
number  of  tasks  that  are  not  core  police  force  tasks,  such  as  providing  security  in  low-risk 
government  buildings  and  infrastructure.  Steps  should  be  taken  to  correct  this.  The  Kosovo 
Academy for Public Safety provides a good level of initial and in-service training for police 
and public security bodies. 

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  assets  if  it  finds  suspicious  financial 
transactions. Both Kosovo Customs and the FIU have generally performed well.  

The  police  assigned  two  officers  to  the  Asset  Recovery  Office  within  the  Directorate  for 
Economic Crime Investigations. The Office has received limited requests so far and should be 
better used by all relevant actors. Interoperable databases offer mutual access to police, tax 
and  customs  services,  which  facilitates  operational  cooperation.  The  Kosovo  Police 
Information  System  (KPIS)  is  linked  to  all  major  databases  (i.e.  border  management;  civil 
registry, vehicle registration, visa system, FIU). In one region, the KPIS is connected to the 
Case Management  Information  System (CMIS), a pilot  project  which is yet  to be rolled out 
across  Kosovo.  The  Kosovo  Forensics  Agency  uses  an  upgraded  biometric  database  since 
February 2019. 

The Civil Registry Agency is a key resource for personal data and identity management and 

40 

 
 
as  such  has  an  important  role  in  supporting  law  enforcement  and  other  public  bodies  with 
citizens’  data.  However,  interconnections  and  accessibility  between  its  central  register  and 
rule of law institutions’ databases are not sufficiently regulated and are hindered by technical 
challenges.  

The  main  strategic  framework  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. There is still a 
need  for  better  cooperation  and  coordination  between  all  the  institutions.  The  Special 
Prosecution Office remains the weakest link in the fight against organised crime. 

Due  to  status-related  issues,  Kosovo  is  not  party  to  the  major  international  instruments  for 
fighting against organised crime, such as the UN Palermo Convention against Transnational 
Organised Crime and its Protocols, but it unilaterally applies these international principles in 
its  criminal  legislation.  Its  legislation  is  largely  compliant  with  international  and  European 
standards.  

The revised Criminal Code, which entered into force in April 2019 increases the number of 
offences  that  can  be  prosecuted  in  the  framework  of  organised  crime,  extends  statutory 
limitation periods for various serious crimes and provides for sufficiently dissuasive penalties 
for corruption and organised crime offences. The revised Criminal Procedure Code, which 
went partially through the Assembly procedure in 2019, remains to be adopted. The new Law 
on Extended Powers  of Confiscation is  aligned with  the EU  acquis  and has been in  force 
since January 2019 (see section on the fight against corruption). 

Although work has started on addressing the flaws in the legal and institutional framework, no 
changes  to  the  Law  on  Money  Laundering  and  Terrorism  Financing  have  yet  been 
adopted to bring it fully in line with the EU acquis and international standards (see section 6.3 
on the freedom of movement of capital).  

Implementing legislation on the destruction of data adopted in January 2020 contributes to the 
implementation of the Law on Interception of Electronic Communications. The process of 
upgrading interception capacity in order to meet the evolving technological demands is under 
way.  Legislation  on  cybercrime  is  generally  in  line  with  the  EU  acquis.  The  new  Law  on 
Cybersecurity,  which  incorporates  relevant  provisions  from  the  existing  Law  on  Preventing 
and  Fighting  Cybercrime,  has  not  yet  been  adopted.    Legislation  on  trafficking  in  human 
beings  is  broadly  aligned  with  the  relevant  EU  acquis,  but  implementation  could  be 
improved,  especially  regarding  the  pro-active  identification  of  victims,  ensuring  assistance 
and support and increasing prosecution and conviction of perpetrators. Kosovo should adopt 
its new 2020-2024 strategy and action plan against trafficking in human beings. 

In  April  2019,  the  police  adopted  the  second-ever  serious  and  organised  crime  threat 
assessment  (SOCTA)  report  for  the  2016-2018  period.  Annual  strategic  crime  assessment 
reports  were  also  adopted.  It  is  important  that  the  threats  identified  are  translated  into 
operational  priorities  backed  up  with  adequate  resources.  Although  the  FIU  has  completed 
work on the Kosovo-wide risk assessment on money laundering & terrorist financing (2014-
2018), this has not yet been adopted by the government.    

Implementation and enforcement capacity  

Kosovo  authorities  for  the  first  time  reported  on  the  total  number  of  indictments  and 
convictions  for  the  charge  of  ‘organised  crime’  as  defined  in  the  United  Nations 
Convention  on  Transnational  and  Organised  Crime.  Two  cases  (involving  six  people) 

41 

 
 
received final convictions in 2019, while one case (involving five people) was sent for re-trial 
by the Court of Appeals. Five cases, involving 60 people, received an indictment in 2019. 

For the visa liberalisation-related track record in the fight against high level corruption and 
organised crime, see the section on the fight against corruption. 

As regards those organised crime-related cases currently not included in the aforementioned 
track record, during the reporting period indictments were filed against 43 people, of which 
five were found guilty of trafficking in human beings. In addition, ten persons were indicted 
for  and  four  found  guilty  of  arms  trafficking  and  nine  were  indicted  for  money  laundering 
(there  were  no  final  court  decisions).  Only  a  fraction  of  all  cases  involving  trafficking  in 
human  beings,  trafficking  in  arms  and  money  laundering  also  involve  charges  of  organised 
crime.  

The  police  and  the  prosecution  do  not  yet  actively  use  all  powers  at  their  disposal  to  target 
criminal  networks  and  their  economic  support  base,  with  cases  seemingly  involving  one  or 
just a few individuals. 

Sentencing  policy  in  relation  to  organised  crime  remains  erratic  with  courts  not 
systematically implementing the Supreme Court’s 2018 sentencing guidelines. The number of 
unproductive court hearings  remains  an issue of concern, with  judges often failing to use 
the  procedural  tools  at  their  disposal  to  secure  the  presence  of  parties  and  witnesses  at  the 
trial.  The  low  number  of  confiscated  criminal  assets  is  a  key  concern  too.  The  number  of 
staff in the Special Prosecution Office remains insufficient (see section on the fight against 
corruption). The institutions involved in the fight against organised crime need to set up and 
use multi-disciplinary, joint investigation teams, where possible.  

Police  capacity  for  combating  organised  crime  is  adequate,  but  the  police  force  remains 
vulnerable to corruption and political pressure, which hinders the successful investigation of 
organised  crime.  One  way  to  increase  the  integrity  of  police  officers  and  deter  corruption 
would  be  to  widen  the  scope  of  asset  declaration  so  that  it  includes  not  only  senior 
management  positions,  but  also  other  lower,  more  exposed  posts.  Intelligence-led  policing 
remains weak across the organisation and related capacities need to be strengthened, including 
the  use  of  Tasking  and  Co-ordination  Group  processes.  The  strategic  framework  is  under 
review. There is a need for more specialised training sessions for all institutions involved in 
fighting  more  complex  organised  crime.  Closer  day-to-day  co-operation  as  well  as  a  more 
strategic approach to better plan investigations and divide of resources between the police and 
the special prosecution is still needed.  

Kosovo  regularly  exchanges  information  with  Interpol  via  the  United  Nations  Interim 
Administration  Mission  in  Kosovo  (UNMIK).  Kosovo’s  application  to  join  Interpol  was 
withdrawn  from  the  General  Assembly  meeting  in  October  2019.  A  Working  Arrangement 
concerning  strategic  cooperation  with  Europol  was  concluded  in  July  2020.  Kosovo  should 
now implement the working arrangement and make full use of the available possibilities for 
cooperation. The Kosovo Police signed a protocol for establishing a joint task force with the 
police  from  North  Macedonia  and  cooperates  with  EU  Member  States  on  a  bilateral  basis, 
including through joint investigation teams and exchange of information on civil and criminal 
cases.  The  police  has  signed  93  international  police  cooperation  agreements,  including  with 
20 countries, a number of EU agencies and international organisations. During the reporting 
period,  the  number  of  partners  with  which  the  Kosovo  Police  mutually  exchanged  liaison 
officers increased from five to seven.  

Effective implementation of witness protection mechanisms continues to face challenges, as 
few potential witnesses have sufficient trust in Kosovo institutions’ ability to keep them safe. 

42 

 
 
A  first  witness  has  entered  the  Kosovo  Witness  Protection  Programme  in  2019  and  three 
persons  were  received  for  international  temporary  relocation.  Kosovo  police  participates  in 
Europol’s  Platform  for  Witness  Protection  Prosecutors  and  judges  need  training  on  how  to 
protect witnesses effectively. 

The  fight  against  money  laundering  and  terrorist  financing  is  not  efficient  enough  to 
produce convincing results. Money laundering is often not prosecuted as a standalone crime, 
but  in  connection  with  other  criminal  offences,  which  slows  down  the  overall  criminal 
procedure. There is a pressing need to foster prosecutors’ and judges’ better understanding of 
the  concept  of  money  laundering  and  to  improve  specialisation  in  this  field.  During  the 
reporting period the FIU received a total of 1,017 suspicious transaction reports. There were 
644 such reports in 2018, meaning reports have increased by 58%. In one notable case, FIU 
intelligence  analysis  led  directly  to  the  conviction  of  two  suspects  and  final  confiscation  of 
nearly EUR 1 million. This is a positive first step which should be followed up on.  

Overall, although the efficacy of financial investigations has improved at the police level, they 
are  still  not  systematically  being  conducted  in  parallel  with  criminal  proceedings. 
Inter-agency cooperation and coordination needs to improve significantly. An action plan has 
been  drafted  to  follow  up  on  and  implement  the  recommendations  of  recent  expert  reports 
(based  on  the  standards  adopted  by  the  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),  but  it  still  requires  adoption  (see  also 
section 6.3 on the freedom of movement of capital). 

As regards arms trafficking, Kosovo is implementing its strategy in this area and the Law on 
the Legalisation and Surrender of Weapons, Ammunition and Explosive Devices. A firearms 
focal  point  in  the  police  is  fully  operational  and  should  serve  as  example  of  regional  best 
practice.  A  legalisation  campaign  for  small  arms  and  light  weapons  was  carried  out,  with 
1,573 legalisation requests approved. The Ministry of Internal Affairs has a database in which 
it registers all arms imported into Kosovo. The involvement of organised and armed groups in 
arms trafficking remains a serious concern.  

Kosovo  remains  a  country  of  origin,  transit  and  destination  of  victims  of  trafficking  in 
human beings, notably for sexual exploitation. In 2019, 23 female victims and 3 male victim 
were identified; 15 were under the age of 18. Cigarette and tobacco smuggling is present in 
Kosovo  but  levels  remain  low.  Kosovo  cooperates  with  all  relevant  partners,  including  the 
European Anti-Fraud Office (OLAF). 

Progress was noted in the area of cybercrime, for the detection, traceability and prosecution of 
cyber  criminals.  However,  there  are  still  issues  to  be  addressed,  such  as  the  handling  of 
electronic  evidence  by  people  with  insufficient  knowledge  and  the  limited  availability  of 
cybercrime training for newly appointed judges and prosecutors. 

A  working  arrangement  with  the  EU  Agency  for  Law  Enforcement  Training  (CEPOL)  has 
been  in  force  since  2017.  Kosovo  actively  takes  part  in  a  number  of  activities.  Where 
possible,  Kosovo  should  increase  its  involvement  in  the  priorities  of  the  EU  policy  cycle 
(EMPACT)  including  the  drafting  of  operational  action  plans  and  the  participation  in  joint 
action days. 

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 

43 

 
 
Kosovo’s  legal  framework  is  broadly  in  line  with  European  legislation,  but  enforcement 
remains  weak.  The  2007  Law  on  Narcotic  Drugs,  Psychotropic  Substances  and  Precursors 
governs  Kosovo’s  policy  on  drugs.  A  comprehensive,  revised  draft  law  that  is  aligned  with 
more  recent  EU  legislation,  is  ready  for  adoption.  Drug-related  offences  are  covered  by  the 
Criminal Code. A coordination mechanism to prevent and fight drug trafficking and the abuse 
of  precursors  is  in  place.  In  line  with  the  2018-2022  strategy  and  current  action  plan,  a 
National Drugs Observatory is operational, although with limited resources and a vacancy at 
its  head.  Sustainable  and  routine  collection  of  data  on  drugs  should  be  ensured.  Kosovo 
should  formally  establish  an  early  warning  system  including  associated  risk  assessment 
procedures and the subsequent control mechanism for adding new psychoactive substances to 
its drug control legislation. Cooperation with the European Monitoring Centre for Drugs and 
Drug  Addiction  (EMCDDA)  continued,  despite  limited  reports  and  the  lack  of  a  nominated 
head  of  the  designated  focal  point.  Kosovo  and  the  EMCDDA  concluded  working 
arrangements in June 2020.  

Implementation and enforcement capacity 

Kosovo continues to be both a storage and a transit country, mainly for heroin and cannabis. 
Overall, the volume drug seizures remain low: around 824,2 kg of marijuana, 7,7 kg of heroin 
and  1,5 kg  of  cocaine  were  seized  in  2019.  Heroin  seizures  dropped  significantly  compared 
with 2018, which is a concern.  

Organised crime groups continue to play a dominant role in large-scale drug trafficking and 
subsequent  distribution  in  the  EU.  An  increased  regional  effort  and  improved  police 
cooperation  and  coordination  among  all  countries  in  the  region  is  key  to  identifying  and 
dismantling the organised crime groups trafficking drugs. The prosecution service remains too 
understaffed  and  insufficiently  trained  to  efficiently  deal  with  drug-related  offences.  In  the 
reporting period, 1,396 people were indicted for drug-related offences, investigations against 
207 people were dismissed by the prosecution and 534 people were found guilty by the courts 
(8  were  acquitted).  Secure  storage  has  been  set  up  for  seized  drugs  awaiting  destruction.  A 
protocol for the handling, storage and destruction of drug precursors remains necessary. 

Educational and public awareness campaigns for the prevention of drug abuse are ongoing. A 
24-hour  drug  abuse  hotline,  is  available,  and  addiction  treatment  and  methadone  therapy  is 
being offered.  

Fight against terrorism  

Institutional set-up and legal alignment  

A range of institutions are involved in combating terrorism, including the Office of the Prime 
Minister, the Ministries of Internal Affairs, Justice and Foreign Affairs, the police, the Kosovo 
Intelligence  Agency,  the  Financial  Intelligence  Unit  (FIU)  and  the  prosecution  service, 
including  the  Special  Prosecution  Office.  The  post  of  Counterterrorism/countering  Violent 
Extremism (CT/CVE) Coordinator, appointed by the Haradinaj government, was abolished in 
February  2020.  In  July  2020,  the  Government  of  Kosovo  appointed  Minister  of  Internal 
Affairs  as  the  National  Coordinator  for  the  Prevention  of  Violent  Extremism  and  the  Fight 
against  Terrorism.  The  newly  appointed  Coordinator  should  play  a  stronger  role  in  inter-
institutional coordination, with clarified structure and reporting lines. 

Kosovo’s legal framework is mostly in line with the EU acquis and international instruments 
on  anti-terrorism,  including  criminalising  the  phenomenon  of  foreign  terrorist  fighters.  The 
Law on Combating Money Laundering and the Financing of Terrorism is still not fully in line 
with  EU  and  international  standards,  however  (see  sections  on  the  fight  against  organised 
crime and section 6.3 on the free movement of capital).  

44 

 
 
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.  A  communication  strategy  to  raise  awareness  and  gain  wider 
support from stakeholders across society should be finalised and adopted.  

line  with 

terrorism 

in 

is 

In  October  2019,  the  Kosovo  authorities  and  the  EU  signed  a  bilateral  Implementing 
Arrangement  for  the  joint  action  plan  on  counter-terrorism  for  the  Western  Balkans 
covering 2019-2020. It identifies priority actions in the area of counter-terrorism cooperation 
as well as prevention on countering violent extremism, and indicates EU support in this area. 
Kosovo submitted its  first  implementation  report on the Implementing Arrangement  in  May 
2020. 

Implementation and enforcement capacity 

Kosovo  continued  to  fight  the  threat  of  terrorism  through  measures  to  rehabilitate  and 
reintegrate returned foreign terrorist fighters, and their family members. From 2012 until 
2016, an estimated 359 Kosovo citizens (257 men, 52 women and 50 children) left for conflict 
zones  in  the  Middle  East,  mostly  as  foreign  terrorist  fighters.  81  children  were  born  in  the 
conflict zone. 242 Kosovo citizens have returned (124 men, 38 women, 80 children), 96 died, 
and 102 remain in theatre (47 men, 9 women, 46 children). Out of the 242 returnees, 110 (4 
men, 32 women and 74 children) were returned from the conflict zone as part of a controlled 
government-organised operation led by the Inter-Institutional Committee for the Handling of 
Violent Extremism. During the reporting period, the police initiated 16 new cases related to 
terrorism, and arrested 43 suspects, including the 36 adults (32 female, 4 male) who were part 
of the return operation in April 2019. Regarding the criminal offence of terrorism, prosecution 
offices have received 16 new cases involving 25 people and therefore, in total, had 94 cases 
involving 182 people ongoing in  2019.  For 26 people an indictment  was filed, while courts 
found  9  people  guilty  and  acquitted  3.  Greater  consistency  of  sentencing  practices,  for 
offences related to  terrorism and violent extremism,  is  needed. The establishment of special 
departments  within  the  Basic  Court  of  Pristina,  and  within  the  Court  of  Appeals  to  handle 
cases  from  the  Special  Prosecution  Office,  including  terrorism  cases,  should  make  case 
handling more effective. 

Despite  significant  efforts,  challenges  in  preventing  and  countering  violent  extremism  and 
radicalisation  remain.  Terrorist  groups  continue  to  find  ideological  support  within  Kosovo 
and  home-grown  radicals  continue  to  pose  a  risk,  including  by  posting  terrorist  content  on 
social  media  and  elsewhere  online.  In  this  context,  it  is  of  the  utmost  importance  that  the 
existing  strategies  and  action  plans  are  continuously  reviewed  and  revised  based  on  current 
risk assessments. The authorities should set up a Joint Threat Assessment Centre, including a 
threat level grading system, in order to keep all agencies and the public better informed and to 
improve operational responses, including as regards the protection of critical infrastructure.  

Substantial progress was made on the rehabilitation and reintegration of foreign terrorist 
fighters and their families returned from Syria/Iraq, but reintegrating families into society 
is  a  long-term  process  and  a  challenge.  To  effectively  address  this  challenge,  the 
Reintegration Division of the Ministry of Internal Affairs needs to be fully funded, staffed and 
trained,  including  adequate  financial  resources  and  the  detachment  of  specialised  staff  from 
the health, education and social services. Civil society organisation need to be more involved, 
too.  Better  coordination  of  pre-release  and  post-release  processes  for  returned/repatriated 
foreign  terrorist  fighters  is  needed  to  better  align  the  efforts  and  programmes  of  the 
Reintegration  Division  of  the  Ministry  of  Internal  Affairs  and  the  Kosovo  Correctional 
Service.  The  appointment,  in  March  2019,  of  a  focal  point  for  counter-terrorism  and 

45 

 
 
countering violent extremism within the Kosovo Correctional Service to  liaise with relevant 
institutions  and  partners  is  a  welcome  step,  but  de-radicalisation  and  disengagement 
programmes need to be intensified.  

Kosovo  is  actively  participating  in  the  implementation  of  the  Western  Balkan  Counter 
Terrorism initiative (WBCTi). 

Legal and irregular migration 

Due the COVID-19 pandemic, close to 200 irregular migrants and refugees were stranded in 
Kosovo when borders closed in March 2020. Preventive measures were introduced to protect 
migrant population from the pandemic, including restriction of movement and quarantine for 
incoming migrants. Kosovo has had to deal with more asylum seekers present in the Asylum 
Centres and the situation was well managed (including living conditions, information sharing) 
despite  limited  capacities,  with  EU-funded  support  through  the  United  Nations  High 
Commissioner  for  Refugees  (UNHCR),  the  International  Organisation  for  Migration  (IOM) 
and other partners.  

The  EU,  EU  Member  States  and  Kosovo  cooperated  closely  on  mutually  repatriating  their 
citizens stranded due to COVID-19 related measures.  

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 
border police deals with irregular migrants. The legal framework is now largely in line with 
the  EU  acquis.  Several  pieces  of  implementing  legislation  were  adopted  in  the  reporting 
period. 

Kosovo  has  signed  readmission  agreements  with  24  countries,  including  20  EU  Member 
States and members of the Schengen area. No new readmission agreements were signed in the 
reporting period. There is no readmission agreement with the EU as a whole.  

As the government has not yet adopted the strategy and action plan on migration for 2019-
2023  it  should  revise  the  strategy  to  ensure  that  it  reflects  the  main  challenges  Kosovo  is 
facing,  in  line  with  previous  expert  advice.  The  draft  strategy  was  based  on  finalised 
migration profiles, but did not build on the assessment and evaluation of the previous strategy.  

The Government Authority on Migration is expected to take more proactive leadership role in 
migration  governance,  coordination  as  well  as  in  improving  the  monitoring  mechanism  for 
implementing migration policies. The new statute for this body should further strengthen its 
role and clarify its composition and function, but it has not yet been adopted.  

Implementation and enforcement capacity 

Kosovo  is  part  of  the  Western  Balkan  migratory  route.  The  number  of  migrants  transiting 
Kosovo  has  continued  to  rise  since  summer  2019  as  in  other  parts  of  the  region.  A  total  of 
2,027 migrants were intercepted entering Kosovo irregularly during 2019, an increase of 
300% compared with 2018. The three main nationalities represented were Syrians, Iraqis and 
Algerians. According to preliminary data, this trend has decreased somewhat in early 2020 – 
possibly  due  to  the  COVID-19  pandemic.  Providing  proper  care  and  security  for  the  most 
vulnerable groups of migrants remains a challenge.  

A  total  of  13  people  were  detained  in  detention  centre  during  the  reporting  period  with  an 
average  stay  of  18  days.  Although  the  return  of  third-country  nationals  continued  to  be 
hindered by status-related issues in 2019, 472 people were returned (110 forced, 326 through 
voluntary returns, 3 people through the assisted voluntary return scheme with the IOM and 33 

46 

 
 
deportations  based  on  a  court  decision).  In  May  2019,  Kosovo  and  IOM  signed  a 
Memorandum of Understanding on Assisted Voluntary Return and Reintegration.  

The  border  police  lacks  proper  reception  facilities  to  accommodate  migrants  at  the  borders, 
before they are transferred to asylum or other centres. Due to a lack of biometric equipment, 
registering  migrants  at  the  borders  or  police  stations  remains  the  main  challenge. 
Transnational  smuggling  networks  that  include  Kosovo  citizens  facilitate  secondary 
movements of irregular migrants from entry points along the Western Balkan route. In 2019, 
the  police  investigated  25  new  cases  of  migrant  smuggling  in  6  police  operations.  In  these 
operations,  41  people  were  arrested,  of  which  30  Kosovo  citizens.   There  were  15  criminal 
reports  filed  to  the  prosecution.  Unaccompanied  minors  from  Kosovo  itself  (outside  the 
transitory  migratory  flows)  are  also  a  challenge.  Authorities  should  step  up  efforts  to  fight 
networks targeting this specific, vulnerable group.  

Kosovo took a proactive and preventive approach to the rising number of migrants by revising 
its contingency plan. Until summer 2019, Kosovo only had a reception facility for migrants 
in  Vranidoll/Vrani  Do,  with  a  capacity  to  host  70  people.  Since  then,  based  on  the 
contingency plan, this facility has been expanded to be able to offer an additional 200 places. 
Work has begun to refurbish the Belvedere camp (capacity of up to 2,000 people).  

Gaps in enforcement remain, in particular due to a lack of coordination between government 
agencies.  There  have  been  considerable  improvements  in  data  management,  analysis  and 
exchange,  including  the  ability  to  produce  periodical  reports  based  on  Eurostat  templates. 
However, regular data sharing on the total number of migrants transiting through Kosovo still 
needs to be improved. The Asylum (Reception) Centre and Detention Centre for Foreigners 
still lack sufficient specialised staff. Legal provisions are in place to uphold the fundamental 
rights of irregular migrants and foreigners hosted in the centre. However, the centre is facing 
structural issues, mainly relating to improper housing units, a lack of secure areas, a lack of 
in-house  medical  facilities  and  a  lack  of  adequate  specialised  supervisory  staffing  to  ensure 
basic  rights  and  needs,  especially  psycho-social  support.  The  border  police  needs  further 
capacity building in the area of protection-sensitive migration. Challenges remain as regards 
communication  between  officials  and  irregular  migrants  and  people  in  need  of  protection, 
despite  the  possibility  to  share  interpreters  among  countries  of  the  region  through  the 
Migration,  Asylum  and  Refugee  Regional  Initiative.  Qualified  interpreters  are  needed  to 
service both the asylum and detention centres and the border police. 

The readmission agreements with EU Member States and Schengen associated countries are 
being implemented satisfactorily. The number of asylum requests made by Kosovo citizens in 
both  EU  and  Schengen  associated  countries  has  fallen  steadily,  from  the  peak  of  73,240  in 
2015 to 4,745 in 2018 and 3,520 in 2019. Mirroring the trend in asylum requests, the overall 
number of Kosovo citizens readmitted has dropped from 18,789 in 2015 to 2,395 in 2018 to 
1,536 in 2019 (1,162 forced and 374 voluntary). The return rate of Kosovo citizens ordered to 
leave EU territory in 2018 was 58% and in 2019 it was 41%. While statistics show a drop in 
the  return  rate,  EU  Member  States  have  confirmed  that  Kosovo  authorities  continue  to 
cooperate well on readmission. 

A  sustainable  reintegration  process  is  in  place  in  Kosovo,  but  remains  complex,  involving 
many actors. Overall, there is a need for better inter-institutional coordination, including with 
municipalities, as well as improved systemic monitoring and evaluation. The implementation 
of Kosovo’s 2018-2022 reintegration strategy and action plan is ongoing and an updated two-
year action plan will be drafted in 2020. Following the de-centralisation of the reintegration 
process,  municipalities  continue  to  face  challenges  in  providing  services  with  insufficient 
budget  allocations.  During  2019,  5,237  people  benefitted  from  sustainable  reintegration 

47 

 
 
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, including through services 
such  as  training  related  to  income  generation.  Many  returnees  still  do  not  receive  sufficient 
information. The lack of a screening and referral tool for returnees makes it harder to identify 
vulnerable people, including victims of trafficking. 

Asylum 

Institutional set-up and legal alignment 

The institutions for handling asylum requests are in place, although they need to be further 
strengthened  to  address  capacity  gaps,  especially  given  the  trend  of  increasing  asylum 
requests in 2019.  

The  legal  framework  on  asylum  is  largely  in  line  with  the  EU  acquis.  Key  implementing 
legislation  was  adopted  in  2019,  including  the  Regulation  on  Integration  of  Foreigners 
(including asylum seekers, refugees, people under subsidiary and/or temporary protection and 
stateless persons).  

Implementation and enforcement capacity 

In 2019, Kosovo recorded the largest number of asylum applications since 2010. It received 
2081  applications,  of  which  44%  from  Syrians  and  27%  from  Iraqis.  This  was  a  300% 
increase  two  years  in  a  row,  from  595  in  2018  and  147  in  2017.  All  applicants  are  duly 
provided  unhindered  access  to  the  asylum  procedure.  However,  Kosovo  is  still  mainly  a 
transit  country.  Most  asylum  requests  are  suspended,  as  applicants  disappear  without 
completing the procedure. Nonetheless, some progress was noted in granting refugee status 
to  asylum-seekers,  resulting  in  a  total  of  41  decisions  by  the  end  of  2019  (33  positive,  8 
rejections). 

The  establishment  of  a  fully  effective  and  protection-sensitive  migration  management 
system  is  still  a  work  in  progress.  The  assessment  of  claims  based  on  merit,  using  an 
analytical approach, needs further strengthening. The lack of biometric equipment affects the 
efficiency  of  initial  registration  and  further  processing.  Challenges  persist  in  providing 
information,  interpretation  services  and  legal  aid  as  required  by  law.  There  is  an  agreement 
with UNHCR to provide translation services. The integration system is at an early stage of 
development, and requires the full attention and financial support of the relevant central and 
local  authorities.  Authorities  issue  biometric  ID  cards  and  travel  documents  for  refugees, 
although with delays. As an example of good practice, detention of asylum seekers does not 
occur in Kosovo, and in general detainees who do seek asylum are given the opportunity to be 
transferred from the detention centre to the asylum centre. 

The increasing numbers of asylum seekers challenged the reception capacities of the Asylum 
Centre  and  capacity  was  increased  with  an  additional  200  places  (see  section  on  legal  and 
irregular migration).  

The European Asylum Support  Office (EASO) cooperates with Kosovo through its regional 
training activities. 

Visa policy 

Kosovo  has  yet  to  fully  align  its  legislation  with  EU  visa  policy.  It  currently  imposes  visa 
requirements  on  nationals  of  88  countries,  based  on  a  2013  government  decision.  The 
visa-issuing  authorities  have  the  capacity  to  digitally  collect  biometric  identifiers  from  visa 
applicants,  although  the  equipment  needs  upgrading.  All  granted  visas  and  rejections  are 

48 

 
 
registered in Kosovo’s visa information system. 16 Kosovo consulates issue visas. Challenges 
with technical equipment were reported. During the reporting period, 20 visas with a validity 
of 15 calendar days were issued at Kosovo’s borders/ boundaries.  

The citizens of Kosovo remain the only ones in the Western Balkans that need a visa to travel 
to  the  Schengen  area.  A  visa  liberalisation  dialogue  started  in  2012.  In  July  2018,  the 
Commission confirmed that Kosovo had fulfilled all the benchmarks of the visa liberalisation 
roadmap and recommended that the Council and European Parliament move forward with the 
proposal for visa liberalisation. The Commission continues to stand behind its assessment of 
July 2018. The European Parliament, in both the previous and current legislature, has voted in 
favour of the Commission’s proposal, but the latter is still pending in the Council. 

Schengen and borders 

Institutional set-up and legal alignment 

The  National  Centre  for  Border  Management  (NCBM)  is  one  of  the  most  important 
elements  of  Kosovo’s  capacity  to  effectively  manage  the  security  of  its  border/boundary.  It 
includes  a  Joint  Intelligence  Risk  Analysis  and  Threat  Assessment  Unit,  which  collects, 
analyses and disseminates information from and to the border authorities responsible for IBM: 
police, customs, and the Food and Veterinary Agency. A major step forward in ensuring the 
centre’s  interconnectivity  was  taken  with  its  connection  to  16  databases.  The  centre  is 
designed to serve as a contact point for the real-time exchange of information and cooperation 
between  all  border  authorities  and  relevant  institutions.  However,  to  reach  its  full  potential, 
the NCBM action plan approved in February 2019 needs to be fully implemented.  

The legislative framework for managing Kosovo’s borders/boundary is  largely in line with 
the EU acquis and international standards. A new 2019-2023 IBM strategy has been prepared 
and is awaiting final government approval.  

Implementation and enforcement capacity 

The  Border  Department  of  the  police  is  well  staffed,  with  a  total  of  1,268  officers  and 
generally meets minimum EU standards for border controls. Notwithstanding the need for 
further progress,  there has been  a notable improvement in  the performance of border police 
working at the border crossing points and also their knowledge of border procedures. There is 
however a need for better strategic assessment and analyses of border-related risks, including 
security,  and  for  better  cooperation  with  other  border  authorities.  The  Kosovo  Police 
Information  System  is  linked  to  all  border  crossing  points.  The  infrastructure  at 
border/boundary crossing points has improved and the Border Management System continues 
to  operate  satisfactorily.  However,  its  effectiveness  still  remains  limited  by  the  lack  of 
connection to important international networks such as Interpol’s I-24/7, due to status-related 
issues.  

Kosovo’s  working  arrangement  with  the  European  Border  and  Coast  Guard  Agency 
(FRONTEX)  enables  close  cooperation  on  irregular  migration,  cross-border  crimes,  border 
security  and  overall  border  management,  including  the  daily  exchange  of  data.  Kosovo 
participates  in  the  Western  Balkan  risk  analysis  network  and  in  a  number  of  other  regional 
exercises organised by FRONTEX.  Inter-agency cooperation is good, but it could be further 
improved as regards information exchange and joint risk analysis, even if Kosovo participates 
in the Western Balkans Risk Analysis Network, led by FRONTEX. 

A border police anti-corruption strategy is in place. During the reporting period, the Kosovo 
Police  Inspectorate  arrested  a  total  of  26  border  police  officers.  In  a  major  operation  in  the 

49 

 
 
north  of  Kosovo  targeting  organised  smuggling  across  the  border/boundary  with  Serbia,  22 
border police officers were arrested.  

As concerns cooperation in the region, Kosovo has concluded 23 IBM agreements. At the 
end  of  2018,  Kosovo  and  Albania  signed  a  cooperation  agreement  on  simplified  border 
crossing procedures and joint border controls.  

In  January  2020,  a  new  EU-funded  joint  border  crossing  point  between  Kosovo  and  North 
Macedonia  at  Stancic-Bellanoc  was  opened,  and  will  operate  joint  border  controls.  Two 
common cross-border police cooperation centres with Albania and North Macedonia, as well 
as  a  trilateral  centre  involving  officers  from  Albania,  Kosovo  and  Montenegro,  remain  in 
operation.  However,  these  centres  are  still  not  operating  to  their  full  potential  and  further 
development is required, particularly with regard on the ‘real time’ exchange of information 
and inter-connection between centres.  

Interim IBM common crossing-points with Serbia continue to be operational. There has been 
no progress  in  establishing the six permanent  IBM common crossing points  between Serbia 
and Kosovo, as foreseen in the IBM agreement in the context of the EU-facilitated Belgrade-
Pristina  dialogue  (see  section  5  on  the  normalisation  of  relations  between  Kosovo  and 
Serbia). Additional measures need to be taken to combat illegal crossings and related criminal 
activities (including corruption), particularly along the border/boundary with Serbia. 

Judicial cooperation in civil and criminal matters 

While Kosovo is not party to most multilateral treaties governing mutual judicial cooperation, 
it unilaterally applies internationally recognised treaty standards. Kosovo’s international legal 
cooperation in  criminal  matters is  based on the relevant  2013 law as well as on 28 bilateral 
treaties. Four additional treaties entered into force in the reporting period: one with Czechia, 
two  with  France  and  an  extradition  treaty  with  the  USA.  Co-operation  with  countries  with 
which Kosovo does not have bilateral agreements is based on the principle of reciprocity.  

The legal framework for judicial cooperation in civil matters is still not consolidated, as the 
law  is  still  in  the  drafting  phase.  Work  on  a  revision  of  the  Law  on  Legal  Cooperation  in 
Criminal Matters is ongoing, and this will clarify the text on a number of points.  

In  the  reporting  period,  Kosovo  issued  282  requests  on  civil  matters  and  175  requests  on 
criminal  matters  to  EU  Member  States  and  received  369  and  372  responses  respectively.  It 
received 412 requests on civil matters and 607 requests on criminal matters from EU Member 
States  and  provided  222  and  149  responses  respectively.  The  2015  Procedures  on  Mutual 
Legal  Cooperation  agreed  between  Belgrade  and  Pristina  form  the  basis  for  judicial 
cooperation  between  their  judicial  authorities.  Most  other  countries  that  do  not  recognise 
Kosovo  have  voluntarily  accepted  the  facilitating  role  of  the  EU  Special  Representative  in 
Kosovo  in  the  transmission  of  judicial  requests  (including  those  concerning  extradition). 
However,  a  lack  of  cooperation  by  some  non-recognising  states  has  in  practice  resulted  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 section 6.5 on Customs. 

Counterfeiting of the euro (criminal law aspects)  

Kosovo is broadly in line with the EU acquis on the suppression of counterfeit currency, and 
has set up competent authorities and procedures for dealing with counterfeit money. However, 
the  Criminal  Code  is  only  partially  aligned  with  the  EU  Directive  on  the  Protection  of  the 
Euro  and  Other  Currencies  against  Counterfeiting,  and  further  alignment  is  necessary 
including on altering money and import and export. Technical analysis of counterfeit money 

50 

 
 
(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 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 6.25 on financial control). 

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  limited  progress  and  is  at  an  early  stage  of  developing  a  functioning 
market economy. Robust economic growth continued in 2019, but the difficult labour market 
situation and the lack of economic diversification remain a challenge. While the government 
adhered to the fiscal rule in 2019, the composition of public spending has further deteriorated. 
Decreasing  capital  spending,  rising  pressures  related  to  non-poverty-targeted  social  benefits 

51 

Table :201720182019Kosovo - Key economic figuresGDP per capita (% of EU-28 in PPS)23.124.624.925.6Real GDP growth 3.34.23.84.2Economic activity rate of the population aged 15-64 (%), total39.11)42.840.940.5      female19.41)20.018.421.1      male58.51)65.363.359.7Unemployment rate (%), total31.31)30.529.625.7      female37.81)36.633.434.4      male29.21)28.728.522.6Employment (annual growth %)2.72)7.6-3.45.2Nominal wages (annual growth %)4.82)1.75.77.9Consumer price index (annual growth %)2.01.51.12.7Exchange rate against EUR1.01.01.01.0Current account balance (% of GDP)-7.5-5.4-7.6-5.8Net foreign direct investment, FDI (% of GDP)4.43.33.42.9General government balance (% of GDP)-2.2-1.3-2.8-2.9General government debt (% of GDP)10.116.616.917.5Notes: 1) average of 2012-2016 2) average of 2013-2016Source: Kosovo statistics, World Bank and IMF2011-16  average 
 
 
 
and  increasing  public  wages  pose  risks  to  public  finances  and  hinder  private  sector 
development.  The  business  environment  saw 
improvements.  Private  sector 
development remains constrained by a widespread informal economy, a slow and inefficient 
judiciary,  a  high  prevalence  of  corruption  and  the  overall  weak  rule  of  law.  Kosovo’s 
economic  outlook  started  to  deteriorate  rapidly  in  spring  2020,  as  the  COVID-19  crisis 
disrupted the financial flows with diaspora. 

limited 

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

  ensure  fiscal  space  to  support  post-crisis  recovery,  by  containing  the  wage  bill  and 

respecting the cap on war veteran spending; 

  improve financial oversight and accountability of state-owned enterprises; 

  implement  relevant  business  environment  measures,  in  particular  the  simplification, 

merging and abolishment of licences and permits; 

  implement  active  labour  market  measures  to  support  employment,  increase  labour  force 

participation and motivate workers to join formal employment. 

Economic governance 

Kosovo’s  fiscal  framework  is  challenged  by  the  COVID-19  crisis  and  political 
uncertainty,  and  lacks  a  stronger  focus  on  supporting  private  sector-led  growth.  The 
2020-2022  medium-term  expenditure  framework  was  drafted  in  line  with  the  stability-
oriented  fiscal  rules2,  but  it  did  not  take  into  account  the  implementation  of  the  Law  on 
Salaries  for  public  employees  and  fiscal  risks  related  to  transfers  for  specific  groups.  The 
Constitutional  Court  declared  the  Law  on  Salaries  as  unconstitutional  in  June  2020,  which 
eliminated the risk of breaking the wage bill  rule, but  left  Kosovo’s public sector without a 
coherent wage grid. In contrast to continuously growing current spending, public investment 
contracted  in  2019,  while  improvements  in  the  business  environment  were  marginal.  The 
policy  guidance  jointly  agreed  at  the  May  2019  Economic  and  Financial  Dialogue  between 
the EU and the Western Balkans and Turkey has seen limited implementation. The 2020-2022 
Economic  Reform  Programme  rightly  identifies  reform  priorities,  but  substantial  efforts  are 
needed  for  timely  design  and  implementation  of  reforms.  The  100%  tariffs  for  all  goods 
imports originating in  Serbia and Bosnia and Herzegovina were abolished in  April 2020.  In 
2019, a free trade agreement between Kosovo and Turkey entered into force. 

In  order  to  mitigate  the  social  and  economic  effects  of  the  COVID-19  crisis,  the  caretaker 
government headed by acting Prime Minister Albin Kurti adopted an emergency package of 
EUR  180  million  or  2.5%  of  2019  GDP.  The  package  provides  support  for  the  affected 
businesses,  formal  and  informal  employment  and  social  protection  of  the  most  vulnerable 
households.  To  bridge  the  financing  gap,  Kosovo  will  receive  EUR  100  million  of  Macro-
Financial Assistance (MFA) from the EU, which complements the IMF emergency liquidity 
loan (Rapid Finance Instrument, RFI) of EUR 51.6 million. Following the suspension of the 
fiscal  deficit  rule  for  2020-2022  by  the  new  government,  Kosovo  adopted  the  revised  2020 
budget  targeting  a  deficit  of  6.5%  of  GDP  as  per  fiscal  rule  definition.  The  revised  budget 
includes an additional emergency provision of EUR 185 million for capital projects, bringing 

2 The fiscal rule places a cap on the fiscal deficit of 2 % of forecast GDP, excluding capital projects financed by 
privatisation proceeds and donors (‘investment clause’). This exemption for donor-financed investments can be 
invoked until 2025, provided the public debt ratio remains below 30 % of GDP. As a part of the fiscal rule, the 
wage  bill  rule  provides  that  the  increase  in  the  public  wage  bill  cannot  exceed  nominal  GDP  growth.  The 
government  deposits  used  as  fiscal  buffers  are  legally  required  to  stay  at  4.5  %  of  GDP  as  long  as  the 
government  is  using  privatisation  proceeds.  The  debt  rule  provides  that  public  and  publicly  guaranteed  debt 
cannot exceed 40 % of GDP. 

52 

 
 
                                                           
the economic recovery programme to a grand total of EUR 365 million.   

Macroeconomic stability 

Robust GDP growth since 2015 has not resulted in competitiveness gains and a shift to 
higher value added activities.  GDP  growth in  2015-18 averaged 4.1%.  In 2019, economic 
activity expanded by 4.2% supported by strong growth in service exports, gross-fixed capital 
formation  and  private  consumption,  the 
latter  driven  by  large  remittances  from 
abroad,  and  by  robust  wage  and  credit 
growth.  The  increase  in  investment  was 
mainly  driven  by  private  investment  and 
investment  (FDI)  while 
foreign  direct 
public  investment  nearly  stagnated.  The 
bulk of foreign investment was directed to 
low  value  added  activities  such  as  real 
Economic 
and 
estate 
diversification 
slowly. 
Merchandise exports remain dominated by 
base metals and mineral products, which account for around 47.5% of total exports. Services 
exports  were  expanding  rapidly,  mainly  linked  to  travel  services  to  the  diaspora.  The 
dependence of Kosovo’s economy on financial flows from the diaspora, via tourism exports, 
remittances  and  FDI,  represents  a  key  vulnerability  in  the  context  of  COVID-19  crisis.  The 
pandemic-related  recession  in  the  EU  and  in  Kosovo  is  taking  a  heavy  toll  on  Kosovo’s 
economy, with real GDP expected to contract by 5% in 20203.  

renting. 
advanced 

Kosovo’s  per  capita  GDP  remains  the  lowest  in  the  region.  It  stood  at  EUR  3,959  in 
nominal  terms  in  2019,  which  is  about  26.5%  of  the  EU  average4.  Increasing  public  wages 
together with substantial remittances contribute to high reservation wages and undermine the 
development of the private sector, which is already suffering from weak competitiveness in an 
international context. Inequalities remain widespread due to a large informal sector and high 
inactivity rates, especially among women. 

The 

traditionally 

The  current  account  deficit  narrowed  to  5.8%  of  GDP  in  2019.  The  improvement  was 
driven  by  an  improvement  in  trade  balance,  due  to  robust  growth  of  export  services  to  the 
diaspora,  and  by  moderate  growth  of 
imports. 
large 
merchandise  deficit 
stood  practically 
unchanged  at  above  40%  of  GDP.  Apart 
from  a  positive  balance  of  services  trade, 
the  merchandise  trade  deficit  was  also 
mitigated  by  remittances  inflows  (11.6% 
to  pandemic-related 
of  GDP).  Due 
disruptions, 
deficit 
narrowed by 26% y-o-y in the first half of 
2020,  on  the  back  of  very  large  import 
contraction (23%), while the surplus of service trade declined by 52%. 

the  merchandise 

Net  FDI  inflows  in  2019  and  early  2020  were  around  3%  of  GDP,  in  line  with  the 
medium-term trend. While covering more than a half of the current account deficit, the bulk 

3 IMF estimate. 
4 IMF data. 

53 

-8-6-4-20246810201420152016201720182019Graph : Kosovo -Real GDP growth and contributionsPriv. cons.Gov. cons.GFCFStocksNet exportsreal GDP growthSource: Macrobond, own calculations% y-o-y-9-6-3036-30-20-100102020152016201720182019Graph : Kosovo -Current account selected components and FDIGoods and services trade balance Workers' Remittances balanceCurrent account balance (rhs)Net FDI (rhs)% of GDPSource: IMF and Central Bank of Kosovo*  
 
                                                           
of foreign investment went to non-tradable sectors such as real estate and renting activities. In 
the first quarter of 2020, official reserve assets stood at 2.9 months of imports of goods and 
services.  

Consumer price inflation peaked in April-May 2019 and continued to ease towards the 
end of the year. The key drivers were fuel and food prices, the latter were on an accelerating 
trend in spring following the introduction of the 100% tariffs on goods imported from Serbia 
and Bosnia and Herzegovina in late 2018. In the first five months of 2020 inflation was on a 
declining trend, averaging 0.7%.  

transfers 

rising  social 

As  in  previous  years  Kosovo  has  preserved  fiscal  stability  in  2019,  but  the  trend  of 
increasing  current  spending  raises  concerns.  In  2019  the  budget  balance  has  achieved  a 
small  deficit  (0.6%  of  GDP)  as  per  the  fiscal  rule  definition,  which  excludes  some  capital 
spending, while the headline deficit was at 2.9% of GDP. Revenue grew by 7.2% on the back 
of rising tax (6.3%) and non-tax (13.1%) revenues. A positive development in 2019 was the 
reduction of the stock of tax debt. Current 
expenditure  increased  by  9.8%  due  to 
rapidly 
(11%), 
especially  due  to  the  failure  to  reform 
costly  war  veteran  benefits.  The  recurring 
under-execution  of  capital  spending  was 
particularly  pronounced 
in  2019  due 
especially  to  the  low  implementation  rate 
of  donor-financed  projects.  A  positive 
development  in  2019 was the reduction of 
the  stock  of  tax  debt.  In  response  to 
COVID-19,  the  new  government  adopted  the  revised  2020  budget  in  August,  targeting  a 
deficit of 6.5% of GDP according to the fiscal rule. The budget includes a recovery package 
of  EUR  365  million,  and  a  provision  to  use  the bulk  of  liquidations  proceedings  (EUR  185 
million)  for  capital  projects,  which  would  reduce  the  government  reserve  buffer  to  3%  of 
GDP  from  4.3%  in  2019.  The  revised  budget  assumes  a  3%  contraction  of  GDP  in  2020, 
which  is  more  optimistic  than  the  forecasts  of  international  financial  institutions,  and  a  5% 
contraction in government revenue, despite an 8% y-o-y fall in the first half of 2020. While 
the  public  debt  to  GDP  ratio  was  modest  at  17.5%  of  GDP5  in  2019,  the  investor  base  is 
narrow with more than 60% of domestic debt held by public institutions such as the Central 
Bank  and  Kosovo’s  pension  trust  fund.  The  revised  budget  projects  public  debt  to  reach 
nearly 25% of GDP in 2020. 

Fiscal  governance  made  no  progress.  The  projections  of  2019  Medium  Term  expenditure 
Framework  assumed  unrealistically  high  GDP  growth  rates,  on  the  back  of  high  capital 
spending. A lack of progress with reforming the war veteran pension scheme and bringing its 
costs  into  line  with  the  legislated  cap  resulted  in  a  recurring  underestimation  of  current 
spending  in  budget  planning.  The  revised  2020  budget  is  also  based  on  overly  benign 
assumptions. 

The  policy  mix  in  2019  was  not  sufficiently  geared  towards  supporting  strong  private 
sector-led  growth,  but  the  first  reaction  to  COVID-19  was  adequate.  The  emergency 
package adopted in April 2020 in response to COVID-19, including temporary loosening of 
fiscal  and  financial  policies  while  targeting  the  most  affected  sectors  including  social  and 
health spending, was timely and appropriate. However, ongoing political uncertainty creates a 

5 Kosovo’s public debt does not include its share of the former Yugoslavia’s debt, which the IMF has reclassified 
as contingent liability. 

54 

05101520-4-2024201420152016201720182019Graph : Kosovo -Fiscal developmentsPrimary balance (lhs)Interest (lhs)GG balance (lhs)Public Debt (rhs)Source: IMF and MoF% ofGDP 
 
                                                           
risk  of  delaying  support  to  the  private  sector.  In  the  medium-term  heightened  fiscal  risks 
persist  due  to  high  share  of  non-poverty-targeting  social  transfers  e.g.  the  revised  budget 
entails 25% increase for subsidies and transfers as compared to the original 2020 budget. The 
recurrent under-execution of capital investment hinders the enhancement of production base. 
Recovery-related  policies  need  to  focus  on  growth-enhancing  activities  and  on  creating 
conditions for private investment into higher value added sectors. 

Functioning of product markets 

Business environment 

The  gap  between  newly  registered  and  terminated  firms  did  not  change.  In  2019,  the 
difference  between  new  (10,004)  and  terminated  (1,769)  firms  stayed  roughly  the  same 
(8,235) as in 2018. 

Progress  has been  made in streamlining business  registration, but the private sector is 
still  struggling  with  burdensome  administrative  procedures  such  as  a  large  number  of 
licenses  and  permits,  costly  and  uncoordinated  inspections  and  a  high  incidence  of 
corruption. The implementation of unique identifier number (UIN) for enterprises started in 
February.  The  UIN  should  help  to  cut  red  tape  for  business  while  providing  more 
transparency  and  efficiency  for  the  administration,  as  it  will  replace  separate  numbers  for 
different  public  services,  e.g.  VAT,  customs,  business  and  fiscal  registration.  A  general 
inspection  reform  is  ongoing  with  the  aim  of  reducing  the  number  of  (overlapping) 
inspections  from  36  to  15,  but  the  new  Law  on  inspections  has  not  been  adopted  yet.  The 
central register for permits and licences is still being updated. The structural reorganisation of 
the  Kosovo  Investment  and  Enterprise  Support  Agency  (KIESA),  aiming  to  support  the 
private sector and attract investment, is considerably behind schedule. The lack of a coherent 
policy for industry development throughout the supply chain undermines the competitiveness 
of SMEs. 

Despite marginal improvements in several areas, Kosovo’s overall position in the World 
Bank Doing Business ranking has deteriorated. It fell to the 57th place in 2019 from 44th a 
year earlier, with the most problematic areas related to getting electricity, protecting minority 
investors  and  obtaining  construction  permits,  despite  marginal  improvement  on  the  latter  in 
2019.  Some  improvements  took  place  in  the  administration  of  tax  refunds  and  customs 
management.  The  adoption  of  the  Law  on  voluntary  mediation  (2019)  contributed  to  the 
progress of contract enforcement.  

The  large  informal  sector  (estimated  at  around  31%  of  GDP)  negatively  affects  tax 
revenue  and  creates  unfair  competition  and  undeclared  employment.  In  May  2019, 
Kosovo adopted a revised strategy and action plan for fighting informality in 2019-2023. The 
plan  anticipates  better  exchange  of  information  between  government  institutions,  lower 
transaction costs for electronic payments and the provision of bank loans on the basis of tax 
declarations. Qualitative and quantitative targets are expected to help monitor progress.  

State influence on product markets 

Kosovo’s state aid policy does not comply with EU rules and principles. Kosovo has yet 
to meet its Stabilisation and Association Agreement (SAA) obligations on State aid schemes 
and alignment with EU rules. The government lacks a coherent approach to State aid as well 
as a comprehensive strategy and cost-benefit evaluations for aid and subsidies granted. Some 
progress was achieved in bringing the procedures for notification of State aid closer to the EU 
acquis  and  in  staffing  the  state  aid  department.  In  March  2019  the  Assembly  elected  the 
members  of  the  State  Aid  Commission,  which  is  tasked  with  ensuring  that  any  State  aid 
provided  in  Kosovo  is  compatible  with  the  rules.  However  significant  efforts  are  needed  to 

55 

 
 
increase  its  capacity.  So  far,  the  bulk  of  State  aid  schemes  were  granted  without  any 
notification.  Regulations  on  the  de  minimis  rule,  horizontal  and  regional  aid  are  still  in  the 
process  of  drafting.  Most  publicly-owned  enterprises  remain  reliant  on  public  funding  from 
the  budget  or  on  subsidies.  In  March  2020,  Kosovo  has  annulled  the  establishment  of  the 
economic zone in Malisheva and the related expropriation of immovable property.  

Privatisation and restructuring 

Privatisation  of  socially-owned  enterprises  (SOEs)  is  advancing  very  slowly.  The 
Privatisation  Agency  (PAK)  in  2019  sold  222  of  400  planned  SOE  assets  to  the  value  of 
EUR32 million. As this number includes assets such as SOE-owned land and machinery, it is 
difficult  to  judge  how  much  the  sale  of  assets  contributed  to  the  shift  to  more  productive 
structures. There is a lack of transparency in SOE financial reporting and recruitment. Since 
the  PAK  board  began  operating,  48  of  589  SOEs  have  been  put  into  liquidation,  while  15 
liquidation  proceedings  were  concluded.  In  March  2020,  the  government  has  suspended  all 
activities related to the immovable property under the administration of PAK for an indefinite 
period. In February-March 2020, the government dismissed several boards of Publicly Owned 
Enterprises (POEs) due to poor performance, and replaced them with temporary boards. It is 
important that the future new board members are appointed following open, transparent and 
merit-based selection processes.  

Functioning of the financial market 

Financial stability 

The financial sector continued to expand throughout 2019, while maintaining adequate 
capitalisation and comfortable liquidity buffers. Profitability remained high, with return on 
average  equity  standing  at  18.9%  for  the  banking  sector,  and  17.0%  for  micro-financial 
institutions.  In  the  insurance  sector,  in  2019  the  return  on  average  equity  dropped  to  1.0  % 
compared from 6.3% in 2018 as the sector performed with a negative net profit of 2.8 EUR 
million.  The  predominantly  foreign-owned  banking  sector  accounts  for  65.5%  of  financial 
system assets followed by pension funds, insurance and microfinance institutions with 27.4%, 
2.8% and 4.3%, respectively. The ratio of non-performing loans reached a new record low of 
2.0% in 2019. The ratio of banks’ regulatory capital to risk-weighted assets stood at 15.9%, 
comfortably exceeding the regulatory minimum of 12%. Banks continued to be financed by 
deposits, predominantly from households. The loan-to-deposit ratio declined to 77.6% in 2019 
from  81.9%  a  year  earlier,  as  deposit  growth  outpaced  the  expansion  of  loans.  The  Central 
Bank  of  Kosovo  (CBK)  revoked  the  licence  of  one  insurance  company  that  was  non-
compliant with requirements on minimum level of capital. The CBK also revoked the licences 
of  one  micro-finance  institution  and  of  one  non-bank  financial  institution,  reported  to  be 
applying unfair banking practices. The amended Law on corporate income tax has eliminated 
the 5% tax on gross premiums of insurance companies, which was due irrespective of profits 
achieved.  In  reponse  to  COVID-19,  the  CBK  in  cooperation  with  the  Bank  Association  of 
Kosovo has postponed credit reimbursements by all borrowers until mid-June. The CBK also 
applied regulatory forbearance on loan provisions and capital requirements on reprogrammed 
loans. 

Access to finance 

Lending  and  financial  intermediation  have  been  expanding  from  a  low  base.  Bank 
lending expanded by 10% year-on-year in October 2019, facilitated by low interest rates, an 
increase of deposits,  improved contract  enforcement,  and  guarantees extended by the Credit 
Guarantee Fund for lending to micro, small and medium-size enterprises. In 2019, lending to 
firms  increased  by  10.9%  and  to  households  by  11.2%.  The  average  interest  rate  spread 

56 

 
 
declined  to  5  percentage  points  (pps)  in  October  2019,  from  5.6  pps  the  previous  year, 
pointing to improved competition for lending opportunities. Credit penetration, at around 40% 
of  GDP,  is  moderate  by  Western  Balkan  standards.  The  challenge  is  to  channel  savings, 
including remittances, through the  formal financial system into productive investment while 
containing  over-investment  in  real  estate  and  the  resulting  vulnerabilities.  Kosovo’s  capital 
market  remains  at  an  early  stage  of  development.  The  main  activities  remain  in  the 
government securities market, auctioned and recorded by the CBK. 

Functioning of the labour market 

Continuous economic growth has not led to significant employment gains. According to the 
labour  force  survey,  labour  force  participation  has  remained  at  around  40%  since  2016, 
(40.5% in 2019) while declines in the very high unemployment rate and gains in employment 
were  short-lived  and  followed  seasonal  patterns.  The  2019  data  suggest  a  bright  spot  in 
Kosovo’s labour market as the unemployment rate fell to 25.7% from 29.6% one year earlier, 
while  the  employment  rate  increased  to  30%  from  28.8%  during  the  same  period.  This 
improvement  was  partially  driven  by  temporary  jobs  due  to  preparations  for  elections.  The 
wide gap between male and female employment rates (49% and 14% respectively) persisted. 
Very  high  rates  of  inactivity  (59.5%),  in  particular  female  inactivity  (78.9%),  and  youth 
unemployment  (49.4%)  suggest  undeclared  work  and  misalignment  between  education 
outcomes  and  labour  market  needs.  Emigration  of  skilled  workers  poses  a  significant 
challenge  to  medium-term  economic  prospects.  Active  labour  market  policies,  pre-
qualification  schemes  and  vocational  training  programmes  remain  inadequate  to  labour 
market needs. 

A number of structural obstacles, including high social transfers, creates disincentives to 
join formal employment. Around 6% of GDP is allocated to social services, but only 0.5% 
of  this  amount  is  linked  to  poverty  and  reduction  of  unemployment.  The  bulk  is  spent  on 
untargeted  transfers  for  war  veterans  which  undermines  the  soundness  and  fairness  of  the 
social  benefits  system  and motivates other 
specific  groups 
similarly 
to 
generous  allowances.  Relatively  high 
public  wages  reduce  the  attractiveness  of 
private-sector  employment.  The  lack  of 
childcare and elderly care facilities hinders 
female employment. 

request 

57 

10203040502013201420152016201720182019Graph : Kosovo -Labour market trends(15-64 age group)Participation rateUnemployment rateEmployment rateSource: Kosovo Agency of Statistics 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.  The  capacity  to  cope  with  competitive  pressure  and  market  forces  within  the 

Union 

Kosovo  has  made  limited  progress  and  is  at  an  early  stage  in  terms  of  capacity  to  cope 
with competitive pressure and market forces in the EU. The quality of education remains a 
concern. Kosovo made some progress in improving road infrastructure, but there are large 
gaps in railway and energy infrastructure. Although investments in renewables are gradually 
increasing, Kosovo remains reliant on a predominantly coal-based, outdated and unreliable 
energy production system. Kosovo made some progress as regards the digitalisation of the 
economy.  The  economy’s  sectorial  structure  is  shifting  towards  non-tradable  activities 
which weigh on competitiveness and growth of merchandise exports.  

In order to support the economic recovery, improve competitiveness and sustain long-term 
growth, Kosovo should in particular:  

  improve  the  quality  of  vocational  training  and  education  at  all  levels  and  align  the 

curricula with labour market needs; 

  increase energy efficiency incentives in the residential and private sectors; 

  increase the share of renewables in power generation in a cost-efficient way;  

  advance tailored financial and non-financial support for SMEs to support the resilience 

to crisis, improve their competitiveness and export capacity.  

Education and innovation 

The poor performance of Kosovo's education system calls for urgent and comprehensive 
action.  Despite  slight  improvements  in  reading  and  mathematics  as  compared  to  2015, 
Kosovo scored amongst the worst performers in the 2018 OECD Programme for International 
Student  Assessment  (PISA)  assessment,  ranking  3rd  from  the  bottom.  Low  educational 
attainment is to some extent correlated with low inclusion of children in preschool education 
due to the urban-rural divide, extreme poverty and a lack of facilities. At pre-school level (0-5 
years  old)  the  enrolment  rate  is  14%,  while  at  the  pre-primary  level  (5  years  old  until 
compulsory primary) it is 92.5%. For upper secondary education the enrolment rate stands at 
86.8%,  but  there  is  a  large  gender  gap,  as  the  share  of  women  without  upper  secondary 
education is 23.4% higher than that of men. Public spending on education amounts to 4.7% of 
GDP, which is below regional peers, while weak governance impedes reform progress in the 
education system. Progress is slow on school reforms initiated since 2012, and is focused on 
piloting new curricula in schools without preparing teachers or providing necessary learning 
materials  and  physical  conditions.  Higher  education  might  be  negatively  affected  by  the 
removal of Kosovo’s higher education quality assurance body from the European Association 
for  Quality  Assurance  in  Higher  Education.  Unemployment  among  university  graduates  is 
very high at around 24%, while a quarter of Kosovo firms referred to inadequate skills as an 
obstacle for doing business.  

Kosovo’s  research,  development  and  innovation  system  is  underdeveloped  and 
underfinanced. Public research spending is virtually non-existent. While the Law on research 
and scientific activities envisages EUR 14 million in annual funding, the budget allocation in 
2019 stood at only EUR 1.6 million. The Ministry of Innovation signed agreements with the 
municipality of Ferizaj/  Uroševac and the  University of Pristina to  establish two innovation 
and entrepreneurship centres which would bridge academia and the private sector. 

Physical capital and quality of infrastructure 

58 

 
 
 
Kosovo continued to invest in road and railway infrastructure, but numerous challenges 
remain  in  the  transport  sector.  The  Route  6-highway,  linking  Pristina  with  North 
Macedonia  has  been  completed  and  is  open  to  traffic.  The  preparatory  work  on  route  7  has 
been completed, but the financing is  yet to be secured.  The Railway Route 10 rehabilitation 
works, aimed at linking Kosovo with the wider European railway network have commenced 
but  have  progressed  slowly  due  to  the  lack  of  administrative  capacity  for  project 
implementation. The transport system still faces a number of challenges such as road safety, 
inadequate road maintenance, and weak administrative capacity of regulatory institutions.  

Progress  was  made  in  improving  an  unreliable  and  health-hazardous  energy  supply 
which is  a key bottleneck for Kosovo’s economic development.  In April, the approval  of 
the connection agreement between the European Network of Transmission Systems Operators 
of electricity (Entso-e) and Kosovo’s transmission system operator (KOSTT) marked a major 
development  towards  Kosovo’s  integration  in  regional  energy  networks.  Once  in  force,  the 
agreement  allows  Kosovo  to  connect  with  Albania’s  electricity  grid  through  the  400kV 
transmission  line  and  load  frequency  control  with  Albania.  Kosovo  continued  to  explore 
options  to  connect  to  gas  pipelines  with  Albania  and  North  Macedonia.  The  fate  of  the 
proposed  Kosova  e  Re  500  MW  lignite  power  plant,  including  the  financial  implications, 
remains unclear.  

Despite  some  progress  with  renewables,  the  Kosovo  energy  sector  remains  heavily 
reliant on coal.  By the  end of 2019,  Kosovo registered 76 MW of hydropower, 34 MW of 
wind  and  10  MW  of  solar,  marking  a  6%  annual  increase  in  renewables’  capacities. 
Electricity  produced  from  renewables  accounts  for  5.5%  of  total  production.  Nevertheless, 
there  was  no  progress  in  shifting  to  competitive  bidding  to  support  renewable  energy  as 
opposed  to  fixed  feed-in  tariffs.  Progress  on  energy  efficiency  in  the  residential,  public  and 
private sectors has been limited and energy tariffs are not yet cost reflective. Electricity prices 
for  households  remain  regulated  and  subsidised  by  public  and  commercial  consumers.  The 
Energy Efficiency Fund, established in early 2019, is expected to begin operating in 2020. 

The digitalisation of the economy is gradually advancing. Kosovo achieved the mid-term 
targets of its 2013-2020 digital agenda, as the penetration of fixed broadband internet reached 
93.3% and the number of mobile phone users stood at 115.7% of the population. Since 2018, 
the  Ministry  in  charge  of  economic  development  has  been  actively  implementing  a  5-year 
project,  aiming  to  bridge  the  urban-rural  digital  infrastructure  divide,  and  investing  in  the 
remote areas which are not attractive for private investors.  

Sectoral and enterprise structure 

The services, manufacturing and construction sectors continued to expand. These sectors 
also employed the largest share of workers (nearly 50%) in 2019. The proportion of workers 
employed  in  wholesale  and  retail  trade  reached  17.5%  of  the  total,  while  the  employment 
share  of  construction  (13.5%)  overtook  that  of  manufacturing  (12.4%).  The  shares  of  trade 
(16.0%)  and  construction  (10.4%)  in  gross  value  added  (GVA)  were  smaller  than  their 
employment shares, suggesting low productivity, while manufacturing’s share of GVA stood 
at  13.5%.  The  agriculture  sector  shows  a  diverging  picture,  with  a  declining  share  of  GVA 
(9.7% in 2019 compared to 12.8% a year before) and a slightly increasing employment share, 
to 4.4% from 4.1%.  

Kosovo’s  private  sector  is  dominated  by  micro-enterprises  with  limited  potential  for 
productivity  gains.  Micro,  small  and  medium  enterprises  account  for  65%  of  total 
employment,  with  micro-enterprises  alone  accounting  for  36%.  Nearly  96%  of  registered 
companies had up to five employees. Difficulties in accessing finance weigh on the scaling-up 
of existing firms. While the Kosovo Credit Guarantee Fund (KCGF) improves SMEs’ access 

59 

 
 
to  finance,  the  operational  costs  of  2%  represent  a  burden  for  smaller  loan  beneficiaries.  A 
further bottleneck is related to the shortcomings in property rights enforcement which make it 
difficult for SMEs to use immovable property as collateral to obtain credit. In the context of 
COVID-19 crisis, the KCGF and KIESA should urgently consider reviewing the application 
and  co-financing  procedures  so  that  more  SMEs  could  benefit  from  the  existing  support 
scheme. 

Economic integration with the EU and price competitiveness 

The EU is the main trading partner of Kosovo. In 2019, the EU accounted for 50% of the 
total  imports  of  goods.  CEFTA’s  share  fell  to  only  14.3%  as  a  direct  result  of  the  100% 
import  tariffs  imposed  by  Kosovo  on  goods  originating  from  Serbia  and  Bosnia  and 
Herzegovina. Exports of goods to the EU reached 36% during 2019. CEFTA remains the key 
market  for  Kosovo  exporters  (42.9%  of  the  total),  and  the  revocation  of  the  tariffs  had  a 
positive  impact  on  restoring  regional  trade,  but  obstacles  to  free  trade  among  CEFTA 
members still persist, including political, tariff and non-tariff barriers. 

The EU remains the main investor in Kosovo. In 2019 the increase of FDI inflow followed 
the same pattern as in 2018, amounting to around EUR 272 million (around 4% of GDP). The 
shares of Germany and Switzerland (two countries with large diasporas from Kosovo) stood 
practically unchanged from the previous year at over 11.5% of the total each. 

Led  by  growing  imports  and  services  exports,  overall  trade  openness  is  gradually 
increasing. While rising from 73% of GDP in 2014 to 85% in 2019, trade openness is below 
regional  peers  where  it  is  close  to  or  exceeds  100%.  The  shares  of  exports  and  imports  in 
GDP stood at 29% and 56% in 2019. Despite their declining share, basic raw materials and 
mineral products still dominated exports of goods, while exports of services consist to a large 
extent of travel services to the diaspora.  

4. 

Good neighbourly relations and regional cooperation  

Good  neighbourly  relations  and  regional  cooperation  represent  an  essential  aspect  of 
Kosovo’s path 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 
Central  European  Free  Trade  Agreement  (CEFTA),  the  Energy  Community,  the  Transport 
the  Regional  Cooperation  Council,  RECOM  and  the  Regional  Youth 
Community, 
Cooperation  Office  (RYCO).  During  the  reporting  period,  Kosovo  chaired  a  number  of 
regional  activities  and  events,  such  as  the  South-East  European  Cooperation  Process 
(SEECP), the RYCO governing board, the Western Balkans Fund and the Migration, Asylum, 
Refugees  Regional  Initiative.  Following  its  continued  non-payment  of  its  membership  fees, 
Kosovo's  participation  in  the  Regional  School  of  Public  Administration  (ReSPA)  was 
supended in November 2019.  

60 

0204060201120122013201420152016201720182019Graph : Kosovo -Exports of goodsEUCEFTAOtherSource: WiiW% ofGDP0204060201120122013201420152016201720182019Graph : Kosovo -Imports of goodsEUCEFTAOtherSource: WiiW% ofGDP 
 
 
During the COVID-19  crisis,  inclusive regional  cooperation has  proven to be essential. The 
establishment of green lanes within the region has demonstrated the capacity of the region to 
address  common  challenges  swiftly  and  efficiently.  Inclusive  regional  organisations  –  the 
Regional  Cooperation  Council,  the  Transport  Community,  and  the  CEFTA  –  have  been 
instrumental  in  responding  to  the  COVID-19  crisis.  These  achievements  need  to  be  turned 
into sustainable improvements. 

The  December  2018  decision  of  the  then  Kosovo  government  to  impose  a  100%  tariff  on 
imports from Serbia and Bosnia and Herzegovina continued to have political implications and 
to  hamper  development  of  a  regional  economic  area  (REA)  in  the  Western  Balkans  during 
most of the reporting period. It also had implications on the functioning of CEFTA and other 
regional initiatives. In Spring 2020, the Kosovo government lifted the tariff. This has allowed 
for a restoration in trade with Serbia and Bosnia and Herzegovina.   

Building on the results of the previous summits with the region, the Western Balkans summit 
in  Poznan  in  July  2019  focussed  on  strengthening  regional  cooperation  in  the  fields  of 
economy  and  trade,  the  digital  agenda,  connectivity,  security,  fight  against  corruption, 
promoting reconciliation and youth. The summit endorsed a number of achievements in these 
fields,  in  particular  the  Clean  Energy  Transition  Declaration  signed  in  Podgorica,  the 
Regional Roaming Agreement signed in Belgrade, a substantial connectivity package and the 
Roma  Integration  Declaration.    It  was  also  the  occasion  to  kick-start  the  preparation  of  a 
Green Agenda for the Western Balkans.  

At  the  Zagreb  Summit  on  6  May  2020,  EU  and  Western  Balkans  Leaders  agreed  that 
deepening regional economic integration has to be a prominent part of recovery efforts of the 
Western  Balkans.  Of  particular  importance  will  be  the  common  regional  market  will  be 
critical in increasing the attractiveness and competitiveness of the region. It will help Kosovo 
to  speed  up  the  recovery  from  the  aftermath  of  the  pandemic  –  notably  to  attract  investors 
looking  for  diversification  of  supply  and  shorter  value  chains.  Such  a  common  regional 
market has to be inclusive, based on EU rules and built on the achievements of the regional 
economic area multiannual action plan. 

The  unresolved  fate  of  missing  persons  from  the  1990s  conflicts  remains  a  humanitarian 
concern in the Western Balkans. In April 2020, a total of 10,027 people are still missing as a 
result of the conflicts in the region. Of these, 6,409 cases are related to the conflict in Bosnia 
and  Herzegovina,  1,974  to  the  conflict  in  Croatia  and  1,644  to  the  conflict  in  Kosovo.  51 
cases  of  missing  persons  related  to  the  conflict  in  Croatia  were  resolved  in  2019.The 
resolution of the fate of 1,644 (84% men, 16% women) missing persons related to the conflict 
in Kosovo and its aftermath continues to be hampered by a lack of new information on grave 
sites.  Only  eight  cases  of  missing  persons  were  solved  in  2019  on  the  basis  of  information 
obtained  from  international  archives.  The  ICRC-led  Belgrade-Pristina  Working  Group  on 
Missing Persons met only once in May 2019. Kosovo’s Government Commission on Missing 
Persons  conducted  assessment  excavations  in  29  locations.  Although  the  inter-institutional 
cooperation  improved  in  the  last  two  years,  a  more  streamlined  organisation  would  assist 
Kosovo  speaking  with  one  voice  on  the  issue  of  the  missing  persons,  both  in  national  and 
regional discussions. The file holder at the Prime Minister Office, the director of the Kosovo 
Commission  for  Missing  Persons  and  the  Kosovo  representative  to  the  Belgrade-Pristina 
Working Group should be unified. Two regional meetings of the International Commission on 
Missing Persons took place in 2019, during which efforts were made to produce a unified list 
of missing persons.    

Since  2017,  the  government  has  failed  to  take  forward,  including  throught  the  necessary 
legislation, the work on establishing a central register of missing persons and on the closure of 

61 

 
 
cases.  A  functional  case  management  system  is  still  not  in  place.  The  Institute  of  Forensic 
Medicine  and  the  Minister  of  Justice,  after  long  delays,  adopted  the  secondary  legislation 
needed  for  the  restructuring  of  the  Institute  in  July  2020.  Some  progress  has  been  made  in 
building the Institute’s capacities in forensic anthropology. 

Kosovo’s commitment to maintaining good and constructive bilateral relations in the region 
was  put  under  strain  by  the  100%  tariff  imposed  on  imports  from  Serbia  and  Bosnia  and 
Herzegovina, which was eventually lifted in Spring 2020.  

Overall, Kosovo continues to have good relations with Albania. In July 2019, an agreement 
on  strategic  and  diplomatic  cooperation  was  signed  between  the  two  governments  aimed  at 
extending the mechanism of the joint diplomatic missions and economic diplomacy. Albania 
continued to advocate for Kosovo’s full participation to regional processes. In 2019, Kosovo 
and  Albania  signed  a  number  of  bilateral  sectoral  agreements  (including  on  roaming, 
simplified border crossing procedures, mutual recognition of driver’s licences).  

Kosovo has maintained good relations with  Montenegro. The Agreement on cooperation in 
the context of the accession to the European Union was signed in March 2019. Montenegro 
opened a consular office in Gjilan / Gnjilane. 

Kosovo continues to enjoy overall good relations with North Macedonia. Kosovo’s political 
leaders supported the implementation  of  the Prespa agreement as a positive contribution  to 
the  stability  of  the  region.  Furthermore,  in  April  2019,  an  agreement  between  Kosovo  and 
North Macedonia on the mutual recognition of driving licenses entered into force. Police from 
Kosovo and North Macedonia signed a protocol for establishing a joint task force. The long-
standing  rail  border  crossing  protocols  with  North  Macedonia  for  police,  food  safety  and 
veterinary should be finalised and signed without delay.  

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 continued to be negatively affected by Kosovo’s imposition of a 100% tariff on the 
import of goods from Bosnia and Herzegovina in November 2018, eventually lifted in Spring 
2020. 

Kosovo  has  maintained  good  relations  with  Turkey.  They  continued  their  close  political, 
economic  and  cultural  cooperation.  A  free  trade  agreement  between  Kosovo  and  Turkey 
entered into force in July 2019.  

5. 

NORMALISATION OF RELATIONS BETWEEN KOSOVO AND SERBIA 

In  the  framework  of  the  EU-facilitated  dialogue, the  efforts  aiming  at  concluding  a  fully 
comprehensive  and  legally  binding  agreement  between  Serbia  and  Kosovo  had  been 
interrupted  since  November  2018  following  the  decision  by  the  Kosovo  government  to 
impose customs tariffs of 100% on imported goods from Serbia and Bosnia and Herzegovina, 
citing political and trade related grievances.  

The decision taken by the Kosovo government to lift these tariffs and the reciprocity measures 
by early June 2020 led to a restoration of the flow of goods with both Serbia and Bosnia and 
Herzegovina.  In  April  2020,  the  Council  appointed  Miroslav  Lajčák  as  EU  Special 
Representative for the Belgrade-Pristina Dialogue and other Western Balkan regional issues, 
to  assist  High-Representative/Vice-President  Josep  Borrell 
the 
normalisation talks.  

forward 

taking 

in 

When  it  comes  to  the  state  of  play  on  implementation  of  past  agreement:  the  full 
implementation  of  the  justice  agreement  drawn  from  the  April  2013  ‘First  agreement  of 

62 

 
 
principles governing the normalisation of relations’ continues to require further efforts by 
judicial authorities in Pristina.  

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.  Regarding  the  energy  agreement 
between Serbia and Kosovo, a new Connection Agreement between the Kosovo transmission 
system  operator  and  the  European  Network  of  Transmission  System  Operators  (ENTSO-E) 
has  been  approved.  Serbia  has  not  yet  filed  for  the  licensing  of  Elektrosever,  but  has 
submitted a new business  registration application that includes  additional business  activities 
that it wishes to undertake in Kosovo. The works on the Mitrovica bridge are completed and 
the bridge should be opened to vehicle traffic without further delay or obstructions.  

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 
with the implementation of cadastre and university diplomas recognition agreements 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 Kosovo continue to be 
operational.  There  has  been  no  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. 
Additional  measures  need  to  be  taken  by  Serbia  to  close  illegal  crossings.  The  parties  have 
continued to  largely  comply with  their respective obligations under the  telecoms  agreement 
during the reporting period. 

Requests for mutual legal assistance are in principle being processed.   

Overall,  Kosovo  has  remained  engaged  in  the  dialogue.  The  Kosovo  government  needs  to 
continue  to  uphold  its  commitments  and  continue  implementation  of  past  Dialogue 
agreements.  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. The EU-facilitated dialogue resumed with a virtual high-level meeting on 12 July 
2020, followed by high-level meetings in Brussels on 16 July and 7 September. A number of 
expert  level  meetings  took  place  in  Brussels.  Reaching  a  comprehensive,  legally  binding 
agreement  is  urgent  and  crucial  so  that  Kosovo  and  Serbia  can  advance  on  their  respective 
European paths.  

6. 

European standards  

6.1. 

Free movement of goods 

The free movement of goods ensures that many products can be traded freely across the EU 
based on common rules and procedures. Where products are governed by national rules, the 
principle of the free movement of goods prevents these from creating unjustified barriers to 
trade.  

63 

 
 
Kosovo  has  some  level  of  preparation  on  the  free  movement  of  goods.  It  made  some 
progress during the reporting period by adopting implementing legislation on standardisation, 
metrology and accreditation. Efforts were made on market surveillance in the area of product 
safety.  The  administrative  capacity  of  quality  infrastructure  institutions  needs  to  be  further 
strengthened  and  their  structural  weaknesses  addressed.  As  the  recommendations  in  the 
previous report were partly addressed and in the coming year, Kosovo should in particular:  

  adopt  implementing  legislation  on  technical  requirements  for  products  and  conformity 

assessment; 

  strengthen  enforcement  capacity  of  quality  infrastructure,  in  particular  in  the  area  of 

conformity assessment and market surveillance bodies; 

  amend the law on chemicals in order to start implementing requirements of the European 
Regulation  on  Registration,  Evaluation,  Authorisation  and  Restriction  of  Chemicals 
(REACH). 

General principles 

In  the  context  of  the  production,  distribution  and  marketing  of  industrial  products, 
Kosovo took  several  steps to  implement  the Law on technical  requirements  for product  and 
conformity  assessment.  It  adopted  an  administrative  instruction  on  the  designation  of 
conformity  assessment  bodies  and  a  Regulation  on  the  content  and  management  of  the 
technical  regulations  register.  The  Law  on  general  product  safety  needs  to  be  aligned  as 
regards  the  “general  safety  requirement”  and  brought  into  line  with  other  laws  on  product 
safety. There is a need to raise businesses’ awareness of technical requirements. As a response 
to COVID-19, upon joint initiative by the Permanent Secretariat of the Transport Community 
and  the  CEFTA  Secretariat,  Kosovo,  alongside  all  the  other  governments  in  the  Western 
Balkans  has  successfully  implemented  measures  to  facilitate  the  transport  and  trade  of 
essential goods within the region.  

Non-harmonised area 

Kosovo prepared an action plan on ensuring compliance with Articles 34-36 of the Treaty on 
the Functioning of the European Union (TFEU) and this is ready for government adoption. No 
technical  regulations  have  been  notified  to  date  under  the  recently  adopted  Regulation  on 
the notification and exchange of information on technical regulations, conformity assessment 
procedures and standards.  

Harmonised area: quality infrastructure 

The  quality  infrastructure  legislation  is  partly  aligned  with  the  EU  acquis.  However,  the 
agencies’ administrative structure and professional capacities need to be further strengthened 
in order to implement it. 

The  Kosovo  Standardisation  Agency  adopted  251  European  standards  through  licence 
agreements  with  the  European  Committee  for  Standardisation/European  Committee  for 
Electro-technical  Standardisation  (CEN/CENELEC).  In  October  2019,  the  Agency’s  mid-
term (2020-2025) strategy and implementation plan were adopted. 

Implementing legislation was adopted for the Law on accreditation. Kosovo’s accreditation 
body  should  be  enabled  to  manage  its  financial  resources  properly  and  ensure  its 
independence. Having failed to address several non-conformities on time, it needs to resume 
work on its accession to relaunch the Multilateral Agreement of the European Cooperation for 
Accreditation. There are currently 50 accredited conformity assessment bodies in Kosovo (35 
test laboratories and 15 inspection bodies), but their capacities need to be strengthened. 

64 

 
 
The Kosovo Metrology Agency started implementing legislation designed to be in line with 
the  EU  acquis  on  non-automatic  weighing  instruments  and  measuring  instruments,  but  it 
remained understaffed and underequipped to do so fully. The Agency is a liaison organisation 
of the European Association of National Metrology Institutes (EURAMET).  

Kosovo’s market surveillance legislation is designed to be aligned with the EU acquis. Inter-
institutional monitoring improved thanks to additional resources and the launch of a publicly 
accessible webpage (RAPEX-Kosovo), featuring Kosovo’s notifications on non-food products 
posing serious risks to consumers, product safety news and information about major events in 
the  area  of  consumer  safety.  Market  inspectorates  act  at  both  community  and  central  level, 
which makes coordination difficult.  

In  2019,  105  product  safety  inspections  identified  202  harmful  products,  including  4  types 
with serious risks; all harmful products were permanently withdrawn from the market. 

Harmonised area: sectoral legislation 

On “new and global approach” product legislation, Kosovo aligned its legislation with the 
EU  acquis  on  machinery  and  protective  personal  equipment.  The  lack  of  capacity  on  the 
quality  infrastructure  and  in  particular  for  market  surveillance  remains  a  challenge  for 
implementation. 

On  “old  approach”  product  legislation  and  procedural  measures,  Kosovo  aligned  its 
legislation  with  the  EU  acquis  on  pre-packed  product  and  bottles  as  measuring  containers. 
The  legislation  on  chemicals  is  not  aligned  with  the  EU  acquis  and  requires  significant 
amendment if Kosovo is to implement the requirements of the EU Regulation on registration, 
evaluation, authorisation and restriction of chemicals (REACH).  

6.2  Movement of workers, services and right of establishment 
Citizens of one EU Member State have the right to work in another Member State and must 
be  given  the  same  working  and  social  conditions  as  other  workers.  EU  natural  and  legal 
persons  have  the  right  to  establish  themselves  in  any  Member  State  and  to  provide  cross-
border  services.  For  certain  regulated  professions,  there  are  rules  on  mutual  recognition  of 
qualifications. Postal services are gradually being opened up to competition. 

Kosovo  remains  moderately  prepared  for  the  free  movement  of  workers,  services  and  the 
right of establishment. Limited progress was made during the reporting period. Kosovo still 
needs to align its legislation with the EU acquis and start removing any identified barriers to 
the  right  of  establishment  and  freedom  to  provide  services.  It  needs  to  establish  a  point  of 
single  contact  to  allow  providers  and  recipients  of  services  to  find  all  relevant  information. 
The postal sector needs to further open its market and deliver quality services to its citizens. 
Kosovo  needs  to  align  legislation  with  the  EU  acquis  on  the  mutual  recognition  of 
professional  qualifications.  As  most  of  last  report’s  recommendations  have  not  been 
addressed yet, Kosovo should:  

  remove  the  identified  barriers  to  the  right  of  establishment  and  freedom  to  provide 
services, by rolling out the action plan for the full implementation of the Law on services;  

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

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

On  the  free  movement  of  workers,  between  1  February  2019  and  13  February  2020,  the 
Employment  Agency  issued  181  short-term  work  permits.  Social  security  agreements  with 
Belgium and Switzerland entered into force in June and September 2019 respectively. Periods 

65 

 
 
of  activity  in  those  countries  will  be  taken  into  account  for  entitlement  to  social  security 
benefits.  Kosovo  also  initiated  negotiations  for  social  security  agreements  with  the 
Netherlands, Slovenia and Albania.  

On the freedom to provide services, the roll-out of the 5-year action plan (adopted in 2018) 
for  the  full  implementation  of  the  EU  Services  Directive  did  not  start  yet,  pending  the 
establishment of an effective system to monitor the compliance of relevant sectoral legislation 
with the Directive. This process requires a considerable coordination effort across a range of 
line ministries,  agencies, other public  and professional bodies. The legal  departments  of the 
relevant ministries should be strengthened to ensure successful alignment. Implementation of 
the Directive would cut administrative burden for businesses and improve the free movement 
of services.  

The action plan on the establishment of a Point of Single Contact under the Services Directive 
was  adopted  on  30  April  2020.  It  gives  providers  and  recipients  of  services  access  to  all 
relevant  information  on  activities  covered  by  the  Law  on  services.  The  collection  and 
processing  of  statistics  on  service  activities  should  be  improved  and  enable  evidence-based 
policy-making.  

On  the  right  of  establishment,  the  Law  on  services  requires  companies  wishing  to  do 
business  in  Kosovo  to  register  in  the  Kosovo  business  registry.  Foreign  companies  are 
allowed to provide services only if they establish an office in Kosovo.  

The  new  Law  on  postal  services  in  Kosovo,  which  entered  into  force  in  February  2019,  is 
partly  aligned  with  the  EU  postal  acquis,  but  not  yet  with  the  Regulation  on  cross-border 
parcel  delivery  services.  In  April  2019,  the  postal  regulator  (Regulatory  Authority  of 
Electronic  and  Postal  Communications)  adopted  legislation  on  general  authorisations  of 
market  entry  procedures  for  providers  offering  non-universal  postal  services.  The  postal 
regulator,  as  an  independent  body,  has  started  preparations  for  adopting  a  system  for  cost 
accounting  and  net  cost  calculation  of  universal  postal  services.  The  activities  of  the  postal 
service providers are supervised, monitored and inspected by the postal regulator in the event 
of regulatory violations and customers’ complaints. Kosovo started working on a new sectoral 
strategy (2021-2025) for the full liberalisation of the postal services market. 

There  is  no  clear  procedure  for  the  mutual  recognition  of  professional  qualifications. 
Kosovo has a Law on regulated professions, but has not adopted the necessary implementing 
legislation.  

Kosovo  has  yet  to  put  in  place  operational  procedures  and  training  for  the  recognition  of 
professional qualifications. By law, the Ministry of Education, Science and Technology, the 
State Examination Agency  and the State Council for Regulated Professions, are responsible 
for granting recognition of foreign professional qualifications, but the latter has not yet been 
established.  

The  National  Qualifications  Authority  accredits  and  validates  international  qualifications.  A 
joint  working  group  on  the  recognition  of  professional  qualifications  was  established  in  the 
framework  of  regional  cooperation.  Kosovo  started  discussions  on  mutual  recognition  for 
doctors of medicine, dentists, civil engineers and architects.  

6.3 

Free movement of capital  

In  the  EU,  capital  and  investments  must  be  able  to  move  without  restriction  and  there  are 
common rules for cross-border payments. Banks and other economic operators apply certain 
rules to support the fight against money laundering and terrorist financing. 

66 

 
 
 
Kosovo  has  some  level  of  preparation  in  this  area.  The  movement  of  capital  remains 
largely free in Kosovo, with no restrictions on foreign ownership or on investments in the 
financial sector. Some restrictions remain for EU nationals acquiring real estate in Kosovo. 
During  the  reporting  period,  some  progress  was  made  notably  in  the  area  of  payment 
services, with the entry into force of the Regulation on licencing and oversight of payment 
system  operators.  The  legislative  framework  on  the  prevention  of  money  laundering  and 
terrorist  financing  still  needs  to  be  aligned  with  the  EU  acquis.  Inter-institutional 
cooperation to ensure proper investigation and prosecution of offences in that area should 
be enforced. Although initial steps were taken, the recommendations of the previous report 
remain valid. In the coming year, Kosovo should therefore:  

  amend the Law on property rights 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 EU acquis. 

The  movement  of  capital  is  largely  liberalised  and  aligned  with  the  EU  acquis.  The 
execution of payments and money transfers is limited to banking and non-banking financial 
institutions  licensed  by  the  Central  Bank  of  Kosovo.  Limited  progress  was  made  with  the 
drafting  of  an  amendment  to  the  law  on  property  rights,  to  address  the  issue  of  real  estate 
acquistion by foreigners focusing on the rights of EU nationals.  

A new Regulation on the licensing and oversight of  payment system operators entered into 
force in June 2019. It lays down conditions, requirements and procedures to grant licences to 
payment  system  operators  and  supervise  their  security,  efficiency  and  sustainability.  In 
addition,  the  Central  Bank  amended  the  Regulation  on  electronic  payment  instruments  to 
eliminate additional charges to bank card holders. 

While work started on addressing flaws in the legal and institutional framework, Kosovo did 
not adopt any changes to the Law on money laundering and terrorism financing. Changes 
are  needed  to  bring  the  Law  fully  into  line  with  the  EU  acquis  and  international  standards, 
especially those of the Financial Action Task Force (FATF) and the Committee of Experts on 
the  Evaluation  of  Anti-Money  Laundering  Measures  and  the  Financing  of  Terrorism 
(MONEYVAL).  More  specifically,  Kosovo  needs  to  introduce  additional  sanctions  for 
terrorism  financing,  for  beneficial  owner  identification  and  implementation  on  targeted 
financial  sanctions  mechanisms,  and  identify  and  protect  critical  infrastructure.  The 
authorities should update the sectoral risk assessments with a more stringent methodology and 
extend them to the sectors identified in the National Risk Assessment and the Kosovo Police’s 
serious  organised  crime  threat  assessment.  Interinstitutional  cooperation  in  the  fight  against 
economic  and  financial  crime  needs  to  be  strengthened  (see  also  section  2.2.2  -  Justice, 
freedom and security). 

6.4. 

Financial services  

EU rules on banking, insurance, supplementary pensions, investment services and securities 
markets  aim  to  ensure  fair  competition  between  financial  institutions  and  their  stability, 
namely rules. They include rules on their authorisation, operation and supervision. 

Kosovo is moderately prepared in the area of financial services. Some progress was made 
following  the  entry  into  force  of  Basel  III  framework  related  regulations  on  capital 
requirements and risk management of banks and the alignment of the taxation of the insurance 
sector  with  the  remaining  financial  sectors.  As  the  recommendations  in  the  previous  report 
have not been fully addressed, in the coming year Kosovo should in particular:  

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  fully  implement  Solvency  I  measures  and  develop  the  roadmap  for  implementation  of 

Solvency  II measures; 

  further  advance  in  implementation  of  the  Basel  III  framework  and  review  the  legal 
framework  governing  microfinance  institutions  and  non-bank  financial  institutions  in 
accordance with the best practices; 

  take immediate action to address the issue of uninsured, unregistered vehicles.  

On banks and financial conglomerates, some additional progress  was  made in  the area of 
capital  requirements  and  the  risk  management  of  banks,  following  the  entry  into  force  of 
regulations on capital adequacy and leverage ration in line with the Basel III framework.  

The bank’s capitalisation level remained stable and well above the required minimum capital 
adequacy  ratio  of  12%.  Kosovo  has  not  yet  established  an  independent  recovery  and 
resolution authority. Amendments to the Law on banks to assign this function to the Central 
Bank must ensure that the authority has functional independence. The Central Bank revoked 
the  licences  of  one  micro-finance  institution  and  one  non-bank  financial  institution,  on  the 
grounds  of  non-compliance  with  the  regulatory  framework;  one  of  the  institutions  has 
challenged  the  decision  in  court.  Gaps  in  the  legislation  on  micro-finance  and  non-bank 
financial institutions should be adressed to ensure alignment with best practices. The Central 
Bank  took  some  measures  on  consumer  lending  price  transparency.  As  of  2019,  all  credit 
institutions  have  to  use  the  standard  European  consumer  credit  information  form  for  loan 
applications, in order to ensure the adequate disclosure of credit information. Further work on 
consumer protection against unfair banking practices will be needed. 

In  response  to  the  COVID-19  emergency,  the  Central  Bank  and  the  Kosovo  Banking 
Association decided in Spring 2020 to temporarily suspend the payment of loan instalments 
for businesses and individuals. The Central Bank also decided to apply regulatory forbearance 
on loan provisions and capital requirements on reprogrammed loans.  The July 2019  Law on 
corporate income tax eliminates the 5% tax on gross premiums that insurance companies had 
been  paying,  regardless  of  whether  they  are  profitable,  bringing  their  tax  arrangements  into 
line  with  other  financial  sectors.  In  April,  the  Central  Bank  revoked  the  licence  of  one 
insurance  company,  on  the  grounds  of  the  latter’s  inability  to  maintain  minimum  capital 
requirements. Without being licenced by the Central Bank, foreign insurers are not allowed to 
offer or take on direct insurance attached to a person, object or liability located in the territory 
of Kosovo. Foreign institutions are treated like domestic undertakings, but still need to fulfill 
additional  criteria.  In  May,  the  Central  Bank  further  implemented  Solvency  I  measures  by 
amending  the  Regulation  on  the  calculation  of  the  minimum  solvency  threshold,  capital 
adequacy  and  guarantee  fund  for  non-life  insurers  and  adopting  a  Regulation  on  the 
liquidation  of  insurers.  Work  should  start  on  developing  a  roadmap  for  implementing 
Solvency  II  measures.  In  November,  the  Central  Bank,  which  is  competent  for  licensing, 
regulating  and  supervising  insurance  companies,  went  against  the  opinion  of  the  Kosovo 
Competition  Authority  and  increased  the  risk  premium  on  compulsory  motor  liability 
insurance by 26%. The  decision raised civil  society concerns due to  the additional financial 
burden it puts on car owners. In January 2020, the Central Bank amended the Regulation on 
the management of commissions and operational expenses of non-life insurers, reducing the 
limit on accounting for operational costs from 35% to 24% of total costs. The Central Bank 
did not take any immediate measure on price liberalisation of the insurance market.  

The authorities have still not addressed the issue of uninsured and unregistered vehicles, and 
the  associated  costs  for  the  insurance  sector.  As  Kosovo  is  still  not  covered  by  the  ‘green 
card’  system,  insurance  is  required  for  foreign-registered  vehicles  entering  Kosovo  and 

68 

 
 
vehicles  with  Kosovo plates leaving Kosovo. This  continues to  represent a financial burden 
for  travellers  (other  than  those  from  countries  with  which  Kosovo  has  bilateral  vehicle 
insurance arrangements).  

Some progress was made with the adoption and operationalisation of the manual on the on-
site supervision of pension funds, but further alignment with the EU acquis is needed. 

On  securities  markets  and  investment  services,  the  market  remains  at  an  early  stage  of 
development.  Most  activity  focuses  on  the  government  securities  market,  auctioned  by  the 
Central Bank. The Regulation on the repurchase of securities with the Central Bank (approved 
in  April  2019)  enables  repurchase  of  the  securities  between  commercial  banks  on  the 
secondary  market.  It  aims  to  help  eligible  banks  to  manage  their  liquidity  efficiently  in  the 
short term. 

6.5.  Customs  

All Member States are part of the EU customs union and follow the same customs rules and 
procedures.  This  requires  legislative  alignment,  adequate  implementation  and  enforcement 
capacity and access to common computerised customs systems. 

Kosovo is moderately prepared in the area of customs. Some progress was achieved as 
the  strategy  and  the  action  plan  on  fighting  informal  economy  was  adopted  and  Kosovo 
continued  to  perform  positively  in  enforcing  customs  measures,  particularly  for  the 
protection of intellectual property  rights  (IPRs).  As the recommendations in  the previous 
report have not been fully addressed and in the coming year, Kosovo should in particular: 

  adopt  the  revised  Customs  and  Excise  Code,  so  that  it  is  aligned  with  EU  legislation 

and practices, including the minimum EU tobacco excise rate;  

  continue  implementing  and  regularly  assess  the  strategy  on  fighting  the  informal 
economy  and  its  action  plan  and  ensure  coordination  between  Kosovo  Customs  and 
law enforcement agencies in the fight against customs fraud; 

  start to phase out the use of privately owned inland customs terminals and remove the 
associated  fees  charged  to  exporters/importers,  in  accordance  with  EU  customs 
legislation. 

In  the  area  of  customs  legislation,  only  initial  steps  were  taken  to  align  the  Customs  and 
Excise  Code  further  with  the  Union  customs  code,  as  recommended  in  the  previous  report. 
Due to  status  issues, there was no progress  on Kosovo’s application to  become  an observer 
under  the  Common  Transit  Convention.  Kosovo  applies  the  provisions  of  the  Regional 
Convention on Pan-Euro-Mediterranean preferential rules of origin, without having ratified it. 
Kosovo Customs continue to participate in the systematic electronic exchange of excise data 
among  Western  Balkan  economies.  The  legislation  on  customs  measures  governing 
intellectual  property  rights  (IPRs)  and  export  controls  for  cultural  goods  is  aligned  with  the 
EU acquis, but the legislation on drug precursors requires further alignment. As regards trade 
facilitation, Kosovo Customs approved the first two authorised economic operators in October 
and  continued  to  improve  its  systems,  procedures  and  administrative  capacities  in  this  area. 
Inland customs terminals continue to be located in privately owned facilities, which charge a 
fee for every truck entering to discharge customs obligations. Such fees are not in line with 
the EU acquis and the SAA provisions and need to be abolished. Kosovo should start to phase 
out the use of privately owned facilities and transform existing public locations, such as the 
old part of Pristina Airport, into inland customs terminals. 

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Kosovo Customs maintains a reasonable administrative and operational capacity. In spite 
of the 5% reduction on customs revenues from certain products  as a result of implementing 
the Stabilisation and Association Agreement, overall customs revenues increased by 4%.  

Kosovo  Customs  management  should  continue  improving  administrative  and  operational 
capacity,  e.g.  by  recruiting  and  promoting  staff  on  merit.  Despite  Kosovo  Customs’  efforts 
towards a paperless approach and an e-payments system, including voluntary declarations by 
businesses that helped eliminate administrative barriers and lead to a streamlining of customs 
clearance  procedures,  the  number  of  business  complaints  against  the  administration’s 
decisions has increased by 17% in 2019 when compared to the previous year. In July 2020, 
Kosovo  ratified  the  agreement  to  join  the  EU’s  Customs  2020  programme  that  focuses  on 
implementing EU customs law and policy. Kosovo carried the blueprint to assess its readiness 
and  gaps  in  administrative  and  operational  capacity  against  identified  targets.  It  approved  a 
mid-term  (2019-2023)  customs  strategy  aimed  at  strengthening  Kosovo  Customs’  capacity, 
modernising  revenue  collection  and  facilitating  trade  and  the  fight  against  tax  evasion, 
organised crime and other illicit activities. 

Kosovo Customs’ performance in the fight against IPR infringements and illegal cross-border 
activities,  including  the  smuggling  of  goods  such  as  narcotics  and  hazardous  materials, 
continues to improve. It  approved its internal anti-corruption plan in April 2019, but further 
efforts  are  needed  to  address  corruption,  including  more  investigations  and  more  thorough 
checks on asset declarations filled by customs officials.  

The level of informality in the economy is still high and, despite initial steps by the customs 
and  tax  administrations,  further  coordination  efforts  between  relevant  institutions  and  law 
enforcement bodies are needed to fight the informal economy and customs fraud. The fiscal 
division of the Basic Court in Pristina should take effective actions to reduce the backlog of 
unresolved complaints against the customs administration.  

A  joint  facility  designed  to  simplify  procedures  and  eliminate  double  controls  at  the 
Vërmica/Vrbnica  border  crossing  point  between  Kosovo  and  Albania  has  been  operational 
since  May  2019.  New  premises  at  the  Merdarë/Merdare  and  Mutivodë/Mutivode  common 
crossing  points  with  Serbia  are  not  fully  operational  yet  (see  section  5  –  normalisation  of 
relations  between  Kosovo  and  Serbia).  The  Kosovo  Customs  office  in  the  port  of  Durrës 
(Albania) is fully functional. 

6.6 

Taxation  

EU rules on taxation cover value-added tax, excise duties and aspects of corporate taxation. 
They  also  deal  with  cooperation  between  tax  administrations,  including  the  exchange  of 
information to prevent tax evasion. 

Kosovo has some level of preparation in the area of taxation. There was good progress 
with the withdrawal of the decision on discriminatory excises on cigarettes, the adoption of 
the  Law  on  corporate  income  tax  and  with  initial  steps  to  reforming  the  organisational 
structure  of  the  Kosovo  Tax  Administration,  improving  business  processes  for  debt 
collection management, and introducing risk compliance in high risk sectors. In the coming 
year, Kosovo should in particular: 

  adopt the laws on personal income tax and on value added tax (VAT); 

  continue  implementing  and  regularly  assess  the  strategy  for  combating  the  informal 
economy, money laundering, financing of terrorism and financial crime (2019-2023); 

70 

 
 
  increase cooperation with the judiciary to ensure timely adjudication of tax evasion and 

fraud cases, with emphasis on high risk sectors. 

Good progress was registered in tax collection in 2019 with overall revenue collection up by 
10.4%  from  2018.  In  addition,  there  was  significant  progress  on  tax  debt  collection,  up  by 
44.5%.  However,  due  to  the  impact  of  the  COVID-19  crisis,  it  is  expected  that  in  2020 
revenues  will  decrease  substantially  and  public  spending  will  increase.  Domestic  revenues 
stand  at  26%  of  GDP,  a  relatively  low  level  in  regional  comparison,  making  Kosovo 
vulnerable to  shocks on  imports and consumption. Kosovo should review its tax policy and 
align its direct and indirect taxation legislation based on the recommendations of such review. 

On indirect taxation, the VAT system is broadly aligned with the EU acquis. Kosovo applies 
a standard 18% rate  and a reduced 8% rate. The reduced rate is  not  applied to  supplies and 
imports of IT equipment. The Assembly has yet to approve the revised Law on VAT, which 
ensures  further  harmonisation  with  the  EU  acquis  and  other  tax  legislation.  Progress  was 
noted on reducing the average time of VAT refunds to 20 days, but there was no progress on 
reducing the average time of VAT returns filing and on improving the taxpayer’s registry. No 
progress was noted in aligning the VAT reimbursement for goods contained in the personal 
luggage  of  travellers  residing  outside  Kosovo  with  the  relevant  EU  directives.  As  regards 
excises, in  February 2020, the government  withdrew a decision on a discriminatory rate for 
cigarettes,  which  was  in  clear  violation  of  the  EU-Kosovo  Stabillisation  and  Association 
Agreement. No action was taken to address the tax treatment of evaporation and other kinds 
of  material  loss  in  the  transportation,  production  or  storage  of  excise  goods.  On  direct 
taxation,  amendments  to  the  Law  on  corporate  income  tax  were  adopted  and  entered  into 
force.  The  Law  has  a  direct  impact  on  the  insurance  market,  by  eliminating  the  5%  tax  on 
gross premiums that insurance companies had been paying irrespective of the level of profit. 
An  amendment  to  the  Law  on  personal  income  tax  to  ensure  harmonisation  with  other  tax 
legislation and remove contradictory provisions was not adopted. 

On  administrative  cooperation  and  mutual  assistance,  double  taxation  agreements  with 
Austria  and  Switzerland  entered  into  force,  bringing  the  total  number  of  agreements  to  15. 
Kosovo  should  consider  adopting  the  standards  enshrined  in  the  OECD/Council  of  Europe 
Convention  on  Mutual  Administrative  Assistance  in  Tax  Matters.  In  July  2020,  Kosovo 
ratified  the  agreement  with  the  EU  to  join  the  Fiscalis  2020  programme,  which  focuses  on 
taxation  systems  by  enhancing  cooperation  between 
improving 
participating countries, their tax authorities and their officials. 

the  functioning  of 

On operational capacity and computerisation, the Kosovo Tax Administration adopted a new 
organisational structure to improve its governance and service delivery. It should strengthen 
its administrative and professional capacity, and ensure merit-based and transparent selection 
processes. It adopted a medium-term action plan to reduce the large stock of tax debt through 
more effective debt collection. It also adopted a strategy on improving the number and quality 
of the audits. However, audit compliance processes and audit practices based on centralized 
risk assessment processes need to be improved and the implementation of the strategy needs 
to  be  properly  monitored.  To  improve  the  quality  of  the  tax  register,  stronger  efforts  are 
required to formalise data sharing arrangements across agencies (Kosovo Tax Administration, 
Kosovo Business Registration and Cadastre Agencies and the Credit Registry of the Central 
Bank).  The  Tax  Administration  has  developed  a  good  taxpayer  service  focus,  in  particular 
with the widespread use of e-filing and e-payment. It should continue to modernise its internal 
IT platform and provide more electronic services. In 2019, tax evasion to the value of EUR 
5.3 million was detected, down from EUR 7 million in 2018. The number of anti-tax evasion 
operations fell to 176, from 306 in 2018. Tax evasion and informality continue to hamper the 

71 

 
 
economy and further efforts are needed, in particular on risk-based field inspections and inter-
institutional  cooperation.  A  modern  compliance  risk  management  methodology  was 
introduced  in  the  high-risk  construction  sector.  Allegations  of  serious  tax  fraud  should  be 
investigated properly and the authorities should support the work of the law enforcement and 
judicial bodies. The fiscal division of the Basic Court in Pristina should take effective action 
to reduce the backlog of unresolved complaints against the customs administration. 

6.7 

Competition 

EU rules protect free competition. These include antitrust rules against restrictive agreements 
between  companies  and  abuse  of  dominant  position.  They  also  include  rules  on 
concentrations  between  companies  which  would  significantly  impede  competition.  EU  rules 
also set out a system of State aid control. Governments are only allowed to grant State aid if 
restrictive conditions are met, with a view to prevent distortion of competition. 

Kosovo is at an early stage/has some level of preparation on competition. Some progress 
was  made  with  the  adoption  of  additional  sub-legal  acts  by  the  Competition  Authority, 
including a strategic plan. Significant efforts are needed to further align with the EU  acquis 
by implementing legislation both in competition and State aid areas.  

As recommendations from the previous report remain valid, Kosovo should in particular:  

  ensure the functional capacity and operational independence of the competition and State 
aid  authorities  and  increase  cooperation  and  coordination  between  all  stakeholders, 
including ministries, regulators and the judiciary; 

  further align the legislative framework, specifically its implementing legislation, on both 

competition and State aid and ensure its enforcement; 

  fulfil  SAA  obligations  by  establising  a  comprehensive  inventory  of  aid  schemes  and  by 

aligning these with State aid rules. 

Antitrust and mergers 

The  legislative  framework  is  partially  in  line  with  the  EU  competition  acquis.  Kosovo 
should  adopt  legislation  on  the  protection  of  competition  to  address  gaps  that  hinder 
implementation and enforcement. During the reporting period, Kosovo adopted administrative 
instructions on technology transfer agreements and on specialisation agreements.  

On  the  institutional  framework,  the  Kosovo  Competition  Authority,  as  the  responsible 
institution to implement competition law,  has powers to initiate investigations, conduct on-
site  inspections,  impose  fines  and  remedies  and  prohibit  anti-competitive  mergers.  In  2019, 
the  Authority  concluded  memoranda  of  understanding  in  key  sectors,  with  the  Energy 
Regulatory Office, Kosovo Railways, the Electronic and Postal Communications Regulatory 
Authority,  the  Water  Services  Regulator  and  the  Central  Bank.  However,  cooperation  and 
coordination  with  government  institutions,  regulators  and  ministries  should  be  strengthened 
further.  The  Authority  should  also  establish  closer  links  with  public  procurement  bodies  to 
follow-up  individual public procurement cases. It has adopted its Strategic Plan for the period 
2020-2023. 

On its  capacity to  enforce  competition, the Competition  Authority has  recruited two more 
staff during the reporting period. However, its staff needs additional training to handle cases 
more efficiently and implement competition rules effectively. The Authority is still expected 
to  coordinate  better  with  sector  regulators  and  relevant  line  ministries  on  issues  such  as 
market  definition,  determining  companies  with  significant  market  power,  establishing 
remedies  ex  ante  or  ex  post,  exchanging  data,  issuing  advisory  opinions  and  reporting 

72 

 
 
potential infringements. Cooperation is currently insufficient to ensure correct enforcement of 
competition rules in these sectors. The expertise of judges dealing with competition cases and 
merger  control  should  be  improved  by  organising  ad  hoc  trainings  and  other  learning 
initiatives.  On  implementation,  during  the  reporting  period,  the  Authority  has  issued  7 
decisions  and  10  professional  opinions.  Following  an  investigation  in  May  2020,  the 
Authority imposed its largest fine for a total amount of EUR 4 million to 14 companies in the 
oil derivatives sector. It did not apply the leniency policy or conduct any dawn raids. 

State aid  

The  legislative framework on State aid is largely in line with the EU  acquis. The Law on 
State aid broadly reflects Articles 107 and 108 TFEU. There are regulations in place on the 
organisation  and  functioning  of  the  State  Aid  Commission  and  on  the  criteria,  form  and 
content of State  aid  notifications. Kosovo has developed State aid  guidelines for ministries’ 
and  other  aid-granting  bodies’  reporting  on  State  aid  schemes  to  the  State  Aid  Department. 
The de minimis aid implementing legislation was adopted by the government in January 2020. 
However,  it  still  needs  to  adopt  implementing  legislation,  on  general  block  exemption 
regulations and services of general economic interest.  

As  regards  the  institutional  framework,  the  State  Aid  Department  as  part  of  Ministry  of 
Finance, is  responsible for assessing proposals  for State  aid,  drafting assessment  reports for 
the  State  Aid  Commission  and  updating  the  State  aid  inventory.  Members  of  the  State  Aid 
Commission were appointed in March  and the Commission became operational in September 
2019. Its capacity to enforce State aid rules remains limited.  

On implementation, the State Aid Department prepared nine scheme assessment reports on 
the  basis  of  which  the  State  Aid  Commission  issued  four  decisions.  The  SAA  requires 
Kosovo to establish a comprehensive inventory of State aid schemes, but it failed to do so by 
the  April  2019  deadline.  The  State  Aid  Department  submitted  a  first  overview  of  business 
support schemes run by the main granting authorities. This inventory was updated by the State 
Aid Commission in June 2019. Beyond this State aid inventory mapping, there has been no 
substantive  screening  of  existing  schemes.  Furthermore,  there  is  a  lack  of  engagement  by 
ministries  and  sectoral  regulators  in  sharing  information  on  support  schemes.  A  number  of 
central  and  local  aid  measures,  some  involving  large  companies  in  various  sectors  (e.g. 
telecommunications), have not been notified or properly investigated. Drafting of the regional 
aid map is pending.  

Liberalisation   

Public undertakings are subject to the Law on competition and the Law on State aid. Kosovo 
has monopolies of a commercial nature within the meaning of Article 37 TFEU. There is little 
to  no  awareness  of  the  possible  application  of  State  aid  rules  to  the  activities  of  publicly 
owned  enterprises.  The  Competition  Authority's  professional  opinion  on  car  homologation 
still needs to be implemented. 

In March 2020, services provided by Kosovo Telecom have been referenced to as of special 
importance by government decision. The Competition Authority’s opinion concluded that this 
decision may lead to  forms  of abuse of dominant  position. Also, the case of  Kosovo Post’s 
direct  agreements  with  public  institutions  placed  competitors  at  a  disadvantage.  The 
Administrative  Court’s  decision  to  annul  Kosovo  Post’s  direct  agreement  was  upheld  on 
appeal. 

6.8 

Public procurement 

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EU  rules  ensure  that  the  public  procurement  of  goods,  services  and  works  in  any  Member 
State  is  transparent  and  open  to  all  EU  companies  on  the  basis  of  non-discrimination  and 
equal treatment.  

Kosovo  has  some  level  of  preparation/is  moderately  prepared  in  public  procurement. 
Some progress in the area was recorded during the reporting period. Initial steps were taken 
to revise Kosovo's legal  framework and address the use of e-procurement and the improved 
monitoring  of  contract  implementation  increasing  transparency.  Despite  progress,  public 
procurement  remains  prone  to  irregularities  and  vulnerable  to  corruption  during  the 
procurement  process  and  contract  implementation.  To  enforce  procurement  law,  Kosovo 
needs  an  efficient  remedy  system  with  sufficient  capacity  including  a  fully  staffed  board  of 
the  Procurement  Review  Body  (PRB).  As  most  recommendations  from  the  previous  report 
remain valid, in the coming year Kosovo should in particular:  

  further  align  its  legislation  with  the  EU  acquis  on  public  procurement,  including 

concessions, and ensure proper implementation of the Law on public procurement;  

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

  ensure that the PRB is fully operational, and that staff capacity limitations are addressed. 

Institutional set-up and legal alignment  

Kosovo's  legal  framework  on  public  procurement  is  broadly  aligned  with  the  EU’s  2004  
Directives  but  only  partly  aligned  with  the  2014  EU  Directives  on  classical  and  utilities 
procurement, including  concessions. Kosovo took initial steps to bring the legal framework 
into  line  with  the  EU  acquis,  by  addressing  gaps  in  the  areas  of  e-procurement,  the 
implementation and monitoring of contracts and tender evaluation. It prepared implementing 
legislation, including rules and guidelines to help contracting authorities manage procurement 
and the award of contracts. New legislation adopted on defence and security procurement is 
partially  aligned  with  the  EU  acquis.  All  legal  and  financial  instruments  used  for  public 
procurement and concessions, including inter-governmental agreements with third countries, 
should  reflect  the  principles  of  transparency,  competition,  equal  treatment  and  non-
discrimination. 

Kosovo has a strategy (covering 2017-2021) and an action plan (2017-2019) to improve the 
public procurement system, but is still not assesing its implementation. The 2020-2021 action 
plan is under preparation.  

Kosovo has in place public procurement institutions in charge of the main functions of public 
procurement. The Central Procurement Agency (under the Ministry of Finance) is reponsible 
for  centralised  purchases.  The  Public  Procurement  Regulatory  Commission  (PPRC)  is 
mandated  to  monitor  and  coordinate  public  procurement,  while  contracting  authorities 
manage contract award and implementation. The PRB reviews public procurement decisions 
and  bidders’  complaints.  Coordination  between  these  bodies  needs  to  improve.  A  lack  of 
continuous professional development adds to the shortcomings in procurement administration 
in the public sector. 

Implementation and enforcement capacity 

Kosovo's  public  procurement  market  was  estimated  at  10.7%  of  GDP  in  2019  (based  on 
preliminary  data),  compared  to  9.4%  in  2018.  More  public  contracts  were  posted  by 
contracting  authorities  on  the  e-procurement  platform  in  2019:  12,461  public  contracts 

74 

 
 
registered on the platform (2018: 12,412) and around 7,650 economic operators (2018: 6,000) 
and 20,500 users (2018: 15,000). 

From  the  monitoring  of  contract  awards  and  implementation,  90%  of  contracts  were 
awarded through open procedure in 2019. 99.22% of public contracts were awarded according 
to the lowest-price criterion with only 0.78% using the best-price-quality ratio in line with the 
EU  Directive  on  public  procurement.  Insufficient  managerial  accountability  and  quality 
control throughout the public procurement cycle, and limited capacity to oversee and control 
contract  implementation  and  management,  create  risks  of  mismanagement  and  corruption. 
The e-procurement platform enables stakeholders to monitor all procurement information, but 
the  modules  on  the  management  of  awarded  contracts  and  contractors’  performance 
evaluation  are  still  not  working.  Additional  efforts  are  needed  to  ensure  the  interoperability 
between the e-procurement system and other relevant government IT systems. 

The  capacity  to  manage  public  procurement  processes  varies  between  contracting 
authorities.  All  authorities  lack  the  capacity  to  draft  proper  technical  specifications;  this 
undermines the quality, efficiency and transparency of the procurement cycle.  

Kosovo has an average of five bidders per tender which reflects a good level of competition. 
Most contracting authorities do not fulfil their legal obligation to publish public procurement 
plans. Kosovo has a code of ethics for public procurement but compliance is not monitored. 
There were no developments as regards integrity and conflicts of interest. 

Related to the COVID-19 crisis, the PPRC issued guidance on urgent procurement procedures 
in line with the flexibility provisions provided in public procurement legislation. In total, 130 
contracts were signed in urgent procedure in March and April 2020 for a total amount of EUR 
10  million.  To  mitigate  the  risks  of  fraud,  it  is  especially  important  to  maintain  audit  trails. 
Posting all procurement information related to COVID-19 on government portals contributes 
to enhanced transparency and trust.  

The  Anti-Fraud  Unit  (recently  established  within  the  National  Audit  Office)  identified  26 
cases of suspected fraud in the area of public procurement, up from 12 in 2018 (its first year 
of operation). All 26 cases were submitted to the Prosecutor.  

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, only 16 (out of 165) contracting authorities carry out 
procurement  through  the  Central  Procurement  Agency.  In  2019,  they  carried  out  31 
centralised procurement procedures. The Agency’s limited capacity to conduct proper market 
research  means  that  it  does  not  secure  the  economies  of  scale  expected  from  centralised 
procurement. The Agency continues to be understaffed and is lagging behind in implementing 
its procurement plan.  

Efficient remedy system  

The legislation on the right to legal remedy is broadly in line with the EU acquis.The PRB is 
a  quasi  judicial  body  mainly  tasked  with  reviewing  complaints  from  bidders.  In  2019,  the 
PRB  had  received  981  complaints  and  reviewed  535  appeals.  To  ensure  transparency  all 
decisions are published on its official website. The implementation capacity of its board is 
impaired by the fact  that two of the five members still  have to  be appointed.  It  needs more 
qualified staff, especially review experts and legal officials to deal with the increased number 
of complaints from economic operators. Its decision-making lacks consistency and the quality 
needs to be improved.  

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The introduction of the mandatory electronic submission of complaints on the e-procurement 
platform  is  a  positive  development,  as  all  complaints  are  now  handled  electronically.  In 
addition,  the  PRB  has  launched  a  revamped  website  that  includes  live  streaming  of  its 
sessions. This will allow for better analysis of decisions, the generation of statistical reports 
and greater transparency of this institution.  

6.9 

Company law  

The  EU  has  common  rules  on  the  formation,  registration  and  disclosure  requirements  of  a 
company,  with  complementary  rules  for  accounting  and  financial  reporting,  and  statutory 
audit. 

Kosovo has some level of preparation in the area of company law. Good progress was 
made during the reporting period, with the adoption of implementing legislation in the area 
of  corporate  accounting  and  audit  and  by  establishing  the  Public  Audit Oversight  Board, 
while  several  steps  were  taken  to  advance  the  implementation  of  the  law  on  business 
organisations, fostering a level playing field in the area. In the coming year, Kosovo should 
pay particular attention to:  

  further  strengthen  the  institutional  audit  oversight  structures  and  the  professional 

independence and objectivity of auditors and audit firms; 

  ensure further alignment with EU company law acquis. 

On  company  law,  Kosovo  took  concrete  steps  to  implement  the  Law  on  business 
organisations. It adopted two secondary acts on business registration, a unique identification 
number in the registration process and a fee calculation method, to reduce the administrative 
burden  on  businesses  and  the  administration.  However,  both  acts  still  need  to  show  their 
benefit in cost and time savings for businesses. Kosovo started preparations to develop a first 
corporate  governance  code.  Further  alignment  with  the  EU  company  law  acquis  is  needed, 
inter alia as regards the minimum capital requirement, shareholder rights, company takeovers, 
some aspects of cross-border mergers and of companies’ and foreign branches’ disclosure of 
information.  The  Kosovo  Business  Registration  Agency  is  responsible  for  online  business 
registrations  and  publications.  However,  the  Agency  does  not  publish  company  financial 
statements  or  information  on  voluntary  liquidation  and  bankruptcy  proceedings.  The 
registration  of  a  business  can  start  electronically,  but  must  be  confirmed  through  a  paper-
based  process.  The  Agency  has  concluded  memoranda  of  cooperation  with  counterparts  in 
Albania and North Macedonia.  

The Law on financial reporting on corporate accounting and auditing entered into force in 
2019.  Implementing  legislation  on  licensing  legal  auditors  and  (domestic  and  foreign)  audit 
companies was adopted in July 2019. Administrative instructions on audit independence and 
disciplinary measures were adopted in December 2019. The Law still needs to be aligned with 
the  relevant  EU  acquis  on  non-financial  reporting.  The  Kosovo  Council  for  Financial 
Reporting (KCFR) adopted a methodology for public audit oversight structures and organised 
staff training. In April 2019, the Public Audit Oversight Board (POB) was established as an 
executive body of the KCFR. A sustainable financing solution to enable the POB to function 
as the competent authority for public audit oversight, has yet to be found. Statutory auditors 
and  audit  firms  are  required  to  apply  the  international  standards  on  quality  control  and  are 
subject  to  public  oversight  by  the  POB.  Ongoing  training  should  be  ensured  for  certified 
auditors. Accounting associations and statutory auditors are required to submit a copy of their 
code of ethics. 

6.10 

Intellectual property law 

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The  EU  has  harmonised  rules  for  the  legal  protection  of  intellectual  property  rights  (IPR), 
and for the legal protection of copyright and related rights. Rules for the legal protection of 
IPRs  cover  for  instance,  patents  and  trademarks,  designs,  biotechnological  inventions  and 
pharmaceuticals.  Rules  for  the  legal  protection  of  copyright  and  related  rights  cover,  for 
instance, books, films, computer programmes and broadcasting. 

Kosovo has some level of preparation in this area. Some progress was made by aligning the 
legal framework on IPR with the EU acquis, adopting a National Strategy to Strengthen the 
Copyright System and reducing the backlog of applications. However, the lack of cooperation 
between  policy-making  and  enforcement 
to  hinder  effective 
enforcement of intellectual property rights.  

institutions  continues 

As  recommendations  from  the  previous  report  have  only  been  implemented  partly,  in  the 
coming year, Kosovo should in particular:  

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

  take adequate measures to fight counterfeit goods and digital piracy;  

  raise awareness of the protection of industrial property rights. 

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. Effective implementation of IPRs is hampered by an overall low level of 
public awareness,  still lengthy procedures for treating applications and limited enforcement, 
which  deters  rights-holders  from  pushing  charges.  Primary  and  secondary  legislation  on 
industrial property and copyrights require harmonisation. 

On  copyright  and  related  rights,  the  Ministry  of  Culture,  Youth  and  Sports  adopted  the 
2019-2023 National Strategy for Strengthening the Copyright System in June 2019. Under the 
strategy,  the  Ministry  has  appointed  the  members  of  a  Task  Force  against  Piracy  and 
Counterfeiting, including a representative from the State Prosecutor’s Office.  A commission 
for  determining  the  fees  to  be  paid  by  collective  management  organisations  and  cable 
operators  for  the  use  of  copyrighted  material  was  established  in  July  2019.  The  fees  are 
expected to be approved in 2020.  

On  industrial  property  rights,  Kosovo’s  laws  and  administrative  instructions  are  partly 
aligned with most of the EU acquis. Further progress was noted with amendments to the Law 
on patents adopted in July 2019. Legislation on patents, topographies and industrial design are 
partly harmonised. New legislation is needed on trademarks, trade secrets, patents, industrial 
design and integrated circuit topography.  

The  Agency  for  Industrial  Property  has  made  good  progress  in  reducing  the  backlog  of 
applications  for  patents,  trademarks  and  industrial  designs.  It  recruited  three  new  staff 
bringing  the  total  to  21.  Its  industrial  property  software  was  updated  in  line  with  the  latest 
version  provided  by  the  World  Intellectual  Property  Organisation.  Kosovo  still  needs  to 
develop  a  strategy  for  industrial  property  rights.  In  the  last  year,  it  set  up  a  system  for 
geographical indications which is now ready to process applications.  

The State Intellectual Property Council and the Task Force against Piracy and Counterfeiting 
are  the  main  bodies  tasked  with  coordinating  enforcement.  Coordination  between  police, 
customs  and  the  market  inspectorates  needs  to  be  strengthened.  Market  inspectors  are  still 
held back in their work by the need for police approval before launching investigations. The 

77 

 
 
 
scale  of  IPR  litigation  in  Kosovo  is  low  due  to  a  lack  of  prosecutors  and  judges  with 
specialised knowledge.  

The main IPR issues reported by the Kosovo Police’s Unit for Economic Crimes, Corruption 
and  Cybercrime  are  online  infringements,  websites  with  infringing  goods,  broadcasting, 
plagiarism and new trends in IP crime. 

Capacity-building,  cooperation  with  law  enforcement  bodies  and  awareness  raising  are  still 
needed  if  the  Law  on  Customs  Measures  for  the  Protection  of  IPRs  is  to  be  implemented 
effectively.  All  police  and  customs  officers  can  act  ex  officio  to  prevent  IPR  infringements. 
Statistics on IPR cases should be collected in a coordinated and systematic manner.  

During  2019,  Kosovo  Customs  initiated  verification  procedures  in  379  cases  for  a  value  of 
EUR 3,642,702. In cooperation with rights-holders they seized infringing goods for a value of 
EUR  1,832,390,  over  30  %  more  than  in  2018.  Substantially  more  counterfeit  items  were 
destroyed.  

6.11  Social policy and employment 

EU  social  rules  include  minimum  standards  for  labour  law,  equality,  health  and  safety  at 
work and non-discrimination. They also promote social dialogue at European Union level. 

Kosovo  is  at  an  early  stage  of  preparation  on  social  policy  and  employment.  There  was 
limited  progress  during  the  reporting  period,  in  particular  on  amending  health  and  safety 
regulations. The rate of fatal incidents at work decreased compared with last year.  

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

  continue  to  implement  the  2018-2022  strategy  for  employment  and  social  welfare,  and 

monitor results;  

  amend  and  enforce  the  Law  on  labour  in  line  with  relevant  EU  acquis,  in  particular  in 

relation to non-discrimination in employment and parental leave;  

  amend and adopt the Law on the Economic Social Council, enforce health and safety at 

work rules and take measures to further reduce workplace accidents; 

  ensure  better  targeting  and  delivery  of  social  services  in  municipalities  and  of  social 

assistance schemes. 

Kosovo needs to amend the Law on labour in line with the EU acquis, including EU rules on 
non-discrimination  in  employment  and  social  policy  and  maternity/paternity  leave.  Poor 
implementation of the existing Law, particularly in the private sector, remains a concern.  

Around 49% of children are registered as benefiting from social assistance, but only around 
10% of children with special needs. As many as 10% of children in Kosovo are involved in 
work,  of  whom  6.8%  work  in  hazardous  conditions,  with  the  problem  particularly  evident 
among the Roma and Ashkali communities.  

Kosovo aligned its regulations with the EU directives on occupational  health and safety at 
work  in  2019;  it  should  now  focus  on  their  implementation,  which  remains  limited.  The 
majority of workers are not covered by a health insurance or insurance against work-related 
accidents or illnesses. The Labour Inspectorate made efforts to improve its capacity with an 
increased  number  of  inspections  but  this  did  not  have  a  significant  impact  on  the  ground. 
Non-compliance  with  health  and  safety  measures,  especially  in  some  domains  such  as  the 

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building sector, remain prevalent. There were fewer fatal accidents at work, with 11 fatalities 
registered during the reporting period.  

On social dialogue, the 2014 General Collective Agreement, expired in 2017 without having 
been  implemented.  A  new  agreement  is  being  negotiated.  Amendments  to  the  Law  on  the 
Economic  Social  Council,  aiming  to  improve  its  capacities,  decision-making  and  overall 
performance, have not yet been adopted. Public sector trade unions were relatively active over 
the  past  year,  in  particular  in  demanding  salary  increases  and  organising  social  dialogue 
trainings  for  local  branches.  The  private  sector  unions  are  under  pressure,  with  cases  of 
retaliation for industrial action, and generally less organised as a result.  

On  employment  policy,  the  2018-2022  Sectoral  Strategy  (Ministry  of  Labour  and  Social 
Welfare)  and  the  2018-2020  Action  Plan  for  Increasing  Youth  Employment  remain  key 
documents. Although the targets were modest, a first assessment shows a low implementation 
rate. Capacities for implementing, monitoring and evaluating of such strategies are still under-
developed and heavily dependent on external support. For the next Sectoral Strategy, Kosovo 
should  ensure  a  more  strategic  approach,  better  mid-/long-term  planning  and  realistic  but 
ambitious  targets.  The  Employment  Agency  needs  to  significantly  improve  its  monitoring 
capacity and more human and financial resources. For the upcoming strategic cycle, Kosovo 
should build internal capacity to devise and follow up strategic commitments on employment, 
in close coordination with other policies (education, social inclusion, economic development, 
innovation, etc.).   

Kosovo continues to face structural labour market challenges stemming from rapid growth of 
the  working-age  population  not  matched  by  sustained  job  creation,  persistently  low 
participation of women  and generally precarious employment opportunities  (fewer than half 
of the employees have permanent work contracts).  

Education attainment is a key predictor of employment (and activation). The employment rate 
is 62.2% among people with tertiary attainment but only 12.4% for those with low education. 
Although  women  tend  to  attain  higher  education  levels  (e.g.  over  40%  active  women  hold 
tertiary  qualifications  against  20%  of  active  men),  they  remain  under-represented  in 
employment and are predominantly employed in public sectors such as education and health. 
Young  people  (15-24  years-old)  remain  most  affected  by  unemployment  and  inactivity.  In 
2019,  the  proportion  not  in  employment,  education  or  training  reached  32.7%.  Youth 
unemployment  remains  high  (49.4%),  particularly  among  women.  Demographic  pressures, 
joblessness growth pattern, a propensity towards emigration and poor education outcomes are 
key factors in the precarious position of young people in Kosovo. 

The  overall  activity  rate  stood  at  40.5%  in  2019  (40.9%  in  2018)  and  the  employment  rate 
was still low at 30.1% (slight up from 28.8% in 2018). Unemployment was at 25.7% in 2019 
down from 29.6%. It was higher among women, at 34.4% in 2019 (33.4% in 2018) and 22.6% 
among  men  (28.5%  in  2018).  The  employment  rate  for  women  was  only  14%  (slightly  up 
from  12.3%  in  2018),  compared  to  49%  for  men  (up  from  45.3%  in  2018).  Improvements 
were noted in the relative proportion of employees with long-term contracts (45.3% in 2019, 
compared to 25.5% in 2018) and temporary contracts (54.7% in 2019 compared to 74.5% in 
2018). The indicators that still give rise to most concerns are the high inactivity rate (59.5% in 
2019) and youth unemployment (49.4% in 2019). Unemployment is even higher (over 90%) 
in  the  Roma  and  Ashkali  communities.  Members  of  these  communities  usually  work  in  the 
informal  sector,  holding  insecure,  low-skilled  and  low-status  jobs  and  few  of  them  are 
registered as unemployed. Self-employment stood at 21.6% in 2019. 

The  Employment  Agency  is  the  key  body  implementing  employment  policy  in  Kosovo.  It 
continued  to  consolidate  its  management  and  operational  procedures  and  data  management, 

79 

 
 
and to review and refine the portfolio of active labour market programmes. However, further 
work  is  needed  to  improve  its  operational  capacity.  Some  progress  has  been  achieved  in 
improving  the  labour  market  information  system  but  a  fully-fledged  standardised  case 
management system is still lacking. The number of registered unemployed people declined to 
74,488,  compared  to  almost  96,000  in  2018.  Although  half  of  the  unemployed  have  a  low 
level of education attainment, they are under-represented among participants in the Agency’s 
active labour market measures.  

On social inclusion and protection, Kosovo needs to improve its targeting of the groups in 
need. Overall spending on social protection amounts to 6% of GDP, but this is mostly for old-
age and war veterans’ pensions; less than 0.5% of GDP is left for the social assistance scheme 
(SAS).  The  SAS  is  the  only  programme  that  targets  poverty  reduction  and  that  identifies 
beneficiaries  on  the  basis  of  household  income  and  assets.  It  has  many  inbuilt  features  that 
severely  limit  its  poverty  reduction  impact  for  families  with  children  and  disincentivise 
working-age  family  members,  creating  a  substantive  poverty  trap.  The  Ministry  for  Labour 
and  Social  Welfare  drafted  a  concept  document  to  address  these  issues  through  legal 
amendments but work is at an early stage. 

The  municipalities  did  not  allocate  sustainable  long-term  financing  for  social  services.  An 
initiative to earmark funding from the general grant for social services through changes in the 
Law on local finance has been pending for many  years. The Ministry for  Labour and Social 
Welfare, in  cooperation with  several  municipalities, signed memoranda of understanding on 
house building for families in  need. Municipalities have not  allocated sufficient  funding  for 
temporary  social  housing,  particularly  for  victims  of  domestic  violence  and  trafficking. 
Kosovo remains the poorest in the region, struggling with high levels of poverty and massive 
unemployment. It is estimated that 18% of the population lives below the poverty line (EUR 
45 per month) and 5.1 percent of the population below the extreme poverty line (under USD 
1.90  per  day).  Young  people  and  children  from  poor  households,  the  socially  vulnerable 
(including members of the Roma and Ashkali communities) and people with disabilities, do 
not  enjoy  equal  access  to  vital  health  and  education  services  due  to  financial  barriers, 
insufficient provision, parental disinterest, distance/transportation issues, and discrimination.  

On  non-discrimination  in  employment  and  social  policy,  Kosovo  has  not  yet  adopted 
implementing legislation for the Law on protection from discrimination. The authorities must 
address  discrimination  against  women,  particularly  those  belonging  to  minority  groups, 
especially as regards private sector recruitment. Discrimination against pensioners, especially 
when it comes to social services, and persons with HIV/AIDS is another issue of concern. The 
Ombudsperson report notes that the legal  and institutional  framework on  discrimination  has 
not  produced  satisfactory  results.  The  report  examines  in  particular  discrimination  at  work, 
which  is  often  difficult  to  prove,  especially  in  the  private  sector.  The  Ombudsperson  notes 
that  cases  related  to  discrimination  at  work  remain  the  same  compared  to  previous  years. 
Institutions continue to perform poorly when it comes to processing and investigating cases of 
discrimination. 

On  equality  between  women  and  men,  gender-based  discrimination  is  widespread  in 
recruitment, promotion, pay, contract length, maternity leave and sexual harassment at work. 
Current  regulations  discourage  the  recruitment  of  women,  particularly  in  the  private  sector. 
Limited access to childcare and flexible working arrangements are also considered barriers in 
this respect, as formal options for care beyond maternity leave are limited and family-friendly 
work schedules are often not on offer. Other challenges faced by women are a lack of care for 
the elderly, discriminations when it comes to access to property, and gender-based violence. 
The situation is even more serious in rural areas. 

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6.12   Consumer and Health Protection 

EU rules protect consumers’ economic interests and in relation to product safety, dangerous 
imitations and liability for defective products. The EU also ensures high common standards 
for  tobacco  control,  blood,  tissues,  cells  and  organs,  patients’  rights  in  cross-border 
healthcare,  and  serious  cross-border  health  threats  including  communicable  diseases,  and 
medicines for human and veterinary use. 

Kosovo is at an early stage of preparation in this area. There was limited progress overall, 
with  some  progress  on  previous  recommendations  by  adopting  implementing  legislation  for 
the  enforcement  of  the  Law  on  consumer  protection,  and  the  government’s  recognition  of 
independent  consumer  rights  organisations,  as  well  as  strengthened  inter-institutional 
coordination. There was limited progress on health, notably with the partial introduction of a 
basic  health  information  system,  and  the  establishment  of  free  physician  services  in  public 
health care institutions.   

In the coming year, Kosovo should: 

  amend  the  Law  on  consumer  protection  to  remove  problematic  articles  and  increase 

awareness on consumers’ rights and traders’ obligations;  

  allocate the necessary resources to allow implementation of the health sector reforms and 
for  strengthening  of  the  health  system  including  further  roll-out  of  the  electronic  public 
health information system;  

  adopt and start to implement the health promotion and education strategy. 

Consumer protection 

Kosovo’s  legislation  is  partly  aligned  with  the  acquis  on  consumer  protection.  In  2019,  it 
adopted  9  of  the  11  sub-legal  acts  needed  to  implement  the  Law  on  consumer  protection. 
However,  the  Law  does  not  comply  with  the  EU  acquis  on  mortgage  credit  and  alternative 
consumer dispute resolution. It requires products to be labelled with the flag of the country of 
origin, which is not in line with the EU acquis, while technical issues prevent the application 
of fines in case of non-compliance. 

Enforcement of consumer rights protection continues to be limited, pending the reform of the 
market inspectorate, but the addition of five independent consumer rights organisations to the 
Consumer  Protection  Council  enhanced  transparency  and  dialogue  with  civil  society.  The 
consumer  rights  portal  was  upgraded  to  facilitate  the  submission  of  complaints  and  provide 
real  time  statistics.  It  needs  to  be  further  upgraded  as  awareness  of  consumers’  rights  and 
traders’ obligations remains low.  

With regard to product safety, in May 2019 the Coordination Body for Market Surveillance 
launched  a  publicly  accessible  webpage  (RAPEX-Kosovo)  to  publish  alerts  on  non-food 
products  posing  serious  risks  to  consumers,  product  safety  news  and  consumer  safety 
information. In 2019, 202 dangerous products were withdrawn from the market. 

The provision on general safety requirement in the Law on general product safety needs to be 
amended.  

As  regards  non-safety  issues,  the  Law  on  consumer  protection  addresses  consumers’ 
economic interests, but it cannot be properly enforced due to the pending reform of the market 
inspectorate  and  weak  consumer  organisations.  The  Central  Bank  of  Kosovo  closed  two 
financial  institutions  on  the  grounds  that  they  had  violated  the  consumer  credit  rights  and 
obligations; one has contested the decision in court. Some steps were taken to consumer credit 

81 

 
 
agreements  governed  by  the  Central  Bank,  but  more  action  is  needed  to  address  unfair 
banking and consumer lending practices and to ensure consumer price transparency. 

Public Health 

In response to the COVID-19 outbreak, the government declared a public health emergency 
in March 2020 and introduced containment measures, including curfews, bans on gatherings, 
strict  restrictions  on  movement,  closure  of  schools  and  universities,  closure  of  restaurants, 
cafes  and  non-essential  shops,  suspension  of  public  transport  and  closing  of  borders. 
Measures  were  gradually  lifted  from  early  May  2020.  However,  in  response  to  increasing 
numbers  of  cases  from  early  June,  the  government  reintroduced  in  mid-July  several  public 
health measures, including obligatory wearing of facemasks, curfews and testing requirements 
for  entry  into  Kosovo.  On  14  August  2020,  the  Kosovo  Assembly  adopted  a  new  Law  on 
prevention  and  fight  against  the  COVID-19  pandemic,  in  order  to  provide  a  solid  legal 
framework for the required public health measures. 

The  pandemic  has  put  Kosovo’s  health  system  under  significant  strain.  Healthcare  workers 
have been mobilised to increase the ability to treat COVID-19 patients and testing capacity.  

Kosovo has positively responded to the EU’s offer to the Western Balkans to access several 
key EU initiatives and instruments in the context of the COVID-19 response. Kosovo became 
member  of  the  Joint  Procurement  Agreement  on  medical  countermeasures,    as  well  as 
observer  in  the  EU  Health  Security  Committee,  which  provides  access  to  the  EU  Early 
Warning  and  Response  System.  Kosovo  is  also  providing  the  Commission’s  data  collection 
system  on  COVID-19  and  nominated  a  correspondent  to  the  European  Centre  for  Disease 
Prevention and Control.  

The  EU  secured  EUR  5  million  immediate  support  to  provide  medical  equipment  and 
protective equipment to strengthen the capacity of the health-care system to fight COVID-19. 

On public health policy, Kosovo has yet to introduce a universal health coverage scheme and 
amend the Law on health insurance. It has not started to collect health premiums. The public 
health  information  system  is  still  not  functional  and  implementation  of  the  communication 
strategy  in  support  of  the  Law  on  health  insurance  has  been  further  delayed.  The  growing 
emigration of health workers has a detrimental impact on the health system.    

The 2020 overall budget for the health sector has been increased with 6% compared to 2019. 
The  increase  includes  higher  allocations  for  essential  pharmaceuticals  and  for  capital 
expenditures. 

There has been little progress on the health sector strategy. The scale of poverty means that 
around  one  fifth  of  the  population  have  very  limited  access  to  healthcare.  Access  to  basic 
healthcase  is  free,  but  spending  on  diagnostic  services  and  medications  is  not  reimbursed. 
High reliance on private out-of-pocket expenditures (estimated at 40% of total medical costs) 
mean that the economically most vulnerable have limited access to the health system.  

Only 65% of annual public health needs are covered by public spending, which mostly cover 
fixed costs, leaving less for direct patient costs (diagnosis, treatment and prevention). Health 
financing continues to be based predominantly on historical expenditure rather than forward-
looking  needs  assessments.  Institutional  accountability  has  not  increased  and  limited 
incentives have been introduced to improve productivity, efficiency and quality in the health 
sector.  Positive  steps  on  medicines  for  human  use  were  the  adoption  of  implementing 
legislation  on  price  regulation  and  approval  of  a  new  essential  medicines  list.  The 
pharmaceutical  stock  management  module  within  the  health  information  system  is  now 
operational.  

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Mental health services function as integrated services, with no notable developments in the 
reporting period. The comprehensive Law on tobacco control (in force since 2013) is still not 
implemented,  because  of  a  lack  of  political  will  and  the  poor  performance  of  enforcement 
authorities. The legislation on blood, tissues, cells and organs is not  yet fully  aligned with 
the  acquis.  More  human  and  financial  resources  are  needed,  and  administrative  and 
monitoring capacity should be strengthened.   

In  the  field  of  serious  cross-border  health  threats,  including  communicable  diseases, 
immunisation  coverage  remains  high  with  vaccination  rates  of  over  93%  reported  among 
school-age children. Kosovo started work on an action plan addressing recommendation from 
a  European  Centre  for  Disease  Prevention  and  Control  technical  assessment  report,  and 
adopted a 2019-2022 strategic action plan on antimicrobial resistance.  

Legislation  on  patients’  rights  in  cross-border  healthcare  is  partially  aligned  with  the 
acquis. For specialised health services that are not available in Kosovo, patients can benefit 
from  the  health  insurance  fund  for  health  services  abroad.  Kosovo  has  bilateral  agreements 
with  Albania,  Croatia  and  Turkey  on  certain  medical  services.  However,  available  funding 
covers only 45% of the needs of the population and it was not increased in 2019. 

There was some progres on the development and roll out across some health institutions of the 
e-health information system based on the European core health indicators. The system and its 
coverage  should  be  expanded  to  support  evidence-based  health  care  policy.  It  currently 
captures  data  on  patient  admissions,  discharges  and  transfers,  but  further  functionalities 
(pathology,  radiology,  blood  transfusion,  vaccination  and  other  interventions)  should  be 
added.  

The  2014-2020  cancer  screening  programme  is  ongoing.  Although  additional  funding  has 
been  provided  for  systematic  screening  for  cervical  and  breast  cancer,  the  cancer  incidence 
data  needs  improvement.  The  necessary  resources  should  be  allocated  to  allow  proper 
treatment  and  prevention.  Health  promotion  and  the  prevention  of  non-communicable 
diseases  remains  weak.  Kosovo  has  not  yet  adopted  a  2019-2021  strategy  on  health 
promotion and education  and made no progress on nutrition and physical activity. 

As regards health inequalities, Kosovo does not provide universal health insurance and out-
of-pocket  spending on health remains high.  For  economic reasons,  an estimated 18% of the 
population do not seek medical services in the event of illness. The situation of the Roma and 
Ashkali communities remains a source of concern given their very low immunisation levels 
and  particular  difficulties  in  accessing  healthcare  due  to  their  difficult  socio-economic 
conditions.  The  distribution  of  information  on  public  services  and  the  incidence  of 
discrimination have not improved.  

6.13   Education and culture 

The EU supports cooperation in education and culture through funding programmes and the 
coordination of Member State policy through the open method of coordination. The EU and 
the Member States must also prevent discrimination and ensure quality education for children 
of migrant workers, including those from disadvantaged backgrounds. 

Kosovo is at an early stage of preparation in the field of education and culture. There was no 
progress over the past year and the quality of education needs to be improved considerably.  

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

  systematically  apply  quality  assurance  mechanisms  at  all  education  levels  and  improve 

access to quality education at pre-school level and for disadvantaged groups; 

83 

 
 
  finalise  the  implementation  of  the  new  curricular  framework  for  basic  education  with 

quality textbooks and by providing sustainable training to teachers; 

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

demand;  

  improve  quality  assurance  in  higher  education  by  meeting  the  recommendations  of  the 
European  Association  for  Quality  Assurance  in  Higher  Education  and  revisting  the 
relevant  legislation  (such  as  the  Law  on  higher  education  and  the  Law  on  Kosovo 
Accreditation Agency).   

Public spending on education did not increase, remaining at 4.7% of GDP. As a reaction to 
the COVID-19 crisis, all schools in Kosovo were closed in March 2020 and remained closed 
until  the  summer  holidays.  Online  classes,  based  on  instructions  from  the  Ministry  of 
Education,  Science,  Technology  and  Innovation,  are  being  provided  for  all  levels  of 
education, from pre-school to higher education.  

Enrolment  in  primary and lower secondary education is  universal  with  100% of children 
attending  grades  1  to  5  and  90.5%  continuing  to  lower  secondary  school  (grades  6  to  9). 
86.8%  of  children  attend  secondary  school  (grades  9  to  12),  which  is  close  to  the  OECD 
average. Despite an increase, only 6.2% of children aged 0-5 attend early childhood education 
and  care,  well  below  the  OECD  average  (over  87%)  or  the  Education  and  Training  2020 
targets  (95%).  Currently,  there  are  only  44  public  kindergartens,  spread  over  23  of  the  38 
municipalities.  Government  plans  to  increase  this  number  are  progressing  very  slowly.  A 
higher percentage of children above 5 years old (92.5%) attend early childhood education and 
care  (until  compulsory  primary  education).  The  proportion  of  students  in  higher  education 
remains high, but the graduation rate is still low.  

The  quality  of  education  remains  poor.  In  the  2018  OECD  Programme  for  International 
Student  Assessment  (PISA),  Kosovo  again  (as  in  2015)  ranked  third  from  bottom.  Kosovo 
also  participated  in  the  2019  Trends  in  International  Mathematics  and  Science  Study 
(TIMMS), as well as in the 2021 Progress in International Reading Literacy Study (PIRLS). 
The authorities launched a wide-ranging curriculum reform in 2012, focusing on students and 
their competencies. While it was introduced to all schools in 2017, progress is hampered by a 
lack of suitable textbooks, teaching materials and teacher training.  

Kosovo continues to have a very high relative number of students (double the EU average). In 
higher  education,  there  are  still  many  studying  law  and  economics,  but  various  business 
surveys  have  identified  skills  shortage  in  the  areas  of  IT  and  engineering.  Teacher/student 
ratios remain unfavourable to students (1:41 in public and 1:60 in the private universities). 

Corruption  and  political  interference  remain  significant  problems  at  all  levels  of  education, 
particularly in higher education. Although there have been some improvements due to public 
scrutiny,  the  recruitment  and  promotion  of  academic  staff  is  mostly  not  merit-based  and 
scientific  achievements,  publications  and  performances  are  often  overlooked.  Insufficient 
action was taken to address cases of academic misconduct and plagiarism.  

Kosovo  has  not  yet  adopted  the  new  Law  on  higher  education  that  would  strengthen 
institutions’ autonomy and improve quality assurance and academic integrity.  

The  Kosovo  Accreditation  Agency’s  membership  of  the  European  Association  for  Quality 
Assurance in Higher Education (ENQA) was revoked in September 2019, following Kosovo’s 
failure to adhere to the  ENQA’s  rules  and standards. The Agency will have to  wait for two 
years until 2021 before it is eligible to reapply for membership. The Agency remains poorly 
resourced, with only four members of staff, and the board’s decision to cut a vast number of 

84 

 
 
programmes for not meeting the minimal accreditation criteria was met with undue criticism. 
A  new  director  was  appointed  in  March  2020,  after  the  Agency  was  managed  by  acting 
directors for a number of years.  

Half  of  all  upper  secondary  students  (almost  53  %  in  2018/2019)  choose  vocational 
education (VET) programmes. However, a huge proportion (97.4 %) of vocational education 
graduates continue to enrol in higher education. The VET system lacks practical and applied 
courses  in  most  programmes  and  there  is  little  cooperation  between  vocational  schools  and 
business  entities.  Where  such  cooperation  exists,  it  is  facilitated  mainly  through  donor  and 
private business projects. Teachers in VET centres have the necessary formal qualifications, 
but are not provided with adequate professional development opportunities. In addition, there 
is a lack of teaching materials and textbooks. There is still a discrepancy between the needs of 
the labour market and education outcomes. 

More efforts are needed to give children with disabilities access to quality education. In 2018, 
75 new assistants qualifies for working with children/students with special needs, adding to a 
first group of 54. Some 53 assistants were employed in 2019. 

Measures should be taken to address the high dropout rate among Roma and Ashkali children, 
e.g. supporting the work of the learning centres (mainly established and supported by donors). 
It is largely thanks to the learning centres that enrolment rates in compulsory education have 
increased among Roma and Ashkali children, and dropout rates have decreased. Although the 
government promised to contribute to their funding, it has yet to allocate budgetary resources; 
no  funding  was  allocated  for  these  centres  in  the  2020  budget.  Efforts  should  be  made  to 
tackle discrimination in universities and halls of residence. 

Since  2015,  2,800  students  and  staff  from  Kosovo  participated  in  Erasmus+  exchanges. 
Kosovo institutions participated in 10 capacity-building projects in higher education (three as 
coordinating partners). 

On  culture,  Kosovo  should  maintain  efforts  to  meet  the  standards  of  the  2005  UNESCO 
Convention on the Protection and Promotion of the Diversity of Cultural Expressions. Kosovo 
needs to progress on drafting the Law on cultural heritage, which should accurately reflect its 
commitments  under  Annex  V  of  the  Ahtisaari  Plan.  The  frequency  of  Implementation  and 
Monitoring Council meetings needs to be maintained in order to identify joint solutions to be 
reached between Kosovo and the Serbian Orthodox Church. Cultural cooperation with Serbia 
should be facilitated.  

As  regards  Kosovo’s  participation  in  the  Creative  Europe  programme,  in  2019,  three 
information sessions were organised in Pristina and Prizren to inform larger audiences about 
co-financing opportunities, calls and application procedures under the programme; however, 
without any successful project being funded in any action under the programme. A Creative 
Europe desk for Kosovo was established. 

On youth, Kosovo chaired the Governing  Board of the Regional  Youth  Cooperation Office 
(RYCO) in 2019 and two meetings were held.  

Kosovo  actively  joined  the  fifth  edition  of  the  European  Week  of  Sport  (23-30  September 
2019), under the framework of the Commission’s initiative “European Week of Sport Beyond 
Borders”. Sport activities were organised across Kosovo. 

6.14  Science and research 

85 

 
 
The  EU  provides  significant  support  for  research  and  innovation.  All  Member  States  can 
benefit  from  the  EU’s  research  programmes,  especially  where  there  is  scientific  excellence 
and solid investment in research. 

Kosovo is at an early stage of preparation for science and research. Limited progress was 
made  during  the  reporting  period.  In  2019,  Kosovo  improved  its  performance  in  Horizon 
2020.  

Since  recommendations  of  the  previous  report  were  not  fully  addressed,  Kosovo  should  in 
particular: 

  develop a strategic approach to the development, prioritisation and promotion of scientific 
research  and  innovation  and  ensure  higher  government  spending  on  research;  seek  to 
stimulate  investment  from  the  private  sector  by  completing  a  Smart  Specialisation 
Strategy; 

  continue efforts 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’s research and innovation policy remains underdeveloped. The legal basis consists 
of  a  Law  on  scientific  research  activities  and  a  Law  on  scientific  innovation,  transfer  of 
knoweldge  and  technology.  In  both  cases,  many  key  provisions  remain  unimplemented, 
including the requirement to develop a Kosovo-wide research programme. As a result, there is 
no strategic approach to the development, prioritisation and promotion of research activities.  

With  the  new  government  in  place,  a  restructuring  of  governmental  institutions  took  place 
with  innovation  being  included  in  the  portfolio  of  the  Ministry  of  Education,  Science, 
Technology and Innovation since February 2020. 

Considering  research  infrastructures,  Kosovo  recently  started  to  establish  closer  links  to 
GÉANT  (Europe’s  leading  collaboration  on  network  and  e-infrastructure  services),  and  a 
support project is ongoing that aims to integrate Kosovo better in the activities of this research 
infrastructure. 

Kosovo  started  work  on  an  R&D  infrastructure  map  to  collect  country-level  data  on 
laboratories and researchers.  

A  Smart  Specialisation  Strategy  is  being  developed  but  it  is  still  at  an  early  drafting  stage. 
Innovation  efforts,  mainly  driven  by  the  private  sector,  are  advancing  and  are  well 
coordinated with similar efforts in other countries. 

The  sector  continues  to  be  under-funded,  with  government  research  spending  amounting  to 
only  0.1%  of  GDP,  despite  a  0.7%  target  mandated  by  law.  The  funding  and  efforts  of  the 
Ministry of Education are geared to providing full or partial scholarships for students to study 
abroad,  mostly  for  master’s  courses  and  only  very  few  opportunities  for  PhD/postgraduate 
research.  

The quality of programmes preparing postgraduates for research careers is poor. Research is 
not  a  priority  for  universities,  with  most  of  the  funding  allocated  to  teaching.  Private  and 
public  higher  education  institutions  apply  very  uneven  criteria  for  promotion  based  on 
scientific research and publications. The exclusion of the Kosovo Accreditation Agency from 
both the European Association for Quality Assurance in Higher Education and the European 
Quality Assurance Register for Higher Education is a setback.  

86 

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

On framework programmes, Horizon 2020 has become the main international cooperation 
programme  for  Kosovo  allowing  multi-country  cooperation  with  EU  Member  States  and 
beyond. 

Kosovo  entities  have  participated  20  times  to  18  collaborative  actions,  Marie  Skłodowska-
Curie  actions  and  European  Research  Council  actions  of  Horizon  2020,  receiving  EUR  2.5 
million. Despite 2019 being by far Kosovo’s best year of participation with a success rate of 
20.4%  above  the  12%  overall  Horizon  2020  average,  its  performance  could  still  improve. 
Actions have been taken in this respect, in particular, with the national contact points network 
becoming fully operational, engagement through more training, better linking of researchers, 
exchanges of best practice and mentoring with other countries. Kosovo needs to step up these 
efforts.  

Kosovo participates in the European Cooperation in Science and Technology (COST), which 
enables researchers to participate easily in research and innovation meetings all over Europe.  

6.15  Trade issues  

The  EU  has  a  common  trade  and  commercial  policy  towards  third  countries,  based  on 
multilateral and bilateral agreements and autonomous measures. 

Kosovo is  at  an  early  stage of preparation  in  this  area.  Some progress over the past  year 
was  made  in  strenghtening  the  administrative  capacity  of  the  Ministry  of  Trade,  however 
efforts need to continue in view of Kosovos’s international and regional trade commitments. 
During  the  reporting  period,  the  100%  tariffs  on  goods  imports  originating  in  Serbia  and 
Bosnia  and  Herzegovina,  which  were  in  violation  of  the  Central  European  Free  Trade 
Agreement (CEFTA), hampered the development of a regional economic  area  (REA) in  the 
Western  Balkans.  In  April  2020,  the  tariffs  were  lifted  and  replaced  by  gradual  trade 
reciprocity  measures,  which  were  subsequently  abolished  by  the  new  government  in  June. 
The positive contribution of trade in services has partly offset Kosovo’s trade deficit, but the 
increasing trade deficit in goods is a matter of concern. Kosovo has not been able to make full 
use of the trade preferences of the Stabilisation and Association Agreement (SAA) with the 
EU. 

As  not  all  recommendations  from  the  previous  report  were  implemented,  Kosovo  should  in 
particular: 

  develop a trade policy to adress Kosovo’s growing trade deficit on goods and to expand 

trade on services;  

  ratify  and  implement  CEFTA  Additional  Protocol 5  on  trade  facilitation,  ratify  and 
implement Additional Protocol 6 on trade in services and appoint a negotiator and adopt a 
mandate  for  the  negotiation  of  Additional  Protocol 7  on  dispute  settlement.  Implement 
other committments under the multi-annual action plan for the development of a regional 
economic area (REA). 

Kosovo  is  at  an  early  stage  of  preparation  for  applying  for  WTO  observer  status.  In  this 
context, a memorandum on foreign trade regime has been prepared, but not yet processed. 

The  overall  volume  of  trade  with  the  EU  increased  by  25%  in  2019  and  reached  EUR  1.4 
billion. Over the last 10 years, bilateral trade has grown considerably (by 111%) and the EU 
remains  Kosovo’s  first  trading  partner,  accounting  for  47.5%  of  total  trade  (33%  of  total 
exports and 49% of total imports of goods). Although the overall trade balance is strongly in 

87 

 
 
favour of the EU (reaching a surplus of EUR 1.15 billion in 2019), Kosovo’s exports to the 
EU – though modest in absolute terms – increased by 34% in 2019, i.e. at a faster rate than 
imports from the EU. However, a clear strategy and measures to improve its deficit on goods 
is  lacking.  It  remains  essential  that  Kosovo  focuses  on  strengthening  competitiveness  and 
improving  opportunities  for  Kosovo  producers  and  exporters  by  making  full  use  of  trade 
preferences granted under the SAA.  

Following the adoption of a Law on trade safeguard measures, a dedicated commission was 
trained and became operational. The Ministry of Trade worked on the development of a trade 
policy document and laws on internal and external trade, aiming  at putting a comprehensive 
framework  for  domestic  and  international  trade.  The  capacities  of  the  ministry  improved 
further  thanks  to  relevant  training,  but  more  progress  is  needed  in  light  of  Kosovo’s 
international and regional trade commitments. 

In  April  2020,  Kosovo  lifted  the  100%  tariff  on  imports  from  Serbia  and  Bosnia  and 
Herzegovina that had been in place since November 2018 and were replaced by gradual trade 
reciprocity  measures  (revoked  in  June  2020).  The  100%  tariffs  went  against  Kosovo’s 
obligations  under  CEFTA,  were  not  in  the  spirit  of  the  SAA  and  undermined  regional 
cooperation, including the Regional Economic Area. In addition to political tensions, they led 
to  a  halt  of  imports  from  Serbia  and  Bosnia  and  Herzegovina.  The  measure  was  also 
detrimental to the investment environment. The lifting of the 100% tariff has enabled the flow 
of goods with both Serbia and Bosnia and Herzegovina to be restored.   

Despite the impact of the 100% tariffs on trade, the CEFTA area has remained Kosovo’s main 
export market, accounting for 43.2% of its total exports in 2019. Together with other parties, 
Kosovo  adopted  CEFTA’s  Additional  Protocol  6  (trade  in  services)  in  December  2019  and 
should proceed with its ratification. Kosovo also adopted the action plan for the establishment 
of  the  Single  Point  of  Contact  as  defined  by  the  Services  Directive,  which  includes  the 
establishment  of  the  Contact  Point  for  Services  as  stipulated  in  article  9.3  of  CEFTA’s 
Additional  Protocol 6.  These  two  mechanisms  should  serve  the  business  community  by 
reducing  trade  barriers.  Kosovo  remains  the  only  CEFTA  party  that  has  not  ratified 
Additional  Protocol  5  (trade  facilitation)  and  it  needs  to  appoint  a  negotiator  and  adopt  a 
mandate for the negotiation of Additional Protocol 7 (dispute settlement mechanism). 

In June 2019, Kosovo ratified its free trade agreement with Turkey (signed in 2013), which 
provides  for  the  phasing-out  (over  10  years)  of  customs  duties  on  a  list  of  products  and  a 
commitment to negotiate provisions on trade in services. There were no developments on the 
November  2018  memorandum  of  cooperation  with  the  European  Free  Trade  Agreement 
countries.  In  July  2019,  Kosovo  signed  an  Agreement  on  economic  cooperation  agreement 
with  the  Czech  Republic  and  in  December  a  partnership,  trade  and  cooperation  agreement 
with the United Kingdom (which can enter into effect once the UK ceases to be a party to the 
EU-Kosovo SAA).  

6.16  Enterprise and industrial policy  

EU enterprise and industrial policy strengthens competitiveness, facilitates structural change 
and  encourages  a  business-friendly  environment  that  stimulates  small  and  medium-sized 
enterprises (SMEs).  

Kosovo  remains  moderately  prepared  in  this  area.  Some  progress  was  made  in  further 
improving  the  business  environment.  There  continues  to  be  a  need  to  further  build  up 
inter-ministerial  coordination.  The 
administrative  capacity  and 
recommendations from the 2019 report were not fully implemented.  

to  ensure  stronger 

In the coming year, Kosovo should in particular: 

88 

 
 
  adopt  and  start  implementing  a  strategy  to  support  Kosovo’s  business  environment  and 

industrial development; 

  reorganise the Kosovo Investment and Enterprise Support Agency (KIESA) to improve its 
support schemes and provision of advisory services to SMEs and add an investor aftercare 
unit;  

  enhance  public-private  sector  dialogue  through  the  National  Council  for  Economic 

Development and make this body effective. 

Kosovo’s  enterprise  and  industrial  policy  is  characterised  by  a  piecemeal  approach  with 
poor inter-institutional coordination and no overall vision based on a solid needs assessment. 
It still needs to adopt a strategy to improve the business environment and promote industrial 
development and to earmark sufficient resources for its implementation and monitoring. The 
capacity  of  the  relevant  Ministry  to  provide  industrial  policy  advice  is  limited,  even  though 
this  should  be  its  main  function.  The  Kosovo  Investment  and  Enterprise  Support  Agency 
(KIESA) is responsible for implementing SME support programmes, attracting foreign direct 
investment (FDI) and following up the Small Business Act recommendations. KIESA needs 
reorganisation,  but  this  is  lagging  behind,  despite  increased  resource  allocation  in  recent 
years.  There  was  no  progress  on  setting-up  a  FDI  after-care  unit  or  redesigning  the  SME 
support and  advisory schemes. The National Council for Economic Development  (a public-
private  sector  dialogue  platform  tasked  with  addressing  “doing  business”  priorities)  has  not 
been  able  to  contribute  to  the  improvement  of  the  business  environment  by  eliminating 
barriers, supporting firms and attracting FDI. The relevant Ministry received 22 applications 
for the status of “strategic investor”, but only three passed the technical phase and have been 
evaluated. 

Kosovo made some progress on improving the business environment. In May 2019, it adopted 
a new strategy (covering 2019-2023) to tackle the high informality levels. There was a further 
reduction in the average time needed to set up a business, while the introduction of a unique 
identifier number for companies should further help cut red tape and make the administration 
more  transparent  and  efficient.  Despite  improvements  in  the  legislation  on  bankruptcy  and 
second chance, some challenges remain. Kosovo should develop an early warning system for 
SMEs  in  financial  difficulties  with  a  view  to  initiating  recovery  measures.  It  should  also 
further reduce the average cost and duration of bankruptcy proceedings. 

Despite improvements, Kosovo still lags behind in areas such as permits, access to electricity 
and the protection of minority investors. It took legislative steps to rationalise the number of 
inspection  bodies  and  streamline  procedures,  but  these  have  not  been  adopted  yet.  Further 
efforts  are  needed  to  boost  young  people  and  women’s  entrepreneurship  through  tailored 
policies  and  measures  to  address  key  challenges,  in  particular  access  to  finance,  asset 
ownership and skills. The rise in public sector salaries creates risks for competitiveness that 
call for actions to raise productivity and open new business opportunities.  

On  access  to  finance,  high  collateral  requirements  remain  a  significant  barrier  to  SME 
borrowing,  so  the  market  continues  to  require  the  expansion  of  credit  guarantees  to  support 
loans. Kosovo continued to  register a strong  growth of credit to  the private sector, reaching 
10%  in  December  (y-o-y)  as  credit  standards  eased,  in  particular  due  to  Kosovo  Credit 
Guarantee Fund guarantees for lending to SMEs. The Fund recorded a 36.8% increase in its 
SME  loans  portfolio  between  March  and  December.  Kosovo  should  create  satisfactory 
conditions for investment and commercial disputes settlement. The current dispute resolution 
system  is  characterised  by  unclear  mandates  and  jurisdiction  in  the  Basic  Court  of  Pristina, 
which  leads  to  delays  in  resolution  of  disputes  and  hampers  the  quality  and  consistency  of 

89 

 
 
decisions. A new commercial court is expected to process commercial cases more efficiently 
and reduce the backlog, but it will also have implications for the entire judicial structure that 
have yet to be properly assessed.  

On enterprise and industrial policy instruments, organisations from Kosovo submitted four 
applications  to  the  COSME  financed  Enterprise  Europe  Network  (EEN).  One  of  them  was 
selected to represent the EEN in Kosovo. An agreement was signed with the Kosovo Credit 
Guarantee Fund under the programme’s Loan Guarantee Facility, supporting SMEs’ access to 
finance. Four organisations joined the COSME Erasmus for Young Entrepreneurs network.  

6.17   Agriculture  

The  common  agricultural  policy  (CAP)  supports  farmers  and  rural  development.  This 
requires  strong  management  and  control  systems.  There  are  also  common  EU  rules  for 
quality policy and organic farming. 

Kosovo  has  some  level  of  preparation  on  agriculture  and  rural  development.  Limited 
progress  was  made  overall,  especially  in  the  implementation  of  the  annual  agri-rural 
development  programmes  and  its  evaluation,  but  progress  on  land  consolidation  and  land 
protection was insufficient.  

As  not  all  2019  recommendations  were  carried  out,  In  the  coming  year,  Kosovo  should  in 
particular: 

→  perform  a  qualitative  assessment  of  the  effectiveness  of  the  support  measures  provided 

under the agriculture and rural development programme;  

→  adopt the law on common market organisations; 

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

legislation on spatial planning. 

On  horizontal  agricultural  issues,  Kosovo’s  institutional  set-up  includes  the  necessary 
systems  for  the  development  and  implementation  of  the  agricultural  and  rural  development 
policy. The sector is affected by a predominance of small farms and fragmented arable land. 
In 2019, the agricultural budget (direct payments and grants) rose to EUR 49.6 million. The 
2020  budget  for  direct  payments  and  rural  development  measures  increased  by  5  percent. 
Additional  positions  were  created  in  the  Ministry  of  Agriculture.  The  Ministry  adopted  the 
annual  direct  payments  and  rural  development  programme.  It  has  yet  to  decouple  direct 
payments from production and to introduce cross-compliance measures. While internal audit 
was  strengthened,  the  lack  of  administrative  capacity  for  evaluation,  monitoring  and 
accounting within the Agency for Agricultural Development remains a challenge. Kosovo is 
in the process of establishing an integrated administration and control system and upgrading 
its  land  parcel  identification  system;  it  has  already  established  farm  accountancy  data 
network.  

No  progress  was  made  in  establishing  common  market  organisations.  The  Ministry’s 
legislative workplan provides  the relevant Law to be drafted and adopted in 2020.  

The agriculture and rural development programme was improved to a certain extent and now 
includes  support  for  small  farmers.  The  system  for  monitoring  and  evaluating  grants  and 
subsidies has still to be improved, and the impact and effectiveness of support measures under 
the  programme  require  assessment.  The  programme  should  be  reviewed  and  updated  to 
improve the efficiency of investments in the sector (e.g. farms, primary food processing, rural 
job creation, land consolidation, irrigation).  

Progress  on  quality  policy  was  limited.  The  legislation  still  has  to  be  aligned  with  the  EU 

90 

 
 
acquis and implemented.  

Organic  farming  is  governed  by  the  2018-2021  action  plan  for  organic  agriculture,  with 
certification  by  two  international  organisations  (in  the  absence  of  a  dedicated  domestic 
agency).  

Progress on land consolidation and protection was insufficient. A more strategic approach is 
needed on the latter. Kosovo still has to establish a clear action plan and a taskforce, involving 
the Ministry of Agriculture and Rural Development, the Ministry of Environment and Spatial 
Planning and local authorities, to address the steady loss and degradation of farm land. 

6.18  Food safety, veterinary and phytosanitary policy 

EU  hygiene  rules  for  food  production  ensure  a  high  level  of  food  safety.  The  rules  ensure 
animal  health  and  welfare,  the  safety  of  food  of  animal  origin  and  animal  nutrition,  the 
quality of seed, plant protection material and protection against harmful organisms.  

Kosovo  has  some  level  of  preparation  in  the  area  of  food  safety,  veterinary  and 
phytosanitary policy. Some progress was made in adopting standard operating procedures on 
food and feed control at all stages and in developing annual and multi-annual control plans.  

As  not  all  2019  recommendations  were  carried  out,  in  the  coming  year,  Kosovo  should  in 
particular: 

→  implement an integrated food control system, including by transfering inspectors from the 

municipalities to the Food and Veterinary Agency;  

→  select  the  operator  for  managing  the  rendering  plant  and  animal  by-product  collection 

system and put into operation the animal by-product collection and disposal system; 

→  implement  disease  control  and  surveillance  programmes  and  inform  the  European 

Commission on the results. 

Kosovo  made  some  progress  aligning  the  food  and  feed  safety  legislation,  and  developed 
standard operating procedures for food and feed checks and controls. It drafted 19 laws and 
secondary acts. It should draft various standard operating procedures and complete the legal 
framework  so  that  it  is  in  line  with  the  acquis.  Kosovo  should  transfer  inspectors  from 
municipalities 
to  ensure  consistent 
implementation of food safety legislation and EU best practices.   

the  Kosovo  Food  and  Veterinary  Agency 

to 

The control system governing the production of poultry meat products intended for export to 
the EU received a positive assessment, so Kosovo is placed on the list of countries approved 
to export poultry meat products with raw material originating from the EU. Kosovo developed 
new tests and is performing proficiency testing with EU reference laboratories, but has not yet 
obtained an accreditation.  

On  veterinary  policy,  the  Food  and  Veterinary  Agency  should  continue  to  design  and 
implement  a  comprehensive  disease  monitoring  and  control  system,  in  line  with  EU 
legislation and World Organisation for Animal Health requirements. The long-term planning 
and  implementation  of  programmes  to  eradicate  diseases  that  are  endemic  in  Kosovo  still 
requires to be improved. The same applies to animal health controls at farm level and on the 
transport  of  animals,  transport  at  livestock  markets  and  transport  of  stray  animals.  The 
implementation of programmes in these areas is not satisfactory, with problems mostly due to 
the lack of in-service training and education programmes for field veterinarians.  

On  animal  health,  a  multi-annual  animal  disease  control  and  surveillance  programme  is  in 
place.  As  part  of  regional  efforts  to  control  and  eradicate  rabies,  the  Agency  resumed 

91 

 
 
vaccination  campaigns  with  EU  support.  However,  it  lacks  funds  and  human  resources,  so 
implementation of disease surveillance and control programmes is incomplete. 

The system for the collection and disposal of animal by-products is not functional despite the 
existence  of  a  new,  equipped  rendering  plant.  The  Agency  is  due  to  select  an  operator  to 
manage the rendering plant and the collection system in 2021. 

No progress was made on animal identification and registration, where the under-reporting 
of animal movements remains a challenge. The Agency has yet to adopt measures to enforce 
the relevant regulation at the level of livestock markets, slaughterhouses and transport. 

No progress was made on identifying basic cross-compliance measures in the areas of food 
safety, animal health and welfare.   

With  regard  to  the  phytosanitary  matters,  some  progress  was  made  on  the  completion  and 
harmonisation  of  the  legal  framework  on  plant  protection  products,  fertilisers,  plant 
quarantine and seeds and plant breeders' rights. A total of 15 new administrative instructions, 
four amendments to existing administrative instructions and two legislative amendments were 
drafted.  15  standard  operating  procedures  were  developed  for  the  implementation  of  the 
administrative instructions and laws. The Agency should secure sufficient funding and human 
resources to implement these legal acts, once adopted.  

The Kosovo Institute of Agriculture (as the only scientific body supporting the phytosanitary 
sector) should implement the quality assurance system and complete the accreditation of the 
plant protection laboratory. 

6.19  Fisheries 

The  common  fisheries  policy  lays  down  rules  on  fisheries  management,  protects  living 
resources  of  the  sea  and  limits  the  environmental  impact  of  fisheries.  This  includes  setting 
catch  quotas,  managing  fleet  capacity,  rules  on  markets  and  aquaculture  and  support  for 
fisheries and coastal communities.  

Kosovo is still at an early stage of preparation in the area of fisheries. No progress was made 
in the reporting period. Since none of the last reports’ recommendations were implemented, in 
the coming year, Kosovo should in particular:  

  further align its market policy with the acquis; 

  establish an inventory of fish species. 

Kosovo has no coastline, so the acquis on catch quotas, inspection and control is of limited 
applicability.  For  its  fisheries  sector  (which  consists  of  aquaculture  operations),  it  needs  to 
establish a market policy in line with the acquis, as well as an inventory of fish species and 
stronger  administrative capacity for policy management, inspection and control.  

The Ministry of Agriculture grants subsidies to registered producers, but these are limited and 
reflect neither the potential for jobs and exports nor the market value of the sector. 

6.20  Environment and climate change  

The  EU  promotes  strong  climate  action,  sustainable  development  and  protection  of  the 
environment. EU law contains provisions addressing climate change, water and air quality, 
waste  management,  nature  protection,  industrial  pollution,  chemicals,  noise  and  civil 
protection. 

Kosovo  is  at  an  early  stage  of  preparation  on  environment  and  climate  change.  Limited 
progress  was  achieved  during  the  reporting  period.  There  was  some  improvement  on 

92 

 
 
environmental  reporting  and  air  quality  monitoring.  Stronger  political  will  is  needed  to 
address  environmental  degradation  and  climate  change  challenges.  Many  of 
the 
recommendations  from  the  previous  report  are  still  pending.  In  the  coming  year,  Kosovo  is 
encouraged  to  considerably  step  up  ambitions  towards  a  green  transition  and  should  in 
particular: 

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

permanent measures to reduce air and water pollution; 

  continue  to  increase  the  waste  collection  coverage,  notably  with  the  introduction  of 
separation of waste and recycling, introduce circular economy measures to reduce waste 
and address the issue of illegal dumpsites;  

  enforce  legal  provisions  on  environmental  liability,  damage  and  crime;  implement  the 
polluter  pays  principle  and  create  and  start  a  permanent  campaign  for  raising  public 
awareness on environmental protection; 

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

Environment 

As  regards  horizontal  issues,  Kosovo  should  update  and  implement  the  2011-2021 
environment  strategy.  Insufficient  funding  and  administrative  capacity  prevent  the  proper 
implementation  of  the  current  strategic  framework.  The  lack  of  alignment  with  the 
Environmental Liability Directive undermines the effectiveness of environmental protection. 
There has been some progress on strengthening Criminal Code provisions on environmental 
crime,  but  they  have  remained  ineffective  to  date.  The  environmental  inspectorates  lack  the 
capacity for effective enforcement. Implementation of the impact assessments law needs to be 
considerably improved. Interinstitutional coordination and civil society involvement remains 
limited.  Awareness  raising  is  mostly  left  to  the  international  community  and  civil  society 
organisations. Some planned investments have been cancelled or postponed due to delays in 
land  allocation  or  a  lack  of  resources  for  the  operation  and  maintenance  costs  of 
infrastructure.  

Air  quality  continues  to  pose  a  major  threat  to  health.  The  authorities  failed  to  adopt  and 
implement  measures  to  improve  it,  in  particular  trough  emission  reduction  plan.  The  air 
quality  strategy  is  still  not  enforced.  Uncontrolled  pollution,  notably  from  outdated  thermal 
power plants, household heating, traffic, industrial emission and the incineration of waste and 
other toxic materials, calls for urgent action. Measures to enforce the ban on coal for heating 
are  not  effective  and  subsidies  should  be  introduced  for  other  forms  of  heating.  Air  quality 
plans  have  not  yet  been  prepared  for  zones  in  which  pollutants  levels  clearly  exceed  limit 
values. There has been some progress on the real time monitoring of air quality. 

The solid waste management system continues to be unsustainable. The legal framework is 
partially aligned with the EU acquis, but secondary legislation is still needed on to extended 
producer responsibility and the polluter pays principle. The Law on waste needs to be further 
aligned  with  the  Waste  Framework  Directive.  Implementation  is  deficient  and  most  waste 
ends  up  in  landfills  that  are  not  properly  managed,  or  illegal.  Despite  efforts  to  get  rid  of 
illegal  dumpsites,  they  continued  to  proliferate  (from  1,572  in  2017  to  2,529  in  2019)  and 
represent  a serious public health risk, in  particular due to  hazardous waste and groundwater 
contamination.  Waste prevention and monitoring remain  a  challenge. The current  collection 
rate  is  70%  and  less  than  40%  of  solid  waste  is  disposed  of  in  managed  facilities.  Kosovo 

93 

 
 
should  introduce  legal  and  practical  measures  to  reduce  waste  and  increase  recycling  and 
recovery in  line with  circular economy principles. Municipal waste management plans have 
not been adopted by all municipalities. The 2013-2022 waste management strategy and action 
plan are only partly reflected in local planning documents. The coal ash deposit lake operated 
by  the  Kosovo  Electricity  Company  and  the  Mirash  landfill  in  Obiliq/Obilić  should  be 
urgently and permanently closed and rehabilitated. 

No progress was made on aligning water legislation with the EU acquis. Kosovo has a 2017-
2036 water strategy, but the level of alignment with EU legislation remains very low. More 
needs to be done to ensure the implementation the Law on water. Water resource monitoring 
networks  are  still  incomplete,  in  particular  for  groundwater,  and  water  protection  zones  are 
not being monitored or properly managed. Urgent efforts are required to ensure that the river 
basin  district  authority  becomes  operational.  No  progress  was  achieved  in  preparing 
management  plans  for  all  river  basins.  There  was  some  progress  on  cooperation  with 
neighbouring countries on integrated water management and flood protection. Some progress 
was  achieved  with  the  planning  and  construction  of  wastewater  treatment  plants.  Tariff 
collection needs to be improved and water losses to be reduced, especially commercial losses. 
Dam safety and management are inadequate, as are flood risk mapping and prevention. A lack 
of treatment facilities means that untreated sewage and discharge remain the main sources of 
water pollution. Kosovo should identify agglomerations and sensitive areas, in  line  with  the 
Urban  Waste  Water  Treatment  Directive.  Water  reservoir  dams  management  needs  to  be 
improved to meet water demand, especially in the light of water stress resulting from climate 
change.  The  cumulative  effect  of  the  construction  of  numerous  small  hydroelectric  power 
plants harms the environment. 

The  2016-2020  action  plan  for  biodiversity  is  only  partially  implemented.  No  progress  was 
made in the area of nature protection. Kosovo became a member of the International Union 
for  Conservation  of  Nature  and  extended  protected  area  status  to  more  of  its  territory.  Yet, 
those  are  polluted  and  poorly  maintained.  Kosovo  has  taken  steps  to  start  inventories  and 
mapping of natural habitats and biodiversity, but the designation of Natura 2000 sites is still at 
a  very  early  stage  due  to  a  lack  of  administrative  capacity.  Some  progress  on  forestry  was 
made  on  planning  and  management,  with  the  adoption  of  relevant  secondary  acts. 
Deforestation and illegal logging remain problematic.  

No developments were noted on alignment with the EU acquis on industrial pollution and 
risk  management,  which  remains  at  an  early  stage.  Insufficient  enforcement  of  legislation 
and polluter accountability is  hampering the setting-up of a system  for preventing industrial 
and chemical accidents. Hazardous mine waste, industrial discharge into rivers and industrial 
dumpsites continue to pose serious threats to soil and water. No location has been established 
for the future hazardous waste storage facility.  

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

Kosovo has no legislation on noise and there were no developments in this area.  

Kosovo  is  not  part  of  the  Union  Civil  Protection  Mechanism,  but  benefits  from  regional 
civil protection programmes under the Instrument for Pre-Accession Assistance. Kosovo can 
also benefit from certain tools under the Union Civil Protection Mechanism such as trainings, 
exercises,  prevention  and  preparedness  projects  and  exchange  of  experts.  It  has  not  yet 
established  an  operational  centre  and  emergency  communication  system.  The  COVID-19 
highlighted the need to strengthen the legal framework and institutional capacities as well as 

94 

 
 
human  and  financial  resources  of  civil  protection  authorities  also  with  regard  to  health 
emergencies.  Kosovo  is  encouraged  to  participate  more  actively  in  the  activities  under  the 
Union  Civil  Protection  Mechanism  (UCPM),  such  as  trainings,  exchange  of  experts, 
prevention and preparedness projects, exercises, peer reviews and advisory missions.  

Climate change 

Implementation of the climate change strategy is still at an early stage. Kosovo relies heavily 
on  coal  and  is  not  complying  with  the  emission  ceilings  established  under  its  National 
Emission Reduction Plan (NERP).  

Kosovo  made  no  progress  on  aligning  with  EU  legislation.  It  still  has  no  climate  change 
adaptation strategy. The Council for the Environment and Climate Change and climate change 
coordinator  took  no  concrete  measures  to  mainstream  climate  action  or  raise  public 
awareness,  and  there  is  little  evidence  of  policies  being  aligned  with  climate  change 
objectives.  Administrative  capacity  and  awareness-raising  need 
to  be  strengthened 
considerably  at  all  levels.  The  2019-2028  climate  change  strategy  and  action  plan  are  not 
properly implemented.  

Although  Kosovo  is  not  a  signatory  to  the  UN  Framework  Convention  on  Climate  Change 
and  therefore  does  not  have  a  nationally  determined  contribution  under  the  2015  Paris 
Agreement,  full  implementation  of  its  climate  change  strategy  should  serve  as  a  guide  to 
achieving the objectives of the Agreement.  

6.21   Transport policy 

The EU has common rules for technical and safety standards, security, social standards, state 
aid  and  market  liberalisation  in  road  transport,  railways,  inland  waterways,  combined 
transport, aviation and maritime transport. 

Kosovo  is  at  an  early  stage/has  some  level  of  preparation  in  the  area  of  transport  policy. 
Limited  progress  was  achieved,  and  further  efforts  are  needed  to  strengthen  the 
administrative  capacity  for  all  transport  modes.  There  was  no  progress  in  completing  key 
sector  reforms  and  the  2019  recommendations  remain  valid.  In  the  coming  year,  Kosovo 
should in particular: 

→ secure necessary resources and improve road safety by targeting the reduction of fatalities 
and establish a system for continuous road crash data collection;  

→  strengthen  the  capacity  of  the  railway  regulator  and  ensure  its  financial  and  operational 
independence; 

→  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; 

→  pursue  efforts  to  comply  with  the  requirements  under  the  first  transitional  phase  of  the 
European Common Aviation Area agreement.  

On general transport issues, Kosovo needs to maintain its active involvement in Transport 
Community  Treaty  meetings.  Kosovo’s  key  document  in  this  area  is  the  2015-2025 
Multimodal Transport Strategy and action plan need to be updated in line with recent  trends 
on  the  environment,  greener  transport  projects  and  intelligent  transport  system  (ITS).  The 
legal framework remains not aligned with the EU  acquis on summertime arrangements, and 
procedures and criteria for the award of public service contracts. There are master plans for 
each  transport  mode,  but  administrative  capacities  and  network  maintenance  remain  weak. 

95 

 
 
Kosovo’s investigation body for air and railway accident is independent from the regulatory 
authority.  However,  it  has  not  yet  appointed  a  staff  member  in  charge  of  investigating 
railways  accident.  Further  efforts  are  required  to  transpose  the  ITS  Directive  in  full  and 
implement  relevant  domestic  laws.  Kosovo  has  yet  to  adopt  an  overall  ITS  strategy  and 
allocate resources for ITS. 

On  road  transport,  efforts  are  ongoing  to  update  the  legal  framework  in  relation  to  road 
safety audits, inspections and safety management. No progress was made on the adoption of a 
5-year road maintenance plan. The implementation of legislation continues to face delays due 
to a shortage of inspectors and qualified staff the Ministry of Infrastructure. Implementation 
of the legislation on the transport of dangerous goods, including through checks, needs to be 
improved. No progress was made on following up the CONNECTA report recommendations 
establishing  a  country-wide  road-crash  data  system  nor  on  transposing  EU  acquis  on 
passengers’ rights.  Kosovo is  not  a member of the  Interbus Agreement.  The introduction of 
digital tachographs continues to be held back by the fact that Kosovo does not have access to 
the  associated  digital  infrastructure  (country  codes).  Kosovo’s  legal  framework  is  partially 
aligned  with  the  EU  acquis  on  common  rules  for  access  to  the  international  road  haulage 
market.  There  was  no  progress  on  aligning  legislation  on  clean  and  energy  efficient  road 
transport vehicles or the development of an alternative fuel infrastructure.  

Kosovo’s  legislation  on  rail  transport  needs  to  be  updated,  in  particular  in  relation  to 
accident investigation. It made no progress on the adoption of a 5-year rail maintenance plan. 
Significant  efforts  are  needed  to  rehabilitate  and  extend  rail  transport  for  both  freight  and 
passengers. The fourth railway package has been partially implemented. The rehabilitation of 
the rail route 10 is ongoing and a pre-feasibility study has been launched for the rehabilitation 
of railway route 7. In November 2019, railway authorities signed the Declaration on European 
Railway Safety Culture, which aims to raise awareness and promote a positive safety culture 
throughout the industry. On air transport, Kosovo is part of the European common aviation 
area  and  covered  by  the  single  European  sky  arrangements.  The  sector  continues  to  face 
challenges  arising  from  the  fact  that  Kosovo  is  not  a  member  of  several  international  civil 
aviation  organisations.  The  lack  of  revenue  from  upper  airspace  management  continues  to 
constrain its ability to invest in training and infrastructure  development. The Air Navigation 
Service Agency and the Civil Aviation Authority face funding difficulties and staff shortages.  

Infrastructure improvements at Pristina International Airport are ongoing, including a runway 
extension and upgrade of the instrumental landing system. 

Regarding  aviation  security,  Kosovo  is  committed  to  fulfil  EU  requirements,  international 
standards and recommended practices to prevent “Acts of Unlawful Interference”.  

No progress has been made on developing an intermodal transport strategy.  

6.22  Energy  

EU  energy  policy  covers  energy  supply,  infrastructure,  the  internal  energy  market, 
consumers,  renewable  energy,  energy  efficiency,  nuclear  energy  and  safety,  and  radiation 
protection.  

Kosovo has some level  of preparation  in the field of energy. There was  some progress in 
this area, notably on alignment with the EU acquis and on the increase of renewable energy 
investments.  However,  energy  sector  diversification  is  slow  and  Kosovo  remains  heavily 
reliant  on  coal,  which  in  addition  to  being  a  dominant  greenhouse  gases  emission  source, 
causes  serious  health  and  environmental  hazards.  Kosovo  needs  a  strategic  focus  on  a 
comprehensive  green  agenda,  in  line  with  EU  goals,  including  a  gradual  shift  from  coal  to 
renewables and increased energy efficiency in all sectors.  

96 

 
 
As  recommendations  from  the  previous  report  were  only  partially  addressed,  in  the  coming 
year, Kosovo should:  

→  finalise  the  environmental  upgrade  of  Kosovo  B  thermal  power  plant  and  prepare  for 

decommissioning works of the Kosovo A thermal power plant;  

→  operationalise  the  Energy  Efficiency  Fund  and  start  implementing  energy  efficiency 
projects in municipalities. Introduce energy efficiency incentives in residential and private 
sectors;   

→  update Kosovo’s energy strategy with a main focus on renewables, energy efficiency and 
decarbonisation  targets.  Take  measures  to  enable  a  cost-effective  deployment  of 
renewable energy and introduce renewable energy auctions; 

→  adopt a plan for the gradual adjustment of energy tariffs, reflecting expected increases in 

costs, and including mitigation measures for vulnerable consumers.  

Kosovo’s  competitiveness  continues  to  be  undermined  by  its  unreliable  and  undiversified 
energy  supply.  The  outdated  power  system  relies  on  two  old  lignite  thermal  power  plants 
which account for around 90 % of its electricity production, but also for significant heavy air 
pollution  and  environmental  problems.  The  energy  sector  is  the  main  source  of  greenhouse 
gas  emissions.  The  2017-2026  energy  strategy  needs  to  be  revised  and  steered  towards 
decarbonisation. 

Some developments took place on security of supply. A new Connection Agreement between 
the  Kosovo  transmission  system  operator  (KOSTT)  and  the  European  Network  of 
Transmission  Systems  Operators  for  electricity  (ENTSO-E)  has  been  approved,  but  has  not 
yet entered into force. Its entry into force should lead to the operationalisation of the recently 
built  400kV  interconnection  line  between  Kosovo  and  Albania,  which  has  so  far  remained 
dormant.  

Despite investment and maintenance in the power transmission system, more focus is needed 
on the reduction of losses  in  electricity distribution.  There was  no progress  in  aligning with 
the EU acquis in the area of compulsory oil and petroleum reserves.  

Kosovo  is  exploring  possibilities  for  gas  interconnectors  with  neighbouring  countries.  The 
impact of a gas pipeline between Kosovo and Albania (Alkogap), based on the trans-Adriatic 
Pipeline (TAP) project, has been assessed and a pre-feasibility study has been launvhed on a 
gas pipeline from North Macedonia to Kosovo.  

The internal  energy market continues  to  be undermined by insufficient  regional  economic 
integration.  

The  fate  of  the  project  to  build  a  new  500  MW coal-based  power  plant  (“Kosova  e  Re”)  is 
unclear,  after  the  company  selected  by  the  Kosovo  government  to  build  the  new  plant 
announced in March 2020 that it would not proceed with the project. Several aspects of the 
project,  including  its  potential  impact  on  public  finances,  electricity  prices  for  consumers, 
biodiversity, climate change  and the environment, as well as its compatibility with  state aid 
rules, had raised questions. The new government supports the project but there is no clarity on 
timelines and financing options. 

Works to enhance the environmental performance of Kosovo B thermal power plant started in 
2020  and  are  expected  to  bring  levels  of  gaseous  emissions  into  line  with  the  EU  acquis. 
Preparations are ongoing for the decommissioning of defunct units at Kosovo A. There is an 
urgent need to find a location for the disposal of hazardous waste. The legal framework needs 
to be aligned with the EU Directives on large combustion plants and industrial emissions. In 

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27 March 2020, the Ministerial Council of the Energy Community found that Kosovo failed 
to transpose these Directives.  

Tariffs for households do not yet reflect costs. Wholesale prices in the electricity market are 
fully deregulated, but the regulation of supply prices has again been extended. In view of the 
expected  upward  price  pressure,  Kosovo  needs  to  develop  a  programme  to  protect  socially 
vulnerable customers, in line with Energy Community requirements.  

The  Energy  Regulatory  Office  has  been  without  a  chairperson  for  the  last  3  years,  and  its 
independence continues to be undermined by political interference.  

There  was  some  progress  on  renewable  energy  sources,  notably  an  increase  of  new 
investments, especially in wind and solar. By the end of 2019, Kosovo had registered 76 MW 
of  hydropower,  34  MW  of  wind  power  and  10  MW  of  solar  power,  for  a  total  capacity  of 
around 120 MW. Works started on  a new biomass heating plant. The development of small 
hydropower  plants  faced  strong  public  resistance  due  to  concerns  over  their  environmental 
impact. New projects should comply with the EU acquis on concessions and the environment, 
and  take  account  of  the  impact  on  areas  of  high  natural  interest.  Competitive  bidding 
procedures for renewable energy projects are undermined by the use of excessive fixed feed-
in  tariffs  by  the  Energy  Regulatory  Office.  In  January  2020,  the  Basic  Court  in  Pristina 
suspended  the  Office’s  decision  to  raise  the  fixed  feed-in  tariffs  for  solar  energy.  Kosovo 
should  introduce  renewable  energy  auctions  and  enable  the  cost-effective  deployment  of 
renewable energy. While the legislation is partially aligned with the EU acquis, the electricity 
market should be restructured to facilitate the integration of renewable energy generation.  

There  was no progress  on meeting  the requirements  for the use of biofuels  in  transport. An 
administrative instruction on biofuels  and the adoption of a new  Law on trade in  petroleum 
products and renewable fuels have been pending for over four years.  

There was some progress on energy efficiency with the adoption of implementing legislation 
on  the  energy  performance  of  buildings  and  municipalities  developing  action  plans.  The 
capacity  to  monitor  the  implementation  of  energy  efficiency  policy  remains  very  limited. 
Kosovo  needs  to  bring  into  operation  the  monitoring  and  verification  platform  for  energy 
savings. Implementing legislation for the Law on  energy efficiency, in particular the energy 
efficiency action plan, is pending.  

Kosovo should prioritise energy efficiency investments in residential buildings and the private 
sector  (which  account  for  50%  of  final  energy  consumption).  The  board  of  directors  of  the 
new Energy Efficiency Fund was appointed in the reporting period.  

There  was  limited  progress  on  nuclear  safety  and  radiation  protection.  The  capacities  of 
the  Nuclear  Safety  and  Radiation  Protection  Agency  remain  weak  and  it  has  insufficient 
financial  resources  to  deliver  on  its  mandate.  Kosovo  has  still  not  found  a  solution  for  the 
temporary  storage  of  radioactive  waste.  No  developments  were  noted  on  the  monitoring  of 
radiation  (e.g.  from  depleted  uranium)  and  there  is  no  radiological  emergency  plan.  As  an 
example  of  international  cooperation  in  this  area,  Kosovo  is  finalising  a  memorandum  of 
understanding for the management of radioactive waste with Montenegro.   

6.23  Trans-European networks  

The EU promotes trans-European networks in the areas of transport, telecommunication and 
energy to strengthen the internal market and contribute to growth and employment. 

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In  the  area  of  trans-European  networks  (TENs),  Kosovo  has  some  level  of  preparation. 
Some  progress  was  achieved,  notably  by  implementing  parts  of  the  Transport  Community 
Treaty and the Regional Roaming Agreement. However, many of the recommendations of the 
previous  report  are  still  pending,  therefore  the  2019  recommendations  remain  valid.  In  the 
coming year, Kosovo should in particular: 

  proceed  with  harmonising  the  legal  framework  with  the  TEN-T  and  TEN-E  acquis. 
Implement  the  pending  connectivity  reform  measures  and  strengthen  institutional  and 
administrative capacities for the implementation of strategic infrastructure projects; 

  improve 

the  capacity  of 

the  Regulatory  Authority  of  Electronic  and  Postal 

Communications to enforce telecommunications market regulations; 

  sign the pending Railway Border Crossing Protocol with North Macedonia. 

On  transport  networks,  Kosovo  needs  to  maintain  its  active  involvement  in  Transport 
Community  Treaty  meetings.  The  authorities  are  encouraged  to  step  up  their  efforts  and 
intensify cooperation in the framework of the  Treaty. The development of the trans-European 
Transport Network (TEN-T) is covered in Kosovo’s 2015-2025  multimodal transport strategy 
and  a  5-year  action  plan.  As  in  previous  years,  interinstitutional  capacity  to  implement 
infrastructure  projects  was  very  limited.  Kosovo  should  complete  priority  projects  on  the 
extension of the core and comprehensive TEN-T, but also earmark sufficient resources for the 
maintenance  of  existing  networks.  It  should  reactivate  the  work  of  the  National  Investment 
Council and channel projects through a single project pipeline. As a reaction to the COVID-
19 pandemic, green corridors were established and are functioning effectively throughout the 
major corridors. 

Kosovo continued to develop its transport infrastructure, with the completion in May 2019 of 
the route 6 motorway, part of the Orient East/Med corridor linking it with North Macedonia. 
However, the project was criticised for a lack of transparency and excessive costs. Financing 
has not been secured for the works on route 7 between Pristina and Merdarë/Merdare. Works 
were  completed  on  the  border  crossing  point  between  Stançiq/Stančić  (Kosovo)  and 
Belanovce/Bellanoç (North Macedonia). The construction works for railway route 10 started 
in  July  2019,  but  are  advancing  more  slowly  than  expected.  Progress  was  made  on  the  rail 
border  crossing  protocols  with  North  Macedonia,  these  should  be  finalised  without  further 
delay. Some progress was achieved on the opening of the rail market. No progress was made 
on  the  adoption  of  the  five-year  road  and  rail  maintenance  plan.  Current  and  future 
infrastructure investments need to comply with EU standards on public procurement, state aid 
and  environmental  impact  assessment,  and  be  based  on  cost/benefit  analyses  carried  out  in 
line with EU best practices. 

On energy networks, Kosovo made progress on market integration. Kosovo’s and Albania’s 
transmission system operators signed in  December 2019 a bilateral  agreement to  establish a 
joint  control  block.  However,  the  new  400kV  transmission  line  and  load  frequency  control 
with  Albania  cannot  become  operational  until  the  Entso-e/KOSTT  connection  agreement 
enters  into  force.  The  impact  of  the  Alkogap  gas  pipeline  between  Kosovo  and  Albania  
deriving  from  the  Trans-Adriatic  Pipeline  (TAP)  project  was  assessed  and  a  pre-feasibility 
study  was  launched  on  a  gas  pipeline  from  North  Macedonia.  Kosovo  remains  heavily 
dependent on carbon intensive infrastructure and needs to develop its regional connections to 
unlock the potential of a broader green agenda and regional integration.   

On telecommunications networks, no progress was made on strengthening the institutional 
capacity of the Electronic and Postal Communications Regulatory Authority. Kosovo engaged 

99 

 
 
constructivelly  in  the  implementation  from  1  July  2019  of  a  regional  roaming  agreement, 
aimed at substantially reduce roaming charges within the region.  

6.24 

Information society and media 

for  electronic 
The  EU  supports 
communications, electronic commerce and audio-visual services. The rules protect consumers 
and support universal availability of modern services. 

internal  market 

functioning  of 

the  smooth 

the 

Kosovo  has  some  level  of  preparation  in  the  area  of  information  society  and  media.  The 
legislative framework is mostly in place and there was limited progress on implementation. 
Kosovo  also  advanced  with  the  implementation  of  the  2013-2020  Digital  Agenda  and  the 
Regional  Roaming  Agreement.  A  sustainable  solution  for  the  funding  of  the  public 
broadcaster  still  needs  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.  

Last report’s recommendations have not been addressed. 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; 

  implement  number  portability  to  ensure  effective  use  of  numbering  resources  and 

fostering  competition; 

  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. 

As regards electronic communications and information and communication technologies 
(ICT),  there  was  no  improvement  in  the  financial  and  organisational  independence  of  the 
Electronic  and  Postal  Communications  Regulatory  Authority.  The  Kosovo  Agency  for 
Statistics (KAS) continued to publish data on the use of ICT. According to a survey, 93.2% of 
households  had  access  to  the  internet  (unchanged  from  2018).  Some  91.2%  accessed  the 
internet  through  fixed  connections  (a  1  percentage  point  increase  from  2018),  while  the 
number accessing the internet through mobile connections increased by 15 percentage points, 
to  39.6%.  Data  on  companies’  ICT  use  show  that  97.1%  of  businesses  with  more  than  10 
employees  used  the  internet,  but  only  11.4%  made  sales  online  and  19%  made  purchases 
online.  

In  2019,  the  telecoms  regulator  approved  several  important  regulations,  including  a 
Regulation on market analysis, which is in line with the main principles of the EU regulatory 
framework. The authorities should ensure that markets are genuinely competitive – the key to 
this  is  number  portability  (enabling  customers  to  switch  operators  while  retaining  the  same 
number), without which numbering resources cannot be used effectively.  

The  public  institutions  are  obliged  only  to  use  services  provided  by  the  publicly  owned 
operator, Kosovo Telecom; this puts private providers at an unfair competitive disadvantage 
(see section 6.7 Competition Policy). 

Kosovo continues to implement its 2013-2020 digital agenda. Following some initial delays, 
the  new  dialling  code  (+383),  is  now  fully  operational.  The  regulator  reviewed  pricing 

100 

 
 
policies  for  frequency  allocation  (currently  used  for  mobile  telephony  services),  the  new 
frequency  allocations  and  annual  fees,  resulting  in  major  cost  reductions  for  all  categories. 
The authorities implemented the Regional Roaming Agreement, signed in April 2019.    

As  regards  the  information  society,  Kosovo  continued  to  work  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) remains understaffed. Kosovo 
is working to get its e-government portal up and running in order to deliver electronic services 
to citizens and businesses. 

On  audio-visual  policy,  the  Independent  Media  Commission  (IMC)  once  again  failed  to 
make  any  progress  in  switching  off  analogue  TV.  Kosovo  needs  to  speed  up  the  digital 
switchover in full transparency and in line with EU standards. The Law on the IMC gives it 
sufficient  regulatory,  enforcement  and  monitoring  powers 
to  ensure  pluralism  and 
competitiveness  in  the  market,  but  no  market  analysis  has  been  done  in  recent  years.  Also, 
partly  due  to  a  lack  of  information  on  media  ownership  and  the  distribution  of  advertising 
funds, the IMC does not impose effective sanctions on broadcasters. The IMC needs adequate 
staffing and funding to exercise its existing powers independently, but its powers should also 
be extended to online audio-visual media (e.g. Catch up TV, video on demand and web TV).   

Radio Television of Kosovo (RTK) remains directly state-funded, with its budget determined 
annually by the Assembly; this undermines its editorial independence and leaves it prone to 
political influence. The RTK Law should be amended in line with best practice on sustainable 
funding and so as to ensure the transparent and professional selection of its board members.  

6.25  Financial control 

The  EU  promotes  the  reform  of  Kosovo  governance  systems  to  improve  managerial 
accountability, sound financial management of income and expenditure, and external audit of 
public funds. The financial  control  rules further protect  the EU’s financial interests against 
fraud in the management of EU funds and the euro against counterfeiting. 

Kosovo has some level of preparation in the area of financial control. Some progress was 
made with the adoption of secondary legislation on public internal financial control (PIFC), as 
well  as  of  a  methodology  on  reporting  on  internal  control  systems  by  the  Central 
Harmonisation Unit.  However, Kosovo still needs to develop a comprehensive PIFC Policy 
Paper  with  a  particular  focus  on  the  definition  and  implementation  of  managerial 
accountability. High  level  political  support  is  needed  for  the  implementation  of  PIFC  at  all 
levels  of  administration.  The  functioning  of  internal  control  and  audit  and  the  timely 
implementation  of  internal  and  external  audit  recommendations  should  be  improved.  The 
recommendations from last year were only very partially implemented. 

In the coming year, Kosovo should in particular:  

  develop a comprehensive PIFC Policy Paper focusing on definition and implementation of 

managerial accountability; 

  define  the  accountability  lines  within  and  between  public  institutions  through  adequate 
implementation of the Law on the organisation and functioning of the state administration 
and independent agencies, and its secondary legislation;  

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

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Public internal financial control 

The strategic framework for public internal financial control (PIFC) is broadly in place but 
the  PIFC  Strategy  expired  at  the  end  of  December.  Kosovo  should  start  work  on  a 
the  definition  and 
comprehensive  PIFC  Policy  Paper  with  a  particular  focus  on 
implementation  of  managerial  accountability.  Furthermore,  it  should  align  the  strategic 
framework for PIFC, public administration reform and public financial management in order 
to have an efficient system for effective strategic management, coordination, monitoring and 
reporting of the reforms.  

in 

to  embed  managerial  accountability 

Kosovo  should  make  further  efforts 
the 
administrative  culture.  The  Regulation  on  financial  management  and  control  clarified  the 
rules for delegating responsibilities, however in practice it is still under-used and managerial 
accountability  is  limited  by  a  primary  focus  on  compliance  rather  than  performance. 
Throughout  public  sector  management  there  is  a  need  to  establish  individual  performance 
objectives linked with the organisational objectives set out in institutional plans and strategy 
documents.  In  addition,  the  practical  implementation  of  the  concept  of  managerial 
accountability  needs  to  be  embedded  in  a  coherent  way  across  the  central  and  local  level. 
There is only a limited delegation of authorities and responsibilities by the management level, 
which continues to  be strongly  centralised.  The  Law on the organisation and functioning of 
the administration and independent agencies should clarify the lines of accountability  within 
and  between  institutions  and  agencies.  Implementation  of  the  action  plan  on  the 
rationalisation  of  agencies,  which  is  aimed  at  reducing  the  high  number  of  (semi-) 
independent agencies and introducing better supervision and reporting lines, has stalled since 
the government resignation in July (See section on Public Administration Reform). 

The  legal  framework  on  internal  control  is  harmonised  with  international  standards.  Since 
the entry into force of the PIFC Law in April 2018, three out of its four secondary acts have 
been adopted. These concern the internal audit function, the internal audit committee, and the 
framework and basic rules of financial management and control for all public sector entities, 
following the Committee of Sponsoring Organizations of the Treadway Commission (COSO) 
principles.  Risk  management  as  well  as  reporting  on  irregularity  management  needs  to  be 
strengthened and a risk-based approach to the selection of cases is under preparation. 

Internal  audit  practice  focuses  mostly  on  compliance  with  rules  and  procedures  and  the 
administrative capacities of internal audit units at central and local level are still limited. Most 
internal audit units submit strategic and annual audit plans as required, but quality assurance 
should be further implemented.  

The Central Harmonisation Unit (CHU) monitored six public sector entities specifically for 
the  quality  of  their  financial  management  and  control.  The  Minister  of  Finance  adopted  in 
2019  a  methodology  on  monitoring  and  annual  reporting  for  public-sector  entities’  internal 
control  systems.  The CHU prepares an annual  report on the implementation of PIFC on the 
basis  of  replies  to  self-assessment  questionnaires  and  its  own  quality  reviews.  Its 
recommendations should be more evidence-based and more systematically implemented. 

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,  which  the  Office  joined  on  1 
January 2020. 

The  Office’s  institutional  capacity  increased  further  to  170  staff,  of  whom  141  are  audit 
staff. It is implementing its 2018-2021 strategic development plan, which includes objectives, 

102 

 
 
performance indicators and a monitoring framework. It has recently established an Anti-Fraud 
Unit currently staffed by one official.  

The  Office  introduced  audit  quality  control  and  assurance  procedures  and  continued  to 
implement  a certification programme  for  auditors.  It  finalised 15 performance  audit reports, 
compared  to  13  in  2018  and  11  in  2017.  Even  if  there  is  an  ongoing  effort,  the  Office 
undertakes mainly regularity audits and the number of performance audits should continue to 
increase. In order to improve the impact of audit work, especially at local level, the Office 
worked with civil society organisations, to organise municipality-level public debates on the 
audit  recommendations.  According  to  its  2018  annual  report,  the  proportion  of  fully 
implemented  recommendations  rose  from  34%  to  39%.  While  its  cooperation  with  the 
Assembly committees has improved, the Assembly should more systematically follow-up its 
recommendations. The Office should also continue its communication effort to strengthen its 
overall image. 

Protection of the EU’s financial interests 

The degree of alignment with the acquis in this area still needs to be determined. Kosovo has 
no  anti-fraud  coordination  service  to  facilitate  effective  coordination,  cooperation  and 
exchange of information with the Commission. The European Anti-Fraud Office (OLAF) has 
an  administrative  agreement  with  the  Kosovo  Police  to  ensure  cooperation  and  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 

The  degree  of  alignment  in  this  area  needs  to  be  determined.  Kosovo  has  designated 
competent  authorities  and  established  procedures  for  dealing  with  counterfeit  money.  The 
Law on the Central Bank prohibits the circulation of counterfeit money and a Regulation on 
cash operations lays down rules and procedures for financial institutions operating in Kosovo. 
The  Commission  has  a  cooperation  agreement  on  coins  with  the  Kosovo  Agency  on 
Forensics. Kosovo also participates in the actions of the Pericles 2020 programme. 

6.26 

 Statistics 

EU  rules  require  that  Member  States  are  able  to  produce  statistics  based  on  professional 
independence,  impartiality,  reliability,  transparency,  and  confidentiality.  Common  rules 
govern the methodology, production and dissemination of statistical information. 

Kosovo has some level of preparation in the area of statistics. Some progress was made in 
improving the methodology for data collection following Eurostat recommendations and with 
the  ratification  of  the  amended  law  on  statistics.  Communication  between  statistical 
institutions  improved  slightly  but  coordination  at  technical  level  and  the  use  of  available 
administrative  data  sources  need  to  be  upgraded.  Alignment  of  sectorial  statistics  with 
European standards saw very little improvement during the reporting period. There was also a 
very modest increase of statistical products. 

As  not  all  2019  recommendations  were  carried  out,  in  the  coming  year,  Kosovo  should  in 
particular: 

  ensure the implementation of the amended law on statistics;  

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

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

  intensify  preparations  for  the  next  population  census  scheduled  for  2021  by  ensuring 

adequate resources and full coverage of the territory.  

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Kosovo’s  legislation  on  statistical  infrastructure  is  broadly  in  line  with  the  European 
Statistics Code of Practice. Kosovo should enforce recent amendments to the Law on statistics 
by  preserving  the  lead  role  of  the  Kosovo  Agency  of  Statistics  (KAS)  and  improving 
statistical  governance.  Communication  between  statistical  institutions  improved  somewhat: 
KAS  recently  signed  memoranda  of  understanding  with  the  Civil  Registry  Agency,  the 
Ministry  of  Health  and  Kosovo  Police.  However,  Kosovo  should  enhance  coordination  at 
technical level and access to and use of available administrative data sources. KAS should do 
more to follow up the Eurostat peer review recommendations, particularly by improving cost-
effectiveness, quality management and relations with data users. It took on more staff, but still 
needs  to  improve  the  efficiency  of  its  internal  processes  and  delegation  of  managerial 
responsibilities. Its current premises are inadequate. Data transmission to  Eurostat continues 
to improve. Despite improvements in its web-based dissemination of statistics, KAS needs to 
create closer relations with data users and academics. Kosovo continues to use the European 
classification of economic activities (NACE Rev.2), but has not improved in the use of other 
European  classifications.  It  regularly  updates  its  registers  (on  agriculture,  business  and 
schools/education), but the population register still needs significant improvements ahead of 
the forthcoming census. 

On  macroeconomic  statistics,  Kosovo  has  made  limited  improvements;  further  alignment 
with the European system of accounts (ESA 2010) is ongoing. KAS shortened the time taken 
to  produce  annual  and  quarterly  national  accounts,  but  it  suffers  from  methodological 
inconsistency  and  changes  are  not  adequately  explained.  Annual  and  quarterly  sector 
accounts, supply/use tables and regional accounts are not regularly compiled. It does not issue 
fiscal  notifications  and  complies  only  marginally  with  the  ESA  2010  transmission  table. 
Monthly statistics for trade in goods and annual figures for trade in services are submitted to 
Eurostat.  The  Central  Bank’s  balance  of  payments  data  are  broadly  in  line  with  the  acquis. 
Government  finance  statistics  are  published  on  a  quarterly  basis.  The  harmonised  index  of 
consumer prices is based on EU standards (ECOICOP) but is still not published by Eurostat 
due to problems of aggregation consistency. Several surveys for compiling purchasing power 
parities are missing. 

Structural  business  statistics  and  some  short-term  statistics  are  partially  in  line  with  the 
acquis,  but  their  availability  is  limited  and  they  are  not  broken  down  between  public  and 
private  investments  or  by  sector.  Industry  statistics  are  produced  broadly  in  line  with  the 
relevant  regulation,  but  no  construction  or  service  sector  statistics  are  available.  The 
construction  cost  index  is  produced  on  a  quarterly  basis.  Industry  statistics  (PRODCOM 
survey)  for 2018 were finalised and published.  Foreign affiliates statistics are not  available. 
Tourism  statistics  and  transport  statistics  do  not  yet  comply  with  the  acquis.  Statistics  on 
research  and  development  and  innovation  are  not  produced  on  a  regular  basis,  but  the 
information and communication technologies statistics for households and enterprises are now 
published regularly.  

In the area of social statistics, only demographic statistics are broadly in line with the acquis. 
Preparations  for  the  upcoming  2021  population  census  have  been  hampered  by  insufficient 
financial resources and territorial coverage. Due to the COVID-19 pandemic, the government 
postponed the pilot census that was to be conducted in April 2020 and which is a necessary 
preparatory step ahead of the general census. Statistics on income and living conditions (EU-
SILC)  are  produced  annually  and  data  collection  methods  improved,  but  EU-SILC  2018 
results  were  not  published.  Social  protection  and  labour  market  statistics  are  only  partial. 
Kosovo  carries  out  regular  annual  and  quarterly  labour  force  surveys  and  the  publication 
timeframe has improved. It still does not produce the labour cost index, structure of earnings 
data or job vacancy statistics. It produces partial education statistics, albeit not according to 

104 

 
 
international  classification  standards  (ISCED  2011),  but  no  vocational  training  statistics. 
Public health and crime statistics are not yet in line with EU standards.  

As  regards  agricultural  statistics,  KAS  publishes  annual  crops,  livestock  production  and 
orchard statistics. The agricultural holding survey is produced regularly  and in line with the 
acquis. The farm structure survey was not conducted in 2019 (due to resource limitation) and 
was postponed for after the general census. Agricultural price indices and economic accounts 
are  produced  on  a  regular  basis.  Supply  balance  sheets  and  the  agriculture  labour  index  are 
not yet produced. 

Kosovo’s  energy  and  environment  statistics  are  partially  in  line  with  the  acquis.  KAS 
brought forward the publication of energy balance results and sent more statistical products to 
Eurostat,  but  the  energy  and  environment  statistics  require  further  improvement.  Energy 
consumption statistics for the residential, services and transport sectors are collected, but the 
results are not published. Monthly data and the monthly share of renewables are not sent to 
Eurostat.  The  lack  of  updated  energy  efficiency  indicators  continues  to  be  an  obstacle  to 
reporting  on  energy  savings.  Waste  and  water  statistics  are  produced  regularly.  Greenhouse 
gas emission statistics are collected but not published regularly. Kosovo does not yet provide 
other  environmental  statistics,  such  as  air  emissions  accounts,  environment  related  taxes  by 
economic activity, environmental protection expenditure and material flow balances.     

105 

 
 
 
 
ANNEX I – RELATIONS BETWEEN THE EU AND KOSOVO  

In April 2016, the EU-Kosovo Stabilisation and Association Agreement (SAA) entered into 
force. The SAA constitutes the first contractual relationship between the EU and Kosovo. It is 
a  comprehensive  agreement  that  provides  a  framework  for  political  dialogue  and  covers 
cooperation in a wide variety of sectors, including justice and home affairs, trade, education, 
employment, energy, environment and a range of other policy areas. Three Stabilisation and 
Association  Council  meetings  and  four  cycles  of  subcommittee  meetings  took  place  since 
2016. Kosovo also participates in the ministerial dialogue between the economic and finance 
ministers  of  the  EU  and  the  candidate  countries,  where  joint  recommendations  are  adopted. 
The most recent meeting was held in May 2020. 

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 June 2018). 
In  July  2018,  the  Commission  confirmed  that  Kosovo  has  met  the  two  outstanding 
requirements, thus fulfilling all benchmarks set out in the Visa Liberalisation Roadmap. The 
European  Parliament  has  voted  in  support  of  the  Commission  proposal.  The  proposal  is 
pending in the Council. 

The  bilateral  EU  support  for  Kosovo  under  the  Instrument  for  Pre-accession  Assistance 
(IPA II) in 2014-2020 amounts to EUR 573 million. The 2019 and 2020 action programmes 
include an EU contribution amounting to EUR 176.6 million. The assistance is implemented 
under  direct  management  by  the  EU  Office  in  Kosovo,  as  well  as  through  budget  support 
operations on public administration reform and public financial management.  

As part of the response to the COVID-19 pandemic, EUR 5 million have been refocused for 
urgent medical equipment and EUR 62 million for socio-economic recovery measures under 
IPA  II.  Kosovo  will  also  receive  up  to  EUR  100  million  in  loans  for  macro  financial 
assistance.  Furthermore,  Kosovo  benefits  from  the  IPA  multi-country  and  regional 
programmes and participates in three cross-border cooperation programmes 

Kosovo and Europol have concluded a working arrangement in July 2020. The arrangement 
will  constitute  the  basis for  enhanced  cooperation  between  Kosovo  Police,  Europol  and  EU 
Member  States,  in  particular  in  addressing  terrorism  and  extremism  as  well  as  organised 
crime. 

On  17  July  2017,  the  Council  approved  the  Framework  Agreement  between  the  EU  and 
Kosovo  on  the  general  principles  for  the  participation  of  Kosovo  in  EU  programmes.  In 
2018,  Kosovo  joined  the  Erasmus+,  COSME,  Europe  for  Citizens  and  Creative  Europe 
programmes. In 2020, Kosovo joined the Customs 2020 and Fiscalis 2020 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. 
EULEX was granted a one-year technical mandate extension (July 2020-July 2021) during the 
COVID-19  pandemic.  The  Mission  continues  to  undertake  monitoring  activities  and  has 
limited executive functions.  

106 

 
 
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 welcomed the 
peaceful  transition  of  power  after  the  legislative  elections  in  October  2019,  and  encouraged 
the swift resumption of the EU-facilitated Dialogue.  

The  NATO-led  Kosovo  Force  (KFOR)  has  continued  to  help  ensure  a  safe  and  secure 
environment in Kosovo. In August 2020, it had 3 419 personnel. 

107 

 
 
 
 
 
 
STATISTICAL DATA (as of 03.04.2020) 
Kosovo 

Basic data 

Population (thousand) 
Total area of the country (km²) 

National accounts 

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-27 = 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-27 = 100) 
Gross value added by main sectors 
Agriculture, forestry and fisheries (%) 

2007 

2014 

2015 

2016 

2017 

2018 

2 127 
10 908 

1 821be 
10 908 

1 805e 
10 908 

1 772e 
10 908 

1 784e 
10 905 

1 799e 
10 905 

2007 

2014 

2015 

2016 

2017 

2018 

: 
: 
: 
: 
: 

: 

: 

: 
: 

: 

: 

5 568 
3 070 
: 
: 
1.2 

5 807 
3 250 
: 
: 
4.1 

6 070 
3 410 
: 
: 
4.1 

6 414 
3 580e 
: 
: 
4.2 

6 726 
3 740e 
: 
: 
3.8 

: 

: 

: 
: 

: 

: 

: 

: 
: 

: 

: 

: 

: 
: 

: 

: 

: 

: 
: 

: 

: 

: 

: 
: 

: 

14.3 

12.6 

13 

11.4 

8.9 

No
te 

1) 

No
te 

108 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 (%) 

: 
: 
: 
: 
: 
: 
: 
: 
: 

19.4 
7.3 
59.0 
102.9 
23.2 
2.5 
22.5 
51.2 
: 

20.8 
8.4 
58.2 
100.9 
25.8 
1.8 
21.9 
50.4 
: 

21.5 
8.1 
57.4 
100.0 
25.5 
1.6 
23.7 
50.9 
: 

21.8 
9.9 
56.9 
97.5 
27 
1.4 
26.7 
52.5 
: 

21.8 
10.8 
58.5 
99.7 
28.1 
1.4 
26.4 
55.6 
: 

Business 

Industrial production volume index (2015 = 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) 

No
te 

109 

2007 

2014 

2015 

2016 

2017 

2018 

: 
: 
: 

: 

: 

: 

: 

: 
31 420 
9.0 

: 
35 472 
11.7 

: 
33 274 
9.2 

: 
34 355 
8.7 

: 
31 028p 
: 

5.3 

8.3p 

15.8p 

: 

: 

76.6 

78.3 

78.5 

78.8 

78.4p 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inflation rate and house prices 

Harmonised  consumer  price  index  (HICP),  change  relative  to  the 
previous year (%) 
**Annual change in the deflated house price index (2015 = 100) 

Balance of payments 

Balance of payments: current account total (million euro) 
Balance of payments current account: trade balance (million euro) 
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 
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-27  countries 
(million euro) 

income:  of  which 

2007 

2014 

2015 

2016 

2017 

2018 

4.4 

0.4 

-0.5 

0.3 

1.5 

1.1 

: 

: 

: 

: 

: 

: 

2007 

2014 

2015 

2016 

2017 

2018 

No
te 

No
te 

-213.9 
-1 354.4 
112.2 
186.3 

-384.6 
-2 058.6 
459.9 
113.8 

-497.3 
-2 109.3 
457.1 
92.6 

-481.4 
-2 290.8 
638.8 
74.5 

-383.2 
-2 464.2 
793.5 
126.6 

-508.8 
-2 737.7 
855.8 
113.1 

842.0 

1 100.3 

1 062.4 

1 096.1 

1 161.0 

1 260.0 

245.1 

291.2 

201.9 

204.2 

195.8 

: 

: 

: 

-5.4 

-6.3 

-7.8 

-7.5 

-7.1 

11.5 

6.0 

6.8 

28.7 

38.5 

431.0 

123.8 

271.8 

177.2 

212.0 

9.7 
: 

27.3 
: 

37.1 
: 

42.7 
: 

43.4 
: 

: 

: 
: 

110 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign  direct  investment  (FDI)  in  the  reporting  economy  (million 
euro) 
of  which  FDI  of  the  EU-27  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 (%) 

440.7 

151.2 

308.8 

220.0 

255.4 

: 

37.0 
26.0 

: 

3.5 
8.5 

: 

: 

: 

-0.7 
6.9 

-1.3 
3.8 

-1.8 
9.9 

: 

: 

: 
: 

Public finance 

***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 (%) 

Financial indicators 

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 
(consolidated) (million euro) 

to  residents 

institutions 

2007 

2014 

2015 

2016 

2017 

2018 

: 
0.0 
26.1 
19.1 

: 
10.6e 
26.3 
27.1 

: 
13.1e 
29.6 
28.0 

: 
14.6e 
: 
: 

: 
16.6e 
: 
: 

: 
17.1e 
: 
: 

2007 

2014 

2015 

2016 

2017 

2018 

: 
: 

: 

: 

31.2 
: 

33.3 
: 

33.2 
: 

32.6 
: 

: 

: 

: 

: 

: 

: 

: 

: 

: 
: 

: 

: 

: 
892.1 

: 
1 956.8 

: 
2 101.9 

: 
2 338.9 

: 
2 629.5 

: 
2 939.2 

No
te 

No
te 

111 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
**Annual change in financial sector liabilities (%) 
**Private credit flow, consolidated, relative to GDP (%) 
**Private debt, consolidated, relative to GDP (%) 
Interest rates: day-to-day money rate, per annum (%) 
Lending interest rate (one year), per annum (%) 
Deposit interest rate (one year), per annum (%) 
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) 

External trade in goods 

Value of imports: all goods, all partners (million euro) 
Value of exports: all goods, all partners (million euro) 
Trade balance: all goods, all partners (million euro) 
Terms  of  trade  (export  price  index  /  import  price  index  *  100) 
(number) 
Share of exports to EU-27 countries in value of total exports (%) 
Share of imports from EU-27 countries in value of total imports (%) 

Demography 

2) 
2) 

No
te 

No
te 

112 

: 
: 
: 
: 
14.60 
3.30 
1 

: 
: 
: 
: 
10.61 
1.11 
1 

: 
: 
: 
: 
8.32 
0.90 
1 

: 
: 
: 
: 
7.47 
1.01 
1 

: 
: 
: 
: 
6.83 
1.04 
1 

: 
: 
: 
: 
6.65 
1.31 
1 

100 

102 

102 

102 

103 

104 

: 

0.9 

0.4 

0.1 

0.7 

2.5 

652.0 

645.0 

706.4 

605.1 

683.4 

: 

2007 

2014 

2015 

2016 

2017 

2018 

1 576 
147 
-1 429 
: 

2 538 
325 
-2 214 
107.2 

2 635 
325 
-2 309 
107.1 

2 789 
310 
-2 480 
100.6 

3 047 
378 
-2 669 
107.3 

3 347 
368 
-2 980 
97.9 

43.5 
37.1 

29.8 
42.0 

32.3 
41.6 

22.3 
42.4 

22.0 
42.3 

27.4 
42.7 

2007 

2014 

2015 

2016 

2017 

2018 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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) 

12.4 

10.1be 

9.2e 

8.4e 

8.2e 

10.3e 

11.1 

: 
: 

: 

: 
: 

9.7 

8.5 

9.7 

: 
: 

75.9p 
81.6p 

: 
: 

: 

: 
: 

Labour market 

2007 

2014 

2015 

2016 

2017 

2018 

No
te 

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 (%) 

: 

: 

: 
: 
24.6 

14.6 
14.1 
6.6 
64.7 
: 

47.7 

42.8 

44.0 

49.0 

46.6 

31.3 

29.1 

32.3 

34.4 

33.2 

48.4 
14.5 
29.8 

2.6 
17.7 
10.9 
68.8 
31.4s 

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 

52.6 
14.1 
31.5 

3.5 
14.3 
11.9 
70.3 
30.8 

: 

68.6s 

67.4 

69.2 

71.6 

69.2 

113 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 (%) 
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) (%) 

Social cohesion 

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 (%) 

Standard of living 

No
te 

No
te 

114 

43.6 

35.3 

32.9 

27.5 

30.3 

29.4 

38.5 
55.2 
70.0 

33.1 
41.6 
61.0 

31.8 
36.6 
57.7 

26.2 
31.7 
52.4 

28.5 
36.4 
52.7 

28.3 
33.3 
55.4 

16.2 

26.1 

23.8 

18.0 

21.7 

17.2 

: 

: 

44.0 

45.5 

29.6 

32.5 

35.8 

17.1 

17.4 

15.6 

23.4 

16.8 

2007 

2014 

2015 

2016 

2017 

2018 

: 
: 

: 
: 
: 

482 
: 

: 
: 
16.5 

510 
: 

: 
: 
14.5 

519 
: 

: 
: 
12.7 

528 
: 

: 
: 
12.2 

558 
: 

: 
: 
9.6 

2007 

2014 

2015 

2016 

2017 

2018 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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) 

68.7 

129.7b 

156.1 

146.8 

153.6 

155.9 

: 

: 
: 

464.3 

487.8 

545.0 

553.1 

927.1 

: 
: 

: 
: 

: 
: 

1.2 
0.0 

: 
: 

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 (%) 

Environment 

2007 

2014 

2015 

2016 

2017 

2018 

: 
0 

30.9 
78 

30.9 
80 

30.9 
98 

30.9 
108 

30.9 
119 

2007 

2014 

2015 

2016 

2017 

2018 

: 
: 
: 

: 

3.7 
: 
: 

: 

4.5 
: 
: 

: 

4.6 
: 
: 

: 

4.4 
: 
: 

4.5 
: 
: 

88.8 

93.2 

2007 

2014 

2015 

2016 

2017 

2018 

No
te 

No
te 

No
te 

*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 (%) 

: 
: 

: 

: 
447.9 

: 
489.5 

: 
503.8 

: 
458.9 

: 
445.3 

4.0 

3.6 

6.2 

4.4 

7.8e 

115 

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

: 

: 

: 

: 

: 

: 

Energy 

Primary production of all energy products (thousand TOE) 
Primary production of crude oil (thousand TOE) 
Primary production of solid fuels (thousand TOE) 
Primary production of gas (thousand TOE) 
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) 
Utilised agricultural area (thousand hectares) 

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

No
te 

No
te 
3) 

4) 
5) 
6) 
5) 
6) 
5) 
6) 
5) 
6) 
6) 

116 

2007 

2014 

2015 

2016 

2017 

2018 

1 426 
0 
1 251 
0 
595 
2 049 
4 835 

1 605 
0 
1 342 
0 
603 
2 217 
5 436 

1 804 
0 
1 536 
0 
697 
2 524 
6 119 

2 016 
0 
1 640 
0 
638 
2 704 
5 982 

1 793 
0 
1 412 
0 
769 
2 569 
5 918 

1 822 
0 
1 428 
0 
757 
2 585 
: 

2007 

2014 

2015 

2016 

2017 

2018 

81.8 

115.5 

100.0 

116.9 

112.4 

108.3 

410.4 

416.3e 

410.8 

416.7 

417.0 

419.5 

321.6 

269.8e 

258.5 

265.0 

259.7 

258.7 

39.6 

46.0e 

44.2 

42.3 

41.1 

40.2 

151.8 

234.3 

224.1 

212.0 

210.7 

209.8 

: 

: 

: 

375.7 

331.6 

324.6 

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

Harvested crop production: sugar beet (thousand tonnes) 
Harvested crop production: vegetables (thousand tonnes) 

5) 
6) 
7) 

5) 
6) 

Source: Eurostat and the statistical authorities in Kosovo 

294.8 

464.6 

443.6 

562.9 

477.9 

441.8 

0 
104.1 

0 
141.8e 

: 
145.2 

: 
186.5 

: 
181.7 

0 
155.4 

: = not available 
b = break in series 
e = estimate 
p = provisional 
s = Eurostat estimate 
u = low reliability 
* = 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. 

Footnotes 

1) 

2) 
3) 
4) 

The change of the total area between 2016 and 2017 reflects measurements made 
by the Kosovo Cadastral Agency. 
2014: includes disbursement fee charged by banks. 
2015-2018: 2015 = 100. 
Including agricultural common land. 

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5) 
6) 

7) 

2014: data from the 2014 agriculture census.  
2014-2018: results for four municipalities in the north of Kosovo which did not 
participate in the census/surveys are estimated. 
Excluding rice. 

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