COMMISSION STAFF WORKING DOCUMENT KosovoFMT:Style_footnote reference,Superscript,Style>*_x0009_This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence. 2022 Report Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 2022 Communication on EU Enlargement policy
Date: 2022-10-12
Institutions: Directorate-General for Neighbourhood and Enlargement Negotiations, European Commission
Subjects: Kosovo, accession criteria, accession negotiations, pre-accession strategy

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 12.10.2022  SWD(2022) 334 final  COMMISSION STAFF WORKING DOCUMENT Kosovo* 2022 Report Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 2022 Communication on EU Enlargement policy {COM(2022) 528 final} - {SWD(2022) 332 final} - {SWD(2022) 333 final} - {SWD(2022) 335 final} - {SWD(2022) 336 final} - {SWD(2022) 337 final} - {SWD(2022) 338 final}                                                  * This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence.  
 
 
COMMISSION STAFF WORKING DOCUMENT 

Kosovo* 2022 Report 

Accompanying the document 

Communication from the Commission to the European Parliament, the Council, the 
European Economic and Social Committee and the Committee of the Regions 

2022 Communication on EU Enlargement policy 

* 
on the Kosovo declaration of independence. 

This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion 

1 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
1. INTRODUCTION................................................................................................................. 4 

1.1. CONTEXT ..................................................................................................................... 4 

1.2. SUMMARY OF THE REPORT  .................................................................................. 4 

CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS ..................... 7 

2.1. 

FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION 
REFORM ................................................................................................................... 7 

2.1.1  Democracy .................................................................................................... 7 

2.1.2 

Public administration reform ...................................................................... 11 

Chapter 23 - Judiciary and fundamental rights ......................................................... 16 

Chapter 24 - Justice, freedom and security ............................................................... 42 

2.3. ECONOMIC DEVELOPMENT AND COMPETITIVENESS ................................................... 59 

2.3.1. The existence of a functioning market economy ............................................ 60 

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

Union .......................................................................................................... 67 

2.4. PUBLIC PROCUREMENT, STATISTICS AND FINANCIAL CONTROL ................................. 70 

Chapter 5 - Public procurement ................................................................................ 70 

Chapter 18 - Statistics ............................................................................................... 72 

Chapter 32 - Financial control .................................................................................. 74 

3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION ........... 77 

4. NORMALISATION OF RELATIONS BETWEEN KOSOVO AND SERBIA ........... 79 

5. EUROPEAN STANDARDS ............................................................................................... 80 

CLUSTER 2: INTERNAL MARKET ........................................................................................ 80 

Chapter 1 - Free movement of goods ........................................................................ 80 

Chapter 2 - Freedom of movements for workers ...................................................... 82 

Chapter 3 - Right of establishment and freedom to provide services ....................... 82 

Chapter 4 - Free movement of capital ...................................................................... 83 

Chapter 6 - Company law ......................................................................................... 84 

Chapter 7 - Intellectual property law ........................................................................ 85 

Chapter 8 - Competition policy ................................................................................ 87 

Chapter 9 - Financial services ................................................................................... 88 

Chapter 28 - Consumer and Health Protection ......................................................... 90 

2 

 
 
 
 
CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH ................................................ 93 

Chapter 10 – Digital transformation and media ........................................................ 93 

Chapter 16 - Taxation ............................................................................................... 94 

Chapter 17 - Economic and monetary policy ........................................................... 96 

Chapter 19 - Social policy and employment ............................................................. 98 

Chapter 20 - Enterprise and industrial policy ......................................................... 100 

Chapter 25 - Science and research .......................................................................... 102 

Chapter 26 - Education and culture ........................................................................ 103 

Chapter 29 - Customs Union .................................................................................. 106 

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY ............................ 107 

Chapter 14 - Transport policy ................................................................................. 108 

Chapter 15 -  Energy ............................................................................................... 109 

Chapter 21 - Trans-European Networks ................................................................. 112 

Chapter 27 - Environment and climate change ....................................................... 113 

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION ................................................ 116 

Chapter 11 -  Agriculture and rural development ................................................... 116 

Chapter 12 - Food safety, veterinary and phytosanitary policy .............................. 117 

Chapter 13 - Fisheries ............................................................................................. 118 

Chapter 22 - Regional policy and coordination of structural instruments .............. 119 

CLUSTER 6: EXTERNAL RELATIONS ................................................................................. 120 

Chapter 30 - External relations ............................................................................... 120 

ANNEX I – RELATIONS BETWEEN THE EU AND KOSOVO ................................... 123 

3 

 
 
 
 
 
1. INTRODUCTION 

1.1. CONTEXT 

The EU-Kosovo Stabilisation and Association  Agreement (SAA) has been in  force since April 
2016. A second phase of the European Reform Agenda was adopted in October 2021 to further 
guide  the  implementation  of  EU-related  reforms  under  the  SAA  framework.  The  authorities 
continued to demonstrate visibly their commitment to Kosovo’s European path. 

The  Commission’s  proposal  to  lift  visa  requirements  for  Kosovo  citizens  is  still  pending 
in  the  Council.  The  Commission  maintains  its  assessment  from  July  2018  that  Kosovo 
has fulfilled all visa liberalisation benchmarks. The European Parliament reconfirmed its support 
for the Commission’s proposal for visa liberalisation. 

The  EU-facilitated  dialogue  on  the  normalisation  of  relations  between  Kosovo  and  Serbia 
continued with meetings at leaders’ and chief negotiators’ level. 

The  COVID-19  pandemic  continued  throughout  the  reporting  period.  The  public  health 
containment  measures  and  other  restrictions  introduced  to  limit  the  severity  of  the  pandemic 
were  lifted  in  May  2022.  During  the  reporting  period,  Kosovo  adopted  two  fiscal  packages  in 
order 
the 
crisis.  

to  mitigate 

economic 

impact 

severe 

social 

and 

the 

of 

After  Russia’s  invasion  of  Ukraine  began  at  the  end  of  February  2022,  Kosovo  immediately 
condemned  Russia’s  war  of  aggression  and  expressed  support  for  Ukraine’s  independence, 
sovereignty  and  territorial  integrity.  The  government  adopted  several  packages  of  restrictive 
measures against Russia and Belarus, mirroring the measures imposed by the EU and the United 
States.  The  government  also  responded  to  the  refugee  crisis,  suspending  its  visa  regime  for 
citizens of Ukraine. Kosovo declared its readiness to accept up to 5 000 refugees and to host 20 
Ukrainian journalists. 

1.2. SUMMARY OF THE REPORT1  

The  reporting  period  overlapped  with  the  first  full  year  in  office  of  the  Vetëvendosje-led 
government. Kosovo enjoyed political stability, with the government holding a solid majority in 
the Assembly.  

The  Assembly’s  work  continued  to  be  negatively  affected  by  a  polarised  political  atmosphere 
and  difficulties  in  achieving  decision-making  quorum,  even  though  the  government  relies  on  a 
strong majority. This is partly due to poor management of the legislative agenda on the part of 
the majority but also because opposition members of the Assembly (MPs) abstained from voting 
to prevent legislation from being adopted. 

1 This report covers the period from June 2021 to June 2022. It is based on input from a variety of sources, including 
contributions  from  the  government  of  Kosovo,  and  EU  Member  States,  European  Parliament  reports  and 
information  from  various  international  and  non-governmental  organisations.  This  also  includes  the  results  of 
comparative assessments and indices produced by other stakeholders, in particular on rule of law. 
The report uses the following assessment scales to describe the state of play: early stage, some level of preparation, 
moderately prepared, good level of preparation and well advanced. To describe progress made during the reporting 
period,  it  uses  the  following  scale:  backsliding,  no  progress,  limited  progress,  some  progress,  good  progress,  and 
very good progress. Where appropriate, also interim steps have been used. 

4 

 
 
                                                           
The  2021  municipal  elections  were  overall  well-organised,  transparent  and  competitive. 
Kosovo’s  electoral  process  still  needs  comprehensive  strengthening  to  address  long-standing 
weaknesses  throughout  the  electoral  cycle,  as  identified  in  successive  EU  election  observation 
missions since 2014.  

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

There  is  some  level  of  preparation  in  the  area  of  public  administration  reform,  but  limited 
progress  was  made  in  this  area.  Notably,  some  key  positive  steps  were  taken  by  developing 
overarching  strategies  on  public  administration  reform  (PAR)  and  public  finance  management 
(PFM)  for  2022-2026,  adopting  legislation  to  proceed  with  the  first  wave  of  streamlining  of 
public  agencies  and  launching  the  development  of  a  new  salary  law.  There  has  been  little 
progress in implementing the existing legislative framework for public administration reform.  

Kosovo  is  still  at  an  early  stage  in  developing  a  well-functioning  judicial  system.  While  some 
progress  was  made,  the  overall  administration  of  justice  continues  to  be  slow,  inefficient  and 
vulnerable  to  undue  influence.  Steps  were  taken  to  start  implementing  the  rule  of  law  strategy 
and action plan and to reform the legislative framework governing the prosecutorial system by 
amending the Law on the Kosovo Prosecutorial Council. Justice reform should be addressed first 
and  foremost  by  improving  the  implementation  of  existing  tools  to  safeguard  the  integrity,  the 
independence and the efficiency of the judicial system. The government’s commitment to fully 
implement the Venice Commission’s Opinion on the concept document on vetting of judges and 
prosecutors, in close cooperation with the EU, is welcome.  

Kosovo  is  at  an  early  stage  /  has  some  level  of  preparation  in  the  fight  against  corruption.  
During  the  reporting  period,  some  progress  was  made  with  the  adoption  of  significant  anti-
corruption  legislation.  There  is  a  need  to  improve  the  implementation  of  the  overall  legal 
framework.  Sustained  efforts  are  needed  to  achieve  more  proactive  investigations,  final  court 
decisions  and final  confiscation of  assets.  Despite the  efforts  already made, there is  a need for 
strong  political  will  to  continue  to  effectively  address  systemic  corruption  risks  and  a  robust 
criminal justice response to high-level corruption. 

Kosovo  is  at  an  early  stage  in  the  fight  against  organised  crime  and  limited  progress 
was made in investigating and prosecuting organised crime cases. The powerful tools envisaged 
by the Criminal Code and the Law on Extended Powers of Confiscation are not yet fully utilised. 
A number of successful operations targeting organised crime took place, involving international 
and cross-border cooperation. Fighting organised crime in the north of Kosovo continues to be 
challenging.  

Some progress  was  made in  the fight  against terrorism and the  fight  against and prevention of 
violent  extremism,  in  line  with  the  objectives  set  out  in  the  EU-Kosovo  implementing 
arrangement  for  the  Joint  Action  Plan  on  Counter-Terrorism  for  the  Western  Balkans.  The 
Kosovo authorities need to be more effective in their efforts to combat money laundering and the 
applicable  law  should  be  brought  in  line  with  the  EU  acquis  and  international  standards.  The 
legal  framework  broadly  guarantees  the  protection  of  human  and  fundamental  rights  in 
line  with  European  standards.  Kosovo  showed  commitment  to  addressing  gender  inequality. 
More  needs  to  be  done  to  effectively  guarantee  the  rights  of  persons  belonging  to 

5 

 
 
minorities,  including  Roma2  and  Ashkali  and  displaced  persons,  to  ensure  gender  equality  in 
practice,  and  to  advance  the  protection  of  cultural  heritage.  The  lack  of  administrative 
instructions to implement the law on child protection hampers further progress in this area. As 
regards  freedom  of  expression,  Kosovo  has  some  level  of  preparation  and  benefits  from  a 
pluralistic  and  lively  media  environment.  However,  concerns  remain  regarding  public  smear 
campaigns,  threats  and  physical  attacks  on  journalists.  The  lack  of  financial  self-sustainability 
leaves the media, including the public broadcaster, vulnerable to political and business interests.  

The  Kosovo  authorities  continued  to  make  progress  in  managing  migration.  Migration 
governance and asylum should be further strengthened.  

Kosovo  made  some  progress  on 
is  at  an  early  stage 
of developing a functioning market economy.  The economy demonstrated resilience during the 
pandemic.  Nevertheless,  long-standing  structural  challenges,  such  as  the  widespread  informal 
economy, the high prevalence of corruption and the overall weak rule of law, continue to hinder 
the private sector.  

the  economic  criteria,  and 

While  the  fiscal  rule  has  been  suspended  since  2020,  the  economic  recovery  as  well  as 
formalisation  gains  led  to  a  strong  increase  in  tax  revenue  and  a  low  public  deficit  in  2021. 
Driven  by  surging  commodity  prices,  inflation  increased  substantially.  The  financial  sector 
remained  stable,  and  lending  continued  to  expand.  Despite  strong  political  opposition,  the 
government  took  fiscally  prudent  positions  regarding  war  veterans’  pensions  and  the  Kosovo 
Pension Savings Trust.  

Kosovo  made  limited  progress  and  is  at  an  early  stage  in  terms  of  ability  to  cope  with 
competitive  pressure  and  market  forces  in  the  EU.  Little  progress  was  made  on  improving 
the  quality  of  education  and  addressing  skill  gaps  in  the  labour  market.  Kosovo  made  some 
progress  in  improving  road  infrastructure  and  increasing  investment  in  renewables,  but  the 
coal-based, outdated and unreliable energy supply remains a concern. Kosovo still lacks a long-
term energy strategy. Kosovo made some progress in digitalising the economy.  

As  regards  good  neighbourly  relations  and  regional  cooperation,  Kosovo  continued  to 
participate  in  most  regional  fora.  Kosovo  maintained  overall  good  relations  with  Albania, 
Montenegro  and  North  Macedonia.  There  has  been  no  change  in  Kosovo’s  formal  relations 
with  Bosnia  and  Herzegovina,  which  does  not  recognise  Kosovo’s  independence  and  the  two 
maintain a strict visa regime. 

The EU-facilitated Dialogue on the normalisation of relations with Serbia continued with regular 
monthly  meetings  on  the  level  of  Chief  Negotiators  and  a  High-level  meeting  on  18  August 
2022. The Parties adopted an Energy Agreements’ Implementation Roadmap in June 2022 and 
agreed on travel  with  only identity cards between Kosovo and Serbia in  August  2022. Kosovo 
needs to engage more constructively and make further substantial efforts on the implementation 
of all past agreements and contribute to reaching a comprehensive legally binding normalisation 
agreement with Serbia. Such an agreement is urgent and crucial to enable Kosovo and Serbia to 
advance on their respective European paths.  

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

6 

 
 
                                                           
During the reporting period some progress was made in aligning with European standards in the 
area  of  statistics  and  financial  control,  while  limited  progress  was  achieved  in  aligning  with 
European standards in the areas of public procurement. In most of the areas related to the internal 
market,  Kosovo  has  some  level  of  preparation,  including  on  competition.  During  the  reporting 
period,  Kosovo  made  some  progress  in  all  areas,  except  on  consumer  policy  and  health 
protection, where only limited progress was made. 

Kosovo  made  some  progress  in  the  areas  of  competitiveness  and  inclusive  growth  (customs, 
taxation,  economic  and  monetary  policy,  digital  transformation  and  media,  enterprise  and 
industrial policy, social policy and employment, education and culture) and limited progress in 
the area of research.  

On the Green Agenda for the Western Balkans and sustainable connectivity, Kosovo made some 
progress  in  the  area  of  transport  and  limited  progress  in  the  areas  of  energy,  environment  and 
climate change.  In the field  of resources and agriculture, Kosovo made some progress  on food 
safety, veterinary policy and phytosanitary policy, but only limited progress on agriculture.  

On external relations and trade policy, Kosovo made limited progress during the reporting period 
and  is  at  an  early  stage  of  preparation.  Kosovo  has  not  yet  ratified  the  Central  European  Free 
Trade  Agreement’s  additional  protocols  on  trade  facilitation  and  trade  in  services.  Kosovo 
introduced export restrictions on a number of agricultural food products without justifications or 
prior consultation with the Commission.  

Overall,  Kosovo  needs  to  improve  its  administrative  capacity  and  coordination,  across  all 
sectors, to achieve effective implementation of the EU acquis. 

CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS 

2.1. 

FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM 

2.1.1  Democracy 

The  reporting  period  overlapped  with  the  first  full  year  in  office  of  the  Vetëvendosje-led 
government. Kosovo enjoyed political stability, with the government holding a solid majority in 
the Assembly. This political enviroment has been conducive to Kosovo stepping up its efforts to 
strenghten  democracy  and  the  rule  of  law,  to  fight  corruption  and  to  intensify  legislative 
activities, including on EU-related reforms.  

Opposition parties generally remained actively engaged in the Assembly, and on some occasions 
supported key EU-related legislation. However, a frequent lack of quorum in the Assembly and 
boycotts by opposition parties caused delays in adopting key laws.   

In  autumn  2021  Kosovo  held  regular  local  elections.  Despite  shortcomings,  the  elections  were 
overall  well-administered  and  transparent.  They  were  also  competitive,  except  in  Kosovo  Serb 
areas.  Women  remain  under-represented  at  all  levels  of  participation  and  decision-making:  in 
political parties, electoral administration, as well as central and local assemblies.  

7 

 
 
Elections  

The  2021  municipal  elections  were  overall  well-organised,  transparent  and  competitive.  The 
campaign  was  vibrant,  and  a  plurality  of  contestants  offered  voters  a  real  choice,  with  the 
exception of the Kosovo-Serb municipalities, where political competition was limited. The very 
low number of women in mayoral races reflects low female political participation in Kosovo. 

Kosovo  should  address  long-standing  weaknesses,  as  identified  by  successive  EU  election 
observation  missions  since  2014.  Kosovo  should  implement  all  the  recommendations,  in 
particular  regarding  procedural  shortcomings  and  disproportionate  restrictions  that  contradict 
international  standards.  The  Assembly  established  an  ad  hoc  committee  to  address  these 
recommendations.  Key  recommendations  should  be  implemented  well  in  advance  of  the  next 
elections. The new electoral legislation should contain safeguards that limit political interference 
in the electoral process.  

Kosovo  held  regular  mayoral  and  municipal  assembly  elections  on  17  October  2021  in  all  38 
municipalities, and 21 mayoral election run-offs on 14 November 2021. Elections were assessed 
by  observers  as  well-administered  and  competitive,  while  the  election  campaign  was  peaceful. 
Vote  counting  and  the  tabulation  of  results  were  assessed  as  transparent,  yet  the  process  was 
lengthy and marred by significant weaknesses.  

In the first  round, 17 out  of 38 mayors were elected. The run-off mayoral  elections took  place 
four weeks later in the remaining 21 municipalities, including in the two biggest cities, Pristina 
and Prizren. Voter turnout in the first round was 42.72%, and 37.08% in the runoffs.  

Out of 14 women mayoral candidates, only two were placed in their party’s electoral strongholds 
and  both  were  elected.  A  total  of  1  937  women  (37%)  stood  for  municipal  assembly  seats,  in 
accordance with  the 30% gender quota for including women on  electoral  lists, and 36 of them 
(12%) headed lists. Few political parties exceeded the 30% gender quota, and therefore did not 
meet the 50% target for representation foreseen in the Law on Gender Equality. 

The  legal  framework  for  elections  remains  unchanged  since  2010.  Kosovo  should  address  all 
shortcomings  and  contradictory  provisions  in  the  law. Almost  all  recommendations  offered  by 
previous EU electoral observation missions remain unaddressed, mainly due to the frequency of 
early  parliamentary  elections.  Political  parties  need  to  deliver  on  their  commitment  and  to 
actively participate in the ad hoc committee to address all recommendations from successive EU 
observation and expert missions in a comprehensive and transparent manner.  

Political  parties  need  to  seriously  address  the  issue  of  gender  inequality  in  their  programmes 
and  statutes,  and  to  take  affirmative  action  to  overcome  the  obstacles  that  limit  women’s 
participation  in  political  life.  Kosovo  needs  to  harmonise  verification  mechanisms  for  and 
restrictions  on  candidates  with  criminal  records  in  line  with  international  standards.  The 
Assembly adopted the Law on Political Party Financing and Campaign Financing.  

Parliament  

The  Assembly’s  work  continued  to  be  negatively  affected  by  a  polarised  political  atmosphere 
and  a  lack  of  decision-making  quorum,  despite  the  fact  that  the  government  relies  on  a  solid 
majority  of  67  seats  (out  of  120).  The  Assembly  increased  the  use  of  fast  track/accelerated 
procedures  for  adoption  of  key  legislation.  Efforts  are  needed  to  strengthen  the  role  of  the 
Assembly  as  a  forum  for  constructive  political  dialogue  and  consensus-building,  particularly 

8 

 
 
regarding the EU reform agenda. The Assembly adopted new rules of procedure. The Assembly 
still needs to improve its internal management, adopt an annual work plan, swiftly move from a 
show-of-hand system to electronic voting and strengthen its oversight function.  

The  Assembly  remained  the  main  forum  for  political  dialogue  between  the  ruling  majority, 
opposition  and  non-majority  communities.  However,  inflammatory  language  against  political 
opponents  continued  to  be  used  in  debates.  The  majority  and  the  opposition  need  to  improve 
political  dialogue  and  work  together  to  further  advance  the  EU  reform  agenda  and  build 
consensus  around  major  reforms.  Due  to  the  local  elections  in  the  autumn  of  2021,  the 
Assembly’s work slowed down as MPs engaged in the electoral campaign.  

Frequent absences of members of the Assembly Presidency in meetings, the non-participation of 
Srpska Lista, and later the resignation of the Democratic Party of Kosovo (PDK) Vice-President 
upon  his  election  as  mayor  of  Mitrovicë/a,  made  it  frequently  impossible  for  the  Assembly 
Presidency to reach a quorum to hold meetings. 

Regarding the Assembly’s legislative role, it often lacked a decision-making quorum, partly due 
to  poor  management  of  the  legislative  agenda  on  the  part  of  the  majority  but  also  because 
opposition  members  of  the  Assembly  (MPs)  abstained  from  voting  in  order  to  prevent  the 
adoption of legislation. As a result, agenda items were delayed for months. 

During  the  reporting  period,  the  Assembly  approved  77  laws,  27  of  which  related  to  the 
ratification of international  agreements. A total  of 21 laws, including the  Law on  Budget  2022 
and the Law on Mid-year 2022 Budget Review were approved by accelerated procedure, thereby 
deviating  from  the  deadlines  provided  by  the  rules  of  procedure.  With  regard  to  EU-related 
reforms, the Assembly adopted a number of significant pieces of legislation, amongst others the 
law on asset declarations and on political party financing.  

The  Assembly  plenary  debated  regular  annual  reports  of  independent  bodies.  The  Assembly 
should  support  the  work  of  the  independent  regulators  and  institutions  more  systemically,  by 
appointing  their  board  members  in  a  timely  manner  and  ensuring  regular  monitoring  of  the 
implementation of the recommendations provided by committees. 

The  Assembly  has  no  annual  work  plan.  The  Assembly  needs  to  improve  the  planning  and 
coordination of its work to ensure a more predictable law-making process and attendance of MPs 
and ministers. 

For over a year the Assembly has not reinstated the electronic voting technology and continued 
using a  show-of-hand  voting  system,  which  on  many  occasions  led  to  incorrect  voting  results. 
More  importantly,  under  the  show-of-hands  voting  system  the  Assembly  does  not  publish  the 
voting records of MPs, which undermines transparency and accountability to the public. 

There  were  efforts  to  improve  parliamentary  oversight  of  all  government  branches;  yet, 
effective control remains weak. The Assembly exercised its oversight  of the executive through 
sessions  for  parliamentary  questions,  ministerial  hearings  by  committees,  and  monitoring  of 
implementation of laws. The Assembly has to exercise all available tools to hold the government 
and other institutions to account. 

Governance 

During the reporting period, Kosovo enjoyed political and institutional stability, which provided 
a conductive environment and opportunities to implement EU-related reforms and adopt overdue 

9 

 
 
legislation.  In this  context,  some progress was  made in  adopting  and implementing EU-related 
reforms.  Kosovo  adopted  the  National  Programme  for  the  Implementation  of  the  Stabilisation 
and Association Agreement (NIPSAA) and the European Reform Agenda (ERA) II Action Plan. 
Kosovo  has  strenghtened  its  capacity  to  coordinate  the  implementation  of  commitments  and 
obligations arising out of the Stabilisation and Association Agreement (SAA) and ERA  II, and 
has improved reporting mechanisms. To pursue reforms more effectively, it is essential that the 
government  builds  on  existing  achievements,  ensures  cross-party  support  for  reforms,  and 
decentralises  the  decision-making  process  by  delegating  more  responsabilities  to  the  line 
ministries.  Kosovo  should  use  the  period  without  any  regular  elections  to  fulfil  its  obligations 
under the SAA and ERA II.   

In August 2021, the government adopted an Action Plan to implement the second phase of the 
ERA, which was subsequently endorsed by the Assembly in October 2021. In March 2022, the 
government  approved  the  NIPSAA  for  the  period  2022-2026,  which  was  endorsed  by  the 
Assembly in April 2022.  

During  the  reporting  period,  the  government  made  efforts  to  further  strengthen  the  inter-
institutional  coordination  of  EU-related  affairs.  The  Office  of  the  Prime  Minister  (OPM) 
coordinates and monitors the EU integration process through the First Deputy Prime Minister for 
European  Integration,  Dialogue  and  Development,  as  the  highest-level  political  appointee  in 
charge  of  this  process,  and  the  Office  of  Coordination  of  the  Stabilisation  and  Association 
process. Although inter-institutional coordination structures for the European integration process 
are in place, coordination between line Ministries faces challenges.  

In early 2022, Kosovo prepared a detailed calendar of activities relating to the implementation of 
SAA and ERA II to set a clear timeline to fulfil the commitments. More efforts are expected to 
increase  the  trust,  and  in  turn,  to  strengthen  coordination  between  the  political  and  technical-
level  staff.  Coordination,  planning  and  monitoring  of  donor  assistance,  as  well  as  project 
preparation, needs to be further strengthened for Kosovo to benefit from opportunities under the 
Instrument for pre-Accession and the EU Economic and Investment Plan.  

As  regards  local  government,  disparities  between  municipalities  in  their  performance  and 
delivery  of  services  continued.  Kosovo  legislated  for  the  decentralisation  of  a  set  of  social 
welfare and social protection competences, but municipalities have still not received funding for 
the  implementation  of  these  services.  Moreover,  municipalities  have  a  very  low  own-source 
revenue base and there is room for improved collection of property taxes in particular. Municipal 
fiscal  autonomy  and  accountability  could  also  be  improved  with  increasing  the  size  of  the 
general  grant  or  introducing  revenue-sharing  mechanisms.  In  terms  of  governance,  municipal 
assemblies do not play a strong oversight function over the municipal executive.  

Civil society 

Overall,  civil  society  continues  to  operate  in  an  enabling  environment.  Cooperation  with  the 
government  needs  to  improve  further  through  a  higher  level  of  engagement  and  transparency. 
Efforts  remain  necessary  to  enhance  the  transparency  of  public  funding  for  civil  society 
organisations (CSOs), as well as to ensure that legal requirements stemming from the Law on the 
Prevention  of  Money  Laundering  and  Terrorist  Financing  do  not  put  undue  limitations  on  the 
financial viability of low-risk CSOs.  

10 

 
 
An empowered civil society is a key component of any democratic system and continues to be 
recognised as such by public institutions.   

Civil  society  in  Kosovo  continues  to  foster  democracy  and  pluralism,  participating  in  decision 
making  processes,  monitoring  policies  and  promoting  good  governance  and  social  progress.  
They  also  actively  contribute  to  the  design,  implementation  and  monitoring  of  EU-related 
reforms, and regularly participate in the policy dialogue platfom foreseen by the Stabilisation and 
Association  Agreement  (SAA).  Civil  society  organisations  are  generally  free  to  exercise  their 
rights of association, assembly and to critically express their views without undue pressure from 
public authorities, including those promoting civil, political, economic, social and cultural rights.  

Limited progress has been achieved with the implementation of the strategy for cooperation with 
civil society 2019-2023. The Government Council for Cooperation with Civil Society met only 
once in 2021. The work of the Council needs to become more effective and accessible, including 
through the regular publication of key activities.  

Public  consultations  are  organised  by  central-level  institutions.  The  online  platform  the 
government uses for this purpose has been improved with features allowing visualisation of key 
statistics.  At  municipal  level,  the  number  of  online  consultations  has  slightly  increased  but  it 
remains significantly lower than those organised at a central level by relevant ministries.  Public 
participation in the legislative process is still limited and inputs provided by civil society are not 
systematically reflected in public consultation reports. 

Public  funding  for  non-profit  organisations  is  reported  annually  and  made  publicly  accessible 
through an online database. The government appointed public funds coordinators in each public 
central  institution  with  the  aim  of  boosting  the  effectiveness  of  the  process.  The  regulation  on 
public funding to NGOs requires regular monitoring and follow up by the Ministry of Finance. 
The existing platform for public financing of CSOs has been upgraded, but public officials have 
limited capacity to implement public calls. A technical working group was created to review the 
current regulation.  

An  updated  sectoral  risk  assessment  of  the  civil  society  sector  remains  necessary  in  order  to 
allow  for  a  flexible  approach  to  lower-risk  CSOs.  No  progress  was  noted  regarding  the 
implementation  of  the  2019  Law  on  Freedom  of  Association  that  would  ease  organisations’ 
registration process. 

The  environment  for  volunteering  needs  to  be  improved,  including  by  putting  in  place  an 
appropriate  legislative  framework,  aligned  with  international  standards,  as  well  as  allocating 
financial and human resources for youth volunteering programmes.  

2.1.2  Public administration reform 

Kosovo  remains  at  some  level  of  preparation  and  made  limited  progress  in  public 
administration  reform  (PAR).  Notably,  some  key  positive  steps  were  taken  by  developing 
overarching  strategies  on  PAR  and  public  finance  management  (PFM)  2022-2026,  while 
maintaining the implementation of PFM strategy on track, adopting the law on the first wave of 
streamlining  of  agencies  and  launching  the  development  of  a  draft  salary  law  that  needs  to  be 
finalised and adopted. While the legislative framework on various aspects of PAR is partially in 
place,  progress  is  lacking  as  regards  implementation.  Following  the  2019  rulings  of  the 
Constitutional  Court,  ongoing  amendments  to  the  Law  on  Public  Officials  need  to  be  aligned 
with PAR principles prior to adoption. The delay in implementing the Law on Public Officials 

11 

 
 
the  organisation  of  centralised  recruitments.  The  finalisation  of 

job 
has  undermined 
classifications  and  the  systematisation  of  positions  have  been  slow,  and  this  has  created 
significant  discrepancies  in  administrative  capacity.  Insufficient  implementation  of  the  Law  on 
the  Organisation  and  Functioning  of  the  State  Administration  and  Independent  Agencies 
(LOFSAIA)  has  led  to  an  unsatisfactory  level  of  improvement  in  the  administration’s 
performance and accountability. The process of streamlining agencies has been delayed and, to 
be  successful,  needs  clearer  leadership  and  strengthened  capacities  to  ensure  the  delivery  of 
quality  results.  Strengthening  capacities  in  the Ministry  of  Internal  Affairs,  to  ensure  effective 
implementation of the Law on General Administrative Procedures, is also required.  

As  last  year’s  recommendations  have  not  been  sufficiently  implemented,  they  remain  broadly 
valid. In the coming year, Kosovo should in particular: 

  improve the functioning of the civil service by expediting the implementation of the Law on 
Public Officials in line with the relevant Constitutional Court ruling and with PAR principles, 
while organising centralised recruitments; 

  develop  a  coherent  wage  scheme  in  line  with  the  principles  of  merit,  fairness  and  equal 
treatment  in  the civil  service, while finalising the internal  organisation  of the ministries, by 
putting  in  place  job  classifications  and  job  systematisation  in  the  civil  service,  which  are  
enabling conditions for a coherent wage scheme; 

  improve the legal certainty and reduce the administrative burden of the public administration 
towards businesses and citizens, by implementing the Administrative Prevention and Burden 
Reduction Programme and the Law on General Administrative Procedures; 

  improve  accountability  in  the  public  sector  by:  (1)  effectively  implementing  the  Law  on 
Organisation and Functioning of the State Administration and Independent Agencies and (2)  
expediting the ongoing streamlining of agencies by setting up a steering body and adopting a 
revised action plan for rationalisation. 

Strategic framework for public administration reform 

A  new  overarching  public  administration  reform  (PAR)  strategy  is  under  preparation,  merging 
the  previous  public  administration  reform  strategies  on  modernisation  of  the  public 
administration, on policy planning and coordination and on better regulation into one umbrella 
framework. The Public Administration Modernisation Strategy 2015-2020 expired, but its action 
plan  continued  to  be  implemented  in  2021  with  an  improved  but  still  relatively  low 
implementation rate (37%) in the reporting period. A new monitoring platform is being prepared, 
to  enhance  implementation  of  the  strategic  indicators  and  targets  and  to  provide  transparent 
information  on  progress  to  the  public.  Monitoring  of  reforms  has  not  been  systematic  as  PAR 
and public finance management (PFM) annual and bi-annual reports for the year 2021 have not 
been approved. The Ministerial Council on PAR is in charge of internal coordination of the PAR 
strategic framework at the political level, but more political support is needed in order to make 
this a functioning body and provide regular monitoring and reporting on PAR. At the technical 
level,  the  Ministry  of  Internal  Affairs  is  in  the  lead,  but  its  limited  capacities  prevent  it  from 
effectively supervising and leading PAR. A functional analysis of the Ministry has been prepared 
to serve as a basis for a regulation on its organisational structure. 

Policy development and coordination 

12 

 
 
As  regards  policy-making,  Kosovo  made  some progress  on  further  building  some  foundations 
for strategic planning. It developed a strategic management framework that, once implemented, 
should  (i)  provide  a  clear  hierarchy  of  objectives;  (ii)  improve  performance  measurement  with 
clear targets linked to the medium-term policy planning and budgeting framework and increase 
managerial accountability. The National  Development Strategy 2022-2030 (NDS) is  still being 
developed.  Maintaining  the  hierarchy  between  priorities  of  this  strategy  and  sectoral  ones 
requires political support across line ministries. Budgeting and policy planning need to be better 
integrated,  by  linking  overall  policy  planning  and  sectoral  strategies’  objectives  and    medium-
term  expenditure  framework  (MTEF)  and  budget  documents.  The  capacities  of  the  Strategic 
Planning Office, under the Office of the Prime Minister, responsible for overall coordination of 
planning,  monitoring  and  reporting  and  for  regulatory  impact  assessments,  need  to  be  further 
strengthened. 

Limited progress  was  made in  further strengthening  inclusive and evidence-based policy and 
legislative  development.  Upgraded  administrative  capacities  are  needed,  in  the  Office  of  the 
Prime  Minister,  to  ensure  quality  control  of  regulatory  and  budget  impact  assessments  and  of 
public consultations. The capacity of line ministries also needs to improve in order to increase 
the  use  of  these  tools  for  policy  making  and  to  make  the  conduct  of  public  consultation  and 
regulatory  impact  assessments  more  effective.  Public  consultations  on  various  draft  legislation 
are organised very late in the process and inputs provided by civil society are not systematically 
reflected. The government should ensure that the legislative process complies with principles and 
standards  on  legislative  drafting,  including  by  systematically  issuing  concept  documents  as  a 
basis for reform. 

Public finance management 

A  new  public  finance  management  (PFM)  reform  strategy  (2022-2026),  including  public 
procurement  and  public  internal  financial  control,  has  been  drafted  but  not  yet  adopted. 
Reporting on the 2021 transitional action plan was delayed.  Despite the negative effects of the 
pandemic,  the  implementation  rate  of  the  2017-2021  PFM  strategy  has  remained  on  track, 
maintaining the pace of reform albeit better in some areas than others. Building on this, the focus 
now  needs  to  be  on  two  main  elements:  strengthening  fiscal  discipline,  notably  by  improving 
revenue collection and tax compliance in line with international standards as well as improving 
the accuracy and credibility of budget planning and execution annually and in the medium-term. 
Improving  public  investment  management  will  be  key  in  this  respect  as  well  as  ensuring 
coherence  between  the  medium-term  expenditure  framework  (MTEF)  and  the  national 
development strategy (NDS) 2030, as well as between the MTEF and sectoral strategies. Overall, 
the  Ministry  of  Finance,  Labour  and  Transfers  should  improve  ownership  of  the  new  PFM 
strategy  and  new  organic  public  finance  management  law,  not  least  as  they  affect  the 
implementation of the Economic Reform Programme for 2022-2024.  

In  the  area  of  public  procurement,  expansion  of  the  e-procurement  modules  progressed  and 
increased  linkages  between  this  system  and  the  Kosovan  financial  management  information 
system support commitment control and proper budget implementation. 

As regards budget transparency, citizen-friendly budgets continued to be published but updated 
information  on  budget  implementation  is  no  longer  available  on  the  fiscal  transparency  portal. 
(See also chapters on public procurement, taxation, customs and financial control)  

Public service and human resource management 

13 

 
 
The Law on Public Officials (LPO), adopted in 2020, determines the scope of the civil service 
and  the  legal  basis  for  merit-based  recruitment,  promotion  and  dismissal.    However,  the 
Constitutional  Court  ruled  in  2019  that  the  current  LPO  was  partly  unconstitutional.  The  draft 
amendments  to  the  law  are  broader  than  requested  in  the  ruling,  and  need  to  be  aligned  with 
merit  principles  prior  to  adoption.  Irrespective  of  such  amendments,  implementation  of  the 
current LPO, has been seriously delayed, causing various constraints and gaps in administrative 
capacities across the public administration. This is due to the Ministry of Internal Affairs’ (MIA) 
poor ability to steer those processes and organise centralised recruitment for entry positions. An 
annual recruitment plan has yet to be adopted. 

The  MIA  is  in  charge  of  implementing  the  human  resources  management  (HRM)  policy 
throughout the public administration, but its capacities are insufficient to effectively steer public 
administration  reform.  Each  institution,  at  both  central  and  local  level,  has  human  resources 
management units, but capacities need to be upgraded. While an information system for human 
resources management (HRMIS) is  functional,  but  relevant  civil  service  data is  lacking,  which 
hampers reporting on the implementation of LPO and coordination of HRM between central and 
local  level  and  it  reduces  public  transparency.  The  functioning  of  the  Independent  Body  for 
Oversight  and Civil  Service needs  to  be ensured, and its capacities improved to  better monitor 
and  supervise  efficiently  civil  service  procedures  and  deal  with  appeals.  Kosovo  should 
strengthen  the  human  resource  management  system  by  improving  job  classification  and 
standardisation  of  positions  and  by  creating  an  interconnection  with  the  electronic  payroll 
system.  Compliance  of  appointments  and  dismissals  of  civil  servants  with  the  formal 
procedures laid down in the LPO still needs to be improved and a consistent rule-based system of 
selection  and  merit–based  recruitment  must  be  ensured  in  practice.  The  representation  of  non- 
majority  communities  in  the  central  administration,  as  well  as  the  number  of  women  in  senior 
positions, remains insufficient.  

The legal basis of the remuneration system remains fragmented, resulting in a system that fails 
to  ensure  the  principles  of  transparency,  merit  and  equal  treatment.  Such  fragmentation 
contributes to significant differences in the basic salary for equal positions in public institutions. 
Following the ruling of the Constitutional Court, a new draft Law on Salaries is currently being 
developed  and  should  address  unfair  salary  structures,  abuse  of  allowances  and  discretionary 
decision-making.  However,  before  adopting  a  new  wage  scheme,  key  reforms  on  civil  service 
and  human  resource  management  need  to  be  done  in  parallel,  in  order  to  ensure  a  fair  and 
transparent system of equal pay for equal qualifications in the civil service. Those reforms entail 
finalising the internal organisation of ministries, including definition of job classifications in line 
with the Law on Public officials and finalising job systematisation. The situation is aggravated 
by the lack of data, such as an official analysis of civil service salaries. 

There is no systematic approach to the professional development of civil servants. The Kosovo 
Institute  for  Public  Administration,  which  provides  training  for  civil  servants,  is  largely 
dependent on donor support. The LPO lays down rules and criteria for the development of civil 
servants,  including  performance  appraisal,  mobility  and  promotion.  However,  those  provisions 
are not implemented in practice and an effective performance management system still needs to 
be put in place.  

Integrity  plans  to  promote  integrity  in  the  public  service  exist,  but  implementation  remains 
limited.  Implementation  of  the  Law  on  protection  of  whistle-blowers  has  started  and  related 
crucial secondary legislation developed.  However, whistle-blowing mechanisms and protection 

14 

 
 
requirements still need to be strengthened and effectively implemented. Reports on disciplinary 
measures  against  civil  servants  are  published  regularly.  (See  section  on  the  fight  against 
corruption) 

Accountability of the administration 

The  Law on the  organisation and functioning of state administration and independent  agencies 
(LOFSAIA),  covering  performance  and  accountability,  is  not  sufficiently  implemented.    The 
rationalisation process is delayed because the review of agencies was not done by the end of the 
transitional  period  provided  for  in  the  law.    Generally,  reviews  of  restructuring  agencies  and 
establishing  new  ones,  in  line  with  LOFSAIA  standards,  remain  limited  due  to  the  weak 
capacities of the Ministry of Internal Affairs to control the quality of these processes. Although 
the  Assembly  adopted  the  Law  on  the  first  wave  of  rationalisation  in  agencies,  there  is  no 
strategic  and  comprehensive  approach  to  steer  and  monitor  the  delivery  of  quality  results. 
Consequently, the lines of accountability in public administration remain blurred, with too many 
independent  agencies  sharing  executive  functions  and  reporting  to  the  Assembly  and  many 
subordinated  agencies  reporting,  inefficiently,  to  line  ministries.  The  government  should  take 
forward  the  rationalisation  process  more  strategically,  by  reviewing  the  action  plan  on 
rationalisation of agencies, setting up an inter-governmental working body to steer and upgrade 
oversight  capacities  to  monitor  the  process  and  by  providing  more  guidance  -  developing  the 
related  LOFSAIA  methodological  framework  -  to  line  ministries.  In  addition,  reforming 
delegation  chains  in  the  civil  service  is  key  to  establishing  a  system  in  line  with  principles  of 
managerial  accountability:  Rules  are  needed  on  the  financial  and  administrative  aspects  of 
delegating  managerial  responsibilities,  and  middle  and  high-level  managers  need  to  be 
empowered to take decisions (See Chapter 32). 

Public  scrutiny  of  the  work  of  government  is  still  limited.  The  Assembly’s  oversight  of  the 
government must be strengthened, and a more systematic review of the Assembly’s bills by the 
government  must  be  put  in  place.  Efficient  implementation  of  the  Law  on  access  to  public 
documents  remains  a  challenge.  Despite  the  appointment  of  a  new  Commissioner  for 
Information and Privacy, he does not have enough supervisory powers to ensure an independent 
appeal  mechanism  if  public  bodies  deny  or  ignore  requests.  Public  bodies  continue  to  not 
proactively disclose, on their websites, annual plans, reports, budgets and financial plans. 

The  Kosovo  National  Audit  Office  and  the  Ombudsperson  are  the  key  institutions  ensuring 
citizens’  right  to  good  administration.  However,  their  recommendations  are  not  always 
efficiently  implemented  by  public  bodies.  The  judiciary  needs  to  increase  its  efficiency  in 
handling  administrative  disputes  to  ensure  citizens’  rights  and  access  to  administrative  justice. 
The  Basic  Court  of  Pristina  still  struggles  with  a  large  backlog  of  administrative  cases,  with 
many  incoming  minor  offence  cases.  Fragmented  legislation  affects  the  liability  of  public 
authorities in cases of wrongdoing and the right to seek compensation.  

Service delivery to citizen and businesses 

The  government  has  been  addressing  reforms  in  this  area  in  a  piecemeal  manner,  through 
progress  in  individual  institutions,  rather  than  comprehensively  transforming  service  delivery. 
Implementation  of  the  Law  on  general  administrative  procedures  has  been  slow.  The 
Administrative  Burden  Prevention  and  Reduction  Programme  2022-2027,  still  to  be  adopted, 
aims to provide a more comprehensive approach, by both reducing administrative requirements 
for permits and licenses, by means of legislative simplification and digitalisation, and ensuring 

15 

 
 
better  compliance  with  the  Law  on  General  Administrative  Procedures  (LGAP).  Services  are 
also  available  to  citizens  and  businesses  through  the  e-Kosova  digital  portal,  but  this  does  not 
address  issues  with  over-the-counter  service  delivery.  Data  quality  and  reliability  remain  a 
challenge; the Ministry of Internal Affairs is responsible institution for service delivery but lacks 
a  specialised  unit  to  manage  and  monitor  public  service  delivery  policy.  Service  delivery  to 
groups in socially vulnerable situations, including persons with disabilities, remains inefficient.  

Chapter 23 - Judiciary and fundamental rights 

The  EU’s  founding  values  include  the  rule  of  law  and  respect  for  human  rights.  An  effective 
(independent, high-quality and efficient) judicial system and an effective fight against corruption 
are of paramount importance, as is the respect for fundamental rights in law and in practice.  

Kosovo is at an early stage in/has some level of preparation for applying the EU acquis and 
the  European  standards  in  the  area  of  the  judiciary  and  fundamental  rights.  Limited  progress 
was made, including some progress on the functioning of the judiciary and on investigation and 
prosecution  in  certain  organised  crime  and  high-level  corruption  cases.  The  capacity  of  the 
judiciary  and  prosecution,  including  for  handling  cases  in  a  timely  manner,  remains  weak.  On 
fundamental  rights,  the  government  needs  to:  (i)  ensure  oversight  of  the  legislation’s 
implementation; (ii) streamline strategies; and (iii) better coordinate policies. 

Functioning of the judiciary 

Kosovo  is  at  an  early  stage  in  developing  a  well-functioning  judicial  system.  The  overall 
administration  of  justice  continues  to  be  slow,  inefficient  and  vulnerable  to  undue  influence. 
During  the  reporting  period,  some  progress  was  achieved.  Steps  were  taken  to  start 
implementing the rule of law strategy and action plan and initiating the reform of the legislative 
framework  governing  the  prosecutorial  system  by  amending  the  Law  on  the  Kosovo 
Prosecutorial  Council.  Kosovo  completed  the  roll-out  of  an  electronic  Case  Management 
Information  System  across  all  courts  and  prosecution  offices  and  continued  to  strengthen  the 
central criminal records system, although challenges remain. Kosovo made efforts to implement 
the  Law  on  Mediation.  The  Kosovo  Judicial  Council  adopted  a  protocol  to  ensure  a  more 
effective  and  efficient  implementation  of  mediation  services,  and  each  prosecution  office 
throughout  Kosovo  has  officials  handling  mediation  cases.  The  government  has  adopted  a 
concept  document  setting  out  its  proposal  to  carry  out  a  comprehensive  vetting  of  judges  and 
prosecutors. A comprehensive approach to justice reform, which is based on a holistic view of 
the gaps and weaknesses of the judicial system, is necessary to ensure long-term impact. Justice 
reform should be addressed first and foremost by improving the implementation of existing tools 
to safeguard the integrity, the independence and the efficiency of the judicial system, including 
through  appropriate  legislative  changes.  These  mechanisms  include,  among  other  things,  an 
asset-declaration system, disciplinary procedures and consistent performance evaluation, in line 
with the recommendations of the Venice Commission Opinion of 17 June 2022  on the concept 
document  on  vetting  and  relevant  European  standards.  The  government  has  stated  its 
commitment  to  follow  the  Venice  Commission’s  recommendations  on  justice  reform  and  to 
cooperate with the EU.  

In the coming year, Kosovo should in particular: 

  improve  the  integrity  and  professionalism  in  the  judicial  system  by  improving  the  existing 
tools  (asset  declaration  system,  disciplinary  proceedings,  performance  evaluations  and 

16 

 
 
integrity  checks  limited  to  high  judicial  institutions),  including  through  appropriate 
legislative changes. Ensure that any justice reform is carried out in line with relevant Venice 
Commission recommendations and European standards. 

  continue to effectively implement the rule of law strategy and action plan without delay, by 
means  of  a  regular  and  structured  process  that  includes  proper  inter-institutional 
coordination; 

  step  up  efforts  to  reduce  the  backlog  of  cases  based  on  a  revised  plan  supported  by  a 
digitalisation  strategy;  to  that  end,  ensure  the  systemic  use  of  the  Case  Management 
Information System by judges, prosecutors and support staff for automatic case assignment, 
and further promote and properly finance the use of alternative dispute resolution tools, such 
as mediation, supported by a monitoring and evaluation system to follow up on the impact of 
mediation services. Ensure reliable statistical data, in line with the European Commission for 
the Efficiency of Justice (CEPEJ) methodology. 

The  COVID-19  pandemic  affected  the  functioning  of  rule  of  law  institutions  and  overall 
performance  of  the  judicial  system.  There  is  a  need  to  improve  the  overall  use  of  digital 
technologies  and  adopt  necessary legal amendments  to  facilitate  remote  court hearings. Efforts 
were  undertaken  to  address  the  issue  of  criminal  trials  affected  by  the  three-month  rule, 
according  to  which  a  trial  has  to  re-start  after  three  months  pass  without  any  hearing.  This 
affected  prominent  corruption  and  organised  crime  cases.  As  the  Criminal  Procedure  Code 
(CPC) does not address this matter, the uncertainty should be urgently addressed.  

Strategic documents 

The  functional  review  of  the  rule  of  law  sector  led  to  a  rule  of  law  strategy  and  action  plan, 
which were adopted by the government in August 2021. The Strategy sets out specific measures 
that  aim  to  increase  the  integrity  and  performance  of  anti-corruption  mechanisms  in  Kosovo, 
strengthening the judiciary and prosecution, improving access to justice for all, protecting human 
rights, ensuring gender equality and reforming the Ministry of Justice to increase its capacities to 
implement  the  EU  acquis  and  European  standards.  While  implementation  is  ongoing,  actions 
already  taken  under  the  Strategy  include  the  establishment  and  bringing  into  operation  of  the 
Commercial  Court,  the  adoption  of  amendments  to  the  Law  on  the  Kosovo  Prosecutorial 
Council, the adoption of laws in the field of anti-corruption, the advancement of the performance 
evaluation systems within the Kosovo Judicial and Prosecutorial Councils and Council strategic 
plans.  The  Strategy  calls  for  the  setting-up  of  a  Steering  Committee  and  an  inter-institutional 
body  to  monitor  its  implementation,  which  includes  the  involvement  of  both  Councils.  The 
Steering  Committee,  including  judicial  system  stakeholders  and  civil  society,  has  been  set-up, 
but  it  needs  to  ensure  consistent  monitoring  and  tracking  of  progress  in  implementing  the 
measures set out in the Strategy. In April 2022, the President set up the Council for Democracy 
and Human Rights, with the Rule of Law Strategy as one of its key components. This high-level 
coordination forum aims to serve as another layer of oversight and to support the implementation 
of the Strategy. 

The  Kosovo  Prosecutorial  and  Judicial  Councils  regularly  update  strategic  plans  setting  the 
objectives for the judiciary and prosecution system. Both Councils adopted annual action plans. 
During the reporting period, the Judicial Council adopted a strategic plan for the efficient solving 
of cases of corruption and organised crime, a communication strategy for 2022-2024 as well as 
the  Strategic  Plan  for  Access  to  Justice  for  2022-2025.  However,  these  plans  do  not  always 

17 

 
 
contain  clear  links  to  the  respective  strategies.  The  implementation  of  the  strategies  should  be 
effectively monitored. While both Councils initiated coordination with donors and international 
partners, the Kosovo institutions should set up an effective central mechanism to ensure proper 
donor coordination to avoid inefficiencies, inconsistencies and duplication of efforts.  

Management bodies 

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

In  March  2022,  the  government  adopted  amendments  to  the  Law  on  Kosovo  Prosecutorial 
Council with the aim of reducing a trend of corporatism within the Council. These amendments, 
inter alia, reform the composition of the Kosovo Prosecutorial Council by reducing the number 
of members (from 13 to 7) and changing the balance between the three lay members (appointed 
by  the  Assembly)  and  ten  prosecutorial  members  (elected  by  their  peers)  –  thus  reducing  the 
number  of  prosecutors  to  four,  including  the  Chief  State  Prosecutor.  The  Venice  Commission 
issued  two  opinions  on  these  amendments,  in  December  2021  and  March  2022.  The  second 
opinion  assessed  that  the  revised  draft  addresses  the  key  issues  identified  in  the  December 
opinion, and provided further recommendations to finalise the draft amendments. The Assembly 
has addressed the additional Venice Commission recommendations and adopted the amendments 
in  June  2022.  A  number  of  MPs  submitted  the  adopted  amendments  for  review  by  the 
Constitutional Court. There is a consistent delay from the Assembly of Kosovo in appointing the 
members  of  the  Councils.    The  Assembly  should  regularly  ensure  the  full  constitution  of  both 
Councils,  without  any  delay.  The  budget  allocated  to  both  Councils  was  decreased  for  2022, 
compared to 2021. This has further limited the number of positions of professional support staff 
for courts and prosecution offices. The Councils should make use of statistics made available to 
the public for policy analysis and development.  

Since 2017, Kosovo Serb judges and prosecutors are formally integrated in the judicial system. 
While the integration was a success overall, Kosovo consistently fails to ensure implementation 
of  the  provisions  on  the  composition  of  panels  for  cases  coming  from  Serb-majority 
municipalities,  especially  in  the  Court  of  Appeal.  Kosovo  must  also  ensure  that  judicial 
proceedings  can  be  accessed  in  all  official  languages  across  Kosovo,  in  line  with  the 
Constitution. Immediate action is necessary to address the issue of lack of qualified translators, 
also to reduce the backlog of cases. Access to judgments and decisions rendered by the Serbian 
courts in Kosovo between 1999 and up until the integration of Serbian judges in October 2017 
remains  problematic.  More  importantly,  Kosovo  has  not  yet  implemented  the  agreement 
providing for the recognition of such judgements and decisions. According to the Constitution of 
Kosovo,  judges  may  not  become  involved  in  any  political  activity.  The  same  principle  is 
reflected in the Law on Courts and the Code of Ethics of judges. In April, the Kosovo Judicial 
Council  imposed  a  disciplinary  sanction  on  the  President  of  the  Mitrovica  Basic  Court  for 
participating in a meeting with the President of Serbia, which it considered a political activity.  

Independence and impartiality 

The  Constitution  and  the  legal  framework  provide  for  clear  safeguards  for  the  independence 
and impartiality of the judiciary. Continuous efforts are necessary to ensure this in practice and 

18 

 
 
effectively shield the judicial system from undue pressure and interference. The Councils should 
promptly react in all cases of alleged political interference in the prosecution and the judiciary.  

The  regulatory  framework  provides  for  the  random  allocation  of  cases through a  case 
management  information  system.  In  practice,  a  significant  number  of  cases  remain  manually 
assigned,  especially  when  a  judge  is  unavailable,  which  is  a  concern.  Any  deviation  from  the 
random  allocation of  cases needs to  be  explicitly justified and transparently documented.  High 
profile and sensitive cases are not always processed in a timely manner. 

During  the  reporting  period,  there  was  one  request  for  close  protection  made  by  prosecutors, 
which was granted. There was no request for close protection made by judges.  

Accountability 

While codes of ethics are in place for judges, prosecutors and attorneys, continuous efforts and 
awareness raising are necessary to ensure their effective implementation.  

The  Kosovo  Judicial  Council  has  established  an  Advisory  Committee  on  Judicial  Ethics.  Both 
Councils continue to conduct disciplinary procedures against judges and prosecutors. There is a 
slight shift towards imposing less lenient disciplinary sanctions, compared to previous years. The 
number  of  imposed  suspensions  and  demotions  for  judges  and  prosecutors  is  higher.  The 
Councils  should  ensure  strict  and  efficient  proceedings  in  full  compliance  with  the  applicable 
legislation  and  the  necessary  procedural  safeguards.  While  there  are  efforts  in  ensuring  proper 
implementation  of  the  legal  framework  regarding  disciplinary  proceedings,  more  willingness, 
diligence  and  work  are  needed  to  ensure  consistent  and  effective  application  of  disciplinary 
proceedings  against  judges  and  prosecutors.  During  the  reporting  period,  the  Kosovo  Judicial 
Council established an electronic database to register all complaints and requests for initiation of 
disciplinary investigations as required by law. 

Judges  and  prosecutors  are  obliged  by  law  to  declare  their  assets  and  gifts  received,  and  to 
report any possible conflict of interest to the Anti-Corruption Agency. In 2021, one prosecutor 
and  two  judges  failed  to  submit  the  asset  declaration  within  the  deadline  of  annual  regular 
declaration. 

The  Kosovo  government  continued  work  on  setting  up  a  vetting  system  of  the  judiciary,  in 
particular  by  adopting  a  concept  document  on  vetting.  The  Venice  Commission  adopted,  at  its 
plenary session of 17-18th June 2022, an Opinion on this concept  document. While the Venice 
Commission  acknowledges  the  challenges  facing  the  current  judicial  system,  it  concluded  that 
the time is not ripe for the introduction of a large-scale vetting of all judges and prosecutors since 
“an  important  part  of  the  problem  is  related  to  inefficient  application  of  and  gaps  in  the 
legislation  on  existing  bodies”.  Kosovo  should  fully  align  with  the  Venice  Commission 
recommendations by first exploring other avenues, including through legislative changes, such as 
ensuring a proper legal and regulatory basis for verification units within the Councils, making a 
more active use of asset declarations of judges and prosecutors, ensuring that irregularities in the 
asset  declarations  trigger  disciplinary  action  and  the  set-up  of  integrity  checks  for  high-level 
judicial  institutions  (in  particular  the  Councils).  Such  concrete  measures  would  represent  an 
effective  way  to  strengthen  independence  and  accountability  of  the  judicial  system  through 
legislative  changes.  Continued  dialogue  with  the  Venice  Commission  and  the  European 
Commission  on  the  next  stages  of  designing  and  implementing  the  envisaged  justice  reform 
should be ensured. Consultations with  all relevant  stakeholders, including  the Councils, should 

19 

 
 
continue.  Finally,  any  reform  aimed  at  improving  the  quality  and  independence  of  the  system 
should not further deteriorate the efficiency of the judicial system.  

Professionalism and competence 

The Councils independently organise recruitment processes for judges and prosecutors on the 
basis of merit-based criteria, after which successful candidates are appointed by the President for 
an initial three-year term. During the reporting period, the Kosovo Judicial Council initiated the 
recruitment process for 54 new judges, among which eight positions for the Serb community in 
Kosovo.  The  President  decreed  48  judges,  out  of  which  three  are  Kosovo  Serb  and  one  is 
Bosnian. The recruitment process was conducted in accordance with the legislative framework. 
The Kosovo Judicial Council has appointed the President of the Court of Appeals and the Basic 
Courts  of  Prizren  and  Gjilan.  The  Kosovo  Judicial  Council  recruited  a  significant  number  of 
legal  associates  to  support  the  work  in  the  Basic  Courts  .  In  addition,  the  Council  is  in  the 
process of certifying judicial experts. Any initiative in this regard should be properly coordinated 
amongst the relevant institutions. 

The Kosovo Prosecutorial Council conducted the selection of the new Chief State Prosecutor as 
the  term  of  office  of  the  previous  one  expired  in  April.  The  EU,  other  international  actors 
including  the  USA  and  German  embassies  in  Kosovo,  and  civil  society,  publicly  expressed 
disappointment over lack of fairness, transparency and merit principles in the process carried out 
by  the  Kosovo  Prosecutorial  Council.  During  the  reporting  period,  the  Council  initiated  the 
recruitment process for 16 new prosecutors, which resulted in 7 candidates being decreed by the 
the  President.  The  process  of  appointment  and  reappointment  after  the  initial  term  of  office  of 
judges  and  prosecutors  must  fully  respect  the  principle  of  independent  functioning  of  the 
judiciary and prosecution system, in line with the Constitution. 

The Councils are required to carry out performance evaluations of prosecutors and judges with 
a permanent mandate every 3 years. While both Councils have revised the regulatory framework 
governing the performance evaluation of judges and prosecutors in the previous years, the impact 
is  yet  to  be  seen.  Councils  must  ensure  rightful  and  objective  application  of  these  regulations, 
leading to performance evaluations based on clear criteria and indicators.  

Quality of justice 

The Academy of Justice is responsible for delivering initial and in-service training for all legal 
professionals.  In  response  to  the  pandemic,  the  Academy  continued  to  provide  online  training. 
Since July 2021, the Academy has allowed participation to hybrid-type trainings. The curriculum 
for  initial  training  is  being  revised.  A  new  approach  of  trainings,  supported  by  an  EU-funded 
project, was adopted in November 2021 and is now implemented, in line with the requirements 
of the Rule of Law Strategy. Further in-service training is needed as regards ethics and integrity 
and  professional  skills,  in  particular  in  the  field  of  management  and  administration.  Oversight 
and reporting lines of the Academy should be strengthened in line with European best practices.  

Overall,  the  level  of  professionalism  and  competence,  especially  of  prosecutors,  remains  a 
matter of concern, despite efforts to increase the available training.  

On jurisprudence, some progress has been made regarding the legal obligation for all courts to 
publish their judgments on an accessible and searchable web portal within 60 days, in all official 
languages. While there are improvements in the publication of judgments, timely and consistent 
publication  has  to  be  ensured.  The  prosecution  offices  publish  relevant  information  on 

20 

 
 
indictments  on  the  website  of  the  State  Prosecutor  within  24  hours.  The  Academy  of  Justice 
maintains  a  database  of  legislation,  commentaries  and  other  legal  material  accessible  to  all 
judges and prosecutors.  

Kosovo  had  432  judges  (148  women  and  284  men),  24  per  100  000  inhabitants,  and  183 
prosecutors  (78  women  and  105  men),  10  per  100  000  inhabitants  in  2021.  According  to  the 
European  Commission  for  the  Efficiency  of  Justice  (CEPEJ),  the  European  averages  are  21 
judges/12  prosecutors  per  100  000  inhabitants.  Kosovo  still  has  a  low  percentage  of  female 
judges and prosecutors in comparison with most other European countries.  

Although the number of professional associates in all Kosovo courts has increased in 2021, the 
number of legal staff directly assisting judges and prosecutors remains insufficient. A number of 
vacancies remain open as the Assembly did not approve the full request of the judiciary budget 
for 2022. 

The budget approved for the judiciary for 2021 and 2022 is slightly higher than in 2020, rising 
from  EUR 61.9 million in  2021 to  EUR 67.2 million  for 2022 (EUR 59.5 million in  2020), or 
respectively 2.46% and 2.45% of the general budget (2.27% in 2020). 

For e-justice tools, the implementation of the case management information system (CMIS) is in 
an advanced phase. The roll out of CMIS in the Supreme Court marks the implementation of the 
automatic  case  assignment  in  all  courts,  instead  of  manual  allocation.  At  the  level  of  the 
prosecution,  the  implementation  of  CMIS  remains  a  challenge.  While  formally,  all  Basic 
prosecution  offices  are  using  the  CMIS,  certain  cases  are  still  handled  manually.  The  Appeals 
Prosecution  and  Chief  State  Prosecutor  Offices  are  working  towards  full  connectivity  with 
CMIS. The police system is connected to the CMIS for exchange of data in criminal cases. The 
connection  with  the  Civil  Registration  Agency  and  the  Business  Registration  Agency  is 
functioning  well.  Consistent  use  of  the  system  is  needed  and  should  be  encouraged  by  the 
management  to  ensure  that  the  system  is  applied  systematically  and  that  the  data  entered  is 
accurate  and  complete,  in  particular  so  that  the  automatically  obtained  statistical  data  on  the 
performance of the judiciary  and prosecution is  reliable (in line  with  CEPEJ recommendations 
and methodology). Administrative staff require further training. Work on a National Centralised 
Criminal Records Registry (NCCR) is progressing, with nearly all cases and convicted persons 
entered into the system. However, the Kosovo Judicial Council and the courts need to ensure the 
systems’ sustainability, including the proper use of CMIS, so that the data is properly inserted in 
the  NCCR.  The  two  IT  systems  still  need  to  be  made  inter-operable.  Legislation  concerning 
procedures and responsibility over the NCCR still needs to be developed.  

There  is  a  tracking  mechanism  for  high-level  corruption  and  organised  crime  cases,  which 
currently includes 82 cases. (See section on fight against corruption)  

The mediation system has been operational since 2008. A mediation mechanism, in place since 
2018,  is  implemented  by  both  the  Judicial  and  Prosecutorial  Councils.  There  is  a  need  for  a 
monitoring  and  evaluation  system  to  assess  the  overall  impact  of  mediation  services,  the 
allocation and acceptance procedures, and the impact on the reduction of pending and backlog of 
cases.  Both  Councils  have  adopted  internal  regulations  and  protocols  to  support  the  mediation 
system.  Proper  budget  allocation  is  seen  as  a  challenge  for  both  Councils.  In  2021,  the  courts 
referred  3  119  cases  to  mediation,  marking  a  slight  decrease  compared  to  2020  (3  135  cases). 
The  State  Prosecutor  and  the  prosecution  offices  solved  2,153  cases  by  employing  alternative 
procedures, a decrease compared to 2020 (2 902).  The number of licensed mediators remained 

21 

 
 
the same, at 190 (67 women, 123 men), of whom 14 were from the Serb-majority municipalities. 
Public awareness of and familiarity with alternative dispute resolution tools remains low. The 
mediation  system  needs  further  strengthening,  and  this  can  be  achieved  through  full 
implementation of the Law on Mediation and allocation of a sufficient budget. The Ministry of 
Justice has adopted two administrative instructions aiming at further improving free professions 
system and increasing the overall efficiency of the judicial system. The Kosovo Judicial Council 
published a protocol for referring appropriate civil cases to mediation. 

Efficiency 

The efficiency of the judicial system remains of concern. The clearance rate is particularly low 
for civil and commercial cases at first instance - 53% in 2021 (85% in 2019 and 70% in 2020) - 
and second instance - 66% in 2021 ((123% in 2019 and 115% in 2020) - and for administrative 
cases at second instance - 74% in 2021 (80% in 2019 and 78% in 2020). While the clearance rate 
for  severe  criminal  cases  at  first  instance  was  105%  in  2021  (107%  in  2020),  several  factors 
hamper the  efficiency  of criminal  justice.  The  capacity  of judges to  manage  court proceedings 
efficiently  needs  to  be  significantly  improved  to  avoid  unproductive  hearings,  unreasonably 
protracted  proceedings  and  ultimately  low-quality  decisions.  In  all  case  categories,  there  is  a 
backlog  with  a  sizeable  number  of  pending  cases  older  than  two  years.  The  newly  established 
Commercial Court is functional as of August 2022. 

Also, the time taken for judgements (i.e. the average time from filing a court case to receiving 
a judgment) remains a cause for concern as they are overall far too long. In 2021, the disposition 
time  stands  at  1  339  days  for  civil/commercial  cases  in  first  instance  and  798  days  for 
administrative cases in first instance. At second instance, that is 646 for civil/commercial cases 
and 426 days for administrative cases. Severe criminal cases take 613 days in first instance and 
99 days in  second instance. These delays in  proceedings, in  combination with  a preference for 
detention over other restrictive measures, have led again to overly long detention cases. During 
the  reporting  period,  the  Ombudsperson  continued  to  receive  complaints  against  courts  and 
prosecutors with allegations of unjustifiable delays in judicial proceedings. The authorities need 
to  consider  introducing  an  effective  judicial  legal  remedy  to  address  such  delays,  including 
compensation. The authorities also need to ensure proper managerial follow up on the deadlines, 
including reacting to delays with proper and timely managerial actions.  

To  further  improve  the  quality  and  efficiency  of  the  judicial  system  in  Kosovo,  judges, 
prosecutors  and  support  staff  should  make  full  use  of  CMIS  and  related  trainings.  In  addition, 
monitoring and evaluation of courts’ activities and giving judicial systems adequate funding and 
human resources  needs to  be prioritised.  The revised Criminal  Procedure Code, pending in  the 
Assembly  for  adoption,  would  address  shortcomings  in  the  criminal  proceedings.  The 
sentencing policy in relation to organised crime and corruption remains erratic, with courts not 
systematically  implementing  the  Supreme  Court’s  2018  sentencing  guidelines,  despite  the  fact 
that the Court has established a committee to monitor its implementation. 

Finally, continuous efforts are needed to introduce reliable statistical systems for the judiciary 
based  on  CEPEJ  indicators,  and  to  use  the  findings  for  the  management  and  policy-making 
purposes.  

Domestic handling of war crime cases  

22 

 
 
The  government  has  put  forward  measures  to  strengthen  domestic  institutional  mechanisms 
dealing  with  war  crimes.  The  amendments  to  the  Criminal  Procedure  Code  on  the  applicable 
procedure  of  trial  in  absentia  of  war  crimes  adopted  in  the  Assembly  have  not  been 
implemented. Despite recent amendments, meeting certain criteria defined by the law remains a 
challenge, in particular when suspects reside in Serbia. 

The implementation of the strategy on war crimes adopted by the Kosovo Prosecutorial Council 
in  2019  continues  to  be  hampered  by  the  political  context,  lack  of  resources  and  the  lack  of 
international  and  regional  cooperation.  In  the  reporting  period,  the  Kosovo  Police  arrested  3 
persons  suspected  of  war  crimes  and  initiated  35  new  investigations.  Following  the  first 
conviction for a war crime at first instance since the end of EULEX’s executive judicial mandate, 
in the reporting period, two other convictions were handed down by the Basic Courts. However, 
these  judgements  were  later  either  sent  back  for  re-trial  or  significantly  modified  in  appeal. 
Significant  obstacles  remain  in  the  proper  adjudication  of  war  crime  cases.  More  broadly, 
concerns  remain  about  the  willingness  to  hold  former  Kosovo  Liberation  Army  members 
accountable in war crimes cases. 

In  2021,  the  Special  Prosecution  Office  of  Kosovo  indicted  one  person  for  war  crimes.  In  3 
cases,  4  persons  were  convicted.  Despite  the  increase  of  assigned  prosecutors  (from  three  to 
four),  the  war  crimes  department  of  the  Special  Prosecution  Office  continues  to  struggle  in 
processing  the  workload,  which  has  constantly  increased  since  2018.  There  are  over  1000  war 
crimes  cases  pending,  mainly  inherited  from  EULEX  in  2018.  There  is  a  need  for  continuous 
training and support staff, in particular on police-prosecution cooperation. A number of requests 
for  assistance  transmitted  through  the  Office  of  the  EU  Special  Representative  (EUSR)  in 
Kosovo to Serbia were not addressed. Mutual legal assistance between Kosovo and Serbia in war 
crimes cases remains difficult. Cooperation with  the UN International Residual Mechanism for 
Criminal Tribunals (IRMCT) in The Hague has resumed during the reporting period.  

The  Kosovo  Specialist  Chambers  and  Specialist  Prosecutor's  Office  (SPO)  have  continued  to 
investigate  and  prosecute  violations  of  international  law.  In  the  reporting  period,  pre-trial 
preparations  were  ongoing  in  2  cases,  including  against  the  then  President  of  Kosovo,  and  2 
cases are in the trial phase. In one case, the Chambers found the chairman and his deputy of the 
Kosovo  Liberation  Army  War  Veterans  Association  guilty  of  obstructing  official  persons  in 
performing official duties, intimidation during criminal proceedings and violating the secrecy of 
proceedings.  Each  accused  was  sentenced  to  4.5  years  of  imprisonment.  It  is  essential  that 
Kosovo  institutions  provide  full  cooperation  with  the  Specialist  Prosecutor’s  Office  and 
Specialist  Chambers,  enabling  them  to  fulfil  their  mandate  in  full  independence,  without  any 
outside interference.  

The  Government  Commission  on  Recognition  and  Verification  of  the  Status  of  Survivors  of 
Sexual Violence during the Conflict continues its work. Still, the aspect  of societal stigma that 
the survivors face and the limited number of cases approved for recognition and compensation 
might  deter  future  applicants.  Since  the  beginning  of  the  process  in  February  2018,  this 
Commission  received  1  728  applications.  So  far,  1  274  persons  have  recognised  status  of 
survivors  of  sexual  violence  during  the  conflict.  During  2022,  this  Commission  received  107 
applications and recognised the status of survivors of sexual violence during the conflict to 224 
applicants.  The  timeframe  of  the  law  still  excludes  those  who  suffered  conflict-related  sexual 
violence after 20 June 1999. 

23 

 
 
Kosovo  should  develop  an  overarching  strategy  for  transitional  justice,  including  a 
comprehensive  approach  to  addressing  its  past.  The  Ministry  of  Justice  is  in  the  process  of 
drafting the Transitional Justice Strategy. The same Ministry has started the  work on the Draft 
law for establishment of an  Institute for documentation  of crimes committed during the war in 
Kosovo.  The  Government  Commission  on  Missing  Persons,  within  the  Office  of  the  Prime 
Minister,  took  over  the  leading  role  in  the  working  group  for  the  amendment  to  the  Law  on 
missing persons. The future of an initiative to establish a Truth and Reconciliation Commission 
remains unclear. Civil society remains actively engaged in reconciliation initiatives.  

In 2021, excavation works allowed the identification of the remains of nine victims in Kizevak, 
Raška municipality in Serbia, and three in Sid in Serbia. The remains of nine victims from the 
conflict in Kosovo exhumed in Kizevak were handed over to their families in 2021. Three sets of 
human  remains  were  also  repatriated  from  Kosovo  to  Serbia.  The  Pristina  delegation  to  the 
ICRC-chaired  Working  Group  on  the  Missing  Persons  remained  engaged  during  the  reporting 
period. There was no session of the Working Group after April 2021 as the Pristina delegation 
refused to hold new meetings until the Belgrade delegation changed its head. Nonetheless, lower 
levels  of  the  mechanism  (Sub-Working  Group  on  Forensic  Issues  and  Analytical  Team) 
continued to work on concrete cases and sites and held 13 meetings after April 2021 (of which, 
11 in 2021 and 2 in 2022). In May 2022, Serbian authorities conducted excavations in Stavalj in 
the presence of the Kosovo Commission on Missing Persons, in line with the commitments made 
in the framework of the ICRC-chaired Working Group. No human remains were found. 

Fight against corruption  

Kosovo  is  at  an  early  stage/has  some  level  of  preparation.  In  the  reporting  period,  some 
progress  was  made  with  the  adoption  of  significant  anti-corruption  legislation:  the  Assembly 
approved  the  new  Criminal  Procedure  Code,  the  Law  on  the  Agency  for  Prevention  of 
Corruption, the new Law on Asset Declaration and legislation on political party financing. Yet 
there is a need to improve the implementation of the overall legal framework. In spite of the fact 
that  the  the  Corruption  and  Financial  Crime  Department  was  established  during  the  reporting 
period,  the  Special  Prosecution  Office  filed  few  indictments  in  high  profile  cases.  The  Special 
Departments  in  courts  handling  high-level  corruption  and  organised  crime  cases  would  benefit 
from  additional  and  specialised  support  staff.  Sustained  efforts  are  needed  to  have  more 
proactive  investigations,  final  court  decisions  and  final  confiscation  of  assets.  The  legal 
framework  on  confiscation  continues  to  be  largely  unimplemented  and  the  value  of  finally 
confiscated  assets  remains  low.  The  main  problem  remains  the  lack  of  implementation  of 
existing legislation. Overall, corruption is  widespread and remains  an issue of serious concern. 
Despite efforts made, there is  a need for strong political will to continue to effectively address 
systemic corruption risks and a robust criminal justice response to high-level corruption. Sectors 
most vulnerable to corruption require targeted risk assessments and dedicated actions. 

In the coming year, Kosovo should in particular: 

  further  strengthen  the  capacity  of  the  Anti-Corruption  Agency,  in  terms  of  staff  and 

expertise, to ensure it can effectively carry out its mandate; 

  further  strengthen  the  efficiency  of  confiscation  regime  by  promoting  systematic  use  of  both 
extended  and  ‘regular’  confiscation  by  criminal  prosecution  and  police;  increase  the  level  of 
specialisation and expertise in seizure and confiscation of assets; establish a confiscation fund;  

24 

 
 
  further strengthen law enforcement-prosecution cooperation and encourage multidisciplinary 
cooperation and the target-based approach to ensure proactive investigations and effectively 
combat  high-level  corruption  cases;  systematically  conduct  financial  investigations  during 
the criminal investigations; ensure the security of judges and prosecutors; 

  effectively implement the new legislation on political party financing.  

Track record  

Efforts  continued  with  regards  to  the  track  record  of  investigations,  prosecutions  and 
convictions  in  the  fight  against  corruption.  However,  more  political  will  and  resources  remain 
necessary, in particular to tackle high-level corruption. In July 2018, the European Commission 
confirmed  that  Kosovo  had  met  the  benchmark  in  its  visa  liberalisation roadmap  to  strengthen 
the  track  record  in  the  fight  against  organised  crime  and  corruption.  These  efforts  should 
continue  to  improve  and  the  Commission  will  continue  to  actively  monitor  the  further 
development  of  this  specific  track  record.  By  the  end  of  the  reporting  period  the  track  record 
mechanism  for  visa  liberalisation,  established  in  2015  to  monitor  and  coordinate  high-level 
corruption  and  organised  crime  cases,  included  82  cases.  By  that  time,  there  had  been  72 
indictments: 31 organised crime cases and 41 corruption cases, out of which 17 cases ended with 
convictions/partial  acquittals,  leading  to  the  conviction  of  15  individuals  for  corruption-related 
offences and 46 individuals convicted for organised crime-related offences. 

At present, the track record mechanism includes only the cases selected in the specific context of 
visa  liberalisation  benchmarks.  However,  in  the  future  it  is  expected  that  the  track  record  will 
cover all high-level cases relating to organised crime and corruption. To this end, rules governing 
inclusion  of  cases  in  this  mechanism  should  be  revised  with  a  view  of  creating  a  single  and 
comprehensive  track  record,  including  all  cases  against  high-level  officials,  which  should  be 
prioritised and handled with the highest level of scrutiny.  

The  Anti-Corruption  Agency  handled  some  375  cases  (similar  as  in  2020)  under  preliminary 
investigation for suspicion of corruption related offenses (314 pending from 2021 and 61 from 
2020) out of which 150 reports (involving  142 persons) were submitted to the prosecution and 
police  to  initiate  criminal  proceedings  and  71  cases  were  terminated.    The  position  of  the 
Director of the Anti-Corruption Agency remained vacant for three months. After the expiration 
of  the  mandate  of  the  former  Director  end  September  2021,  the  Assembly  appointed  the  new 
leadership only in December 2021. Thus far, the new leadership managed to process swiftly the 
backlog of cases. 

In  2021,  4  783  officials  (97.7%)  of  the  4  892  officials  obliged  to  submit  regular  annual 
declarations of assets did so on time, while 56 officials did so after the deadline and 25 officials 
did  not  submit  any  declaration  of  assets.  The  Anti-Corruption  Agency  included  966  officials 
under the full  assets  control procedure,  which was completed for 741 officials.  More than 200 
cases are being investigated due to a false declaration of assets and also for the non-declaration 
of assets. 190 cases were referred to the prosecution and police for further investigation (50 on 
suspicion of false declaration carried over from 2020 and 190 for failure to declare assets). There 
were 26 court decisions  in  2021, out  of  which 25 convictions and one  acquittal. Shortcomings 
persist in the system for declaring and assessing the origin of property belonging to senior public 
officials.  The capacities  of the Agency, in  terms  of number of staff,  IT resources  and training, 
should be increased. An electronic declaration system is coming into force in order to simplify 
the  process  of  declaration  and  submission  as  well  as  increase  transparency  and  accuracy  in 

25 

 
 
monitoring  and  verification.  Cooperation  and  exchange  of  data  with  the  police,  the  tax 
administration,  the  Financial  Intelligence  Unit,  the  cadastral  registry  and  municipal  authorities 
should be strengthened. 

In  2021,  the  Agency  handled  101  cases  of  conflicts  of  interest.  The  number  of  requests  of 
institutions submitted to the Agency for advice and opinion on conflicts of interest has increased. 
The Agency provided its opinion in 63 cases, 1 case was forwarded for investigation, 1 case for a 
minor offence procedure and in 10 cases, a conflict of interest was avoided. 

In 2021, the Agency handled 108 cases of corruption in the field of prevention of corruption in 
public  procurement,  out  of  which  18  opinions  were  issued,  64  recommendations  have  been 
respected and 19 not, and 7 cases were terminated. 

A new law on the Anti-Corruption Agency aimed at  better defining the scope of the Agency’s 
competencies  was  adopted  (see  below  on  prevention  measures).  The  capacity  of  the  Agency 
needs to be strengthened, in terms of staff and expertise, considering the new competences of the 
Agency and to ensure an effective implementation of the applicable legislation. 

Despite  a  fairly  advanced  legal  framework  in  place,  criminal  asset  confiscation  remains  low. 
The  2019  Law  on  Extended  Powers  of  confiscation  is  in  force  but  is  not  being  consistently 
applied.  Local coordinators for confiscation matters in the Prosecution Offices were appointed. 
Confiscation  as  a  means  of  targeting  the  economic  interests  of  criminal  organisations  remains 
underutilised by prosecutors, who remain the weakest link in this regard. Overall, the willingness 
to confiscate assets remains low. The confiscation of criminal assets should become a strategic 
priority in the fight against organised crime, terrorism and high-level corruption in the country. 

In 2021, the value of preliminary confiscated assets amounted to about EUR 14 million (EUR 19 
million in 2020) while the value of final confiscated property amounted to about EUR 770,000. 
Between  July  2021  and  March  2022,  the  prosecution  offices  confiscated  assets  in  the  total 
amount of about EUR 92,000 in three cases related with drugs, tax evasion and organized crime. 
The  Agency  for  the  Management  of  Sequestrated  and  Confiscated  Assets  (handling  more  than 
EUR  1.6  million  in  various  assets  in  2021)  continues  to  struggle  in  managing  the  assets  in  its 
portfolio,  partially  due  to  the  courts  not  allowing  the  anticipated  sale  of  assets  pending 
proceedings and partially due to the set-up of the Agency. The value of assets sold in 2021 was 
about EUR 52,000. The government approved the concept document on the establishment of a 
Confiscation  Fund,  which  would  allocate  confiscated  funds  in  part  to  law  enforcement, 
prosecution and courts and in part to social projects.  

Kosovo  adopted  a  new  regulatory  framework  on  funding for  political  parties  and  campaign 
financing.  Overall,  it  establishes  a  legal  framework  to  ensure  complete  reporting,  timely 
disclosure, meaningful oversight and accountability for irregularities. Kosovo should effectively 
implement  the  new  law.  There  is  lack  of  regular  auditing  by  the  Assembly  and  selective 
application  of  sanctions  by  the  Central  Election  Commission,  which  results  in  an  incomplete 
oversight  of  campaign  finance.  There  is  limited  awareness  and  compliance  with  campaign 
finance rules. Most political entities did not establish internal financial control rules. Numerous 
sources  of  income  and  expenditures  remain  unreported.  The  process  of  auditing  has  failed  for 
two years due to the low budget allocated to hire auditors.  

Institutional framework  

26 

 
 
Inter-institutional  coordination  and  cooperation  between  preventive  anti-corruption  institutions 
and law enforcement entities is key to effectively implement anti-corruption legislation.  

Prevention measures 

The competences of the  Anti-Corruption Agency include the verification and control of asset 
declarations and gifts, dealing with whistle-blowing and the prevention of conflict of interest. A 
law reorganizing the competences of the Anti-Corruption Agency has  been adopted in  view of 
strengthening  the  Agency’s  mandate  in  the  field  of  prevention  of  corruption.  Specifically,  the 
Agency  will  be  entitled  to  implement  tools  such  as  corruption  proofing,  corruption  risk 
assessment,  and  integrity  plans  in  the  institutions.  Furthermore,  the  Agency  will  have  the 
competence  to  initiate  administrative  investigations  and  impose  sanctions.  It  is  essential  to 
strengthen  the  capacity  of  the  Agency,  in  terms  of  staff  and  expertise,  and  its  budget  needs  to 
increase, in order to fully and effectively fulfil its mandate and new competences, including the 
verification of  asset declarations  and the implementation  of the new  anti-corruption prevention 
tools.  The  Auditor-General,  the  tax  authorities,  the  customs  authorities  and  the  Financial 
Intelligence Unit also have inspecting and auditing powers.   

More  joint  training must  be  provided  for  staff  of  the  main  anti-corruption  bodies  (which 
includes all entities responsible for the investigation, prosecution and adjudication of high-level 
corruption cases), in particular on financial investigations, asset confiscation, money laundering 
and cybercrime aiming also to strengthen inter-institutional cooperation and coordination.  

There  is  a  continuous  need  to  promote  the  elaboration  and  adoption  of  integrity  plans  in  the 
public service as a tool for preventing corruption and ensuring discipline, including at municipal 
level.  

Law enforcement 

Kosovo  has  functional  specialised  institutions  to  fight  corruption,  including  the  National 
Coordinator  for  Combating  Economic  Crimes  within  the  prosecutorial  system,  the  Corruption 
and  Financial  Crime  Department  in  the  Special  Prosecution  Office  and  the  relevant  Police 
Directorate.  Law  enforcement  authorities  would  benefit  from  additional  resources  to  improve 
their  operational  capacity  to  conduct  complex  investigations.  Police-Prosecution  cooperation 
must  be  strengthened  to  ensure  proactive  investigations  and  to  implement  a  joint  target-based 
approach  to  combat  high-level  corruption  cases.  Financial  investigations  need  to  be  launched 
systematically and in parallel. The use of special investigative measures, when applicable, should 
be  strengthened.  Measures  and  mechanisms  to  ensure  the  protection  to  judges  and  prosecutors 
from interference and pressure should be effectively implemented.  

The Special  Investigation Unit  within the Kosovo Police, as the successor of the Special Anti-
Corruption Task Force abolished in 2020, continued to operate with the same chain of command 
and  under  a  temporary  legal  mandate.  The  government  needs  to  ensure  its  sound  legal  and 
organisational structure, also to cooperate effectively with the Prosecution. The ongoing reform 
of the Kosovo Police organisational structure should  ensure that the Special  Investigation Unit 
maintains sufficient investigation capacity to efficiently fulfil its functions.  

Following  the  re-structuring  of  the  Special  Prosecution  Office  in  2020,  its  capacity  increased 
with  the  recruitment  of  prosecutors,  professional  associates  and  translators.  It  is  essential  to 
increase  the  level  of  specialisation  and  expertise  on  prosecuting  high-level  corruption  and 

27 

 
 
financial crimes. In 2021, the total number of indictments was 147 (146 in 2019), while the total 
number of sentencing decisions was 122 (36 in 2019).  

The Special Departments in the Basic Court of Pristina and the Court of Appeals, which handle 
all cases of the Special  Prosecution Office, have continued to  function albeit  with  shortages in 
professional  support  staff.  Additional  support  staff  for  the  Special  Departments  are  being 
recruited.  Despite  the  establishment  of  the  Special  Department  with  exclusive  jurisdiction  on 
cases of the Special Prosecution Office, the average of time to conclude the proceedings in first 
instance is lengthy. There is a need to step up efforts to reduce the length of proceedings in these 
cases.  

Legal framework  

Despite  not  being  a  party  to  international  anti-corruption  conventions  (such  as  the  United 
Nations Convention against Corruption and the Council of  Europe’s Criminal  Law Convention 
on Corruption) due to status-related issues, Kosovo’s legislation is generally aligned with these 
instruments and in line with relevant European standards. 

In  July  2022,  Kosovo  adopted  new  anti-corruption  legislation  consisting  of  the  Law  on  the 
New  Criminal  Procedure  Code,  the  Law  on  the  Agency  for  Prevention  of  Corruption  and  the 
Law  on  Asset  Declaration.  These  are  included  in  the  European  Reform  Agenda  II  and 
incorporate  recommendations  from  the  Rule  of  Law  Strategy.  The  new  law  on  the  Criminal 
Procedure  Code  aims  at  strengthening  the  criminal  proceedings.  The  anti-corruption  legal 
framework introduces, among other novelties, the preventive measure of suspension of officials 
from duty in case of obstruction of proceedings. The new Law on the Agency for Prevention of 
Corruption strengthens the mandate of the Agency in the field of prevention of corruption and in 
the  implementation  of  the  asset  declaration  law,  protection  of  whistle-blowers  law  and 
prevention  of  conflict  of  interest  law.  New  tools  to  prevent  corruption  are  added  to  the 
competence  of  the  Agency  such  as  corruption  proofing,  corruption  risk  assessments  and 
monitoring  of  integrity  plans  in  the  institutions.  The  new  Law  on  Asset  Declaration  adds 
categories  of  public  officials  obliged  to  declare  assets;  it  includes  more  complete  asset 
information  and  data  to  be  declared  by  officials,  increases  the  number  of  officials  under  full 
control by the Agency and introduces an online system of declaration of assets. 

The  legal  framework  on  criminal  confiscation  remains  fairly  advanced,  including  through  the 
2019 Law on Extended Powers of Confiscation. These advanced tools need to be better utilised. 
The  Draft  Law  on  the  State  Bureau  for  Verification  and  Confiscation  of  Unjustified  Assets, 
which aims to introduce in Kosovo a system of non-conviction-based confiscation, is pending in 
Parliament.  The  new  Law  will  incorporate  recommendations  of  the  Venice  Commission 
Opinion. Such an advanced system requires clear safeguards against possible misuse and abuse 
and  should  respect  the  principles  enshrined  in  the  Constitution  and  the  fundamental  rights  of 
individuals.  Moreover,  such  a  system  should  not  replace  or  undermine  the  application  of  the 
existing  legal  framework  on  criminal  confiscation,  including  the  Law  on  Extended  Powers  of 
Confiscation. 

The legal framework on money laundering is still not properly implemented. Although the law 
does  not  require  the  proof  of  a  predicate  offence  to  retain  a  conviction,  many  prosecutors  and 
judges  continue  to  consider  a  predicate  offence  as  an  essential  part  of  money  laundering 
offences.  As  a  result,  many  stand-alone  money  laundering  cases  are  dismissed  either  by  the 
prosecutor or by the court. The government is reviewing the legislation on prevention of money 

28 

 
 
laundering  and  combating  terrorist  financing  to  fully  harmonise  it  with  the  4th  and  5th  EU 
Directives and recommendations of the Financial Action Task Force (FATF) (See also chapter 4 
on the free movement of capital and the section on organised crime). 

The  legal  framework  on  the  prevention  of  conflict  of  interest  is  in  place  since  2018  but  still 
needs  to  be  fully  implemented.  A  number  of  senior  public  officials  still  occupy  two  or  more 
posts, in direct violation of the law. Kosovo has no specific legislation on lobbying. 

The  Law  on  the  Protection  of  whistle-blowers  is  in  line  with  the latest  EU  legislation  in  this 
area.  Secondary  legislation  determining  the  procedure  for  receiving  and  handling  the  cases  of 
whistleblowing 
in  place.  Strengthened  whistle-blowing  mechanisms  and  protection 
requirements still need to be implemented.  

is 

The  Assembly  adopted  the  legal  framework  on  political  parties  and  election  campaign 
finances  in  line  with  the  Venice  Commission  Opinion.  Kosovo  still  needs  better  functioning, 
more  accountable,  more  transparent  and  enforceable  party  finance  and  campaign  finance 
legislation.  

Strategic framework 

The Rule of Law Strategy and Action Plan (see section on Judiciary) include specific measures 
aiming  to  improve  the  institutional  framework  against  corruption,  as  well  as  the  assets 
declaration system and regulations on acceptance of gifts. Since 2018, Kosovo does not have an 
Anti-Corruption Strategy in force. The Judicial Council adopted a strategic plan for the efficient 
resolution of cases of corruption and organised crime (2022-2025).  

Fundamental rights  

The  legal  framework  guarantees  the  protection  of  fundamental  rights  and  is  in  line  with 
European standards. Kosovo showed commitment to addressing gender equality issues by further 
implementing the Law on Gender Equality in the public administration recruitment process and 
by  improving  inter-institutional  coordination  on  fighting  gender-based  violence,  including  by 
adopting a new strategy and action plan against domestic violence and violence against women. 
Moreover,  additional  efforts  are  needed  to  effectively  enforce  fundamental  rights.  The 
government’s  capacity  to  streamline  and  oversee  fundamental  rights  policies  and  legislation 
requires improvement, including in coordinating the mechanisms to protect human rights, gender 
equality  and  non-majority  communities,  at  both  central  and  local  levels.  Fundamental  rights 
issues  need  to  feature  higher  on  the  political  agenda.  Human  and  financial  resources  are  still 
lacking and relevant  authorities are still dependent  on donor support and guidance and need to 
assume greater ownership.  

More  efforts  are  needed  to  address  the  recommendations  of  the  2021  report,  which  are  still 
applicable. In the coming year, Kosovo should in particular: 

  Set  up  a  sustainable  mechanism  of  coordination  and  oversight  legislation,  strategies  and 
policies of fundamental rights; strengthen the implementation of existing instruments; adopt 
a functional system of measuring and reporting on the implementation of the Human Rights 
Program  and  Action  Plan;  adopt  the  sub-legal  acts  deriving  from  the  new  Law  on  Child 
Protection; adopt the Civil Code;  

  strengthen the implementation of the Law on Gender Equality; adopt the Law on Domestic 
Violence and Violence Against Women; continue efforts to ensure proper functioning of the 

29 

 
 
system of protection, prevention and adjudication of all forms  of  gender-based violence by 
implementing the relevant strategy and action plan;  

  adopt  the  Strategy  for  Return  and  Communities,  the  Law  on  Kosovo  Property  Comparison 
Verification  Agency  addressing  the  Ombudsperson’s  recommendations, appoint  a  Director 
and  Deputy  Director  of  the  Agency;  implement  the  Strategy  for  the  Advancement  of  the 
Rights of the Roma and Ashkali communities 2022-2026; 

  strengthen  child  protection  and  child-friendly  justice,  including  for  children  belonging  to  

minorities and children with disabilities; 

  adopt  the  Law  on  Cultural  Heritage  and  the  Law  on  Religious  Freedom;  advance  the 
protection of cultural heritage by fully enforcing legislation on special protective zones and 
illegal construction; implement the 2016 Constitutional Court Decision on the Visoki Dečani 
monastery;  re-establish  relations  with  the  Serbian  Orthodox  Church  and  reconvene  the 
Implementation and Monitoring Council. 

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

The institutional set-up for the promotion and protection of human rights is in place; however, it 
does not function well due to conflicting mandates and diluted responsibilities. The government 
should  ensure  that  the  Programme  for  the  Protection  and  Promotion  of  Human  Rights  and 
Fundamental  Freedoms (2021-2025) and the related Action Plan (2021-2023) are implemented 
and monitored in a coordinated manner.  Implementing human rights legislation, and overseeing 
and coordinating existing human rights mechanisms remain a challenge. In general, human rights 
issues still do not feature high enough on the government’s political agenda. The Office of Good 
Governance within the Office of the Prime Minister still lacks appropriate human, financial and 
administrative  resources  to  fulfil  its  broad  mandate,  including  on  drafting,  implementing  and 
overseeing policies in the areas of human rights, good governance and anti-discrimination. This 
Office  needs  to  establish  synergies  with  the  Deputy  Prime  Minister  for  Minority  Issues  and 
Human  Rights,  the  Ombudsperson,  and  the  Assembly’s  Committee  on  Human  Rights  and  the 
recently  established  Council  for  Democracy  and  Human  Rights  under  the  Presidency,  to 
effecively implement and streamline human rights policies and legislation. The Assembly needs 
to take a more proactive role in overseeing the implementation of human rights legislation.  

The  Ombudsperson’s  Institution  continues  to  play  an  important  role  in  the  promotion  and 
protection  of  human  rights  at  central  and  local  level.  The  new  Human  Rights  Programme  and 
Action  Plan  approved  in  March  2021  strengthened  the  role  of  the  Ombudsperson’s  office  in 
protecting  and  promoting  human  rights  and  fundamental  freedoms.  The  Office  has  further 
strengthened its capacity to review cases. Although there is an increase in the responsiveness of 
institutions to the recommendations of the Ombudsperson, consistent implementation remains a 
challenge.  Out  of  157  recommendations,  43  have  been  implemented,  4  have  not  implemented 
and  110  are  awaiting  implementation.  In  2021,  the  Ombudsperson  received 1  612 complaints, 
out of which 692 were open for investigations (against 1 419 in 2020, of which 720 were opened 
for investigation). Between 1 January and 27 June, the Ombudsperson received 819 complaints, 
out of which 356 were opened for investigations. The selection of four Ombudsperson deputies 
was  finalized  in  June,  although  the  vacancy  needs  to  be  re-advertised  for  the  fifth  deputy 
Ombudsperson  from  non-Albanian  communities.  The  selection  process  was  transparent  and 

30 

 
 
inclusive,  with  a  panel  consisting  of  representatives  of  civil  society,  activists  and  public 
institutions.   

On  the  prevention  of  torture  and  ill  treatment,  the  situation  remains  satisfactory  and  the 
Kosovo  authorities  continue  to  show  commitment  to  preventing  these  practices  in  all 
circumstances.  The  National  Preventive  Mechanism  operates under  the  umbrella  of  the 
Ombudsperson Institution. During 2021, it carried out 62 visits (against 52 in 2020) to the places 
of deprivation of liberty  and 22 visits during the first part of 2022. The number of incidents of 
inhumane  and  ill-treatment  and  torture  in  relation  to  police  officers  stands  at five  cases during 
2021  (against  6  cases  in  2020)  and three  cases between  January-June  2022.. The  Police 
Inspectorate  of  Kosovo  registered  11  cases  with  suspicion  of  ill-treatment:  16  police  officers 
were  investigated  as  suspects.  For  these  cases,  the  Police  Inspectorate  forwarded  six  criminal 
reports and five separate reports to the competent prosecutions and issued recommendation for 
the  suspension  of  three police  officers.  In  2021,  the  National  Preventive  Mechanism  issued  11 
recommendations, 
implemented  and  eight  are  pending 
implementation.  The Assembly adopted the  Law on Execution of Criminal  Sanctions, the  Law 
on  the  Correctional  Service  and  the  Law  on  the  Probation  Service.  Kosovo  should  further 
strengthen  ongoing  efforts  to  provide  adequate  medical  and  psychological  support  and 
rehabilitation to all victims of torture and other ill-treatment in Kosovo. The Committee for the 
Prevention of Torture (CPT) published its latest report on Kosovo in September 2021 following a 
visit  the  previous  year.  Among  other  recommendations,  the  CPT  encouraged  the  authorities  to 
pursue their efforts in combatting ill-treatment by the police. 

them  were  partially 

three  of 

While the prison system continues to comply broadly with the UN Standard Minimum Rules for 
the  Treatment  of  Prisoners  and  with  the  European  Prison  Rules,  there  are  several  challenges. 
Equal  treatment  and  equal  rights  of  prisoners,  especially  among  women  and  minority  groups, 
remains an issue. Standardised individual assessment and sentence planning procedures are  yet 
to be finalised. The Kosovo Correctional Service should strengthen efforts to provide adequate 
rehabilitation  and  psychological  support  to  all  prisoners  and  detainees  to  meet  the  minimum 
standards for treatment. Several senior management posts in the Correctional Service remained 
vacant,  hampering  its  effective  functioning.  Progress  could  be  observed  in  preventing  and 
dealing  with  self-harm  and  suicide  cases  and  the  treatment  of  inmates  with  mental  problems. 
Preferential  treatment  of  high-profile  prisoners  has  diminished,  together  with  political  pressure 
on  the  Correctional  Service.  According  to  the  National  Preventive  Mechanism,  there  was  no 
overcrowding.  The  efforts  to  improve  the  drug  addiction  treatment  programmes  and  prison 
medical  facilities  in  light  of  CPT  recommendations  are  ongoing.  The  CPT  2021  report 
recommended to improve detention conditions, including with regards to healthcare access, the 
fight against corruption in detention facilities, and staffing and legal safeguards, among others. 
During  the  reporting  period,  the  Ombudsperson  received  33  complaints  against  Correctional 
Centres,  Prisons  and  Detention  Centre,  and  75  complaints  against  Kosovo  Police.  While  new 
legislation was adopted on the execution of criminal sanction, on the correctional service and on 
the probation service, this did not significantly change the execution of alternatives to detention 
and imprisonment. 

On  personal  data  protection,  the  law  remains  broadly  in  line  with  the  EU  General  Data 
Protection Regulation and the Law Enforcement Directive. The long-awaited appointment of the 
Information  and  Privacy  Commissioner  in  June  2021  has  made  a  positive  impact  on  the 

31 

 
 
implementation of the law on data protection and the internal organisation of the Information and 
Privacy  Agency.  The  Commissioner  adopted  the  internal  organisation  and  systematization  of 
positions in the Agency in December 2021. Although restrained by limited human resources, the 
Agency started processing complaints on access to public documents and on data protection in an 
independent  and  efficient  manner.  Further,  the  Commissioner  issued  the  list  of  countries  and 
international  organisations  considered  to  have  an  adequate  level  of  personal  data  protection. 
During  the  reporting  period,  the  Agency  treated  35  complaints  with  regard  to  personal  data 
protection and issued 22 legal advisory opinions to public and private institutions. It also issued 
81  decisions  for  public  and  private  institutions  regarding  to  violations  of  the  Law  on  Personal 
Data Protection. From January until  August  2022, the Agency received 243 complaints, out  of 
which 180 are closed and 63 are in the process. The Agency issued 55 decisions and five fines to 
public institutions.  

Concerning  freedom  of  thought,  conscience  and  religion,  there  are  legal  provisions  in  place 
which  promote  tolerance  among  religions  and  foresees  that  religious  communities  shall  be 
separated from public authorities. However, the Kosovo Assembly still needs to adopt the long 
outstanding  draft  Law  on  religious  freedom,  incorporating  the  recommendations  of  the  Venice 
Commission from 2014 to ensure full respect of this freedom. The law was not yet put forth in 
the Assembly by the current government.  In September 2021, the Constitutional Court notified 
Kosovo’s  Chief  Prosecutor  of  a  lack  of  implementation  of  its  2016  decision  whereby  it  had 
confirmed the ownership rights of the Visoki Dečani Monastery of the Serbian Orthodox Church 
over a portion of land surrounding the Monastery. The decision has still not been implemented.  

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

Freedom of expression  

Kosovo  has  some  level  of  preparation  regarding  freedom  of  expression.  The  media 
environment  is  lively  and  pluralistic.  The  legal  framework  is  mostly  in  line  with  European 
standards.  Limited  progress  was  made  in  addressing  the  recommendations  of  the  previous 
report.  

The Kosovo Assembly elected an independent board of the public broadcaster (RTK) while the 
board  elected  a  new  General  Director  for  a  three-year  mandate.  The  process  was  assessed  as 
merit-based  by  the  monitoring  local  and  international  organisations  process.  Due  to  legal 
changes, journalist can now benefit from free legal aid. Kosovo will host a number of Ukrainian 
journalists,  providing  them  with  shelter,  financial  support  and  working  conditions.  Concerns 
remain  regarding  public  smear  campaigns,  threats,  and  hate  speech  on  social  media,  some  of 
which were specifically directed against journalists. Not all threats against journalists and media 
are  reported  to  the  authorities.  There  continue  to  be  particular  concerns  regarding  freedom  of 
expression in the north of Kosovo, including self-censorship. There was no progress in amending 
the  Law on the Radio  and Television of Kosovo. The government  took  the initiative to  amend 
the  Law  on  Independent  Media  Commission  to  align  it  with  the  EU’s  Audiovisual  Media 
Services  Directive.  This  process  needs  to  be  inclusive,  with  involvement  of  civil  society  and 
media  actors.  The  lack  of  financial  self-sustainability  leaves  media  vulnerable  to  political  and 
business  interests.  This  is  further  amplified  by  the  lack  of  information  and  data  on  the  final 
beneficiary of media ownership – provisions on this are still not enshrined into law.  

32 

 
 
There  was  no  significant  progress  in  the  implementation  of  last  year’s  recommendations. 
Therefore, in the coming year, Kosovo should in particular:  

  improve the institutional cooperation and response of the key institutions to  attacks against 

journalists and other forms of pressure that hinders their work; 

  review  the  Law  on  Radio  and  Television,  among  others,  to  ensure  sustainable  funding 
preserving  its  independence;  review  the  Law  on  the  Independent  Media  Commission  to 
update its competences, including regarding audio-visual media in line with the Audio-visual 
Media Services Directive; 

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

ownership.  

Intimidation of journalists 

journalists 

(in  2020, 

threats  and  public  smearing  of 

According to the Association of Journalists in Kosovo (AJK), during 2021 there were 29 cases of 
there  were  eleven 
attacks, 
cases  of  non-physical  threats  and  harassments  and  four  cases  of  physical  assault  against 
journalists).  In  2022  and  until  27  June,  five  cases  of  public  smearing  of  journalists,  mostly  by 
high  -level  public  officials,  were  reported.  Threats  and  assaults  vary  from  those  of 
businesspersons towards journalists and other media workers, to those of state or political party 
officials.  The  case  of  the  attack  on  journalist  Visar  Duriqi  from  2021  is  not  resolved. 
Adjudication of cases remains slow. According to the Association, there has been an increase in 
derogatory statements and smears made by politicians aimed at the media, publicly undermining 
trust in journalistic reporting and the safety of journalists. During the reporting period, AJK has 
registered at least two cases of Strategic Litigation against Public Participation Lawsuits filed by 
public figures against journalists. 

Legislative environment  

The  Constitution  and  legislation  provide  for  freedom  of  expression  and  media  freedom.  In 
general,  media  laws,  including  on  defamation  and  access  to  information  are  in  line  with 
standards of the Council of Europe and the case law of the European Court on Human Rights. 

The Assembly has not  yet  adopted the  Law on the Public Broadcaster  and on the  Independent 
Media Commission.  

The  Law  on  the  Protection  of  Journalistic  Sources  requires  amendments  to  clarify  provisions 
related to court decisions obliging journalists to declare a source, ensuring they are in line with 
European  standards.  The  legal  framework  on  the  protection  of  whistle-blowers  needs  to  be 
completed through the adoption of secondary legislation. The new legislation on Free Legal Aid 
strengthens the protection of journalists’ sources.  

The Law on Free Legal Aid was amended and as a result it now includes civil society activists, 
journalists, photo-reporters, camera operators and editors as a beneficiaries. Based on this law, 
they  will  receive  free  legal  assistance  and  will  be  represented  at  court  by  the  Free  Legal  Aid 
Agency if they are dismissed, sued for defamation, prosecuted or faced with Strategic Lawsuits 
against Public Participation.  

Implementation of legislation/institutions  

33 

 
 
The  implementation  of  existing  legislation  continues  to  be  insufficient.  The  Kosovo  Press 
Council  acts  as  an  independent  self-regulatory  body  for  print  and  online  media,  mainly  by 
reacting  to  complaints.  The  number  of  online  media  not  registered  with  the  Press  Council 
continued to grow. The council’s financial sustainability and adequate resources are crucial for 
its effective functioning. 

The Independent Media Commission still does not have the power to licence and monitor audio-
visual media services online, although these were covered by the Audio-Visual Media Services 
Directive.  The  2016  Code  of  Ethics  for  Media  Service  Providers,  legally  binding  secondary 
legislation, sets provisions for broadcasting in relation to content, such as the need for balanced 
and  unbiased  news  coverage.  However,  the  Independent  Media  Commission  monitors  content 
only during election campaigns. The Commission needs to ensure it is transparent and inclusive 
in  its  decision-making.  In  part  due  to  a  lack  of  information  on  media  ownership  and  the 
distribution of advertising funds, the Independent Media Commission does not impose effective 
sanctions  on  broadcasters  and  no  significant  enforcement  interventions  were  undertaken.  The 
Assembly organised the selection process of the Board members of the Commission. The process 
was  assessed  as  open  and  merit-based  by  the  civil  society.  Two  of  the  persons  holding  high 
decision  making  positions  in  the  Independent  Media  Commission  were  arrested  for  bribery, 
which seriously brought into question the integrity of the Commission. 

Public Service Broadcaster  

The  public  broadcaster  Radio  Television  of  Kosovo  (RTK)  has  entered  a  new  phase  of  its 
development, with the newly appointed Board in November 2021. The selection process of the 
members  of  the  RTK  Board  was  merit-based,  transparent  and  professional,  with  equal  gender 
representation.  This  process  was  commended  by  many  local  and  international  organisations. 
There  has  been  changes  in  the  highest  management  of  the  RTK,  with  the  dismissal  of  key 
managerial  positions  on  grounds  of  mismanagement.  A  new  regulation  for  the  selection  of  the 
Director General of the RTK and senior management was adopted by the Board, based on which 
it  elected  a  new  General  Director  in  June  for  a  mandate  of  three  years.  The  RTK  has  now 
extended  its  coverage  to  include  the  northern  part  of  Kosovo.  Despite  this,  Kosovo  Serb 
communities continue to mostly rely on local and Serbian broadcasters.  

Economic factors 

Kosovo’s  media  environment  is  lively  and  pluralistic  and  has  been  further  enriched  by  new 
media  and  changes  in  ownership  and  editorial  teams.  However,  the  sector  remains  heavily 
dependent on donors and advertising, including from the government and political parties. Many 
media companies struggle to sustain themselves financially through commercial means. Private 
broadcasters  depend  on  other  sources  of  funding  and  remain  strongly  linked  to  political  and 
business interest groups. This poses continuing risks to their editorial independence. There is still 
a  lack  of  data  on  the  advertising  market,  financing  remains  largely  opaque  and  there  is  no 
audience  measurement  system.  Information  on  media  ownership  structures,  in  particular  for 
online media, remains unclear and often fictitious, as most media do not provide information on 
their finances or real  ownership. Greater transparency on media ownership and possible illegal 
media  concentration  is  needed.  The  imbalance  between  media  outlets  and  available  funding 
raises  concerns  as  to  the  financial  viability  of  media  outlets  and  over  media  integrity  and 
independence.  

Freedom of artistic expression 

34 

 
 
The  freedom  of  artistic  creativity  is  guaranteed  by  the  Constitution.  While  the  COVID-19 
pandemic has led to restrictions of public gatherings which to some degree affected artistic also 
freedom, these remained proportionate and temporary. There is no instance of limitation on any 
form of artistic expression recorded during the reporting period.  

Internet 

There is no restrictive legislation or environment on the functioning of the media online nor on 
freedom of expression online. Kosovo should consider developing a strategy for a better internet 
for kids, including facilitating the detection of and response to online child sexual abuse. 

Professional organisations and working conditions 

The effects of the COVID-19 pandemic continued to impact working conditions. The switch to 
online editions means that no printed newspapers remain in Kosovo. Associations of journalists 
have been active in condemning cases of threats and attacks against journalists. They have kept 
up a constructive dialogue with the police and have been vocal in defending journalists against 
political  pressures.  The  working  conditions  of  media  professionals  and  the  implementation  of 
labour  laws  remain  a  concern.  There  are  very  few  women  in  decision-making  positions  in  the 
media.  Many  journalists  work  either  with  no  contracts  or  only  with  service  contracts.  This 
situation makes journalists vulnerable to pressure.  

(See also Chapter 10 on digital transformation and media)  

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

Freedom  of  assembly  and  association  is  guaranteed  by  the  Constitution  and  generally 
respected.  No  major  security  incident  related  to  public  gatherings  has  been  reported  but  the 
Kosovo  Inspectorate  has  initiated  disciplinary  procedures  towards  police  officers  that  were 
allegedly involved in incidents during a few protests. Individuals and legal entities have the right 
to establish an association without having to register it, but most organisations decide to register 
in order to secure legal personality.  

Issues of labour and trade union rights are further covered in Chapter 19 on Social Rights and 
Employment. 

On property rights, the draft law on the Kosovo Property Comparison and Verification Agency 
(KPCVA)  remains  pending  before  the  Assembly.  Implementation  of  the  judicial  decisions, 
including  Constitutional  Court  decisions,  remains  an  issue  in  particular  in  conflict-related 
property cases.  

Ownership of property by women increased. The affirmative measure that assists implementation 
of property legislation favouring women remains in place. This measure, introduced in 2016, has 
led to a noticeable increase in the registration of women as property owners, from only 104 in 
2016 to 7 417 in 2020 and an additional 1 505 registered properties in 2021. 

In 2021, institutions took some positive measures towards the protection of the property rights of 
communities in vulnerable situations, displaced persons and women. The Property Comparison 
and  Verification  Agency  performed  29  evictions.  The  legal  remedy  of  demolition  of  illegal 
structures was not used during the reporting period, as parties could not fulfil the criteria required 
by  Administrative  Instruction  on  Demolition  of  Illegal  Structures.  The  Agency  mediated  in  82 
cases.  In  11  cases  a  mediation  agreement  was  reached  within  the  Agency,  in  15  cases  parties 
reached an agreement outside the Agency, 38 cases were unsuccessful and one case resulted in 

35 

 
 
demolition  of  unlawful  structure.  The  Agency  is  operating  with  an  Acting  Director,  while  the 
posts of Deputy Director and Executive Director are vacant.  

Concerns about fraudulent property transactions and illegal transfers of ownership of properties 
mainly belonging to displaced persons remain. There has been limited progress on the issue of 
350  052  buildings  constructed  without  a  permit  as  only  925  applications  for  legalization  were 
received. Local institutions issued 3 649 decisions on legalization of constructions built without 
permit. The regularisation of large-scale informal settlements whose residents mainly belong to 
marginalised  vulnerable  communities  continues  to  be  hampered  by  lack  of  political  will  to 
address the issue.  

The  2015  Law  on  protection  from  discrimination  is  broadly  in  line  with  European  and 
international standards, but its implementation remains limited. During the reporting period, the 
indicator  framework  for  monitoring  was  finalised.  This  framework  will  allow  to  assess  the 
enforcement  of  rights  in  practice  and  to  identify  areas  that  require  improvement.  Training 
courses  are  planned  to  facilitate  the  application  of  mechanisms  for  the  protection  against 
discrimination. The role of non-discrimination officers in the municipalities and ministries needs 
to  be  strengthened,  with  clear  reporting  lines  and  description  of  duties  in  order  to  be  actively 
engaged  in  policy  drafting.  Domestic  case  law  on  non-discrimination  is  poor,  partly  due  to 
victims often being discouraged to file cases due to the lengths of court proceedings. Among the 
cases  opened  for  investigation  by  the  Ombudsperson  in  2022,  48  related  to  discrimination.  
Discrimination  cases  are  frequently  not  taken  seriously  and  processed  slowly  by  the  police, 
prosecution and courts.  

The Kosovo Prosecutorial Council continues to maintain a tracking mechanism on hate crimes. 
However, overall, data collection on hate crimes remains insufficient. Hate speech against those 
in  vulnerable  situations,  including  the  LGBTIQ  and  non-majority  communities  persists, 
especially on social media.  

Legislation and institutional  mechanisms  on  gender equality  are in  line with  international  and 
European  standards.  Women  continue  to  face  discrimination  in  the  labour  market,  access  to 
finance, ownership of property and access to justice. Kosovo has strengthened the application of 
the law on Gender Equality in the recruitment process within public administration. The Law on 
Gender  Equality  has  set  a  parity  rule  aiming  for  50:50  percent  of  representation  of  men  and 
women at any level of decision-making in the political and public life. Nevertheless, women are 
still  under-represented  in  decision-making  positions  in  private  and  public  institutions.  The 
participation of women in politics has continued to increase but remains low (see section 2.1.1 
on Democracy).  

Civil  society  continues  to  play  a  critical  role  in  advancing  gender  equality,  contributing  to  the 
improvement  of  legislation,  monitoring  the  implementation  of  policies,  providing  services, 
assisting victims of violence and raising awareness, which reflects the need for the authorities to 
step  up  their  engagement  in  these  areas.  Women  continue  to  face  discrimination  in  the  labour 
market; their participation rate remains very low. This is attributed to low salaries, limited access 
to child and elderly care, and lack of family-friendly workplaces. The Labour Law needs to be 
harmonised with the EU Work-life Balance Directive. The government made efforts to mitigate 
the  impact  of  the  pandemic  on  the  living  conditions  of  women.  The  Economic  recovery  Fund 
distributed 2 million EUR among women’s civil society organisations, women-led business and 
child-care  facilities.  The  government  increased  its  efforts  to  ensure  the  implementation  of  the 

36 

 
 
Law  on  Gender  Equality,  especially  in  relation  to  equality  in  recruitment  in  the  public 
administration  but  women  remain  under-represented  in  the  highest  ranks  of  the  public  service. 
The Agency for Gender Equality continues to play a central role in advancing gender equality, 
including  in  legislation  and  policy,  promoting  the  mainstreaming  of  gender  in  institutions' 
policies/actions, and training civil servants. The coordination with gender equality officers in the 
ministries and municipalities has improved, but their role needs to be harmonised. More human 
resources and capacity building is required. 

Domestic violence continues to be the most prominent form of gender-based violence in Kosovo. 
The  government  is  showing  determination  to  improve  policies  and  public  responses.  The 
Ministry  of  Justice  set  the  fight  against  domestic  violence  and  other  forms  of  gender-based 
violence  as  one  of  its  five  priorities,  and  extended  free  legal  aid  to  all  victims.  The  legal  and 
institutional framework in this area is largely in line with European and international standards. 
However,  the  Law  on  Domestic  Violence  still  needs  to  be  aligned  with  the  revised  Criminal 
Code  and  the  Council  of  Europe  Convention  on  preventing  and  combating  violence  against 
women  and  domestic  violence  (Istanbul  Convention).  A  new  Strategy  and  Action  Plan  against 
Domestic  Violence  and  Violence  against  Women  (2022-2026)  was  adopted  in  February  2022. 
The  Ministry  of  Justice  funds  the  integrated  database  for  cases  of  domestic  and  gender-based 
violence.  Despite  these  positive  developments,  there  has  been  overall  limited  progress  on  the 
ground in preventing and combating domestic violence, and protecting and reintegrating victims. 
The  functioning  of  the  municipal  coordination  mechanisms  for  domestic  violence  as  well  as 
shelters  for  victims  of  domestic  violence  and  trafficking  in  human  beings  is  uneven  and  need 
improvements.  

Reporting of domestic violence has increased but cases are still not handled adequately. The total 
number of reported cases during the reporting period was 2 710 (2 456 cases were reported in 
2021 against 1 632 in 2020). This is a significant increase, which may be explained by a variety 
of  factors,  including  increased  violence  induced  by  COVID-19-related  restrictions,  higher 
awareness  of  their  rights  by  victims  and  improved  reporting  channels.  The  prosecution  and 
adjudication  of  cases  is  still  inappropriate,  with  lenient  sentences  for  perpetrators,  leading  to 
recidivism.  Specialised  prosecutors  and  judges  have  been  appointed,  but  the  prioritisation  of 
cases is slow. Judges put pressure on victims to reconcile with perpetrators. Judges, prosecutors, 
police  and  victims’  advocates  need  further  training  to  better  understand  their  role  under  the 
current  legislation.  Other  forms  of  violence  against  women  continued.  Women  in  public  life 
continue  to  be  judged  and  stereotyped.  Body-shaming  and  other  verbal  attacks  continue,  but 
reactions  from  public  officials,  institutions,  civil  society  and  women  rights’  organisations, 
contribute to making sexism less acceptable.  

On  the  rights  of  the  child,  Kosovo’s  legal  framework  is  largely  in  line  with  international 
standards but implementation remains limited. The new Law on Child Protection, which protects 
children  from  all  forms  of  physical  and  mental  violence,  needs  to  be  effectively  implemented. 
Out of the 17 administrative instructions foreseen in the law, only one is registered in the Official 
Gazette as adopted. The Cybercrime Investigation Section of the Kosovo Police includes a unit 
for  the  investigation  of  criminal  offense  in  relation  to  child  pornography,  including  the 
downloading, possession and distribution of material with child sexual abuse content. The new 
Civil Code aims at regulating legal concepts and clear provisions related to the treatment of the 
children  in  the  most  vulnerable  situations,  especially  children  without  parental  care.  Law  on 
Local  Government  Finances, consulted in  September 2021, is  not  yet  adopted. This  Law has  a 

37 

 
 
specific grant for social services, that will allow for a better implementation of the Law on Child 
Protection.  This  process  needs  to  be  expedited  by  the  relevant  authorities  together  with  the 
awareness  raising  campaign  to  promote  the  Law  and  inform  authorities  on  their  duties  and 
responsibilities.  

Children  with  disabilities  lack  proper  access  to  education  facilities  as  well  as  necessary 
assistance.  To  address  this  problem,  the  government  has  pledged  to  hire  100  assistants  to  help 
children  with  special  needs,  but  the  process  has  not  been  finalized.  The  authorities  should 
increase  financial  support  to  scale  up  community-based  social  and  health  services  for  children 
with  disabilities, and increase efforts to integrate them effectively  into educational  institutions. 
Girls  face  more  challenges  than  boys  as  regards  access  to  education.  Violence  in  schools, 
including bullying, is increasing. Sustainable financing schemes for service providers, inlcuding 
for children’s rights, needs to be established.  

Foster  care  for  children  without  parental  care  has  not  been  extended  in  all  municipalities  of 
Kosovo.  Civil  society  organisations  advocated  that  the  new  Civil  Code  includes  the  form  of 
protection called semi-independent supervised living, which would enable support to persons in 
foster care up to 26 years of age instead of 18. There is a lack of quality services and dedicated 
programmes for the prevention and reintegration of child victims of drug abuse. Municipalities 
need  to  provide  sustainable  funding  for  pre-school  learning  centres  for  children  of  Roma 
community in order to keep them in service. The new Law on Early Childhood Education is in 
the  preparation,  and  will  aim  to  contribute  towards  integration  of  services  in  early  childhood 
development.  Over  the  years,  the  authorities  have  failed  to  address  problems  related  to  street 
children, including child begging. Child, early and forced marriages remains an issue particularly 
among Roma and Ashkali communites.  

Persons with disabilities remain among the most discriminated, as they lack access to physical 
infrastructure, quality  education, proper medical  care and healthcare services,  and employment 
opportunities.  There  is  a  lack  of  provision  of  quality  institutionalised  services  for  people  with 
disabilities. There is also a clear gap in harmonising the legislation and policies with the relevant 
UN Conventions and the EU acquis on the rights of persons with disabilities. Some laws are not 
effectively implemented, such as the Law on Paraplegic and Tetraplegic or the Law on Blind and 
the  Law  on  Employment.  The  legal  framework  on  mental  health  is  also  incomplete.  A 
comprehensive  law  for  all  persons  with  disabilities  would  improve  provision  of  service  and 
quality  of  life.The  administrative  instruction  on  the  Acces  of  Persons  with  Disabilities  is  not 
being implemented. The government  should  finalise and approve the draft  Law on Evaluation, 
Status, Benefits and Services for Persons with Disabilities. Current political commitment on the 
disability  inclusion  agenda  is  positive,  but  should  be  associated  with  more  substantial  budget 
planing  and  allocations  across  sectors  to  improve  the  availability  of  inclusive  services  for 
persons  and  children  with  disabilities.  The  Strategy  for  Persons  with  Disabilities  and  the  new 
Action Plan 2020-2023 are in place. 

On the rights of lesbian, gay, bisexual, transgender, intersex and queer (LGBTIQ) persons, 
the  Constitution  protects  against  discrimination  based  on  sexual  orientation  or  gender. 
Nevertheless,  public  awareness  on  the  rights  of  the  LGBTIQ  persons  and  their  acceptance 
remains low. The draft Civil Code , which includes provisions for civil partnerships for same-sex 
partners, was not approved by the Assembly. The discussions on the Civil Code gave rise to use 
of homophobic language, including from MPs and the Chairperson of the Committee on Human 
Rights,  Gender  Equality  and  Missing  Persons.  This  has  exacerbated  the  discrimination  and 

38 

 
 
prejudice  toward  LGBTIQ  persons.  During  the  pandemic,  the  number  of  LGBTIQ  individuals 
seeking  psychological  support  increased,  both  online  and  in-person.  All  social  services  are 
offered  by  NGOs,  which  also  report  an  increase  in  domestic  violence  cases  towards  LGBTIQ 
persons. The process of buidling  a shelter by the municipality of Prishtina for LGBTIQ people 
who  are  survivors  of  domestic  violence  or  became  homeless  due  to  family  rejection  is  still 
underway. As for the legal gender recognition, the government accepted a concept document on 
Civil  Status  law,  incorporating  suggestions  of  civil  society.  New  procedures  need  to  be  quick, 
transparent and accessible. Further training for law enforcement agents is needed, especially with 
regard to transgender rights, qualification of hate crimes, and secondary victimisation. 

The procedural rights of suspects and accused persons in criminal proceedings and the rights of 
victims  of  crime  are  stipulated  in  the  constitution  and  the  law.  In  particular,  the  new  Criminal 
Procedural  Code  is  aligned  with  the  EU  acquis  to  guarantee,  namely,  the  right  to  information, 
right to interpretation and translation, right to have a lawyer, right to be presumed innocent and 
be present  at  trial  and  right  to  legal  aid.  Victims  of crime, however, often continue to  lack the 
capacity  to  protect  and  pursue  their  legal  interests  in  criminal  proceedings,  tend  to  receive 
insufficient legal information on their rights and are rarely assisted during criminal proceedings 
by  professional  legal  representatives.  The  budget  allocated  for  legal  aid  in  2021  amounted  to 
EUR  1  702  676,  in  slight  decrease  of  2%  compared  to  the  previous  year.  The  budget 
implemented for legal aid in 2021 amounted to EUR 1 686 056 (EUR 1 398 442 in 2020). The 
level  of  legal  aid  provision,  although  improved,  still  remains  inadequate  due  to  conflicting 
legislation, lack of public awareness and different systems in place for providing free legal aid. 
In addition,  there is  no system of quality  assurance in  the provision  of legal  aid.  Out of 1 612 
complaints received by the Ombudsperson in 2021, 261 concerned the right to a fair trial within 
a  reasonable  time.  Between  January-June  2022,  356  cases  were  opened  for  investigation:  137 
related  to  the  right  to  a  fair  and  impartial  trial  within  a  reasonable  time.  The  Law  on 
compensation  for  victims  of  crime  is  broadly  aligned  with  the  EU  acquis.  Nevertheless,  the 
quality of service provided to victims by Protection and Assistance Officers should improve. A 
compensation  programme  for  victims  of  crime  exists  and,  compared  to  previous  years,  the 
number of requests for compensation is slightly increasing. In 2021, the total number of requests 
for  compensation  was  58  (56  in  2020).  The  Committee  for  Crime  Victims  Compensation 
approved 28 of these requests, for a total value of EUR 102 554 (EUR 91 935 in 2020).  

Kosovo has well established mechanisms and structures at the central and local level as well as 
an  adequate  legal  framework  to  protect  non-majority  communities  and  their  rights.  Better 
institutional coordination and communication between the different levels of government would 
further  improve  their  effectiveness.  However,  the  conditions  for  a  truly  multi-ethnic  and 
integrated  society  throughout  Kosovo  are  not  fully  in  place.  Gaps  remain  in  ensuring  a  secure 
environment for all non-majority communities - especially in areas where returnees live - and in 
ensuring  access  to  property,  personal  documentation,  language  rights,  quality  education, 
employment, and social welfare.  

Increased coordination between the relevant departments within the Office of the Prime Minister 
–  the  Office  for  Community  Affairs  (OCA)  and  the  Advisory  Office  for  Good  Governance  –
remains  necessary.  The  position  of  the  Director  of  the  Office  for  Community  Affairs  (OCA) 
within  the  OPM  remains  vacant  since  February  2021.  The  functioning  of  the  OCA  improved 
with the appointment of an international advisor on community affairs in December 2021. The 
Advisor  initiated  a  number  of  activities,  aiming  primarily  at  revamping  the  functioning  of  the 

39 

 
 
Office.  These  included  organising  a  meeting  of  the  Prime  Minister  with  the  municipal 
community rights protection mechanisms, announcing internship programmes for students from 
the non-majority communities, and grants for NGOs representing these communities.  

The Consultative Council for Communities (CCC), placed under the President’s Office, has been 
able to carry its functions well, mainly vis-à-vis relevant government institution. In comparison 
to  the  previous  reporting  period,  government  institutions  addressed  some  of  the  CCC 
recommendations. The international advisor to the Prime Minister on community affairs is also a 
government  representative  to  the  Council.  The  CCC  has  two  other  government  representatives 
who  do  not  however  hold  any  formal  position  in  the  Council.  The  government  should  be 
considering the appointment of new members, to strengthen the link of this advisory mechanism 
the 
with 
recommendations of the Council of Europe’s Framework Convention on National Minorities has 
not met during the reporting period, and there has been limited progress with the implementation 
of its recommendations.  

the  executive.  The  Technical  Working  Group  for 

implementation  of 

the 

A  more  consistent  implementation  of  the  Law  on  the  Use  of  languages  is  necessary.  Being  a 
crosscutting  and  collective  obligation,  its  implementation  remains  a  responsibility  for  all 
institutions.  The  Office  of  the  Language  Commissioner  continues  to  protect  and  promote 
community  languages  and  oversee  the  language  compliance  in  Kosovo.  The  government  has 
taken  further  steps  to  establish  the  translation  unit  tasked  with  improving  translation  of 
legislation has been pending since 2019. There is a need for increased efforts in developing and 
introducing  programmes  for  curricular  and  extracurricular  learning  of  official  and  other 
languages. This will in turn contribute towards better social, economic and public inclusion for 
all communities in Kosovo. Stronger support by the government to consolidate language policies 
remains necessary. 

The  establishment  of  the  Balkanology  study  programme  in  October  2021,  along  with  the 
Language  learning  centre  at  the  Faculty  of  Philology,  of  the  University  of  Pristina  improved  
opportunities  for  Kosovo  majority  and  non-majority  students  to  learn  regional  official  and 
foreign languages. However, its success in promoting inter-community relations will depend on 
the resumption of the works of the Commission for verification of university diplomas obtained 
in  the  (Serbia-run)  University  of  Mitrovica  North;  the  Commission  ceased  working  on  31 
December  2021.  The  discontinuation  of  the  verification  of  these  diplomas  prevents  those  with 
such  qualifications  from  accessing  higher  education  in  the  Kosovo  education  system  and 
accessing Kosovo’s labour market. The government should ensure that the Commission re-starts 
its  work  and  consider  broadening  its  mandate  to  include  the  verification  of  secondary  school 
certificates. This is important to enable students’ enrolment in Kosovo’s educational system and 
labour market. The employment of persons belonging to non-majority communities in the public 
sector falls below the 10% threshold provided by the relevant legislation. These persons remain 
generally underrepresented in the civil service at all levels.  

While  the  overall  security  situation  of  non-majority  communities  remains  stable,  incidents 
continue to take place. These incidents included cases of physical attacks. Moreover, vandalism 
and  burglaries  of  religious  objects,  including  churches  and  mosques,  also  occur  with  some 
frequency.  The  Kosovo  Police  has  acted  swiftly  in  most  cases,  but  there  is  an  urgent  need  to 
improve  follow-up  and  investigation  to  contribute  to  the  identification  and  punishment  of 
perpetrators. Condemnation of the most serious incidents by the Kosovo leadership would also 
contribute  to  improve  the  security  situation.  In  processing  and  categorizing  security  incidents 

40 

 
 
having  the  potential  to  be  ethnically  motivated,  Kosovo  authorities  and  the  prosecution  should 
apply  the  existing  legislation,  including  the  hate  component  as  an  aggravating  factor.  Security 
incidents  taking  place  in  return  areas  have  also  presented  at  times  a  deterrent  to  the  return 
process. 

In 2021, the voluntary return and reintegration of refugees and displaced persons witnessed a 
slight  decrease.  According  to  the  UNHCR  the  return  of  368  individuals  took  place  in  2021, 
compared  to  the  394  in  2020.  To  ensure  a  lasting  and  sustainable  return  of  refugees  and 
displaced  persons,  it  is  necessary  to  create  an  enabling  environment  that  includes  inter-alia, 
dialogue  with  the  local  community,  security  and  safety  provisions,  resolution  of  long-standing 
property  related  issues,  access  to  education,  employment  opportunities  and  freely  accessing 
language  rights  in  the  native  language.  In  an  effort  to  strengthen  policy  development  and 
implementation  of  the  voluntary  return,  the  Ministry  for  Communities  and  Return  should  (i) 
finalize and adopt the Strategy for Protection and Promotion of the Rights of the Communities 
and  their  Members  (2022-2026)  and  its  Action  Plan;  (ii)  fully  functionalise  returns  case 
management  system  (returns  database);  (iii)  establish  an  appeals  commission  as  per  the 
Regulation on returns (No. 01/2018).   

The situation of the Kosovo Roma and Ashkali and other communities in vulnerable situations, 
like  the  Kosovo  Egyptians,  remains  challenging.  Women  remain  underrepresented  in  political 
parties representing Roma, Egyptian and Ashkali communities, and as a results, women’s voices 
are rarely heard in policy discussion. The government adopted the Strategy for the Advancement 
of the Rights of the Roma and Ashkali communities 2022-2026, and its Action Plan 2022-2024. 
The  strategy  aims  to  advance  the  rights  of  Roma  and  Ashkali  communities  in  the  fields  of 
education,  health,  housing,  employment  and  economic  empowerment,  and  the  fight  against 
discrimination,  among  others.  Kosovo  should  ensure  effective  implementation  of  the  Strategy 
and  the  Action  Plan  2022-2024.    The  Technical  Working  Group  for  the  Protection  from 
Discrimination  of  the  Roma  Ashkali  and  Egyptian  communities  met  several  times  during  the 
reporting period. 

Members  of  these  communities  face  limited  access  to  clean  water  and  sanitation,  protective 
equipment  and  healthcare,  while  access  to  education  and  formal  employment  remain  difficult.  
The Roma, Ashkali and other communities in vulnerable situations, like the Kosovo Egyptians, 
face  difficult  living  conditions  further  compounded  by  the  pandemic.  These  communities  are 
often discriminated and subjected to  hate speech or derogatory terms  in  different  contexts,  and 
victims often do not report cases as they do not trust the institutions. Women belonging to these 
communities are subject to  multiple discrimination;  also  the percentages of early, child, forced 
marriages and domestic violence cases is more prevalent than within other communities.  

The  need  to  provide  housing  exceeds  the  budgetary  possibilities.  This  should  be  addressed 
within the process of registering housing needs in the database of the Ministry of Environment, 
Spatial Planning and Infrastructure. Furthermore, the Roma and Ashkali communities should be 
more involved in solving the housing problem, starting from the requirements of housing needs, 
to  the  regulation  of  property  documentation.  The  mapping  of  informal  settlements  has  been 
completed  and  the  authorities  initiated  the  process  of  legalization.  No  significant  progress  was 
made  in  developing  a  methodology  for  data  collection,  nor  in  developing  a  policy  for 
transforming  informal  economy  among  the  Roma.  Despite  some  progress  in  increasing  the 
access  to  and  participation  in  quality  education  for  children  from  the  Roma  and  Ashkali 
communities, challenges remain, especially for girls. The challenges relate to low awareness on 

41 

 
 
the  importance  of  education,  poverty,  unemployment,  low  standards  of  living  and  low 
participation  in  preschool  education.  In  spite  of  the  limited  support  provided  by  Ministry  of 
Environment,  Spatial  Planning  and  Infrastructure  to  the  Learning  Centre’s,  more  efforts  are 
needed  to  support  pre-school  children  from  these  communities.  The  Ministry  of  Education 
adopted  administrative  instructions  to  strengthen  the  social  network  responding  to  the  lack  of 
participation in school.  The employment situation for persons belonging to Roma and Ashkali 
communities  is  more  challenging  compared  to  other  communities.  Their  jobs  are  often 
temporary, mostly physical, not highly skilled and poorly paid. Very few women are employed 
due to traditional stereotypes, early marriages and lack of education and skills. More efforts are 
needed to assist Roma and Ashkali communities in accessing the job market. Roma, Ashkali and 
Egyptian  are  under-represented  in  public  administration  falling  far  below  the  10%  quota 
guaranteed by the Law on Public Servants. With limited access to preventive, curative, and other 
health services, members  of the Roma and  Ashkali communities continue to  suffer  from  poor 
health. Among the main barriers to accessing health services are: poverty and an inability to pay 
for treatment and the purchase of medicines as well as lack of medical staff and mobile teams, 
public  transport,  and  identification  documents  needed  to  receive  public  services.  This  affects 
women and girls in a differentiated way: lack of access to specific women health care contributes 
to the high number of unwanted and child pregnancies. The lack of civil documentation further 
affects access to rights for Roma and Ashkali communities. The authorities have initiated efforts 
in partnership with international partners to collect data on civil status and to provide free legal 
aid. 

Concerning  cultural  rights,  there  is  no  progress  on  the  adoption  of  the  new  Law  on  Cultural 
Heritage. The Implementation and Monitoring Council remains the only existing mechanism for 
the  dialogue  between  the  government  and  the  Serbian  Orthodox  Church  and  the  Kosovo 
authorities.  Conditions  for  communication  and  for  a  more  effective  functioning  of  this 
mechanism  should  be  in  place  in  order  for  the  Implementation  and  Monitoring  Council  to 
continue  its  work.  The  protection  and  promotion  of  cultural  heritage  in  Kosovo  still  remains 
weak and donor driven. 

Chapter 24 - Justice, freedom and security 

The  EU  has  common  rules  for  border  control,  visas,  residence  and  work  permits,  external 
migration  and  asylum.  Schengen  cooperation  entails  lifting  border  controls  inside  the  EU. 
Member States also cooperate with Kosovo in the fight against organised crime and terrorism, 
and  on  judicial,  police  and  custom  matters,  all  with  the  support  of  the  EU  justice  and  home 
affairs agencies.  

Kosovo  is  at  an  early  stage/has  some  level  of  preparation  in  this  area.  Some  progress  was 
made,  in  particular  on  counter-terrorism  and  the  fight  against  and  prevention  of  violent 
extremism,  as  well  as  managing  migration.  The  entry  into  force  of  several  laws  important  to 
combatting  organised  crime  has  not  led  to  tangible  results.  The  adoption  of  the  Standard 
Operating  Procedure  for  financial  investigations  in  line  with  Financial  Action  Task  Force 
(FATF)  recommendations,  is  a  positive  development.  Sustained  efforts  are  needed  to  ensure 
more proactive investigations, final court decisions and the final confiscation of assets. Kosovo 
continued  to  make  progress  in  managing  both  regular  migration  and  mixed  migration  flows  in 
the  difficult  context  of  the  COVID-19  pandemic.  Although  not  affected  by  large  migrant 
movements, Kosovo further increased its accommodation capacity and stepped up preparedness 
to handle a potential migration influx.  

42 

 
 
As Kosovo has partly  followed the recommendations of the 2021 report,  they  remain valid.  In 
the coming year, Kosovo should in particular: 

 continue  to  reinforce  the  capacity  of  the  Special  Prosecution  Office  to  investigate  and 

prosecute high-profile organised crime cases;  

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

terrorism and related links; 

 further  enhance  migration  governance,  coordination  and  monitoring  of  policies;  reinforce 

capacities for data collection and analysis; further strengthen asylum.  

 Fight against organised crime 

Kosovo is at an early stage in the fight against organised crime and limited progress was made 
in  investigating  and  prosecuting  organised  crime  cases.  Limited  results  were  achieved,  despite 
the  existence  of  proper  legal  and  institutional  frameworks.  Powerful  tools  envisaged  by  the 
Criminal  Code  and  the  Law  on  Extended  Powers  of  Confiscation  are  not  yet  fully  utilised. 
During  the  reporting  period,  a  number  of  successful  operations  targeting  organised  crime 
continued,  also  involving  international  and  cross-border  cooperation.  Sustained  efforts  are 
needed to ensure proactive investigations, final court decisions and confiscations of proceeds of 
crime.  The  operational  independence  of  law  enforcement  agencies  must  be  ensured.  Fighting 
organised crime in the northern part of Kosovo continues to be challenging. 

Kosovo  has  partly  implemented  the  2021  recommendations:  mostly  regarding  trainings  and 
awareness  raising  on  new  legislation,  as  well  as  on  the  need  to  restructure  the  Kosovo  Police 
Directorate for Intelligence and Analysis and by adopting of the standard operating procedure to 
run financial investigations in line with Financial Action Task Force (FATF) recommendations. 
There  is  a  well-established  cooperation  with  Interpol  and  Europol.  In  addition,  Kosovo  has 
appointed Eurojust Contact Points.  In addition to recommendations to strengthen confiscation of 
criminal assets (see chapter 23 section on fight against corruption), in the coming year, Kosovo 
should in particular: 

 within  the  police,  effectively  implement  the  intelligence-led  and  community  policing 
approaches,  by  establishing intelligence structures, continuing to  train  analysts in  the Police 
Directorate for Intelligence Analysis and appointing dedicated community police officers for  
confidence-building and proactive policing; 

  further reinforce the capacity of the Special Prosecution Office to investigate and prosecute 
high-profile  organised  crime  cases;  provide  training  to  strengthen  police-prosecutor 
cooperation, the capacity to conduct financial investigations, confiscate assets and effectively 
protect witnesses;  

  implement  the  strategy  and  action  plan  against  trafficking  in  human  beings  2022-2026, 
adopting a victim-centred approach; enhance efforts on prevention; improve early proactive 
identification  of  victims  of  trafficking,  in  particular  those  belonging  to  vulnerable 
communities, as well as their referral to appropriate assistance and support services. 

Institutional set-up and legal alignment  

43 

 
 
The Kosovo Police has 465 police officers per 100 000 inhabitants, compared with an average of 
333 per 100 000 inhabitants (Eurostat, 2018-2020). A working group has proposed amendments 
to the Law on Police.  

Key  institutions  involved  in  the  fight  against  organised  crime  include  the  Special  Prosecution 
Office  and  the  Special  Department  of  the  Basic  Court  and  the  Court  of  Appeals  in  Pristina. 
During the reporting period, additional prosecutors and support staff in the Special Prosecution 
Office  were  engaged.  Additional  staff  was  assigned  to  the  Special  Departments.  A  further 
increase in staff should be based on a needs assessment.  

The  Kosovo  Police’s  Investigation  Department,  responsible  for  the  prevention,  detection  and 
investigation  of  organised  crime  and  corruption  related  offenses,  consists  of  nine  specialised 
central-level  directorates  and  cooperating  units  at  regional  level.  In  its  present  structure,  the 
Department reached its limits in terms of efficiency. Deeper structural reforms are needed. The 
proposed new draft structure of the Department, pending final approval by competent authorities, 
contains  two  main  pillars:  investigation  and  support.    The  police  is  undergoing  a  necessary 
reform programme. Thus far, there has been some progress concerning the restructuring and the 
training of personnel of the Directorate for Intelligence and Analysis.  

Separate working groups are monitoring the implementation of the Strategic Development Plan 
2021-2025,  as  well  as  Integrated  Intelligence-Led  Policing  and  Community  Policing  Strategy 
and  Action  Plan  2021-2025,  through  annual  implementation  reports.  In  June  2022,  the  first 
strategic  level  Tasking  and  Coordination  Group  identified  key  priorities  based  on  annual 
strategic crime assessment report. The government should take into account the findings of the 
police  risk  assessment  analysis  of  the  government  buildings,  and  accordingly,  refrain  from 
utilising police officers from conducting tasks that are not core police service tasks. The Kosovo 
Academy for Public Safety provides good quality education. 

Kosovo  Border  Police,  Kosovo  Customs,  the  Financial  Intelligence  Unit  and  the  Tax 
Administration  remain  responsible  for  monitoring  and  controlling  the  internal  and  cross-
border/boundary  flow  of  goods,  materials  and  capital  that  might  be  involved  in  any  form  of 
organised crime. Kosovo Customs and the Financial Intelligence Unit performed well. While the 
Asset  Recovery  Office  within  the  police  is  operational,  it  still  receives  limited  requests.  An 
initiative to transfer the Office to the State Prosecution Office, and assign dedicated staff from 
Prosecution,  Police,  the  Financial  Intelligence  Unit,  the  Customs  and  Tax  Admistration,  is 
underway.  The  Police  Information  System  is  linked  to  other  law  enforcement  databases. 
Standard  operating  procedures  to  improve  utilisation  of  the  Police  Information  System,  in 
particular  regarding  case  management  in  criminal  investigations,  were  adopted.  The  adopted 
standard  operating  procedures  regulate  access  levels  to  the  Police  Information  System  and 
ensures full harmonisation between the various databases.  

The process  of internal  reorganisation  of the  Civil Registration Agency has  stalled during the 
reporting period. No progress has been made with regard to the drafting of the Civil Registration 
Agency  strategy.  The  Agency  staff  has  insufficient  capacities  to  implement  their  tasks 
efficiently. The procedure for the recruitment of a General Director has been cancelled, leaving 
the  post  vacant  for  over  a  year.  Interoperability  of  the  Civil  Registration  Agency’s  IT  system 
with  the  Kosovo  Cadastral  Agency,  law  enforcement  agencies  and  other  institutions  is  a  
challenge,  due  to  insufficient  human  resources,  budget  and  technical  capacity.  The  Civil 
Registration Agency should continue to improve the quality and increase the reliability of data 

44 

 
 
processed  and  registered  in  the  Central  Civil  Status  Registry  System,  including  the  database 
structure  and  design.  The  Civil  Registration  Agency  should  establish  a  framework  to  improve 
governance of the IT systems, including procedures and policies. 

The  main  strategic  framework  the  Rule  of  Law  Sector  Strategy  consists  of  the  2018-2022 
Strategy and Action Plan against organised crime, the Kosovo Judicial Council Strategic Plan for 
efficient solving of cases of corruption and organised crime, as well as other relevant  strategies 
and action plans, including on arms control; informal economy, money laundering and terrorist 
financing; counter-terrorism; trafficking in human beings and narcotics. All relevant institutions 
must  cooperate  to  effectively  implement  these  strategic  documents.  In  addition  to  the  annual 
strategic crime assessment reports, in May 2022, Kosovo Police adopted the fourth serious and 
organised  crime  threat  assessment  (SOCTA)  report,  based  on  Europol’s  methodology,  which 
covers the period 2019-2021.  

The  legal  framework  on  the  fight  against  organised  crime  was  further  aligned  with  the  EU 
acquis.  Despite  not  being  a  party  to  international  conventions  on  the  fight  against  organised 
crime, such as the United Nations Convention on Transnational and Organised Crime (Palermo 
convention),  due  to  status-related  issues,  Kosovo  unilaterally  applies  these  international 
principles in  its  criminal  legislation.  Moreover,  it is  generally  aligned with relevant  European 
standards.  

The  Criminal  Code  and  the  Law  on  Extended  Powers  of  Confiscation  has  been  in  force  since 
2019 (see section on the fight against corruption). In July 2022, the Assembly adpted the new 
Criminal Procedure Code.  

The Law on Money Laundering and Terrorism Financing should be amended, to be fully in 
line with with the 4th and 5th EU directives on anti-money laundering and countering financing of 
terrorism.  The  government  initiated  the  drafting  of  the  concept  document  to  review  the 
legislation  on  prevention  of  money  laundering  and  combating  terrorist  financing,  to  ensure  its 
full  compliance  with  EU  Directives  and 
the  Financial  Action  Task  Force  (FATF) 
recommendations.  The  draft  law  on  the  implementation  of  targeted  international  financial 
sanctions  has  been  adopted  by  the  government,  and  is  currently  in  the  Assembly.  The 
Administrative  Instruction  for  the  Beneficial  Owner  for  Reporting  Subjects  has  been  adopted. 
The Financial Intelligence Unit published the general money laundering typologies. 

With  regard  to  implementation  of  the  Law  on  Interception  of  Electronic  Communications, 
interception  capacities  were  upgraded,  allowing  decentralisation  of  monitoring  centres  to  other 
police  units  as  well  as  other  law  enforcement  agencies.  The  police  is  still  in  the  process  of 
finalising  procurement  of  necessary  technical  equipment  and  set  up  respective  monitoring 
centres.  Legislation  on  cybercrime  is  generally  in  line  with  the  EU  acquis.  Legislation  on 
trafficking  in  human  beings  is  broadly  aligned  with  the  current  relevant  EU  acquis,  but 
implementation  could  be  improved.  The  new  Strategy  and  Action  Plan  against  trafficking  in 
human beings 2022-2026 has been adopted in June 2022. 

Implementation and enforcement capacity  

Kosovo authorities continue to report on the total number of indictments and convictions for the 
charge of ‘organised crime’ as defined in the United Nations Convention on Transnational and 
Organised  Crime.  During  2021,  19  new  cases  involving  148  persons  were  initiated  (five  new 

45 

 
 
cases involving 63 persons in  2020). For 29 persons, indictments  were issued. For 17 persons, 
the investigation was terminated. During 2021, three persons were convicted.  

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

As for organised crime-related cases currently not included in the aforementioned track record, 
during 2021, 46 cases relating to trafficking in human beings involving 70 persons were initiated 
(19 in 2020), and the prosecution presented indictments against 45 persons (36 indictments were 
presented  in  2020).  In  2021,  four  persons  were  convicted  (two  in  2020).  In  addition,  in  2021, 
three persons were indicted (23 in 2020) for illicit trafficking of firearms and the court convicted 
three  persons  (three  in  2020).  For  money  laundering,  9  persons  were  indicted  in  2021  (33  in 
2020) and one person was convicted (3 in 2020).  

The  police  and  the  prosecution  should  continue  to  actively  use  all  powers  at  their  disposal  to 
target criminal networks and their economic support base. 

Sentencing  policy  remains  erratic  (see  section  on  judiciary).  The  low  number  of  confiscated 
criminal  assets  is  still  a  key  concern  (see  the  section  on  the  fight  against  corruption).  The 
institutions  involved  in  the  fight  against  organised  crime  need  to  set  up  and  use  multi-
disciplinary, joint investigation teams, where possible. 

The  Kosovo  Police  has  adequate  basic  capacity  and  capability  to  combat  organised  crime  in 
Kosovo.  However,  investigations  of  organised  crime  remain  vulnerable  to  corruption  and 
unlawful interference. The operational independence of the police must be ensured. The police 
needs  to  reform  and  restructure  its  processes,  inter-agency  and  multidisciplinary  investigative 
cooperation in order to raise levels to EU standard core business models for policing. The police 
needs  to  enforce  its  integrity  plan,  improve  ethics  and  conduct  profesional  criminal 
investigations.  The  work  of  the  Police  Inspectorate  is  important.  As  envisaged  by  the  Law  on 
Police  Inspectorate,  the  Ministry  of  Internal  Affairs  should  review  and  develop  a  plan  for  the 
implementation  of  Police  Inspectorate  recommendations,  which  thus  far,  has  not  been  done. A  
positive  trend  of  successful  police  operations  targeting  organised  crime  continued  during  the 
reporting period,  also  involving international  and cross-border  cooperation.  In 2021, the police 
dismantled  49  organised  crime  groups,  involving  317  suspects.  These  operations  resulted  in  a 
number of arrests and the preliminary confiscation of assets, which now needs to be followed up 
by the prosecution and judiciary. However, the fight against organised criminal structures should 
be  intensified.  Investigations  should  be  more  proactive  and  and  criminal  groups  should  be 
adequately mapped. There should be a  shift of focus from investigating commodity to targeting 
criminal groups and structures. The government should ensure a sound legal and organisational 
structure  to  the  Special  Investigative  Unit  within  the  Kosovo  Police  as  the  successor  of  the 
abolished Anti-Corruption Task Force (see section on the fight against corruption). 

The implementation of the intelligence-led policing and community policing remains weak. A 
positive  step  is  noted  with  respect  to  community  policing,  through  the  anticipated  new  overall 
organisational  police  structure  dedicating  two  community  police  officers  per  sector  in  each 
police  region.  The  police  needs  to  continue  to  establish  adequate  intelligence  structures  at 
regional  and  central  levels.  Most  importantly,  a  change  of  mindset  throughout  the  police 
organisation  is  crucial  for  an  effective  implementation  of  the  intelligence-led  and  community 
policing models. There is a need for more specialised and on the job training for all institutions 
involved  in  fighting  the  more  complex  occurrences  of  organised  crime.  Closer  day-to-day 

46 

 
 
cooperation in view of developing strategies to better conduct investigations and clear division of 
responsibilities between the police and the special prosecution is still needed. The police should 
establish  a  verification  office  for  Special  Investigative  Measures,  which  are  key,  to  review 
requests  of  investigators  for  special  measures  from  the  prosecutors.  This  would  enable  a  joint 
target-based  approach  from  the  police  and  the  Prosecution  Service  to  improve  the  pro-active 
finding of illicit and ill-gained wealth.  

There  is  well-established  cooperation  with  Interpol  and  Europol.  Kosovo  regularly  exchanges 
information  with  Interpol  via  the  United  Nations  Interim  Administration  Mission  in  Kosovo 
(UNMIK).  Since  1  June  2021,  the  police  sent  1,824  messages  through  Interpol-channel.  The 
Kosovo  Police  and  Europol  have  strengthened  their  cooperation.  The  2020  Working 
Arrangement on strategic cooperation was followed up by additional implementing agreements, 
allowing  for  access  to  the  Secure  Information  Exchange  Network  Application  (SIENA),  the 
deployment  of  Kosovo  Liaison  Officer(s)  to  Europol  and  the  exchange  and  protection  of 
classified information. During the reporting period, the SIENA connection in Kosovo has been 
successfully brought into operation. The police has finalised the recruitment of the liaison officer 
to Europol and notified Europol about the appointment. The Ministry of Foreign Affairs should 
now  finalise  protocol-related  matters.  The  police  cooperates  well  with  police  services  in  EU 
Member States, including through joint investigation teams and exchange of information on civil 
and  criminal  cases.  The  police  has  signed  100  international  police  cooperation  agreements, 
including  with  11  EU  Member  States,  five  EU  agencies  and  other  countries  and  international 
organisations.  The  Kosovo  Police  mutually  exchanges  liaison  officers  with  seven  partner 
countries. Since December 2020, Kosovo and Eurojust have established cooperation through the 
appointment of the two Contact Points.  

Effective implementation of witness protection mechanisms continues to face challenges, as few 
potential witnesses have sufficient trust in Kosovo institutions’ ability to keep them safe. Kosovo 
police  participate  in  Europol’s  Platform  for  Witness  Protection.  Prosecutors  and  judges  need 
training on how to protect witnesses effectively. 

The  fight  against  money  laundering  and  terrorist  financing  is  not  yet  producing  expected 
results. In 2021, there was one conviction for money laundering. Money laundering and terrorist 
financing are often not prosecuted as a standalone crime, which slows down the overall criminal 
procedure. There is a pressing need to foster prosecutors’ and judges’ enhanced understanding of 
the  concept  of  money  laundering  and  terrorist  financing  and  to  improve  specialisation  in  this 
field. There is still insufficient awareness of reporting entities and relevant stakeholders. In 2021, 
the Financial Intelligence Unit received a total of 920 suspicious transaction reports (an increase 
of 2% compared to 2020). The Financial Intelligence Unit has exchanged a total of 127 requests 
for  international  information  exchange  through  the  Egmont  Group  (19%  increase  compared  to 
2020). The Financial Intelligence Unit has issued 46 freezing orders for the total amount of EUR  
8  975  202,  and  carried  out  31  inspections  of  reporting  entities.  The  number  of  disseminated 
intelligence  reports to  law enforcement agencies  increased by 27% in  2021 compared to  2020. 
During  the  reporting  period,  the  Basic  Court  in  Pristina  confirmed  the  conviction  of  two 
suspects, and the confiscation of nearly EUR 1 million, following the order for a retrial by the 
Supreme Court. The Special Prosecution Office filed a money laundering indictment in the case 
of  treasury,  initiated  by  the  Financial  Intelligence  Unit.  Overall,  although  the  efficacy  of 
financial  investigations  has  improved  at  the  police  level,  they  are  still  not  systematically 
conducted in parallel with the criminal investigations/proceedings. Inter-agency cooperation and 

47 

 
 
coordination  needs  to  improve  significantly  (see  also  chapter  4  on  the  free  of  movement  of 
capital). In February 2020, the police adopted the standard operating procedure to centralise all 
aspects  of  financial  investigations  in  line  with  Financial  Action  Task  Force  (FATF) 
recommendations. 

Despite progress achieved, the involvement of organised and armed groups in arms trafficking 
remains a serious concern. Kosovo is implementing its strategy in this area and the Law on the 
Legalisation and Surrender of Weapons, Ammunition and Explosive Devices. During 2021, the 
Kosovo Police seized 1 280 firearms and 42 031 pieces of ammunition of various calibers. The 
authorities are amending the Law on Weapons in line with the latest EU Firearms Directive, and 
the  strategy  on  Small  Arms  and  Light  Weapons,  although  they  should  accelarate  the  efforts 
towards  drafting  amendments  to  the  key  laws  and  bylaws  on  firearms,  ammunition  and 
explosives  towards  harmonisation  with  main  EU  firearms  directives  and  regulations.  The 
firearms focal  point in  the police is  fully operational  and  works  well. The firearms  focal  point 
reports are prepared regularly, ongoing activities on daily data collection and firearms tracing, as 
well  as  participation  in  trainings  and  meetings  at  regional  or  international  level  reported. 
Kosovo’s firearms focal point continues to function as good practice in the region. 

Ballistics  laboratory  is  well  equipped.  Kosovo  has  the  highest  level  of  harmonisation  in  the 
region with the provisions of the UN Firearms Protocol.  

Kosovo remains a country of origin, transit and destination of victims of trafficking in human 
beings,  notably  for  sexual  exploitation.  During  the  reporting  period  (15  June  2021  –  15  June 
2022), the Kosovo Police has identified a total of 26 victims of trafficking, out of which 21 were 
girls and women and 5 men, with 15 victims under the age of 18 and 11 over the age of 18. More 
efforts  are  needed,  especially  regarding  prevention,  the  pro-active  identification  of  victims, 
assistance and support to victims and increasing prosecution and conviction of perpetrators  

Cigarette and tobacco smuggling is of growing concern. Kosovo is a key transit country for the 
smuggling  of  counterfeit  cigarettes  as  well  as  for  legally  produced  tobacco  products  shipped 
illicitly via neighbouring countries in the Western Balkans.  

During 2021, the reporting period, while there were 37 cases (53 in 2020) of cyber-crime. There 
were no indictments and no final judgements, and one investigation was terminated. The Kosovo 
Police Sector for the Investigation of Cybercrime has initiated 4 cases for the offence of Child 
Abuse  in  Pornography  and  3  criminal  charges  were  filed  against  17  persons.  Kosovo  needs  to 
address  several  issues,  such  as  the  limited  availability  of  cyber-crime  training  for  newly 
appointed judges and prosecutors and those handling electrofic evidence.  

Following  the  2017  working  arrangement  with  the  EU  Agency  for  Law  Enforcement  Training 
(CEPOL), Kosovo actively takes part in a number of its activities. Kosovo has full access to the 
CEPOL Exchange Programme and its electronic learning system.  

Kosovo stepped up its participation in the European Multidisciplinary Platform Against Criminal 
Threats (EMPACT).  In 2022, Kosovo committed to participate in 23 operational actions in 3 of 
the 15 EMPACT operational action plans, compared to its participation in 5 operational actions 
in  2021.  Kosovo  has  yet  to  appoint  a  National  EMPACT  Coordinator.  Kosovo  continued  to 
cooperate  with  EU  police  services  through  the  European  Network  of  Fugitive  Active  Search 
Teams (ENFAST), in which it has an observer’s status. 

48 

 
 
Kosovo  continued  to  participate  actively  in  EMPACT  Joint  Action  Days,  such  as  the  one  for 
South-East Europe 2021 (promoting closer cooperation in the work against firearms trafficking, 
the  smuggling  of  migrants  and  drugs  trafficking)  and  the  Mobile  4  one  (targeting  various 
modalities  of  motor  vehicle  crime,  including  smuggling  of  stolen  vehicles  via  the  external 
borders, parts of vehicles, as well as associated document fraud).  

The  Serious  and  Organised  Crime  Threat  Assessment  (SOCTA)  needs  to  be  shared  with  the 
public  or  other  institutions  in  order  to  translate  the  threats  identified  into  operational  priorities 
backed up with adequate resources. 

Cooperation in the field of drugs 

Institutional set-up and legal alignment 

The legislative framework to combat illicit handling of and trafficking in narcotic drugs is based 
on  the  2007  Law  on  Narcotic  Drugs,  Psychotropic  Substances  and  Precursors.  A  more 
comprehensive, revised draft law that in turn is aligned with more recent EU legislation is yet to 
be  adopted.  The  Criminal  Code  addresses  drugs  and  trafficking-related  crimes.  A  coordination 
mechanism  has  been  established  to  prevent  and  combat  drug  trafficking  and  the  illicit  use  of 
precursors. To this end, and in accordance with the current strategy and action plan (2018-2022), 
a  national  drug  observatory  is  established  within  the  Ministry  of  Internal  Affairs.  There  is  no 
head of the observatory since December 2018.  In March 2022, the Ministry of Internal Affairs 
assigned an officer to  carry out  the function  at  the observatory.  While a  decision was taken to 
increase  the  number  of  personnel,  this  has  partly  been  implemented.  Difficulties  also  remain 
regarding  the  sustainable  and  routine  collection  of  drug-related  data  throughout  Kosovo,  also 
given the lack of a functional Health  Information System. The early warning system is not  yet 
established nor operational. The Ministry of Internal Affairs approved an internal regulation on 
the organisation  of the national  drug observatory and the early  warning system, which ensures 
adequate human and financial support. Two new positions have been approved to reinforce the 
secretariat and the drug observatory; however, the recruitment process is yet to start. Cooperation 
with the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) has improved 
thanks  to  the  support  from  ad  hoc  expertise  outside  the  national  drug  observatory.  The 
EMCDDA  signed  a  working  arrangement  with  the  Ministry  of  Internal  Affairs  and  with  the 
Ministry of Health in September 2019.  

Implementation and enforcement capacity 

Kosovo  continues  to  be  both  a  storage  and  a  transit  country  for  narcotic  drugs  and  their 
derivatives.  Overall, drug seizures  are increasing: around 500kg of marijuana, 3.6kg of heroin, 
and 414kg of cocaine were seized in 2021. In March 2022, the Kosovo Police seized 83.5kg of 
heroin and arrested seven suspects. Further, in May 2022, succesful police operations targeted a 
major Cannabis Sativa cultivation plot in North Mitrovica and succesfuly seized 68kg of heroin 
in  Ferizaj.  During  2021,  the  Kosovo  Police  registered  726  new  drug-related  cases  (1  006  in 
2020).  Out  of  the  total  number  of  cases,  218  were  charged  as  drug  trafficking,  478  as  illegal 
possession of drugs, 29 were related to cultivation and one was initiated for other drugs. In 2021, 
1 117 persons were indicted for drug-related offences and 390 persons were found guilty by the 
courts  (seven  were  acquitted).  Provisions  are  in  place  for  the  secure  storage  of  seized  drugs 
awaiting  destruction.  However,  a  protocol  for  the  handling,  storage  and  destruction  of  drug 
precursors is still not in place.  

49 

 
 
Organised  crime  groups  continue  to  play  a  dominant  role  in  large-scale  drug  trafficking  and 
subsequent  distribution  in  the  EU.  The  Western  Balkans  drug  trafficking  routes  constitute  a 
major challenge. During the reporting period, a number of successful drug targeting operations 
was  carried  out,  and  cooperation  with  EU  Member  States  was  effective.  Law  enforcement 
agencies and prosecution need to further increase the understanding of the drug market through 
analytical  work,  by  examining  the  intelligence  picture  and  identifying  intelligence  gaps.  Inter-
agency  cooperation  and  exchange  of  information  in  the  fight  against  drug  trafficking  among 
relevant  actors  in  the  chain  of  justice  sector  should  further  improve.  The  prosecution  service 
continues to  remain understaffed and insufficiently trained to  efficiently  deal  with  drug-related 
offences.  Increased  cooperation  and  coordination  among  law  enforcement  agencies  in  the 
Western  Balkan  region  is  paramount.  This  can  only  take  place  through  vastly  improved  inter-
agency cooperation and exchange of information at all levels. A 24-hours drug abuse hotline is 
available, and addiction treatment and methadone therapy is being offered. 

Fight against terrorism  

Institutional set-up and legal alignment  

A  range  of  institutions  remain  active  and  involved  in  combating  terrorism  and  violent 
extremism,  and  in  dealing  with  reintegration  of  returning  foreign  terrorist  fighters  and  their 
families. In April 2021, the government of Kosovo appointed the Minister of Internal Affairs as 
the  National  Coordinator  for  the  Prevention  of  Violent  Extremism  and  the  Fight  against 
Terrorism.  This  position  is  to  improve  inter-institutional  coordination  on  those  issues,  monitor 
and report on the implementation of policies, activities and other actions, and serve as a point of 
contact  for  all  related  issues.  In  2021,  the  Ministry  of  Internal  Affairs  established  the  working 
group to design the structure of the National Centre for Violent Extremism and Terrorism or to 
reinforce the Office of the National Coordinator. Thus far, no concrete outcomes can be reported. 
The EU is ready to provide support through the Radicalisation Awareness Network in designing 
such  new  structure.  The  main  challenges  regarding  counter-terrorism  and  preventing  and 
countering  violent  extremism  are 
lack  of  horizontal  and  vertical  coordination, 
communication, information sharing, and of multidisciplinary, inter-office and holistic approach. 
Social  workers  and  other  professionals  working  at  the  local  levels  should  be  better  informed 
about relevant actions undertaken at central levels.  

the 

Kosovo’s  legal  framework  remains  to  be  fully  aligned  with  the  EU  acquis  and  international 
instruments on anti-terrorism. The Law on Combating Money Laundering and the Financing of 
Terrorism needs to be amended in order to be fully in line with EU and international standards 
(see section on the fight against organised crime and chapter 4 on the free movement of capital). 
The draft law on implementation of Targeted International Financial Sanctions has been adopted 
by  the  government  and  is  currently  in  the  Assembly.  Legislation  on  critical  infrastructure 
protection was adopted in 2018, but the adoption of bylaws is still pending. 

Kosovo  has  a  strategy  and  action  plan  against  terrorism  (2018-2023)  in  line  with  the  EU’s 
counter  terrorism  strategy.  A  strategy  and  action  plan  against  violent  extremism  (2015-2020) 
expired at the end of 2020. The National Coordinator decided to merge the two strategies and a 
Working group is preparing a new draft strategy. The EU is supporting Kosovo in such revision 
process through the Radicalisation Awareness Network Policy Support.   The authorities should 
set up a Joint Threat Assessment Centre, including a threat level grading system, to facilitate a 
greater  understanding  among  all  agencies  of  the  current  operational  situation,  keep  the  public 

50 

 
 
informed  and  improve  responses,  including  on  the  protection  of  critical  infrastructure.  In  July 
2021, Kosovo Police and Kosovo Intelligence Agency produced the first joint threat assessment 
analysis document. 

There is a need to ensure donors’ coordination, and to establish a more structured mechanism, as 
previously existing coordination mechanism is not functioning anymore. 

Kosovo authorities continue to implement the bilateral Implementing Arrangement with the EU 
for  the  Joint  Action  Plan  on  counter-terrorism  for  the  Western  Balkans,  whose  validity  and 
continuation has been reaffirmed by the EU-Western Balkans Ministerial forum in October 2020. 
Kosovo  submitted  its  second  implementation  report  in  January  2021.  During  the  reporting 
period,  Kosovo  submitted  its  third  and  fourth  implementation  reports  the  Kosovo  Police  has 
taken part in three separate CT/PVCE trainings, benefiting some 279 officers.  

Implementation and enforcement capacity 

Kosovo  continued  to  fight  the  threat  of  terrorism.  In  2021,  ten  indictments  were  filed,  four 
persons  were  convicted  and  one  was  acquitted.  Investigations  were  completed  in  three  cases 
against  15  suspects.  Between  1  January  and  30  June  2022,  ten  indictments  were  filed,  nine 
persons were convicted and one was acquitted. In three cases, the investigation was terminated. 
The  total  number  of  pending  terrorism-related  cases  is  76.  Greater  consistency  of  sentencing 
practices, for offences related to terrorism and violent extremism, is necessary. The functioning 
of  the  Special  Department  within  the  Basic  Court  of  Pristina  and  within  the  Court  of  Appeals 
have contributed to a more effective handling of terrorism cases compared to the past.  In April 
2022, 23 persons sentenced (19) or detained (4) for terrorism related crimes were in prisons in 
Kosovo,  17  at  the  High  Security  Prison  and  6  at  the  Dubrava  Correctional  Centre.  Between 
January-April  2022,  four  prisoners  sentenced  for  terrorism  related  crimes  were  released.  The 
majority  of  the  releases  was  based  on  decisions  of  the  Parole  Panel.  Sentences  for  terrorism 
crimes  for  foreign  terrorism  fighters  were  relatively  mild  (average  sentence  3.6  years).  The 
Ministry  of  Internal  Affairs  took  measures  related  to  conditional  release  to  ensure  that  the 
conditional  release  panel,  in  addition  to  social  matters,  pays  more  attention  to  security  aspects 
when dealing with inmates leaving the prison, when the level of radicalisation is higher.  

Despite  significant  efforts,  challenges  in  countering  terrorism  and  preventing  and  countering 
violent  extremism  and  radicalisation  remain.  Militant  Salafist  ideology  and  ethnonational 
movements continue to be present in the region, including Kosovo, and remain a threat. The new 
strategy  and  action  plan  should  address  all  forms  of  radicalisation  and  violent  extremism, 
including  political,  ethno-nationalist  and  religious  ones.  It  is  important  that  the  existing 
strategies, action plans and reintegration and rehabilitation programmes are continuously revised 
in order to implement a risk-based approach.  

Progress was made on the rehabilitation and reintegration of foreign terrorist fighters (FTFs) and 
their families that returned from Syria/Iraq. Since the start of the civil war in Syria in 2012, 253 
Kosovo citizens have returned (130 men, 39 women, 84 children), 100 have died, and 82 remain 
in  the  Middle  East  (35  men,  eight  women,  39  children).  With  international  assistance,  in  May 
2022, Kosovo authorities carried out its fourth controlled return operation of two Kosovo foreign 
terrorist fighters from the conflict zone in Syria. The Reintegration Division of the Ministry of 
Internal Affairs needs appropriate financial and human resources. Municipal authorities need to 
be  more  involved  in  planning  and  implementation  of  rehabilitation  and  reintegration  process. 
There  is  the  need  to  focus  more  on  preparedness  of  local  practitioners  dealing  with  returnees. 

51 

 
 
The  National  Coordinator  on  CT/CVE  should  play  an  enhanced  role  in  overseeing  the 
rehabilitation and reintegration process including by linking up with municipalities. Civil society 
organisations  should  be  given  a  greater  role  in  rehabilitation  and  reintegration  efforts  in  local 
communities.  The  focal  point  for  counterterrorism  and  countering  violent  extremism  and 
established  Intelligence  Unit  within  the  Kosovo  Correctional  Service  contributed  in  improving 
coordination  of  pre-  and  post-release  processes,  but  de-radicalisation  and  disengagement 
programmes within the correctional system need to be significantly intensified. Authorities need 
to  ensure  specific  training,  also  for  the  Kosovo  Probation  Service,  which  must  develop 
programmes  for  terrorism  convicts.  During  the  reporting  period,  seven  such  offenders  were 
released  from  custody.  Kosovo  continues  to  participate  in  the  implementation  of  the  Western 
Balkan Counter Terrorism initiative.  

Judicial cooperation in civil and criminal matters 

While Kosovo is not party to most multilateral treaties governing mutual judicial cooperation, for 
status-related  reasons,  it  unilaterally  applies  internationally  recognised  treaty  standards.  Since 
December 2020, Kosovo and Eurojust established cooperation through the appointment of two 
contact points. 

The  legal  framework  for  judicial  cooperation  in  civil  matters  has  been  consolidated  into  one 
comprehensive  law,  which  is  fully  aligned  with  EU  acquis.  Cooperation  with  countries  with 
which Kosovo does not have bilateral agreements is based on the principle of reciprocity. From 
June 2021 to March 2022, Kosovo addressed 80 requests on civil matters to EU Member States 
and received 131 responses. It received 166 requests from EU Member States and provided 240 
responses.  

Kosovo’s  international  legal  cooperation  in  criminal  matters  is  based  on  the  Law  on  Legal 
Cooperation in Criminal Matters of 2013, which was recently amended by the Assembly, as well 
as on 38 bilateral treaties. In 2020, Kosovo issued 101 requests in criminal matters and received 
127 responses. It received 341 requests and provided 224 responses.  

During the reporting period, cooperative relations with the European Public Prosecutor’s Office 
(EPPO) have not been established.  

The 2015 Procedures on Mutual Legal Cooperation agreed between Belgrade and Pristina form 
the basis for judicial cooperation between their judicial authorities. Most other countries that do 
not  recognise  Kosovo  have  voluntarily  accepted  the  facilitating  role  of  the  EU  Special 
Representative  in  Kosovo  in  the  transmission  of  judicial  requests  (including  those  concerning 
extradition).  However,  the  lack  of  cooperation  by  some  non-recognising  states  has  in  practice 
resulted in cases of impunity.  

Legal and irregular migration 

Despite the COVID-19 pandemic and related travel restrictions, Kosovo did not report any major 
outbreaks in the asylum centres. Kosovo has mobilised additional resources to develop or revise 
existing responses and contingency plan to manage mixed migration flows. It also incorporated 
migrants  and  refugees  in  the  COVID-19  response,  including  in  the  vaccination  programme. 
Stranded  migrants  outside  reception  centres  faced  particular  challenges,  as  they  remain 
unregistered.  IOM  launched  the  Displaced  Tracking  Matrix  Programme  to  reflect  migration 
trends better as well as to monitor and to collect data for stranded migrants outside the centres.  

52 

 
 
 
Institutional set-up and legal alignment 

The  relevant  institutions  dealing  with  migration  in  the  Ministry  of  Internal  Affairs  and  the 
Border  Police  remain  effective.  Capacity  of  the  Department  for  Citizenship,  Asylum  and 
Migration,  within  the  Ministry,  should  be  increased.  The  Department  currently  employs  35 
officers while the 2021  Regulation  on  Internal  Organisation  of the Ministry of  Internal  Affairs 
prescribes  the  employment  of  57  officers.  In  October  2021,  one  of  the  Deputy  Ministers  of 
Internal  Affairs  was  appointed  as  the  National  Anti-Trafficking  Coordinator  and  the  National 
Migration Coordinator. The authorities should reflect on creating a permanent position in order 
to bring more stability to this role. The legal framework is largely in line with the EU acquis. 

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

Overall, the Law on Foreigners is somewhat aligned with EU acquis and international standards. 
In  2022,  Kosovo  has  initiated  the  revision  of  the  Law  on  Foreigners  and  the  Law  on 
Readmission.  It  is  recommended  to  align  legislation  with  the  provisions  of  Directive 
2008/115/EC  (the Return Directive), include a humanitarian protection category, extending the 
voluntary  return  period  and  reflect  on  the  existence  of  the  new  reception  centre.  In  December 
2021,  the  government  adopted  the  concept  document  that  aims  to  harmonise  the  Law  on 
Foreigners with the relevant EU Directives.  

In November 2021, the government adopted the migration strategy and action plan 2021-2025. 
The  Strategy  reflects  the  priorities  included  in  the  government  programme  2021-2025.  It  takes 
into account obligations deriving from the SAA as well as recent European and global initiatives, 
such  as  the  EU  Pact  on  Migration  and  Asylum,  and  Global  Compact  on  Safe,  Regular  and 
Orderly Migration. The  diaspora is  not  included  in  the migration strategy, as it will instead be 
included  in  the  future  diaspora  strategy.  The  new  strategy  meets  all  requirements,  including  in 
defining  baselines,  clear  budgeting  and  setting  target  values.  It  is  only  the  first  step  towards 
developing a comprehensive strategy based on cross-sectorial approach. The government should 
review current policies and shift from current responsive and fragmented approach towards full 
cross-sector  strategic  planning,  to  a  more  comprehensive  strategy  covering  all  relevant  policy 
areas, coordination and implementation.  

The 2020 Migration Profile, which provides an overview of developments and recommendations 
in the field of migration, was published by the authorities in November 2021. The Regulation on 
the Management of the Reception Centre for Migrants is pending approval. The  Guidelines on 
assessing  and  determining  the  best  interest  of  refugees  and  migrants  children  were  adopted  in 
September 2021. 

The  Government  Authority  on  Migration  should  take  a  more  proactive  role  in  migration 
governance, coordination as well as in  improving  the monitoring mechanism for implementing 
migration policies. A statute which sets the duties, roles and responsibilities of this authority has 
not yet been adopted.  

Implementation and enforcement capacity 

Mixed migration flow decreased comparing to the numbers registered in 2020. From January to 
December  2021,  1 487  new  migrants  were  registered.  578  persons  applied  for  international 
protection, whereas 909 persons used the 72 hours scheme without finally applying for asylum. 

53 

 
 
There were 614 non-registered migrants in the period August 2021-July 2022, and 148 in 2022 
until  May.  Capacities  of  the  authorities  to  provide  solutions  for  mixed  migration  flows, 
especially  irregular  migrants  outside  the  official  centre,  should  be  enhanced.  Most  of  the 
migrants  are  single  men,  with  a  limited  number  of  single  women,  families  and  children  (88% 
male,  12%  female;  90%  adults  and  10%  minors).  92%  of  the  migrants  entered  Kosovo 
irregularly from Albania, 3.5% from North Macedonia, 3% from Serbia, 1.5% from Montenegro. 
The  top  eight  countries  of  origin  are  Syria,  Morocco,  Bangladesh,  Afghanistan,  Algeria,  Iraq, 
Libya and Palestine.  

Providing  proper  care  and  security  for  the  most  vulnerable  groups  of  migrants  remains  a 
challenge.  Due  to  a  lack  of  biometric  equipment,  registering  migrants  at  the  borders  or  police 
stations continues to be a challenge. 

The  number  of  persons  held  at  the  detention  centre  remained  high:  46  persons  were 
accommodated from January to December 2021 with an average stay of 100  days, which more 
than doubled since last year (average stay of 40 days in 2020). The detention centre has a limited 
capacity  and  does  not  meet  all  the  necessary  standards.  IOM,  funded  by  the  EU,  provided 
essential  support  to  migrants  at  the  detention  centre  for  foreigners.  A  health  clinic  was 
established and medical equipment delivered, where 50 migrants received counselling services, 
basic  psychological,  psychotherapeutic  sessions  and  psychiatric  consultations.  It  is  of  utmost 
importance to establish alternative measures to detention for migrants subject to return. 

In 2021, 144 persons were returned (21 forced, 102 voluntary returns and 23 deportations). There 
is  a  decrease  in  the  number  of  returns  from  Kosovo  by  about  50%  compared  to  2020.  18 
migrants have been assisted to voluntarily return to their countries of origin. Overall, for those 
migrants  who  do  not  need  international  protection,  assisted  voluntary  return  remains  the  only 
viable option. Non-voluntary returns have been limited due to status-related issues and the lack 
of readmission cooperation with most countries of origin. 

In  December  2021,  the  government  revised  and  adopted  the  contingency  plan  for  the 
management  of  the  potential  influx  of  migrants,  refugees  and  asylum  seekers.  The  authorities 
expanded  accommodation  capacities,  which  are  currently  sufficient,  but  limited  in  case  of 
potential  large  inflow.  There  are  three  asylum  centres  with  a  current  capacity  of  up  to  600 
persons (Magure, 100 persons; Vranidoll, 200 persons; Belvedere Camp, 300 persons, although 
the  latter  could  accommodate  up  to  2  200  persons  in  total  based  on  the  revised  Contingency 
Plan). In November 2021, the reconstruction of an ex-military building in Vranidoll, Pristina, has 
been completed. The centre, which has opened, serves as a temporary reception and registration 
centre  for  migrants,  offering  55  beds  for  stranded  migrants.  Many  of  them  have  lived  in 
overcrowded  apartments  or  on  the  streets  facing  a  high  risk  of  exploitation  and  abuse  by 
smuggling  networks.  Its  sustainability  and  an  adequate  budget  beyond  2022  will  need  to  be 
ensured.  It  will  be  important  to  provide  adequate  interpretation  services,  basic  psychosocial, 
medical  and  other  specific  services  related  to  the  vulnerable  groups.  The  Regulation  for  the 
management  of  the  new  centre  needs  to  be  adopted  and  its  existence  reflected  in  the  existing 
legal framework.   

Gaps  in  enforcement  remain,  in  particular  due  to  a  lack  of  coordination  between  government 
agencies.  The  border  police  needs  further  capacity  building  in  the  area  of  protection-sensitive 
migration. Qualified interpreters are needed to service both the asylum and detention centres and 

54 

 
 
the  border  police.  The  lack  of  biometric  equipment  and  interoperability  of  data  affects  the 
efficiency of the initial registration and further processing.  

While  fundamental  rights  are  generally  upheld,  the  centres  are  facing  structural  issues,  mainly 
relating  to  improper  housing  units,  a  lack  of  secure  areas,  a  lack  of  in-house  medical  facilities 
and adequate specialised supervisory staffing,  especially for psychosocial support.  Instances of 
security incidents in asylum centres continue to raise concerns. An immediate response, in terms 
of  increasing  the  level  of  safety  for  asylum  seekers  in  facilities,  is  necessary.  During  the 
pandemic, due to confinement measures, gender-based violence has also been on the rise in the 
centres. 

Kosovo  has  strengthened  its  inter-  and  intra-institutional  systems  for  migration  management, 
including  on  migration  statistics.  This  should  allow  comparative  and  regional  analyses  of 
migration  trends.  A  Permanent  Working  Group  on  Migration  Statistics  was  established  by  the 
Migration,  Asylum,  Refugees  Regional  Initiative  (MARRI)  exclusively  for  the  purpose  of 
collecting,  processing  and  disseminating  of  relevant  migration  data  through  the  Regional 
Platform for Migration Data Exchange in the Western Balkans.  

Transnational  smuggling  networks,  that  include  Kosovo  nationals,  facilitated  secondary 
movements of irregular migrants from entry points along the Western Balkan route in 2021. The 
police initiated 27 criminal offenses of smuggling of migrants that resulted in 57 suspected and 
54 persons arrested and identified 326 victims.  

The  readmission  agreements  with  EU  Member  States  and  Schengen-associated  countries  are 
being  implemented  satisfactorily.  The  number  of  asylum  requests  made  by  Kosovo  citizens  in 
both EU and Schengen associated countries has fallen steadily, from the peak of 73,210 in 2015 
to 2,315 in 2020 and 2,400 in 2021. Mirroring the trend in asylum requests, the overall number 
of  Kosovo  citizens  readmitted  has  dropped  from  18 789  in  2015  to  625  (512  forced  and  113 
voluntary)  in  2020  and  849  (710  forced  and  139  voluntary)  in  2021.  Out  of  942  readmission 
requests in 2020, 635 requests were accepted (67.5%), 263 rejected (28%) and 44 (4.7%) are still 
underway.  The  return  rate  of  Kosovo  citizens  ordered  to  leave  EU  territory  was  58%  in  2018, 
41%  in  2019,  29%  in  2020  and  39%  in  2021.  While  statistics  show  a  drop  in  the  return  rate 
between 2018 and 2020, EU Member States have confirmed that Kosovo authorities continue to 
cooperate well on readmission. 

A  sustainable  reintegration  process  remains  complex.  Overall,  there  is  a  need  for  better  inter-
institutional  coordination,  including  with  municipalities,  as  well  as  improved  systemic 
monitoring and evaluation. Further efforts are needed to put in place a gender-responsive system. 
A  referral  mechanism  was  established  and  functions  through  the  Reception  Centre  for 
Repatriated  Persons.  A  manual  identifying  and  advancing  the  referral  of  vulnerable  cases  and 
training on needs assessment were provided to central and local reintegration officials. 

In  August  2021,  Kosovo  began  temporarily  hosting  US-affiliated  and  NATO-contracted 
evacuees/refugees  from  Afghanistan,  based  on  the  decision  by  the  government  to  grant  them 
temporary  protection  for  one  year,  which  may  be  extended.  They  were  hosted  in  two  camp 
facilities in Kosovo, with the understanding that they will be further resettled in the US under a 
specific  visa  regime  or  in  NATO  member  states.  Since  August  2021,  639  arrivals  and  547 
departures  were  registered  at  the  Bondsteel  camp  with  39  persons  still  present  in  Bondsteel 
Camp.  It  is  uncertain  what  will  happen  to  the  Afghans  still  in  Kosovo,  who  did  not  pass  the 
verification  process  and  have  been  denied  entry  to  the  USA.  The  earlier  agreement  between 

55 

 
 
Kosovo and USA stipulates that they should not remain in Kosovo. NATO Bechtel-Enka camp 
closed as  of 31 March 2022. 812 Afghan  citizens have been evacuated from  the NATO Camp 
and  resettled  in  EU  countries,  the  United  Kingdom,  Iceland,  Norway  and  Canada.  Kosovo 
accommodation  of  Afghan  evacuees  showed  not  only  solidarity  with  the  Afghan  refugees  but 
also Kosovo’s commitment to NATO. Following the Russian invasion of Ukraine, Kosovo lifted 
visa  requirements  for  Ukrainians  and  offered  temporary  protection  status  for  20  Ukrainian 
journalists and their family members. In March 2022, Kosovo expressed readiness to host up to 
5 000 refugees.  

Asylum 

Institutional set-up and legal alignment 

Kosovo’s asylum legal and institutional framework is mostly in line with EU acquis. Refugees 
should be included in social protection schemes to support their inclusion into society. Prolonged 
stay  of  asylum  seekers  during  the  COVID  pandemic  has  revealed  capacity  gaps  and 
shortcomings  in  the  effective  implementation  of  the  legislation.  Certain  sectors  of  the  system 
require further strengthening in line with the EU Asylum Agency and Kosovo Roadmap. 

Implementation and enforcement capacity 

In 2021, Kosovo recorded 578 asylum applications (2 081 in 2019). Compared to 2020 (1 409), 
the number has decreased. Until 14 March, 82 asylum claims were registered. The Kosovo legal 
framework provides for access to territory and respects the principle of non-refoulement. Kosovo 
is  a  transit  route.  Most  asylum  requests  are  suspended,  as  applicants  disappear  without 
completing the procedure. During 2021, 14 persons (Turkish nationals) received refugee status, 
while  17  persons  (12  from  Syria)  received  subsidiary  protection.  While  in  2022  so  far,  one 
refugee and one subsidiary protection status were granted. Due to the pandemic, certain delays 
have  been  observed  in  the  processing  of  Refugee  Status  Determination,  even  though  virtual 
interview  platforms  were  operationalised.  Although  the  legislation  foresees  the  provision  of 
social  assistance,  several  asylum  seekers  experienced  delays  in  accessing  it.  These  delays  are 
often linked to the inadequate capacities of the centres for Social Work, and the delays caused by 
the existing referral  mechanism. The assessment  of claims based on merit, analytical  approach 
utilising the country of origin information, detailed justification of the decisions, and assessment 
of material elements of the claim needs further strengthening.  

The  establishment  of  a  fully  effective  and  protection-sensitive  entry  system  is  of  utmost 
importance. The capacities of first-contact officials for identification, screening, and referrals of 
persons  seeking  international  protection  and  persons  with  specific  needs  within  the  mixed 
migration flow should improve further. Cases of gender-based violence remained institutionally 
unattended  due  to  the  lack  of  appropriate  response  systems.  The  authorities  continued  to  issue 
the  certificate  confirming  expression  of  intention  to  apply  for  international  protection,  which 
continues to pose difficulties in accessing services and asylum procedures. With donor support, 
the  authorities  worked  on  the  refurbishment  of  facilities  and  improving  services  in  asylum 
centres. Detained foreigners, who seek asylum, are given the opportunity to be transferred to the 
asylum  centre.  There  are  challenges  in  providing  interpretation  services  and  legal  aid  to 
applicants.  Although  detention  is  considered  as  a  last  resort  administrative  measure,  in  the 
absence  of  alternatives  authorities  continue  to  use  it  as  a  temporary  measure  for  different 
categories  of  migrants  (e.g.  those  who  do  not  request  asylum  or  are  not  considered  asylum 
seekers). Alternative solutions to detention need to be established. 

56 

 
 
The  integration  system  is  at  an  early  stage  of  development  and  some  progress  has  been 
achieved  in  reinforcing  the  staffing  and  capacity  building  through  training  at  both  central  and 
local levels and through new procedural and strategic guidance. The Guidelines on Integration of 
Foreigners have been adopted in December 2021. Authorities issue biometric ID cards and travel 
documents for refugees, although delays and technical errors have been observed. Challenges for 
financial  integration  persists,  as  refugees  and  stateless  persons  continue  to  face  challenges  in 
accessing  bank  accounts.  Regarding  child  protection,  strengthening  of  procedures  concerning 
unaccompanied  minors,  including  age  determination,  legal  guardianship  and  communication, 
remains crucial.  Authorities should consider accelerating the process of hiring new staff in  the 
asylum area, in accordance with new secondary legislation. In March 2022, the EU Agency for 
Asylum  and  Kosovo  adopted  and  started  to  implement  a  bilateral  Roadmap  for  cooperation 
(2022-2024). 

Visa policy 

Kosovo has yet to fully align its legislation with the EU visa policy. In December 2020, revised 
Administrative  Instructions  on  Conditions  and  Procedures  for  the  Issuance  of  the  Visas  at  the 
Border  Crossing  Point  by  the  Ministry  of  Internal  Affairs  was  adopted,  which  aim  to  align 
Kosovo with the EU Visa Code.  

Kosovo  currently  imposes  visa  requirements  on  nationals  of  88  countries,  based  on  a  2013 
government decision. The visa-issuing authorities have the capacity to digitally collect biometric 
identifiers from visa applicants, although the equipment needs upgrading. All granted visas and 
rejections are registered in Kosovo’s visa information system. 16 Kosovo consulates issue visas. 
For the year 2021, all visas issued at the border crossing points were for official visits. 

The citizens of Kosovo need a visa to travel to the Schengen area. A visa liberalisation dialogue 
started  in  2012.  In  July  2018,  the  Commission  confirmed  that  Kosovo  had  fulfilled  all  the 
benchmarks of the visa liberalisation roadmap and recommended that the Council and European 
Parliament move forward with the proposal for visa liberalisation. The Commission continues to 
stand behind its assessment of July 2018 and will provide a technical update to support decision-
making  by  EU  Member  States.  The  European  Parliament,  in  both  the  previous  and  current 
legislature, has voted in favour of the Commission’s proposal, but the latter is still pending in the 
Council. 

Schengen and external borders 

Institutional set-up and legal alignment 

The  National  Centre  for  Border  Management  is  one  of  the  most  important  tools  of  Kosovo  to 
effectively  manage  the  security  of  its  border/boundary.  The  centre  hosts  an  operational  and 
coordination room that monitors all activities at the border and common crossing points through 
closed-circuit television, coordinates the real-time exchange of information between the border 
authorities  at  all  levels,  and  handles  calls  from  the  public.  It  has  a  Joint  Intelligence  Risk 
Analysis  and  Threat  Assessment  Unit,  which  collects,  analyses,  and  disseminates  information 
from and to the border authorities. There has been limited progress in implementing the revised 
National  Centre  for  Border  Management  Development  Plan  (2020-2025)  approved  in  January 
2021.  There  is  a  need  for  better  strategic  assessment  and  analyses  of  border-related  risks, 
including  security,  and  for  better  cooperation  with  other  border  authorities.  The  lack  of 

57 

 
 
connection  to  important  international  networks  such  as  Interpol’s  I-24/7,  due  to  status-related 
issues, affects its effectiveness. 

The  legislative  framework  for  managing  Kosovo’s  borders/boundary  is  mostly  in  line  with  the 
EU and international  standards. Kosovo has  an  Integrated Border Management (IBM) Strategy 
(2020  –  2025)  and  Action  Plan  (2020  –  2023),  which  was  recently  revised.  The  relevant 
Executive Board will review the process of implementation quarterly. 

The  Passenger  Information  Unit  became  operational  on  1  June  2022.  The  Kosovo  Police  is 
scanning both, advance passenger information and passenger name records. Standard operational 
procedures  need  to  be  developed  and  the  coverage  of  received  data  from  carriers  needs  to  be 
enhanced.  

Implementation and enforcement capacity  

The Border Department of the police is well staffed, with a total of around 1 350 officers (1 250 
in 2021), and generally  meets EU minimum standards for border controls. The performance of 
the  Border  Police  working  at  the  border/boundary  crossing  points  and  their  knowledge  of  the 
border  procedures  has  improved.  Development  of  the  infrastructure,  equipment  and  tactical 
methods,  especially  at  the  green  border  areas,  will  enhance  the  capacity  of  the  whole  border 
security system  and bring it closer to  EU-standards. The Kosovo Police  Information  System is 
linked  to  all  border/boundary  crossing  points.  The  infrastructure  at  border/boundary  crossing 
points  has  improved  and  the  Border  Management  System  continues  to  operate  satisfactorily. 
However,  the  lack  of  access  to  international  databases  is  a  hindrance  to  effective  crime 
prevention work. 

The  Ministry  of  Internal  Affairs  of  Kosovo’s  working  arrangement  with  the  European  Border 
and  Coast  Guard  Agency  (Frontex)  enables  close  cooperation  on  irregular  migration,  cross-
border  crimes,  border  security  and  overall  border  management.  Kosovo  participates  in  the 
Western  Balkan  risk  analysis  network  (WB  RAN)  and  in  several  other  regional  exercises 
organised  by  Frontex.  Inter-agency  cooperation  is  good,  but  it  could  be  further  improved  in 
regards to information exchange and joint risk analysis. 

The Interim IBM common crossing-points with Serbia continue to be operational. Only two of 
the  six  permanent  Common  Crossing  Points  (CCPs)  have  been  established  (Merdare  and 
Mutivodë/Mutivode)  (See  section  5  on  the  normalisation  of  relations  between  Kosovo  and 
Serbia).  In  March  2022,  Serbia  agreed  to  open  both  entry  and  exit  lanes  at  CCP  Merdare  and 
move their authorities into the new premises at CCP Mutivode. Both EU-funded CCPs are now 
fully  operational.      Serbia  still  has  not  established  permanent  CCPs  to  be  hosted  by  their  side 
(Jarinje /Rudnica, Končulj-Dheu i Bardhë and Depce /Muçibabë), which led to a suspension of 
EU  funds  for  this  project  in  July  2018.  In  addition,  Serbia  needs  to  engage  constructively  to 
enable the construction of the third CCP hosted by Pristina in the north of Kosovo at Tabavije 
/Bërnjak-  Tabalije/Brnjak.  Additional  measures  need  to  be  taken  to  combat  irregular  crossings 
and related criminal activities (including corruption), particularly along the border/boundary with 
Serbia. Since last year, several corruption cases have been initiated, revealing the involvement of 
IBM authorities, especially Kosovo Border Police. In March 2022, 48 officers were charged for 
bribery. 

All aspects of customs cooperation are now covered in chapter 29 on the Customs Union. 

58 

 
 
 
Counterfeiting of the euro (criminal law aspects)  

The  Kosovo  Criminal  Code  is  broadly  in  line  with  the  EU  acquis  on  the  suppression  of 
counterfeit  currency.  Kosovo  has  established  competent  authorities  and  procedures  for  dealing 
with  counterfeit  money.  However,  the  Criminal  Code  is  only  partially  aligned  with  the  EU 
Directive on the Protection of the Euro and Other Currencies against Counterfeiting, and further 
alignment  is  necessary  including  on  altering  money  and  import  and  export.  The  Forensics 
Agency within the Ministry of Internal Affairs caries out technical analysis of counterfeit money 
(including euro banknotes and coins) that is in line with international standards. The Agency has 
concluded  an  agreement  with  the  European  Commission  on  further  cooperation  on  exchange, 
assistance  and  training  for  the  protection  of  the  euro  against  counterfeiting  (the  Pericles  2020 
programme). During the period of July 2021-March 2022, the police initiated 577 cases related 
to  euro  counterfeiting.  Additionally  during  April-June  2022,  it  initiated  two  cases  for  Euro 
counterfeiting, arrested one person and transmitted four criminal reports against four suspects to 
the prosecution. (See chapter 32 on financial control). 

2.3. ECONOMIC DEVELOPMENT AND COMPETITIVENESS 

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

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

59 

Table 7.1:201920202021Kosovo - Key economic figuresGDP per capita (% of EU-27 in PPS)242626Real GDP growth 4.74.8-5.310.5Economic activity rate of the population aged 15-64 (%), total40.440.538.339.5      female19.621.120.822.7      male60.959.756.056.5Unemployment rate of the population aged 15-64 (%), total31.025.725.925.8      female36.534.432.329.7      male25.022.623.524.2Employment of the population aged 15-64 (annual growth %)2.55.2-4.01.3Nominal wages (annual growth %)2.85.3-2.33.9Consumer price index (annual growth %)0.72.70.23.3Exchange rate against EUR1.01.01.01.0Current account balance (% of GDP)-6.8-5.7-7.0-8.6Net foreign direct investment, FDI (% of GDP)3.62.74.24.0General government balance (% of GDP)-2.1-2.9-7.6-1.3General government debt (% of GDP)13.417.622.421.9Source: Kosovo statistics, World Bank and IMF2013-18 average 
 
 
policy guidance jointly adopted by the EU and the Western Balkans and Türkiye at ministerial 
level in May each year. 

2.3.1. The existence of a functioning market economy 

Kosovo is at an early stage and has made some progress in developing a functioning market 
economy.  

The  loosening  of  COVID-19-related  mobility  restrictions  and  the  resumption  of  travel  and 
related  financial  inflows  by  the  diaspora  led  to  a  very  strong  economic  rebound  in  2021, 
which moderated in the first quarter of 2022. Notwithstanding the resilience the economy has 
demonstrated during the pandemic, long-standing structural challenges, such as a widespread 
informal economy, a high prevalence of corruption and the overall weak rule of law, continue 
to hinder the private sector. While the fiscal rule was suspended for three years in  2020, the 
economic  recovery  resulted  in  a  strong  increase  in  tax  revenue  and  a  low  public  deficit  in 
2021.  Driven  by  surging  commodity  prices,  inflation  increased  substantially.  Inflationary 
pressures  were  reinforced  by  the  fallout  of  Russia’s  war  against  Ukraine.  Higher  prices  for 
imported commodities widened external imbalances. The financial sector remained stable and 
lending continued to expand. The business environment saw low improvement. The economic 
recovery  created  jobs  but  lack  of  data  hinders  a  proper  assessment  of  the  labour  market 
situation. Last year’s recommendations were partly addressed. 

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

  cushion  the  impact  of  adverse  shocks  by  well-targeted  support  measures  when  needed 

while planning the return to the deficit ceiling of 2% of GDP in the medium term; 

  prepare  a  review  of  the  social  security  system,  including  war  veteran  pensions,  with  a 
view  to  improving  the  cost-efficiency  and  fairness  of  the  social  security  schemes,  and  a 
review of tax expenditure, quantifying the size of the revenue forgone from all exemptions 
and reduced rates; 

  improve  the  quality  of  public  spending  by  reforming  the  public  wage  system  and 

addressing bottlenecks in the management of capital investment; 

  implement  relevant  business  environment  measures,  in  particular  the  simplification, 
merging and abolishment of licences and permits as well as the implementation of laws on 
inspection and electronic identification;  

  implement  active  labour  market  measures  to  support  employment,  resume  publishing  of 
the  labour  force  survey  data  and  continue  to  implement  measures  aiming  to  formalise 
informal employment.   

Economic governance 

Kosovo’s  economic  policies  focused  on  providing  policy  support  to  cushion  the  impact  of 
the  pandemic  and  of  high  energy  prices  for  the  most  affected  households  and  firms,  but 
there was little progress with structural reforms. Pandemic-related support amounted to 3.9% 
of GDP in 2021, targeting vulnerable households and  firms,  formal  and  informal employment, 
and the health sector. The 2022 budget included a blanket allocation for the economic recovery 
programme amounting to 2% of GDP, which was mostly reallocated to cover energy subsidies at 
the beginning of 2022, compensating the increase in electricity tariffs. The disbursement of these 

60 

 
 
subsidies was delayed until August. The 2022 budget was based on overly optimistic assumption 
for economic growth, despite rising global energy prices since autumn 2021. High import costs, 
increased  electricity  consumption  and  insufficient  domestic  power  generation  resulted  in  an 
energy crisis with daily energy cuts in winter. In response to the fallout of Russia’s war against 
Ukraine, the government decided to provide a further EUR 150 million in April to support low-
income groups. The government finalised an agreement with Serbia as part of the EU-facilitated 
Dialogue to address electricity billing issues in four municipalities in the north of Kosovo. When 
fully  implemented,  this  agreement  should  substantially  reduce  losses  of  publicly  owned 
enterprises  and  government  subsidies  to  the  sector  (See  also  Chapter  15  Energy).  The 
government  took  fiscally  prudent  positions  in  opposing  further  withdrawals  from  the  Kosovo 
Pension Savings Trust (KPST) and proposing legislation to decouple the level of war veterans’ 
pensions from the minimum wage despite strong political opposition.  

The policy guidance, jointly agreed at the July 2021 Economic and Financial Dialogue between 
the  EU  and  the  Western  Balkans  and  Türkiye  has  been  partially  implemented.  The  2022-2024 
Economic Reform Programme focuses on supporting the economic recovery, but is very vague 
on the initiatives stemming from the government programme.  

Macroeconomic stability 

Following a very strong rebound in 2021, Kosovo’s economic growth moderated in the first 
quarter of 2022. Before the pandemics, i.e. in 
2016-2019,  the  average  rate  of  GDP  growth 
was  well  over  4%.  Real  GDP  surged  by 
10.5%  in  2021,  on  the  back  of  the  revival  of 
diaspora travelling, increasing remittances and 
investment  as  well  as  a  strong  growth  in 
household  loans.  Further  support  came  from 
the  pandemic-related  government  measures. 
Robust  growth  in  2021  brought  Kosovo’s 
economy above the pre-pandemic level in real 
terms.  Economic  growth  slowed  down  to 
4.8%  in  the  first  quarter  of  2022,  in  line  with  historical  trend.  Rapidly  rising  energy  and  food 
prices  in  the  first  half  of  2022  started  to  erode  the  disposable  income  of  households.  Slowly 
advancing  economic  diversification,  high  import  dependency  and  an  unreliable  energy  supply 
make  Kosovo  vulnerable  to  adverse  external  shocks.  Kosovo’s  per  capita  GDP  remains  the 
lowest in the region. It stood at 26 % of the EU average in 2021. Due to a large informal sector 
and high inactivity rates, especially among women, Kosovo has high income inequalities.  

Despite  a  strong  tourism  season,  the  current  account  deficit  widened  to  8.6%  of  GDP  in 
2021. The extraordinary performance of exports, with exports of services and goods expanding 
by  91%  and  51%  year-on-year,  respectively,  was  outweighed  by  the  robust  growth  of  imports 
(42%), resulting in a practically unchanged trade deficit at 31.8% of GDP in 2021. As usual, the 
most important offsetting factor was remittances which  increased by 18% in 2021 and reached 
14.4% of GDP. Further unofficial remittances (2.5% of GDP) were reflected by larger errors and 
omissions in 2021. In the first quarter of 2022, the current account deficit more than doubled due 
to the deteriorating balance of goods trade. 

61 

 
 
Net FDI inflows increased by 10% in 2021 
and  stood  at  4%  of  GDP,  covering  less 
than  half  of  the  current  account  deficit. 
Key  drivers  were  continued  investment  by 
the  diaspora  into  the  real  estate  sector  and 
reinvested  earnings  in  the  financial  sector 
partly due to the ban on dividend distribution, 
which  was  lifted  in  late  2021.  For  the  first 
time,  Kosovo  registered  portfolio  investment 
inflows  of  EUR  10  million  in  the  third 
quarter of 2021, stemming from the issuance 
of so-called “diaspora bonds” which are treasury bonds designed for the diaspora, but other than 
that Kosovo remains absent from international debt markets. In the first quarter of 2022, net FDI 
inflows  stood  stable  at  4.9%  of  GDP  while  official  reserve  assets  amounted  to  3  months  of 
imports of goods and services. 

Higher  commodity  prices  and  a  robust  economic  recovery  led  to  increasing  inflation  in 
2021.  Annual  inflation  rose  over  the  course  of  2021  from  0.6%  in  the  first  quarter  to  6.7%in 
December.  Upward  price  pressures  continued  in  2022,  with  consumer  prices  increasing  by 
14.2%  year-on-year  in  July.  The  main  drivers  were  rising  food  and  energy  prices,  which  were 
amplified  by  Russia’s  war  against  Ukraine.  Most  energy  prices  are  regulated  in  Kosovo.  In 
response to rising energy prices in late 2021, the Electricity Regulation Office decided to bring in 
a two-tier tariff structure for household consumers, maintaining electricity prices for households 
consuming  less  than  800kWh  unchanged  and  doubling  them  for  households  consuming  more 
than 800kW.  

The  2021  budgetary  outcome  improved  considerably,  due  to  surging  revenue  and 
conservative  spending.  The  headline  budget  deficit  narrowed  to  1.3%  of  GDP,  which 
corresponds  to  a deficit of 0.6% of  GDP under the fiscal  rule definition3. This  outcome would 
comply with the fiscal rule prescribing a deficit ceiling of 2% of GDP, though the rule has been 
2020.  Government 
suspended 
deposits  recovered  to  3.9%  of  GDP,  up 
from  3.5% 
the 
government  deficit  resulted  primarily  from 
an  extraordinary  increase  in  government 
tax  revenue,  which  rose  by  29%  year-on-
year.  Higher  revenues  from  indirect  taxes 
were  key,  but  there  were  also  gains  in 
personal 
to 
formalisation  measures  associated  with  the 
COVID-19 recovery package. Tax and non-
tax  budget  revenue  exceeded  the  projections  of  the  revised  2021  budget.  By  contrast,  public 

in  2020.  The  fall 

taxes  partly  due 

income 

since 

in 

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

62 

0510152025-8-6-4-2024201620172018201920202021Graph 7.3: Kosovo -Fiscal developmentsPrimary balance (lhs)Interest (lhs)GG balance (lhs)Public Debt (rhs)Source: IMF and MoF% ofGDP-9-6-3036-40-30-20-100102020172018201920202021Graph 7.2: 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  
 
                                                           
spending  increased  by  2.8%  year-on-year,  compared  to  the  planned  12.6%.  Capital  spending 
reached only 75.8% of the revised budget allocation (although this is still an improvement over 
previous  years), while the execution of current  expenditure was roughly  in  line with  the initial 
plan. The largest increase in current spending was in the category of goods and services (9.6%) 
driven by the purchase of vaccines. Spending on social transfers and subsidies fell by 2.9% due 
to  the  high  base  in  2020.  The  2021  economic  support  programme  amounted  to  3.2%  of  GDP, 
which  compares  to  a  crisis-related  stimulus  of  4.2%  of  GDP  provided  in  2020.  In  2022,  the 
government responded to high inflation and in particular to high energy prices, with subsidies for 
agricultural  inputs, wage bonuses, temporary increases in  pension benefits and social transfers. 
The latter involves electricity price subsidies for around 20% of households, aiming to target the 
poorest households with low energy consumption, but taking no account of disposable income. 
The government resisted pressure to reduce excise the excise and VAT rates on fuel.  In June, the 
Assembly  approved the  revised 2022 budget,  which targets a headline deficit of 5.3% of GDP 
instead of initially planned 4.5%. As per the fiscal rule definition, the deficit is projected at 3.8% 
of GDP as compared to the originally planned 2.9%. The government cash reserve is expected to 
decline to 3% of GDP, which is below the initial projection of 3.9%. 

On  the  back  of  strong  economic  and  fiscal  performance  in  2021,  the  public  debt-to-GDP 
ratio  has  declined but the  investor  base  for  government  debt  remains  narrow.  The  public 
debt ratio stood at 21.9% at the end of 2021 and fell to 20.3% of GDP in the first quarter of 2022. 
These figures do not include the liability stemming from tax-free withdrawals of 10% of pension 
savings  from  the  Kosovo  Pension  Saving  Trust  (KPST),  which  the  government  promised  to 
reimburse  from  2023.4  Domestic  debt,  which  is  held  by  a  narrow  investor  base,  increased  by 
15% in nominal terms in 2021. In March 2022, the KPST’s share of domestic debt reached 48% 
as compared to 38% in  2019, while the Central Bank of Kosovo and commercial banks hold a 
further 19% and 27% of domestic debt respectively. In the absence of a sovereign credit rating 
and  very  limited  access  to  international  bond  markets,  foreign  financing  has  been  largely 
provided by international donors. Foreign debt rose by 9.6% in 2021. This includes EU macro-
financial  assistance  (the  second  and  final  instalment  of  EUR 50  million  was  disbursed  in  June 
2021),  World  Bank  loans  (EUR 32.2  million)  and  Council  of  Europe  Bank  lending  (EUR 17 
million).  

Progress  with fiscal governance has been  mixed.  The 2022 budget,  as adopted in  December 
2021, assumed unrealistically high GDP growth (7.8%) and a very large increase (67%) in public 
investment.  While  higher  public  investment  is  a  welcome  aim,  such  a  large  increase  is  not 
supported  by  the  track  record  of  capital  spending  over  the  last  years,  although  the  budget 
included  additional  funds  for  expropriation  of  properties  to  help  unlock  capital  investment.  At 
the same time the absence of a functioning board at the Procurement Review Body since March 
2021 has impeded the execution of capital spending. A blanket allocation of 2% of GDP for the 
economic  recovery  programme  in  the  2022  budget  undermines  fiscal  transparency  and 
accountability. To contain social spending, the government adopted an administrative instruction 
requiring a medium to long-term costing of any pension or social spending initiative before its 
adoption. Despite this progress, there is no cost estimate for the draft law on salaries for public 
employees.  The  revised  budget  law  of  2021  and  the  budget  of  2022  include  the  assessment  of 
high-risk  publicly  owned  enterprises  while  excluding  others.  The  full  implementation  of  the 
agreement  reached  on  21  June  2022  between  Kosovo  and  Serbia  as  part  of  the  EU-facilitated 

4   The IMF estimates the liability to KPST at 1.8% of 2020 GDP. 

63 

 
 
                                                           
Dialogue to address electricity billing issues in four municipalities in the north of Kosovo should 
eliminate a substantial fiscal risk. As in 2021, the cost of electricity losses reached nearly EUR 
42 million. The cost of war veteran pensions continues to breach the 0.7% of GDP legal ceiling. 

Supporting  the  most  vulnerable  while  improving  the  budget  balance  in  2021  was 
appropriate,  but  stronger  contingency  planning  is  needed.  The  pandemic-related  fiscal 
support,  which  mainly  took  the  form  of  subsidies  and  transfers  to  vulnerable  families, 
employment and affected businesses was broadly well-targeted and helped to cushion the impact 
of the shock. However, the economic support programme included in the 2022 budget, does not 
clearly  reflect  the  priorities  set  in  the  government  programme.  Risks  related  to  upbeat  GDP 
projections  and  rising  energy  prices  in  autumn  were  not  sufficiently  considered  in  the  initial 
budget. The tax base remains narrow and weakened by tax exemptions and preferential tax rates, 
while public spending is burdened by category-based specific transfers. .  

Functioning of product markets 

Business environment 

In line with economic  recovery in 2021, business  creation was more  dynamic with higher 
numbers of registered and terminated firms. The total number of new businesses in 2021 was 
10,659, which is 8.7 % higher compared to 2020. The number of closed businesses in 2021 was 
1,602,  an  increase  of  19  %  compared  to  the  same  period  of  the  previous  year  (1345).  The 
numbers of firms with female and foreign owners also increased. 

Some progress was made in improving the business environment. The Law on Inspections, 
aiming  to  reduce  the  number  of  parallel  and  overlapping  inspection  bodies  and  streamline  the 
procedures,  was  approved  by  the  Assembly  in  December  2021.  The  draft  Law  on  the 
Commercial  Court,  which  is  critical  to  improve  the  efficiency  of  the  justice  system,  was 
approved  by  the  Assembly  in  March  2022.  Kosovo  started  the  process  of  amending  the 
Administrative Burden Reduction Programme, which should deliver a two-year action plan with 
measurable  results.  The  Kosovo  Investment  and  Enterprise  Support  Agency  (KIESA),  whose 
task  is  to  help  businesses  and  investors,  lacks  capacity  and  resources  to  execute  its  wide 
mandate. The lack of a coherent policy for industry development throughout the supply chain, a 
large  informal  sector  and  incomplete  implementation  of  the  Law  on  business  organisations 
undermine the business environment and competitiveness of SMEs. 

Despite  some  success  in  fighting  the  informal  economy,  it  still  accounts  for  more  than  a 
third  of  total  employment.5  There  was  some  improvement  in  voluntary  compliance,  as  the 
number  of  registered  workers  increased  due  to  financial  incentives  to  join  formal  employment 
that were, included in the pandemic-related package. The impact of the potential minimum wage 
increase on informality warrants close monitoring. According to the corruption perceptions index 
by Transparency International, Kosovo improved its index score in 2021, ranking 87 out of 180 
countries, which is 17 positions higher than in 2020. 

State influence on product markets 

Despite  some  progress  made  in  2021,  Kosovo’s  State  aid  policy  framework  needs  further 
alignment with EU rules and principles. The current framework lacks a coherent approach to 
State aid as well as a comprehensive strategy and cost-benefit evaluations for aid and subsidies 

5 IMF 2021 Article 4 consultation. 

64 

 
 
                                                           
granted. There is an inventory of aid schemes, as provided in the Stabilisation and Association 
Agreement  (SAA),  but  their  alignment  with  the  existing  legislation  on  State  aid  is  at  an  early 
stage.  The  government  has  made  some  progress  on  enforcement  of  competition  and  State  aid 
rules  and  on  training  the  staff  of  the  State  aid  department.  The  State  aid  Commission  had  no 
decision-making quorum since mid-September 2021 and is unable to function formally until the 
Assembly appoints a new Commission. According to the official data, State aid is estimated at 
1.7% of GDP in 2020, with the largest item being agricultural subsidies. In the context of high 
energy and crop prices due to Russia’s war against Ukraine, further subsidies to agriculture were 
allocated in 2022, aiming to increase self-sufficiency.  

Privatisation and restructuring 

Kosovo  undertook  steps  to  dissolve  the  privatisation  agency  and  to  set  up  a  sovereign 
wealth fund. At end-2021 the Privatisation Agency of Kosovo (PAK) approved its exit strategy. 
In  early  2022  the  government  issued  a  decision  forbidding  PAK  to  sell  assets  under  its 
administration, which are envisaged to be transferred to a sovereign wealth fund. In June 2022, 
the  government  adopted  a  concept  document  on  the  sovereign  fund.  The  sovereign  fund  is 
expected to take over socially-owned enterprises6 (SOEs) and assets managed by PAK and some 
publicly  owned  enterprises  managed  by  the  Ministry  of  the  Economy  after  improving  their 
financial performance. During the reporting period the PAK continued liquidation procedures of 
SOEs.  The  process  of  dismissal  and  appointment  of  new  board  members  of  publicly  owned 
enterprises  continued.  Changes  are  needed  in  the  rules  and  procedures  on  governance  and 
oversight  of  publicly  owned  enterprises  in  order  to  address  issues  of  poor  performance  and 
maladministration.  Some  improvements  were  made  in  reducing  overemployment  in  Kosovo 
Telecom and adopting a new performance framework for regional water companies. 

Functioning of the financial market 

Financial stability 

Supported by robust economic growth, the financial sector remained stable.  In the second 
half of 2021, as the economic recovery gained pace, the Central Bank of Kosovo gradually lifted 
the pandemic-related forbearance measures, without a negative impact on bank asset quality so 
far.  The  predominantly  foreign-owned  banking  sector  accounts  for  66%  of  financial  system 
assets, followed by pension funds, insurance and microfinance institutions with 26.5%, 2.8% and 
4%, respectively. The banking sector’s return on average equity (RAE) remained high at 19.5% 
in 2021, as compered to the pre-pandemic level of 18.9% in 2019, and increased further to 22.3% 
in Q2 2022. The ratio of bank non-performing loans (NPLs) declined from 2.7% in 2020 to 2.1% 
in 2021 and stayed at this level in the first half of 2022, partially supported by the denominator 
effect  of  high  credit  growth.  Although  overall  the  credit  risks  remain  contained,  challenges 
remain in evaluating risks from the rapid credit expansion in the household segment. The ratio of 
banks’ regulatory capital to risk-weighted assets  stood above 15% in 2021 and the first half of 
2022, comfortably exceeding the regulatory minimum of 12%. Banks continued to be financed 
by  deposits,  predominantly  from  households.  The  loan-to-deposit  ratio  increased  to  85.2%  in 
June  2022  from  77%  in  mid-2021.  In  2021,  profitability  recovered  for  micro-financial 
institutions after a sharp drop in 2020. The insurance sector’s performance remained positive in 
2021, with its net profit increasing by 50% on an annual  basis. 

6 The ownership of socially-owned enterprises was considered as shared social property in former Yugoslavia. 

65 

 
 
                                                           
Access to finance 

Financial intermediation continues to expand. Credit growth accelerated from 7.1% in 2020 to 
15.5% in 2021 and further to over 17% year-on-year in the first half of 2022. Loan growth was 
facilitated by low interest rates, a continued increase of deposits, improved contract enforcement, 
and increased guarantees extended by the Kosovo Credit Guarantee Fund (KCGF) for lending to 
micro, small and medium-size enterprises to cushion the impact of the crisis. In 2021, lending to 
both firms and households continued to grow on annual basis, by 13.6% and 18.6%, respectively. 
The amount of credit compared to the size of the economy remained moderate, at around 40%. 
The lack of easily accessible and affordable credit constitued a barrier to the growth of SMEs. 
This  is  partly  due  to  the  existing  disparity  between  the  market  value  of  collaterals  and  their 
legally assigned value taken into account by banks. The capital market remains at an early stage 
of  development.  A  first-ever  ‘diaspora  bond’  issuance  was  made  during  the  summer  of  2021 
through  commercial  banks  and  in  collaboration  with  the  Ministry  of  Finance.  This  issuance 
managed  to  raise  EUR  10  million  of  the  EUR  20  million  initially  offered.  Microfinance  has 
gained  momentum  in  recent  years,  but  shortcomings  in  the  legal  framework  regulating 
microfinance institutions hinder the industry’s long-term growth and sustainability.   

Functioning of the labour market 

Kosovo has large delays in publishing labour force survey (LFS) data for 2021.  The latest 
available LFS data refer to the second quarter 
of 2021, i.e. before the recovery came into full 
swing.  The  labour  force  participation  ratio 
stood  at  37.7%  in  line  with  its  long-term 
trend.  Employment  rates  of  men  and  female 
respectively. 
were  at  44%  and  16%, 
  Tax 
Unemployment 
administration  data  suggest 
that  official 
employment  in  the  private  and  public  sector 
increased  by  10%  in  2021.  A  number  of 
registered  jobseekers  dropped  by  almost  a 
third in 2021 compared to 2020, which might be partially due to financial incentives included in 
the pandemic-related support measures, but their level still remains 10% higher than in 2019,7.  

stood  at  20.5%. 

Despite some formalisation gains, the labour market is hindered by an inadequate system 
of social assistance, a large gender gap and a lack of job opportunities for young people. In 
2021, spending on transfers and subsidies reached nearly 11 % of GDP while within this amount 
expenditure  on  poverty-targeting  social  assistance  was  around  0.5  %.  Category-based  social 
transfers, e.g. war veteran pension scheme, are costly and undermine the soundness and fairness 
of the social benefit system while motivating other specific groups to request similarly generous 
allowances.  In  September  2021,  within  the  recovery  package  the  government  introduced 
maternity  leave  for  women  unemployed  for  longer  than  12  months.  By  excluding  women  in 
shorter spells of unemployment, this could act as a disincentive for women planning motherhood 
to  take  on  (formal)  work.  The  lack  of  affordable  transport  options,  child  and  elderly  care 
facilities constitute long-term challenges, hindering female employment. High reservation wages, 
partially supported by remittances, and the lack of jobs are considered to be a key factors fuelling 

7 World Bank 2022 Regular Economic Report 

66 

1020304050201620172018201920202021Graph 7.4: Kosovo -Labour market trends(15-64 age group)Participation rateUnemployment rateEmployment rateSource: Kosovo Agency of Statistics 
 
                                                           
the  emigration  of  young  people.  Further  issue  relates  to  skills  mismatch,  as  Kosovo’s  labour 
market  generates  little  demand  for  academic  qualifications,  more  so  for  hands-on  vocational 
skills.  

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

Kosovo  is  at  an  early  stage  and  has  made  limited  progress  in  terms  of  capacity  to  cope 
with competitive pressure and market forces in the EU. Insufficient quality of education and 
skills  mismatches  lead  to  a  difficult  transition  from  school  to  the  labour  market.  Some 
progress was made in improving road infrastructure. The recent energy crisis underlined the 
urgency  of  ensuring  a  reliable  and  clean  energy  supply  and  diversifying  energy  sources. 
Kosovo  made  some  progress  as  regards  the  digitalisation  of  the  economy.  Structural 
changes  are  advancing  slowly  as  the  economy  remains  highly  reliant  on  small  and  very 
small firms which cannot compete internationally. The export structure remains dominated 
by base metals with slightly increasing shares of mineral, plastic and textile products. The 
recommendations from 2021 were not fully implemented and remain valid. 

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

  improve the quality of vocational training and education at all levels, with the view of 

narrowing the skills mismatch; 

  strengthen energy security and energy efficiency incentives in the residential and private 

sectors; 

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

  advance  tailored  financial  and  non-financial  support  for  SMEs  to  improve  their 

competitiveness and export capacity.  

Education and innovation 

Improving the quality of education and its alignment with labour market needs remain a 
key  challenge.  Public  spending  on  education  (4.7%  of  GDP  in  2020)  and  the  enrolment  of 
children  in  early  school  (36%),  primary  (100%),  lower  (91%)  and  higher  (81%)  secondary 
education followed historical trends in the school year 2020/2021. A participation of children in 
early  school  education  and  care  (3-5  years)  is  still  far  below  the  EU  average  of  over  80  %.  
Following the pandemic-related disruptions to  learning in  the previous  year, which affected all 
pupils,  but  especially  the  marginalised  groups,  the  government  prepared  new  distance  learning 
solutions  for  the  school  year  2021/2022.  The  new  law  on  textbooks  and  educational  material, 
aiming to improve the quality of learning material, is pending approval. Learning materials were 
adapted  for  the  Programme  for  International  Student  Assessment  (PISA)  2022  test,  following 
Kosovo’s  lowest  ranking  in  2018.  Kosovo  students’  scores  are  the  equivalent  to  five  years  of 
schooling  behind  the  OECD  average  in  reading,  and  a  little  over  four  years  behind  in 
mathematics. Many graduates remain unemployed as their training does not provide them with 
the  necessary  skills  required  by  the  labour  market.  A  recent  skills  mismatch  measurement 
indicates that over 40% of young workers with a tertiary education are employed in jobs below 
their  level  of  education.  To  improve  training  programmes,  Kosovo  finalised  a  quantitative 
analysis on future needs with the support of the Joint Research Centre. Following the expulsion 
from  the  European  Association  for  Quality  Assurance  in  Higher  Education,  Kosovo 

67 

 
 
Accreditation Agency (KAA) has implemented the recommendations, related to institutional and 
financial independence, and an increase in the number of staff. The Law on KAA has yet to be 
adopted by the Assembly. 

Little  progress  has  been  achieved  in  improving  Kosovo’s  research,  development  and 
innovation system. Despite legal provision to allocate 0.7% of GDP for science and innovation, 
the  allocated  budget  for  2022  was  less  than  0.1%  of  GDP,  due  to  the  lack  of  funding.  In 
November  2021  Kosovo  appointed  members  of  the  Council  of  Science  that  should  develop 
scientific research activity. Kosovo has successfully completed negotiation with EU to become a 
fully  associated  member  of  the  Horizon  Europe  programme,  but  it  still  needs  to  improve  its 
performance in accessing grants. 

Physical capital and quality of infrastructure 

Slow progress in improving road and railway infrastructure delays the implementation of 
major projects. There was no progress on Route 7 Peace highway, despite the increase of EU 
grant for its implementation. The rehabilitation works for the Railway Route 10 continued at a 
slow  pace,  with  the  first  segment  expected  to  be  completed  by  the  end  of  2022.  The  related 
signalling  and  telecom  works  have  not  started  yet.  Transport  system  still  faces  a  number  of 
challenges  in  terms  of  safety,  inadequate  maintenance,  and  weak  administrative  capacity  of 
regulatory institutions. 

Kosovo  remains  heavily  reliant  on  coal.  Over  90%  of  electricity  is  produced  by  two  highly 
unreliable and polluting lignite power plants, which the government plans to upgrade. A partial 
shutdown  of  the  ‘Kosovo  B’  power  plant,  together  with  an  unprecedented  increase  in  import 
prices  and  high  electricity  consumption  in  winter  2021,  led  to  an  energy  crisis  with  rotating 
power outages. Renewable energy sources, account for just over 5% of electricity supply. By the 
end  of  2021,  Kosovo  registered  a  total  of  249.2  MW  of  renewable  electricity  generation,  101 
MW  small  hydropower,  137  MW  of  wind,  10  MW  of  solar,  and  1.2  MW  of  biomass.  The 
increase is due to an additional 21 MW of hydropower.  

Further options should be explored in order to diversify energy supply.  The government is 
exploring  cooperation  options  with  neighbouring  countries  (Albania  and  North  Macedonia)  on 
joint gas projects. The Assembly adopted the Millennium Challenge Compact and the Program 
Implementation  Agreement  between  Kosovo  and  Millennium  Challenge  Corporation  for 
developing  battery  storage  to  provide  electricity  balancing  reserve.  To  establish  a  sustainable 
market  in  Kosovo  and  Albania,  Kosovo  signed  two  agreements  with  Albania:  the  Electricity 
Markets  Cooperation  Framework  Agreement  and  a  Memorandum  of  Understanding  aiming  to 
recognise each other’s electricity and supply licenses (See also chapter 15 – Energy).   

The digitalisation of the economy is in progress.  With 96% of households having access to a 
broadband  internet  connection,  Kosovo  has  reduced  the  infrastructure  gap  between  urban  and 
rural  areas.  Kosovo  is  engaged  constructively  in  high-level  regional  dialogue  on  digital 
transformation.  Following  the  implementation  of  the  Regional  Agreement  of  2019,  Kosovo  is 
working  on  the  digital  agenda  covering  the  period  up  to  2030.  The  policy  document  should 
provide  a  comprehensive  framework  for  the  digital  transformation,  including  5G  technologies, 
digital  transformation  of  businesses  and  public  services.  the  next  step  is  to  focus  on  further 
development  of  broadband  and  5G.  Kosovo  needs  to  continue  to  develop  the  legal  framework 
and  necessary  infrastructure  to  stimulate  e-commerce  and  allow  for  international  electronic 

68 

 
 
 
payments. This lack of relevant infrastructure was exacerbated by the COVID-19, meaning that 
physical commercial transactions were largely impossible for several months. 

Sectoral and enterprise structure 

The  economic  rebound  was  mainly  driven  by  the  sectors,  which  suffered  heavy  losses 
during the pandemic. Most notably, the annual output in the wholesale and retail trade sector 
rebounded  by  around  21%  in  real  terms  in  2021,  as  compared  to  2020  levels.  Construction 
output,  which  contracted  in  2020  due  to  the  pandemic,  increased  by  6.6%,  while  industry 
expanded  by  nearly  4%.  The  service  sector  continues  to  dominate  the  economy,  making  up 
around  46%  of  GDP  and  providing  65%  of  total  employment.  Within  the  service  sector, 
wholesale  and  retail  trade,  real  estate,  transport  and  storage  are  the  largest  in  terms  of 
employment and output. The share of industry sector amounted to some 26% of GDP in 2021, 
while  the  contribution  of  agriculture  in  GDP  stood  at  around  its  long-term  average  of  close  to 
7%.  

The enterprise structure of private sector in Kosovo continues to be heavily dominated  by 
micro and small enterprises with difficult access to finance. By the end of 2021, similarly to 
the previous years, almost 99% of registered enterprises are those employing 1-9 employees and 
the  remaining  1%  are  enterprises  that  employ  10-249  employees.  Although  credit  growth  has 
been  strong  over  the  past  decade,  due  to  bank’s  stringent  loan  requirements  affecting  mostly 
smaller enterprises, access to finance remains still an impediment to growth. Further obstacles to 
access to finance relate to a limited access to reliable information in the cadastre, lack of formal 
dispute  processes  and  limited  enforcement  of  collateral  execution.  Given  the  structure  and  the 
difficulties in access to finance, the benefit from economies of scale remains limited.  

Economic integration with the EU and price competitiveness 

The  balance  of  goods  trade  has  deteriorated  due  to  a  large  increase  in  imports  while 
exports  also  increased  strongly.  The  merchandise  deficit  reached  46.1%  of  GDP  in  2021  as 
compared  to  42%  in  2020.  The  rebound  in  consumption  and  investment  led  to  substantial 
increase in good imports (41%), driven by mineral products and prepared foodstuffs. In 2021, the 
EU accounted for some 44% of the total imports of goods, CEFTA’s share stayed roughly stable 
at 19%. The surge in goods exports (57%) was  mainly driven by base metals8, which accounts 
for  one  third  of  merchandise  exports,  followed  by  mineral,  plastic  and  textile  products.  The 
improved  performance  was  partially  driven  by  enhanced  support  for  exporting  SMEs  through 

8 Although Ferronikeli, the largest exporter of Kosovo, halted its production due to the rise in energy prices in the 
last quarter of 2021, its exports nevertheless increased in the whole year of 2021. 

69 

020406020142015201620172018201920202021Graph 7.5a: Kosovo -Exports of goodsEUCEFTAOtherSource: WiiW% ofGDP020406020142015201620172018201920202021Graph 7.5b: Kosovo -Imports of goodsEUCEFTAOtherSource: WiiW% ofGDP 
 
 
                                                           
digitalisation of support services and improved export promotion.The share of goods exports to 
the EU and CEFTA contries declined to 31% and 37 % respectively, due to a noticeable increase 
of  textile  and  furniture  exports  to  the  USA.  The  adoption  of  the  EU  standards  remains  low  in 
Kosovo. 

In  line  with  robust  performance  of  trade,  the  indicator  for  trade  openness  improved 
significantly in 2021. Overall trade openness increased to 101% of GDP in 2021 from 75.6% in 
the  previous  year.  The  improvement  took  place  on  both  sides.  Strong  growth  of  merchandise 
trade  was  complemented  by  a  surge  in  service  exports.  Following  the  lift  of  lockdown  and 
travelling restrictions, exports of services almost doubled in nominal terms in 2021 compared to 
2020. In addition to travelling services, currently amounting to 76% of service exports, there are 
positive developments in exports of IT and communication services. 

The EU remains the main investor in Kosovo. Net FDI inflows are estimated to have increased 
by 20% in 2021, on the back of massive investment of the diaspora into real estate and reinvested 
earnings in the financial sector due to the ban on dividend distribution. Heavy concentration in 
these sectors (around 90% of FDI inflows) contribute little to enhance export capacity. The EU 
share in net FDI stock reached 38% while the shares of Germany and Switzerland (two countries 
with large diasporas from Kosovo) increased from the previous year to over 15% each.  

2.4. PUBLIC PROCUREMENT, STATISTICS AND FINANCIAL CONTROL 

Chapter 5 - Public procurement  

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

Kosovo has some level of preparation/is moderately prepared in public procurement. Limited 
progress  was  made.  The  Procurement  Review  Body  board  members  were  appointed  in  June 
2022. However, the new legislation on public procurement  and on  concessions, intended to  be 
aligned with the EU acquis, has not yet been finalised. Two e-procurement modules have been 
introduced  to  increase  transparency  and  monitor  contract  implementation.  Public  procurement 
remains prone to irregularities and vulnerable to corruption during the procurement process and 
contract implementation.  

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

  adopt laws on public procurement and concessions in line with the respective EU acquis, and 
ensure their proper implementation; prepare the corresponding implementing legislation; 

  increase the capacity of all public procurement institutions and the cooperation among them 

to ensure consistent implementation of the public procurement regulatory framework;  

  ensure  that  the  Procurement  Review  Body  is  fully  operational  and  independent,  that  its 
capacity  limitations  are  addressed  and  that  its  review  process  is  timely,  effective  and 
transparent.  

Institutional set-up and legal alignment 

70 

 
 
Kosovo's  legal  framework  on  public  procurement  and  concessions  is  partly  aligned  with  the 
2014  EU  public  procurement  acquis.  No  progress  has  been  made  for  defence  and  security 
procurement legislation, which remains partially aligned with the EU acquis.  

A  new  Public  Procurement  Law  aiming  to  align  with  the  EU  acquis  is  still  under  preparation. 
The authorities have not started to draft relevant implementing legislation. A new law on public-
private partnerships is also under preparation. All legal and financial instruments used for public 
procurement  and  concessions,  including  intergovernmental  agreements  concluded  with  third 
countries, should comply  with  the principles of  transparency, competition, equal  treatment  and 
non-discrimination.  

A  new  strategy  and  action  plan  on  public  procurement  will  become  part  of  the  new  Public 
Finance Management Strategy 2022-2026.  

The  Central  Procurement  Agency,  under  the  Ministry  of  Finance,  Labour  and  Transfers, 
carries  out  centralised  purchases.  The  Public  Procurement  Regulatory  Commission  is 
responsible for the overall coordination and supervision of the public procurement system. The 
Procurement Review Body examines all allegations of breaches of the public procurement law 
and  reviews  bidders’  complaints.  It  is  important  to  ensure  better  coordination  and  cooperation 
among  these  institutions  as  well  as  with  other  institutions,  such  as  the  Kosovo  National  Audit 
Office and the Kosovo Competition Authority. This helps detect any bid-rigging and reduces this 
risk through careful planning and design of the tenders.  

Implementation and enforcement capacity  

Kosovo's  public  procurement  market  was  estimated  at  5.65%  of  GDP  in  2021,  compared  to 
7.5% in 2020. At the end of 2021, approximately (9 576 in 2020) economic operators and around 
(25 000 in 2020) active users were registered in the e-procurement system. In 2021, 9 892 public 
contracts were signed compared to 10 935 in 2020, and in terms of value, contracts of a total of 
EUR 429.62 million were signed in 2021, compared to EUR 499.31 million in 2020. Due to the 
pandemic  in  2021,  a  significant  amount  of  public  procurement  activities  (11.36%)  have  been 
carried  out  via  negotiated  procedure.  The  total  value  of  contracts  signed  under  negotiated 
procedure without publication is approx. EUR 52 million. 

On  monitoring  of  contract  awards  and  implementation,  in  2021  86.2%  of  contracts  were 
awarded  through  open  procedure.  99.02%  of  public  contracts  were  awarded  according  to  the 
lowest-price criterion, with only 0.98% using the best-price-quality ratio. The use of best-price-
quality ratios should be further encouraged in line with the EU Directives on public procurement. 
More  efforts  are  needed  to  ensure  the  interoperability  between  the  e-procurement  system  and 
other  relevant  government  IT  systems  to  increase  transparency,  including  through  tracking  of 
payments. 

The capacity to manage public procurement processes varies between contracting authorities. 
The  tender  evaluation  process,  market  research,  as  well  as  implementation  and  monitoring  of 
contracts,  need  improvement.  Better  drafting  of  technical  specifications  would  support  the 
quality,  efficiency  and  transparency  of  procurements.  Limited  enforcement,  insufficient 
managerial  accountability  and  quality  control,  combined  with  limited  contract  management 
capacity, however, entail risks of mismanagement and corruption.  

Centralised  procurement  is  mandatory  for  agencies  with  fewer  than  50  employees  and  for  14 
listed  categories  of  goods  and  services.  The  Central  Procurement  Agency  continues  to  be 

71 

 
 
understaffed  and  its  capacities  need  to  be  strengthened  as  it  lags  in  implementation.  Market 
research should be used as a pre-award assessment. Due to the pandemic, the use of negotiated 
procurement procedures has increased significantly. To mitigate the risks of misuse and fraud, it 
is  especially  important  to  ensure  full  transparency  and  solid  justification  and  to  maintain  audit 
trails.  

In  2021,  the  backlog  of  complaint  cases  before  the  Procurement  Review  Body  increased  and 
cases were not reviewed, as no functional board was in place. The institution would benefit from 
more qualified human resources, particularly review experts and legal experts. The legislation on 
economic recovery, introducing temporary domestic preferential treatment, expired at the end of 
2021. 

There were no developments as regards integrity and conflicts of interest. Kosovo has a code 
of  ethics  for  public  procurement  but  its  compliance  is  not  monitored.  Further  efforts  are 
underway  to  strengthen  local  government  procurement  systems  and  audit  oversight.  More 
municipalities are publishing procurement contracts.  

Efficient remedy system  

The legislation on the right to legal remedy is broadly in line with the EU acquis. Appeals can 
be lodged through the e-procurement platform. The Procurement Review Body is a quasi-judicial 
body reviewing complaints from bidders, but it was not operational between March 2021, when 
the  board  members’  mandates  expired,  and  June  2022,  when  the  new  members  were  selected. 
The mandate of this new board is for five years. The lack of a functioning Review Body for such 
a long time has created substantial shortcomings in the review process.  

Chapter 18 - Statistics 

EU rules require that Member States are able to produce good quality statistics in line with the 
principles  of  European  statistics  Code  of  Practice  and  based  on  professional  independence, 
impartiality,  reliability, 
the 
methodology, production and dissemination of statistical information. 

transparency,  and  confidentiality.  Common  rules  govern 

Kosovo  has  some  level  of  preparation  in  the  area  of  statistics.  Some  progress  was  made, 
notably in improving data collection methodology  and data transmission to  Eurostat. Kosovo’s 
Agency of Statistics (KAS) needs to intensify its efforts to implement the recommendations of 
the  Eurostat  peer  review.  Communication  between  the  statistical  institutions  has  somewhat 
improved but the coordination at the technical level and the use of available administrative data 
remains  insufficient.  During  the  reporting  period,  there  has  been  little  improvement  in  the 
alignment  of  sectorial  statistics  with  European  standards  or  the  provision  of  new  statistical 
products. The planned population census was not conducted.  

Last year’s recommendations were partially met and remain valid. In the coming year, Kosovo 
should in particular: 

  increase the number of statistical products and their transmission to Eurostat;  

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

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

  intensify preparations for the next population census by ensuring adequate resources and full 

coverage of the territory.  

72 

 
 
On statistical infrastructure, the legal framework is broadly in line with the European Statistics 
Code of Practice; however, its implementation needs to be enforced by preserving the lead role 
of the Kosovo Agency for Statistics, improving statistical governance and coordination between 
main  statistical  institutions  and  ensuring  better  access  to  administrative  data  sources.  The 
Agency  needs  to  intensify  the  implementation  of  the  Eurostat  peer  review  recommendations 
particularly by increasing its cost-effectiveness, strengthening quality management and relations 
with data users. In addition, the Agency is still in need of additional human resources. Efficiency 
of internal systems, processes and delegated management remains a challenge. Data transmission 
to  Eurostat  continues  to  improve.  Despite  improvements  with  its  web-based  dissemination  of 
statistics,  the  Agency  needs  to  strengthen  its  active  relations  with  data  users  and  academia. 
Kosovo continues to use the European classification  of economic  activities (NACE Rev.2) but 
has  not  improved  the  use  of  other  European  classifications.  Likewise,  the  existing  registers 
(agriculture,  business  and  schools/education)  are  updated  regularly  but  the  population  register 
still  needs  significant  improvements  in  order  to  provide  adequate  basis  for  census  related 
activities.  In the period,  KAS has signed some new MoU to  strengthen cooperation with  other 
institutions and established a quality board with a quality manager to strengthen the quality work 
within the NSI. 

On  macroeconomic  statistics,  Kosovo  has  made  some  slight  improvements  from  last  year; 
further alignment with the European System of Accounts (ESA) 2010 is ongoing. The Agency 
compiles  annual  and  quarterly  national  accounts  included  seasonally  adjusted,  however 
methodological  inconsistencies  need  to  be  addressed.  Some  improvements  have  however  been 
achieved in the period, like the experimental compilation of GDP by income approach (for 2011-
2019), compilation of Non-Financial Sector Accounts (2016-2019) and Supply and Use Tables 
(SUT; 2013-2015). Some progress has also been made in the area of informal economy. 

Quarterly  sector  accounts,  and  the  regional  accounts  are  not  regularly  compiled.  Fiscal 
notifications are not yet available. The number of ESA 2010 transmission tables to Eurostat has 
seen  some  improvements  during  the  reported  period,  for  example  in  regional  accounts,  where 
table 10 in the ESA transmission programme has now been compiled for 2018 and 2019. KAS 
has continued to send some EDP tables within the required deadlines but is not fully compliant. 
Monthly statistics for international trade in goods are submitted to Eurostat. Balance of payments 
data are compiled by the Central Bank and are broadly in line with the EU  acquis; annual and 
quarterly data are submitted to Eurostat. Government finance statistics are published quarterly by 
KAS.  The  Harmonised  Index  of  Consumer  Prices  is  regularly  published  on  the  KAS  webpage 
and  transmitted  to  Eurostat  where  publication  is  planned  for  later  this  year.  It  is  being  further 
developed in line with EU Standards (ECOICOP classification). There has been no progress in 
the broadening of the work with Purchasing Power Parities (PPP).  

Structural business statistics and some short-term statistics (STS) are partially in line with the 
EU  acquis  however  their  availability  is  limited  and  they  lack  distinction  between  public  and 
private  investments  or  by  sectors,  and  only  one  STS  (building  permits)  has  so  far  been 
transmitted  to  Eurostat.  Industry  statistics  are  produced  broadly  in  line  with  the  relevant 
regulation.  Short-term  service  sector  statistics  are  produced  quarterly.  Construction  sector 
statistics  are  largely  not  available;  only  the  construction  cost  index  is  produced  on  a  quarterly 
basis (Q4 2021 statistics published in March 2022). Industry statistics (PRODCOM survey) for 
the  year  2020  were  published  in  December  2021.  Foreign  Affiliates  Statistics  (FATS)  are  not 
available. Tourism statistics and transport statistics are still not aligned with the EU acquis, while 

73 

 
 
statistics  on  development  and  innovation  are  not  produced  on  a  regular  basis.  The  information 
and  communication  technologies  (ICT)  statistics  for  households  started  in  2018  and  are  now 
published  regularly  (the  results  for  2021  have  been  published  in  November  2021)  whereas  the 
ICT statistics for enterprises were collected for the reference year of 2019 and results have been 
published in December 2020 but due to technical problems not transmitted to Eurostat. 

In  the  area  of  social  statistics,  only  demographic  statistics  are  broadly  in  line  with  the  EU 
acquis. The preparations for the forthcoming population census are ongoing with the draft law on 
population  and  housing  census  ratified  by  the  Assembly  in  July  2022.  The  actual  dates  for 
conducting  the  census  have  not  yet  been  decided.  The  government  should  allocate  adequate 
resources in order to conduct the general census in 2023, which has been postponed several times 
since 2021. Statistics on Income and Living Conditions (regular EU-SILC Survey) are produced 
annually;  most recently  for 2019 was published  in  June 2022 and data have been  collected for 
2020 round. KAS are however facing problem with the analysis and completion of this important 
survey  due  to  limited  internal  resources.  The  Statistical  Office  seems  to  depend  on  external 
assistance to maintain regular running of the SILC. Social protection and labour market statistics 
are only partially produced. An annual and quarterly labour force survey is carried out regularly 
and its publication timeframe has improved. The labour cost index, structure of earnings data and 
job  vacancy  statistics,  as  well  as  vocational  training  are  still  not  produced.  Education  statistics 
are  partially  produced  but  are  still  not  classified  according  to  international  education 
classification  standards  (ISCED  2011),  but  progress  on  this  has  been  achieved  and  full 
implementation  is  foreseen for 2022. Public health  and crime statistics are not  yet in  line  with 
EU standards.  

For  agricultural  statistics,  the  Agency  published  data  on  annual  agricultural  crops,  livestock 
production  and  orchard  statistics.  The  agricultural  holding  survey  is  regularly  produced  and 
aligned with acquis standards. The last farm structure survey was conducted in 2014 and the new 
one is not planned until 2024. Agricultural price indices and economic accounts for agriculture 
are produced on a regular basis. Supply balance sheets and the agriculture labour index are not 
yet produced on regular basis. Transmission of available agriculture statistics to Eurostat is done 
through Electronic Data files Administration and Management Information System (EDAMIS). 

Energy  and  environment  statistics  are  partially  in  line  with  the  acquis.  During  the  reporting 
period,  the  Agency  shortened  the  deadlines  for  publishing  energy  balance  results  and  has 
increased  the  number  of  statistical  products  sent  to  Eurostat,  but  further  improvements  are 
needed in this field. Energy consumption statistics for residential, services and transport sectors 
are collected but the results are not published regularly. Monthly data and the monthly share of 
renewables are not provided to Eurostat. The lack of energy efficiency indicators continues to be 
an  obstacle  to  reporting  on  energy  savings.  Waste  and  water  statistics  are  produced  regularly. 
Greenhouse  gas  emission  statistics  are  being  collected  but  the  information  is  not  published 
regularly. Other environmental statistics such as air emissions accounts, environmentally related 
taxes by economic activity, environmental protection expenditure and material flow balances are 
not yet produced.     

Chapter 32 - Financial control 

The  EU  promotes  the  reform  of  Kosovo  governance  systems  to  improve  managerial 
accountability,  sound  financial  management  of  income  and  expenditure,  and  external  audit  of 

74 

 
 
public  funds.  The  financial  control  rules  further  protect  the  EU’s  financial  interests  against 
fraud in the management of EU funds and the euro against counterfeiting.  

Kosovo  has  some  level  of  preparation  in  the  area  of  financial  control.  Some  progress  was 
made in addressing last year’s recommendation with some efforts undertaken mainly in closing 
the  remaining  gaps  in  the  implementation  of  primary  and  implementing  legislation  on  public 
internal  financial  control,  improved  implementation  of  the  recommendations  on  external  audit, 
and providing a reform direction by integrating all key elements of the public internal financial 
control strategy in the new public finance management strategy 2022-2026. 

High-level  political  support is  needed  for the  appropriate functioning of internal  controls  at  all 
levels of the administration and further improvement in implementation of internal and external 
audit recommendations.  

As  last  year’s  recommendations  were  partially  implemented,  they  remain  largely  valid.  In  the 
coming year, Kosovo should:  

  start  with  implementation  of  the  new  public  finance  management  strategy  2022-2026  and 
related the public internal financial control elements, within the time frame determined in the 
related public finance management action plan;  

  improve managerial accountability by aligning special laws with the overarching Law on the 
Organisation  and  Functioning  of  the  State  Administration  and  Independent  Agencies,  and 
clarify the accountability lines within and between public institutions;  

  ensure systematic and timely implementation of external audit recommendations, especially 

with regard to performance audits that have been undertaken in recent years. 

Public internal financial control 

Kosovo has integrated all elements of the PIFC strategy while developing the new public finance 
management  strategy  2022-2026,  that  is  pending  adoption,  together  with  the  corresponding 
action plan. Coherence with the new public administration reform strategy 2022-2026 needs to 
be  ensured.  At  this  policy  level,  a  stronger  connection  between  the  strategic  and  operational 
objectives needs to be included together with indicators that measure not only administrative but 
also  managerial  accountability.  The  Central  Harmonisation  Unit  has  produced  a  transitory 
strategy to cover the gap until new PFM Strategy 2022-2026 is finalised. 

Kosovo  needs  to  include  managerial  accountability  principles  more  coherently  in  the  legal 
basis and administrative practices  guiding administrative culture at  central and local  level.  The 
regulation  on  financial  management  and  control  spelled  out  the  rules  for  delegating 
responsibilities,  but  there  is  no  coherence  between  PIFC  legislation  and  other  horizontal 
legislative  frameworks  such  as  on  public  finance  and  public  administration;  implementation  is 
incomplete  and  managerial  accountability  is  focusing  mainly  on  compliance  rather  than 
performance.  Basic  accountability  and  performance  mechanisms  between  ministries  and 
subordinated agencies remain weak, and effective management of subordinate bodies needs to be 
ensured. There is little progress on rationalising agencies. Non-aligned budget and management 
structures  persist,  impeding  delegation  of  budgets  and  programme  activities  to  the  relevant 
sectors and senior managers within budget users. (See also Public Administration Reform).  

While the legal framework on internal control is largely harmonised with international standards, 
and  the  financial  control  manual  is  in  force  since  2020,  Kosovo  needs  to  further  revise  its 

75 

 
 
internal  control  functions  in  line  with  the  Commission  of  Sponsoring  Organizations  of  the 
Treadway  Commission  (COSO)  principles.  The  financial  control  manual  is  being  updated  and 
needs to extend beyond financial to more internal control issues as well. Risk management needs 
to be included into management and governance processes and reinforced in order for risks to be 
assessed  as  they  evolve  and  not  only  be  an  annual  exercise.  Public  sector  managers  needs  to 
continue the process on establishing risk registers and defining risk mitigation measures. A risk-
based approach to the selection of cases for controls not yet adopted.  

The administrative capacities of internal audit units at central and local level are still lacking. 
The internal audit practice concentrates mainly on observing rules and procedures. Challenges 
remain with the effective establishment of internal audit committees in all budget organisations, 
including at municipal level. Procedures on quality assurance need still to be developed together 
and a professional development programme put in place. 

The  Central  Harmonisation  Unit  (CHU)  prepares  an  annual  report  on  the  implementation  of 
PIFC  on  the  basis  of  replies  to  self-assessment  questionnaires  and  its  own  quality  reviews. 
However,  there  is  a  need  for  more  evidence-based  recommendations  and  more  systematic 
implementation of follow up recommendations. Despite electoral year, CHU has maintained on 
track the implementation of recommendations to 41,4% in comparison to previous year.  

The  update  of  the  Administrative  Instruction  on  the  National  Training  Programme  and 
Certification of Internal Auditors in the public sector is ongoing. This Instruction aims to define 
the  organisation,  structure,  and  content  of  the  national  programme  for  certification  of  internal 
auditors in the public sector, as well as the evaluation and certification procedures together with 
the requirements for continuous professional development.   

External audit 

In  line  with  the  standards  of  the  International  Organisation  of  Supreme  Audit  Institutions, 
Kosovo’s  constitutional  and  legal  framework  provides  for  the  functional,  organisational  and 
financial  independence  of  the  National  Audit  Office  (NAO).  The  Law  on  the  Auditor  General 
and the National Audit Office of Kosovo should be modified to remove the obligation to conduct 
regularity  audits  annually  on  all  budget  organisations,  regardless  among  others  of  their  size, 
complexity  and  risk  and  audits  should  be  selected  based  on  risk  level  assessment  of  public 
finance. These changes would increase the number of audits of publicly owned  enterprises and 
performance audits.  

The Office’s institutional capacity remained largely stable with 165 staff by the end of 2021, of 
whom 82% are audit staff including management positions and 18% of other professional staff. 
A new Strategic Development Plan 2022-2025 was drafted based on International Organisation 
of  Supreme  Audit  Institutions  (INTOSAI)  methodology  and  is  pending  adoption.  It  includes 
objectives,  performance  indicators  and  a  monitoring  framework,  as  well  as  introduces  audit 
quality control and assurance procedures, and continues to implement a certification programme 
for auditors.  

The Office finalised 14 performance audit reports, compared to 11 in 2020. It worked with civil 
society  organisations,  especially  at  local  level,  to  improve  the  impact  of  audit  work; 
municipality-level public debates on the audit recommendations took place. Government should 
ensure  a  better  follow-up  and  review  of  performance  audits.  The  percentage  of  fully 
implemented recommendations remained is 50 % compared to 45% last year.  During reporting 

76 

 
 
period,  the  Committee  for  Oversight  of  Public  Finance  (COPF)  reviewed  25  audit  reports,  of 
which 6 reports of the ministries, 9 performance audit reports and 7 reports of publicly owned 
enterprises. 

Protection of the EU’s financial interests  

Kosovo  has  not  yet  taken  the  necessary  steps  to  advance  the  process  of  legislative  alignment 
with the acquis on the fight against fraud to the Union's financial interests by means of criminal 
law. Kosovo has also not yet set up an anti-fraud coordination service (AFCOS) and adopted an 
anti-fraud  strategy.  While  there  is  not  yet  a  solid  track-record  on  cooperation  with  the 
Commission during investigations, Kosovo Police ensures cooperation on an ad-hoc basis 

Protection of the euro against counterfeiting  

Kosovo  has  established  competent  authorities  and  procedures  for  dealing  with  counterfeit 
money, but  alignment  with the  acquis in  this  area still needs to  be assessed. The  Law on the 
Central  Bank  prohibits  the  circulation  of  counterfeit  money.  The  central  bank  has  issued  a 
regulation  on  cash  operations  to  strengthen  rules  and  procedures  for  financial  institutions 
operating  in  Kosovo.  The  independence  of  central  bank  of  Kosovo  needs  to  be  ensured  by 
improved  professionalism  and  overcoming  political 
in  appointments.  The 
Commission  has  a  cooperation  agreement  on  coins  with  the  Kosovo  Agency  on  Forensics. 
Kosovo takes part in the Pericles 2020 programme.  

influences 

3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION 

Good  neighbourly  relations  and  regional  cooperation  form  an  essential  part  of  Kosovo’s 
European integration process and contribute to stability, reconciliation and a climate conducive 
to addressing open bilateral issues and the legacies of the past.  

Kosovo maintained its engagement in a number of regional cooperation initiatives, such as the 
Central European Free Trade Agreement (CEFTA), Energy Community, Transport Community, 
the South-East European Cooperation Process (SEECP) and the Regional Cooperation Council.9 

Following the May 2022 Foreign Affairs Council, EU foreign ministers held, for the first time, 
an informal exchange of views with Western Balkans counterparts. The EU and Western Balkans 
Leaders meeting on 23 June 2022 reaffirmed the EU perspective of the partners in the region and 
gave impulse to intensify the cooperation and integration agenda. Particular focus was placed on 
the  integration  of  the  Western  Balkans  into  EU  measures  to  reduce  the  negative  impact  of  the 
Russian aggression on Ukraine in terms of food and energy supplies and independence, as well 
as to support capacity building for cyber security and the social agenda, notably involving youth 
in  the  economy.  The  meeting  was  also  an  opportunity  to  discuss  closer  political  cooperation, 
including  foreign  policy  alignment  of  the  Western  Balkans  with  EU  positions  and  restrictive 
measures. 

At  the  EU-Western  Balkans  summit  in  Brdo  pri  Kranju  in  October  2021,  the  six  Western 
Balkans  leaders  reaffirmed  their  commitment  to  inclusive  regional  cooperation,  strengthening 
good  neighbourly  relations  and  investing  more  decisive  efforts  in  establishing  the  Common 
Regional Market. The summit announced a range of concrete deliverables benefiting the Western 

9  Kosovo  is  a  member  of  the  Central  European  Free  Trade  Agreement  (CEFTA).  Kosovo  has  Free-Trade 
Agreements (FTA) with Albania, North Macedonia, Croatia, Bosnia-Herzegovina and Türkiye. Kosovo has several 
Generalized System of Preferences (GSP) Programmes with US, Japan and Norway.  

77 

 
 
                                                           
Balkans,  including:  the  first  tranche  of  actions  under  the  EUR  30  billion  Economic  and 
Investment  Plan;  the  pledge  to  boost  COVID-19  vaccination  rates;  the  path  towards  lower 
roaming  costs;  an  Innovation  Agenda  for  the  Western  Balkans;  Green  Lanes  to  reduce  border 
waiting  times  and  Transport  Community  Action  Plans  for  smart  transport  and  sustainable 
connectivity. 

The Common Regional Market, as  agreed by the leaders of the Western Balkans at the 2020 
Berlin  process  summit  in  Sofia,  will  be  critical  in  increasing  the  attractiveness  and 
competitiveness of the region. It will help Kosovo to speed up the recovery from the aftermath of 
the pandemic, notably to attract investors looking for diversification of supply and shorter value 
chains  and  to  maximise  the  benefits  of  the  infrastructure  investments  under  the  Economic  and 
Investment Plan. A number of important decisions to facilitate the movement of workers remain 
blocked. It is important that Kosovo plays a constructive role in building the Common Regional 
Market and that all parties deliver on their joint commitments set out in the Common Regional 
Market action plan.  

In October 2021, Kosovo along with other Western Balkan partners endorsed the action plan for 
the Green Agenda for the Western Balkans, which aims at reflecting the European Green Deal10 
and  contributing  to  the  sustainable  socio-economic  development  and  the  green  recovery  of  the 
region  after  the  pandemic.  Kosovo  should  contribute  to  successfully  implement  this  joint 
regional  vision,  with  high  level  of  ambition,  putting  sustainable  development,  resource 
efficiency, nature protection and climate action at the centre of all economic activities. 

The  unresolved  fate  of  missing  persons  who  disappeared  during  the  conflicts  of  the  1990s 
remains a key issue to be solved in the Western Balkans. The authorities of Kosovo conducted 9 
exhumations and officially identified 21 persons in 2021, there are still 1,621 persons missing by 
April 2022 as a result of the conflict.    

Kosovo  generally  maintains  good  bilateral  relations  with  other  enlargement  countries  and 
neighbouring EU Member States.  

Kosovo maintained overall good relations with Albania. During the reporting period, two inter-
governmental  meetings  were  held  (November  2021  and  June  2022).  In  November  2022,  19 
agreements  were  signed,  covering  a  wide  range  of  issues.  With  the  establishment  of  an 
intergovernmental  coordination  secretariat,  the  overall  implementation  of  agreements  has 
improved. Trade volumes are also increasing.  

There has  been no change in  Kosovo’s  formal relations with  Bosnia  and Herzegovina, which 
does not recognise Kosovo’s independence. The two maintain a strict visa regime. An initiative 
to simplify the visa procedure for all citizens of Kosovo has not been pursued.  

Kosovo has maintained good relations with Montenegro. In June 2021, Kosovo and Montenegro 
signed  an  agreement  removing  vehicle  insurance  tax  for  entry  into  their  respective  territories. 
Kosovo continues to enjoy overall good relations with North Macedonia.  

Kosovo  has  maintained  good  relations  with  Türkiye,  including  in  the  political,  economic  and 
cultural  sectors.  High-level  bilateral  meetings  took  place  in  the  margins  of  the  South-East 
European Cooperation Process (SEECP) Summit in June 2022 in Antalya. 

10 COM(2019) 640. 

78 

 
 
                                                           
4. NORMALISATION OF RELATIONS BETWEEN KOSOVO AND SERBIA  

The EU-facilitated Dialogue on normalisation of relations between Kosovo and Serbia continued 
throughout the reporting period with regular monthly meetings on the level of Chief Negotiators 
and  a  High-level  meeting  in  Brussels  on  18  August  2022.  No  further  concrete  progress  was 
achieved in the negotiations on the comprehensive and legally-binding normalisation agreement, 
while  in  the  High-level  meeting  President  Vučić  and  Prime  Minister  Kurti  agreed  to  regular 
meetings at the level of Leaders to take the negotiations forward. Kosovo and Serbia are urged to 
engage  constructively  and  advance  the  negotiations  on  the  comprehensive,  legally-binding 
normalisation agreement with no further delay. Reaching such an agreement is urgent and crucial 
so that Kosovo and Serbia can advance on their respective European paths. 

During  the  reporting  period,  the  Parties  adopted  an  Energy  Agreements’  Implementation 
Roadmap  in  June  2022,  which  enables  full  implementation  of  the  2013  and  2015  Dialogue 
Agreements on energy. Following the agreement reached an electricity supply licence was issued 
to  Elektrosever,  a  Serbian-owned  company  established  under  Kosovo  law,  which  will  supply 
electricity  to  consumers  in  four  Serb-majority  municipalities  in  the  north.  Finalisation  of  the 
necessary  technical  agreements  are  under  way  to  make  the  company  fully  operational.  The 
Parties are expected to quickly implement all provisions of the Roadmap.  

Following tensions in the north of Kosovo at the end of July 2022, an agreement was reached on 
27  August  2022  regarding  the  use  of  entry-exit  documents,  whereby  Serbia  agreed  to  abolish 
these  documents  for  Kosovo  ID  holders  and  Kosovo  not  to  introduce  them  for  Serbian  ID 
holders.  The  Parties  are  expected  to  urgently  reach  an  agreement  on  licence  plates  after  they 
failed to find a permanent solution within the dedicated licence plate Working Group led by the 
EU, whose six-month mandate expired in April 2022.  

During the reporting the period, the Parties also engaged in negotiations on a political declaration 
on  Missing  Persons.  No  agreements  were  reached,  but  the  Parties  are  encouraged  to  continue 
their negotiations all these topics. 

The  Kosovo  government  did  not  to  permit  the  facilitation  of  voting  by  the  OSCE,  as  per  past 
practice, to enable the Kosovo Serb community to cast their ballots in the Serbian constitutional 
referendum and general elections in 2022. A constructive approach by Kosovo is needed for the 
Kosovo Serbs to exercise their democratic rights. 

When it comes to the state of play on implementation of past Dialogue agreements:  

- The full implementation of the justice agreement drawn from the April 2013 ‘First agreement 
of principles governing the normalisation of relations’ continues to require further efforts by the 
Kosovo authorities as Kosovo does not respect certain provisions of the agreement;    

- There has been no further progress on the implementation of the 25 August 2015 Agreements. 
Kosovo  authorities  have  failed  to  take  action  to  establish  the  Association/Community  of  Serb 
majority  municipalities  in  Kosovo  and  Kosovo  is  urged  to  engage  constructively  in  its 
establishment with no further delay or obstruction;  

- The works on the Mitrovica bridge have long been completed and Serbia is expected to engage 
constructive to allow the bridge to be opened to vehicle traffic without obstruction;  

- As regards the technical dialogue agreements (2011-2012), some are not or only partially being 
implemented.  Both  Parties  need  to  remain  committed  to  the  continued  implementation  of  the 

79 

 
 
agreement  on  representation  and  participation  of  Kosovo  in  regional  forums  and  not  block  the 
work  of  regional  forums  over  bilateral  disputes.  The  implementation  of  the  cadastre  and 
university diplomas recognition agreements is still pending. Serbia has yet to address the issue of 
re-located  Serbian  administrative  customs  structures  with  Kosovo  denomination  that  operate 
from  within  Serbia,  and  to  cease  the  issuance  of  documentation  or  affixing  of  stamps  with 
denomination that contravenes the related agreement;  

On IBM, the Interim Common Crossing-Points (CCPs) between Kosovo and Serbia continue to 
be  operational.  Only  two  of  the  six  permanent  CCPs  have  been  established  (Merdare  and 
Mutivodë/Mutivode).  In  March  2022,  Serbia  agreed  to  open  both  entry  and  exit  lanes  at  CCP 
Merdare  and  move  their  authorities  into  the  new  premises  at  CCP  Mutivode.  Both  EU-funded 
CCPs are now fully operational. Serbia still has not established permanent CCPs to be hosted by 
their  side  (Jarinje  /Rudnica,  Končulj-Dheu  i  Bardhë  and  Depce  /Muçibabë),  which  led  to  a 
suspension  of  EU  funds  for  this  project  in  July  2018.  In  addition,  Serbia  needs  to  engage 
constructively  to  enable  the  construction  of  the  third  CCP  hosted  by  Kosovo  in  the  north  of 
Kosovo at Tabavije /Bërnjak- Tabalije/Brnjak. Additional efforts are needed from Serbia to close 
illegal  roads  and  by-passes  to  ensure  exclusive  use  of  official  crossing  points  for  goods  and 
persons entering into or leaving Kosovo.  

-  The  parties  have  continued  to  comply  with  their  respective  obligations  under  the  telecoms 
agreement during the reporting period;  

- Requests for mutual legal assistance are in principle being processed;  

- Kosovo needs to respect the Arrangements for Official Visits more consistently.  

Overall, Kosovo has remained engaged in the Dialogue. However, the Kosovo government needs 
to uphold its previous commitments and commit to the full implementation of all past Dialogue 
agreements.  Moving  forward,  Kosovo  also  needs  to  make  further  substantial  efforts  to  avoid 
actions  that  undermine  stability  and  rhetoric  that  is  not  conducive  to  dialogue.  Kosovo  should 
contribute  to  a  conducive  environment  for  the  conclusion  of  a  legally-binding  normalisation 
agreement  with  Serbia,  including  in  its  international  relations.  Kosovo  is  expected  to  engage 
more  constructively  in  the  negotiations  on  the  legally-binding  normalisation  agreement  in  the 
coming period and show flexibility in order to make rapid and concrete progress.  

5. EUROPEAN STANDARDS 

CLUSTER 2: INTERNAL MARKET 

Kosovo has some level of preparation in most of the areas of the internal market, namely the free 
movement of goods, workers, capital, company law, intellectual property and competition, 
whereas it is moderately prepared on free movement of services and right of establishment and 
on financial services. It is at an early stage of preparation on consumer policy and health 
protection. During the reporting period, Kosovo made some progress in all areas, except on 
consumer policy and health protection, where only limited progress was made. 

Chapter 1 - Free movement of goods  

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

80 

 
 
Kosovo  has  some  level  of  preparation  for  the  free  movement  of  goods.  Some  progress  was 
made during the reporting period with the adoption of the Law on Inspections, the adoption of 
amendments  to  the  Law  on  Chemicals  and  the  implementation  of  the  Programme  for  the 
Elimination of Trade Barriers. Further alignment with EU acquis is needed in this area and the 
administrative  and  human  resources  capacity  of  quality  infrastructure  institutions  needs  to  be 
strengthened.  

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

  increase  the  enforcement  capacity  of  quality  infrastructure,  in  particular  of  conformity 

assessment and market surveillance bodies;  

  adopt the new law on general product safety to further align legislation with the EU acquis;  

  start  implementing  requirements  of  the  European  Regulation  on  Registration,  Evaluation, 

Authorisation and Restriction of Chemicals (REACH).  

General principles  

As regards production, distribution and marketing of industrial products, Kosovo needs to 
adopt  a  new  law  on  general  product  safety  that  unifies  provisions  in  the  area  of  market 
surveillance, including implementing legislation on technical requirements for products. The law 
on general inspections was adopted in January 2022 and needs to be implemented. 

Non-harmonised area  

Kosovo  has  started  implementing  its  programme  to  eliminate  barriers  to  trade  and  to  ensure 
alignment  with  the  obligations  under  Articles  34-36  of  the  Treaty  on  the  Functioning  of  the 
European Union (TFEU). An electronic “intranet” register of Kosovo’s technical regulations is 
in  place,  designed  to  implement  existing  obligations  related  to  trade  under  the  CEFTA 
Agreement and EU acquis.  

Harmonised area: quality infrastructure  

Kosovo’s  standardisation Management  Information System  is  used to manage standardisation 
processes  and  exchange  data  with  the  European  Committee  for  Standardisation  (CEN)  the 
European Committee for Electro-technical  Standardisation (CENELEC)  and other international 
standardisation bodies. Kosovo needs to render its e-standard system user-friendly to businesses 
and compatible with the CEN/CENELEC system to allow for updated and accelerated adoption 
of new standards. Kosovo Standardisation Agency’s affiliate membership of CEN/CENELEC is 
still pending.  

The Kosovo Accreditation Directorate completed accreditation for medical laboratories. There 
are 58 accredited conformity assessment bodies in Kosovo (37 test laboratories and 21 inspection 
bodies), but their capacity still needs to increase.  

In the area of metrology, Kosovo’s recently adopted law on inspections transferred metrological 
supervision to the market inspectorate. The legislative framework in the area of petroleum that 
aims to align with the EU acquis on the testing and quality control of petroleum fuels has been 
adopted.  The  Kosovo  Metrology  Agency  is  preparing  for  its  internal  reorganisation  to  help 
ensure  further  EU  acquis  alignment.  In  May  2021,  the  Kosovo  Metrology  Agency  sent  its 
application  for  associated  membership  to  the  European  Association  of  National  Metrology 
Institutes (EURAMET).  

81 

 
 
As regards market surveillance, in January 2022, Kosovo adopted a law on general inspections 
that  increased  the  market  inspectorate’s  responsibilities  and  completed  the  unification  of  non-
food product inspection rules. The law on general product safety has not  yet been adopted and 
should be based on the law on technical requirements for products and conformity assessment.  

During  the  reporting  period,  385  product  safety  inspections  were  conducted  with  19  cases  of 
harmful goods confiscated. 

Harmonised area: sectoral legislation 

On “new and global approach” product legislation, Kosovo adopted legislation designed to be 
aligned with the EU acquis on simple pressure vessels, construction products and precious metal 
works. Further alignment is needed on aerosol dispensers and transportable pressure equipment.  

As  regards  “old  approach”  product  legislation,  Kosovo  amended  its  law  on  chemicals  to  be 
designed to align with EU Regulation on Registration, Evaluation, Authorisation and Restriction 
of Chemicals (REACH) and Classification, Labelling and Packaging (CLP).  

There  was  no  progress  on  procedural  measures.  Kosovo’s  legislation  remains  partly  aligned 
with the EU acquis in the areas of cultural goods, textile labelling and defence products. 

Chapter 2 - Freedom of movements for workers 

Citizens of one EU Member State have the right to work in another Member State and must be 
given the same working and social conditions as other workers.  

Kosovo has some level of preparation in the field of free movement of workers. Some progress 
was made during the reporting period, notably as regards the conclusion of bilateral agreements 
on social security. In the coming year, Kosovo should in particular:  

  continue  negotiating  and  concluding  new  bilateral  agreements  on  social  security,  notably 

with EU Member States. 

On the free movement of workers, EU nationals and their family members are not eligible to 
work  in  Kosovo  without  a  work  permit.  During  the  reporting  period,  the  Employment  Agency 
issued  209  short-term  work  permits,  of  which  157  for  EU  nationals.  In  November  2021  a 
bilateral  social  security  agreement  was  signed  with  Albania.  Kosovo  has  already  in  place 
bilateral social security agreements with two EU Member States (Belgium and the Netherlands) 
and Switzerland. These agreements ensure that periods of activity will be taken into account for 
entitlement  to  social  security  benefits.  Negotiations  for  a  similar  agreement  are  ongoing  with 
Slovenia.  

Chapter 3 - Right of establishment and freedom to provide services  

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

Kosovo remains moderately prepared in this area. During the reporting period, Kosovo made 
some progress.  The Point of Single Contact was established in March. Kosovo has a monitoring 
mechanism to implement the five-year action plan to make sectoral laws compliant with the EU 

82 

 
 
Services Directive but needs to further intensify it. The postal market has been liberalised since 
1st  January  2022,  but  the  legal  framework  needs  further  alignment  with  the  EU  postal  acquis. 
Kosovo needs to align legislation with the EU acquis on the mutual recognition of professional 
qualifications.  

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

  remove the identified barriers to the right of establishment and freedom to provide services 

by rolling out the action plan for the full implementation of the law on services;  

  complete the alignment with the EU postal acquis as regards the Regulation on Cross-Border 

Parcel Delivery Services;  

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

On  the  right  of  establishment  and  freedom  to  provide  services,  Kosovo  is  partially  aligned 
with the EU acquis on services. The 54 domestic laws and by-laws considered incompatible with 
the  EU  Service  Directive  are  still  not  harmonised  and  need  further  revision.  The  5-year  action 
plan  needs  to  be  implemented  and  awareness  raised  on  the  simplification  of  administrative 
procedures, once rolled out. At present, foreign companies are still required to establish an office 
in Kosovo. Increased inter-institutional coordination between legal departments of relevant line 
ministries, agencies and other public and professional bodies, and enhanced capacity, would help 
improve harmonisation with the Services Directive.  

The Point of Single Contact has been established in March 2022 within the e-Kosova platform 
for the sector of licensing auditors and audit companies. The Contact Point for Services platform 
contains  some  400  laws  and  bylaws  that  cover  trade  in  services  and  is  linked  to  the  Point  of 
Single  Contact  (e-Kosova).  The  citizens/business  community  can  access  the  link  of  CPS, 
however,  it  consists  only  of  general  information  on  how  to  start  a  business,  with  no 
interoperability options. 

The legal framework regulating postal services is aligned with the EU Postal Services Directive. 
The  reserved  area  for  the  provision  of  universal  postal  services  was  abolished  on  the  1st  of 
January 2022. Furthermore, the Regulatory Authority of Electronic and Postal Communications 
(RAEPC) has adopted implementing legislation on the system for cost accounting and net cost 
calculation  of  universal  postal  services.  The  activities  of  the  postal  service  providers  are 
supervised,  monitored  and  inspected  by  the  Regulatory  Authority  in  the  event  of  regulatory 
violations  and  customers’  complaints.  Kosovo  still  needs  to  align  its  legislation  with  the 
Regulation on cross-border parcel delivery services. 

The Law on regulated professions broadly defines the requirements, conditions, and criteria for 
the exercise of a regulated profession. The division for regulated professions within the Ministry 
of  Education  needs  to  be  properly  staffed  and  become  operational.  Kosovo  has  in  place  the 
implementing  legislation,  on  criteria  and  procedures  of  regulated  professions.  What  is  still 
overdue is the mapping of all regulated professions and the establishment of a list of regulated 
professions.  

Chapter 4 - Free movement of capital  

83 

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

Kosovo  has  some  level  of  preparation  in  this  area.  Some  progress  was  made  with  the 
adoption of the Law on Property Rights of Foreign Citizens, which addresses the issue of real 
estate acquisition by foreigners in Kosovo.   

Although initial steps were taken, the recommendations of the previous report remain valid. In 
the coming year, Kosovo should, in particular:  

  further align Kosovo’s legal framework with the EU Payment Service Directive 2; 

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

of Money Laundering and Terrorist Financing with the EU acquis; 

  strengthen  inter-institutional  cooperation  in  the  fight  against  economic  and  financial 

crime. 

The movement of capital is largely liberalised and aligned with the EU acquis. The execution of 
payments  and  money  transfers  is  limited  to  banking  and  non-banking  financial  institutions 
licensed by the Central Bank of Kosovo. The law on property rights, which addresses the issue of 
real  estate  acquisition  by  foreigners,  has  been  adopted  by  the  Assembly.  In  terms  of  payment 
systems, Kosovo needs to further align its legislation with the EU Payment Service Directive 2. 
An administrative instruction on beneficial ownership has been adopted, followed by a series of 
capacity building efforts for reporting entities and law enforcement officials.  

The  current  framework  on  e-commerce  suffers  from  regulatory  shortcomings,  such  as  a  weak 
electronic  payment  system.  The  Assembly  passed  the  Law  on  Electronic  Identification  on 
Trusted Services in Electronic Transactions in December 2021. 

The  law  on  the  prevention  of  money  laundering  and  combating  terrorism  financing  needs 
further alignment with EU standards, specifically Directives 2015/847 and 2018/843 on money 
laundering.  A  new  Law  on  targeted  international  financial  sanctions    has  been  adopted  by  the 
government on 13 May 2022. The law is awaiting approval by the Assembly. 

On the fight against money laundering, the number of suspicious transaction reports increased 
to  920  in  2021,  2  %  from  2020.  The  number  of  seized  assets  rose  in  2021,  reaching  EUR 
8,975,202.  The  cooperation  between  the  Financial  Investigation  Unit  (FIU)  and  Law 
Enforcement  Agencies  (LEA)  improved  with  the  establishment  of  an  electronic  information 
exchange system. The overall exchange of information  at  the domestic level  with  taxation and 
customs authorities increased 8% compared to 2020. The Unit was instrumental in advising the 
Special Prosecutor in indicting a stand-alone money laundering offence, which, for the first time 
ever in Kosovo, resulted in convictions by the courts, upheld on appeal.  

Kosovo has marked some progress in the fight against financial crimes with the support of the 
joint EU/Council of Europe PECK III Project. Strengthening inter-institutional cooperation in the 
fight against economic and financial crime is still needed (See also Chapter 24 - Justice, freedom 
and security). 

Chapter 6 - Company law  

84 

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

Kosovo  has  some  level  of  preparation  in  the  area  of  company  law.  Some  progress  was 
achieved  by  aligning  further  with  the  EU  acquis  on  business  registration.  In  June  2021 
Kosovo adopted a Corporate Governance Code, in line with OECD principles.  

As  recommendations  from  the  previous  report  have  been  partially  addressed,  in  the  coming 
year, Kosovo should in particular: 

  further align company law legislation with the EU company law acquis, also in the area of 

shareholders’ rights, including the promotion of long-term shareholder engagement; 

  further align with the acquis on corporate accounting and statutory audit, and  strengthen 
the  institutional  audit  oversight  structures  and  the  professional  independence  and 
objectivity of auditors and audit firms. 

On  Company  Law  Kosovo  started  filling  the  gaps  of  partial  alignment  with  the  Law  on 
Business  Organisation  by  adopting  two  implementing  acts:  the  registration  of  business 
organisations  and  the  registration  of  the  representative  offices  of  foreign  business 
organisations.  The  Corporate  Governance  Code,  adopted  in  June  2021,  is  consistent  with 
international  standards  reflected  in  the  OECD  Principles  of  Corporate  Governance.  Further 
alignment with the EU company law acquis is needed, particularly concerning minimal capital 
requirements,  shareholders’  rights,  including  the  promotion  of  long-term  shareholder 
engagement,  company  takeovers,  aspects  of  disclosure  of  information  about  companies  and 
their  branches,  and  the  2019  EU  Directives  on  the  use  of  digital  tools  and  cross-border 
operations.  

The  assessment  of  technical  requirements  to  ensure  the  interoperability of  the  Kosovo 
Business  Registration  Agency  with  the  Business  Register  Interconnection  System  (BRIS) is 
pending.   Insufficient  coordination  and  data  sharing  between  Kosovo  Business  Registration 
Agency  and  the  Kosovo  Council  for  Financial  Reporting  (KCFR)  still  affect  the  timely 
reporting  and  publication  of  accounting  documents.  Also,  the  Agency  does  not  yet  publish 
information  on  companies  in  some  legal  situations  (e.g.  under  insolvency  proceedings)  and 
there is no legal obligation to publish accounting documents in the business register.   

On  company  reporting,  the  Law  on  accounting,  financial  reporting  and  audit  is  only  partly 
implemented, and further alignment is required with the EU acquis in all these areas, including 
on  non-financial  reporting.  The  same  law  prescribes  that  statutory  audits  are  performed 
following  relevant  International  Standards  on  Auditing.  Large  companies  must  submit  and 
publish their audited financial statements with  the KCFR;  non-compliance risks legal  sanction. 
All  submitted  financial  statements  are  published  on  the  KCFR  website.  In  2021,  no  punitive 
measures  in  the  form  of  administrative  fines  were  published  on  the  KCFR  website.  Kosovo 
needs  to  ensure  sufficient  funding  for  the  Public  Audit  Oversight  Board  to  function  as  the 
competent authority for oversight in this sector.  

Chapter 7 - Intellectual property law  

The EU has harmonised rules for the legal protection of intellectual property rights (IPR), and 
for  the  legal  protection  of  copyright  and  related  rights.  Rules  for  the  legal  protection  of  IPR 

85 

 
 
cover,  for  instance,  patents  and  trademarks,  designs,  biotechnological  inventions  and 
pharmaceuticals.  Rules  for  the  legal  protection  of  copyright  and  related  rights  cover,  for 
instance, books, films, computer programmes and broadcasting. 

Kosovo has some level of preparation on intellectual property rights. Some progress was made 
to  align  with  the  EU  acquis  in  the  area  by  adopting  the  Laws  on  Patents,  Trade  Secrets, 
Trademarks,  Industrial  Design  and  Topographies  of  Semi-conductors.  Kosovo  needs  to  further 
align  its  legal  framework  on  intellectual  property  rights,  notably  on  copyright  and  allocate 
resources  for  its  effective  implementation  and  enforcement,  including  training  on  law 
enforcement and prosecution. It needs to ensure that appropriate collective licensing agreements 
are enforced to guarantee remuneration for right holders. 

Last  year’s  recommendations  have  been  partially  implemented.  In  the  coming  year,  Kosovo 
should in particular: 

  adopt the Law on Copyright and Related Rights and finalise alignment of related secondary 

legislation;  

  take  concrete  and  sustainable  steps  to  increase  the  capacity  and  coordination  of  policy-
making institutions and law-enforcement agencies to ensure the enforcement of intellectual, 
industrial and commercial property rights;  

  establish  a  functioning  collective  management  system  by  strengthening  its  existing  one  in 
the fields  of  music  and  audio-visual  and  by  creating  an  additional  Collective  Management 
Organisation in the fields of literary and visual works. 

In the area of copyright and related rights, Kosovo’s body responsible for supervising IPRs is 
the Office of Copyright and related rights, operating within the Ministry of Culture. Kosovo has 
made some progress to guarantee a level of protection of intellectual, industrial and commercial 
property rights equivalent to that applied in the EU, and as per SAA, by further aligning with the 
EU acquis; however more efforts are needed. In January 2022, the Assembly adopted legislation 
on  Topographies  of  Semi-conductors,  Patents  and  Industrial  Design,  in  May  2022  on  Trade 
Secrets  and  in  June  2022  on  Trademarks.  Some  steps  were  taken  to  draft  new  legislation  on 
copyright  and  related  rights  in  line  with  the  latest  EU  Directive  on  collective  management  of 
copyright  and  related  rights  and  copyright  and  related  rights  in  the  Digital  Single  Market. 
Kosovo  is  preparing  an  Industrial  Property  Strategy  2022-2026.  No  steps  were  taken  to 
strengthen  and  enforce  the  existing  collective  management  system  to  function  properly,  as  the 
two Collective Management Organisations are not licensing, collecting remuneration or licensing 
fees  nor  distributing  money  to  the  rights  holders.  Many  of  the  rights  provided  in  the  law  for 
literary works and works of visual arts cannot be implemented in practice due to the absence of a 
relevant  Collective  Management  Organisation  in  these  fields.  The  National  Strategy  to 
Strengthen the Copyright System 2019–2023 foresaw the establishment of two divisions: one for 
the  promotion  and  education    and  one  for  the  collective  management  and  supervision  of 
copyright; both are yet to be established.  

On  industrial  property  rights,  Kosovo  needs  to  allocate  sufficient  resources  to  effectively 
implement  its  recently  adopted  legislation.  The  Industrial  Property  Agency  needs  restructuring 
and  additional  staff.  In  2021,  the  Agency  received  1  950  applications  for  trademarks,  16 
applications for patents and 30 applications for industrial design. The number of applications for 
trademarks  has  decreased  by  8.2%  compared  to  the  previous  year.  The  number  of  registered 

86 

 
 
trademarks,  however,  increased  from  29%  of  applications  in  2020  to  36%  of  applications  in 
2021.  The  Agency  has  carried  out  only  limited  activities  to  raise  awareness  of  businesses  and 
citizens on the importance of industrial property rights. The State Intellectual Property Council 
and  the  Task  Force  against  Piracy  and  Counterfeiting  are  the  main  bodies  tasked  with 
coordinating enforcement. During the reporting period, the Task Force met frequently, whereas 
the Council did not hold any meetings due to unavailability of members in 2021. 

To  effectively  enforce  intellectual  property  rights,  Kosovo  needs  to  increase  the  cooperation 
between  the  policy-making  and  enforcement  institutions.  Furthermore,  lengthy  procedures  for 
the  treatment  of  applications  and  the  lack  of  enforcement  of  decisions  taken,  are  major 
constraints to effectively implementing the IPR legal framework.  

There  was  a  progress  in  the  area  of  inspections  against  piracy  and  counterfeiting  compared  to 
2020  which  saw  considerably  fewer  inspections  due  the  pandemic.  In  2021,  Kosovo  Customs 
initiated 355 investigation cases, seizing 623 271 pieces of fake goods for a total value of EUR 6 
315 402, compared to 2020 (185 cases amounting to EUR 2 019 790).  

Chapter 8 - Competition policy 

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

Kosovo has  some level  of preparation in  the area of  competition policy.  Some progress  was 
made  by  revising  the  legislative  framework  and  aligning  it  with  the  EU  acquis  in  the  area  of 
competition. Further efforts are needed to adopt  implementing legislation and enforce its rules. 
On  antitrust  and  mergers  and  on  state  aid  Kosovo  needs  to  continue  aligning  its  legislative 
framework and ensure its enforcement.  

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

  adopt the Law on State Aid and finalise alignment of related secondary legislation; 

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

  fulfil  Stabilisation  and  Association  Agreement  (SAA)  obligations  by  aligning  state  aid 

schemes with EU State aid rules. 

Antitrust and mergers 

The legislative framework is partly in line with the EU competition acquis. The legislation on 
the  protection  of  competition  that  further  aligns  with  the  EU  acquis  has  been  adopted  in  June 
2022. Its implementing legislation needs to be revised accordingly.  

On  the  institutional  framework,  the  Kosovo  Competition  Authority  is  responsible  for 
implementing  the  legal  framework  and  the  Kosovo  Competition  Commission  acts  as  the 
decision-making body. However, the latter was not functional for most of the reporting period, as 
its mandate expired in June 2021, and its members have only been appointed in June 2022. Some 
progress  was  made  by  strengthening  cooperation  between  the  Kosovo  Competition  Authority 

87 

 
 
and  certain  sector  regulators.  A  Memorandum  of  Understanding  was  signed  with  the  Tax 
Administration  and  training  sessions  were  organised  with  the  Central  Bank,  the  Energy 
Regulatory Office and the Regulatory Authority for Electronic and Postal Communications.  

In  its  capacity  to  enforce  competition,  Kosovo  needs  to  improve  enforcement  by  imposing 
fines or remedies following decisions taken by the competition authority. The disruption in the 
functioning of the Kosovo Competition Commission led to a piling-up of unresolved cases.  

As  regards  implementation,  in  2021  the  Kosovo  Competition  Authority  has  not  issued  any 
decision,  recommendation  or  professional  opinion  due 
the  non-functional  Kosovo 
Competition  Commission.  To  date,  the  Authority  has  not  carried  out  any  dawn  raids  and  the 
leniency programme has never been used.  The Authority has  conducted a  Market  Study of the 
Banking and Financial Services sector.  

to 

Some  training  for  judges  and  prosecutors  on  essential  aspects  of  competition  law  has  started 
during the reporting period. As delays and contradictory judgments in  different  court instances 
persist,  raising  awareness  among  judges  on  enforcement  in  the  area  of  competition  remains 
crucial.  

State aid  

The legislative framework on State aid is broadly aligned with the EU acquis. The Regulation 
on Services of General Economic Interest was adopted in September 2021. The draft Regulation 
on  Horizontal  Aid  including  the  Block  Exemptions  and  Regional  Aid  is  not  yet    adopted.  The 
draft Law on State Aid was further amended, but its adoption is delayed. 

On the institutional framework, the State Aid Department of the Ministry of Finance assesses 
proposals for State aid, drafts assessment reports for the State Aid Commission and updates the 
State  aid  inventory.  The  State  Aid  Commission  is  the  decision-making  body  in  this  area. 
However, as it has been lacking a quorum since mid-September 2021, it has lost the capacity to 
enforce  State  aid  rules  during  most  of  the  reporting  period.  The  remaining  mandates  in  the 
Commission  expired  in  March  2022.  The  Assembly  has  failed  to  appoint  the  new  State  Aid 
Commission. 

As regards implementation, only four decisions were adopted, due to lack of quorum; one led to 
formal  investigations,  two  decisions  were  assessed  as  not  constituting  State  aid  and  the  fourth 
was  on  the  interest  rate  for  discount  and  recovery  of  State  aid.  The  State  Aid  Department  has 
received 12 notifications of possible state aid measures, of which 10 are still under evaluation. 
The work on State aid inventory continues as four potential State aid schemes are being aligned, 
one related to the energy sector and three to economic zones. The regional map of State aid in 
Kosovo  for  the  period  2021-2026  was  reviewed  by  the  European  Commission  during  the 
reporting period.  

Liberalisation   

Public undertakings in Kosovo are subject to the Law on Competition and the Law on State Aid. 
Kosovo has monopolies of a commercial nature within the meaning of Article 37 TFEU. There 
needs to be raised awareness to apply State aid rules to the activities  of central institutions and 
publicly owned enterprises.  

Chapter 9 - Financial services  

88 

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

Kosovo  is  moderately  prepared  in  the  area  of  financial  services.  Some  progress  was  made 
regarding  the  functioning  of  the  Supervisory  Board  of  the  Central  Bank  and  in  addressing  the 
issue  of  uninsured  and  unregistered  vehicles.  As  recommendations  in  the  previous  report  have 
not been fully addressed, in the coming year Kosovo should in particular:  

  continue to implement the roadmap for implementation of Solvency II measures and enhance 

the supervisory role on the insurance sector; 

  further  advance  in  implementation  of  the  Basel  III  framework  and  adopt  amendments  to 
Kosovo's  legal  framework  governing  microfinance  institutions  and  non-bank  financial 
institutions, in accordance with best practices; 

On banks and financial conglomerates, the Central Bank of Kosovo continued to harmonise its 
legal  framework  with  Basel  III  requirements  on  capital  and  risk  management.  The  financial 
sector remains resilient despite global economic challenges due to the high capitalisation levels 
of the predominantly foreign-owned banking sector. Overall, banks’ capitalisation ratio remained 
stable and well above the required minimum capital adequacy ratio of 12%. Although credit risk 
remains contained, focus should be paid to evaluating risks from the rapid credit expansion in the 
household segment in particular mortgage lending. During the reporting period, the Central Bank 
rolled over the existing EUR 100 million re-purchasing line of credit from the European Central 
Bank  to  maintain  bank  liquidity  buffers  against  any  possible  shocks  until  2023.  To  safeguard 
banks’ capital position, dividend payments were suspended in 2020. That measure was lifted in 
October 2021 

The  Bank’s  Supervisory  Governing  Board  was  rendered  operational  once  again  by  the 
appointment  of  two  new  members,  allowing  for  the  reestablishment  of  a  quorum.  A  fifth  non-
executive  member  was  later  appointed  to  enhance  the  board’s  functioning.  More  efforts  are 
needed to ensure that principles of transparency and merit-based selection processes apply. Any 
political influence on the appointments within the Bank undermines the confidence of the public 
in this service.  

Kosovo has not  yet established an independent recovery and resolution authority. Amendments 
to the Law on banks, to assign this function to the Central Bank, must ensure that the authority 
has functional independence. The Central Bank is working on updating regulations to harmonise 
them  with  BRRD  I  and  II,  which  have  not  yet  been  fully  transposed.  The  Kosovo  Deposit 
Insurance Fund (DIFK) has set up the working group on amending the Law on deposit guarantee. 
Amendments  to this  law should seek to  approximate the Deposit  Guarantee Scheme Directive. 
Gaps in the legislation on micro-finance and non-bank financial institutions should be addressed 
to  ensure  alignment  with  international  best  practices.  The  Central  Bank  must  ensure  that 
consumers are adequately protected to prevent unfair banking practices.  

Kosovo  continued  to  implement  Solvency  I  measures  and  has  developed  and  started  gradual 
implementation  of  a  5-year  roadmap  on  implementation  of  Solvency  II  measures.  Regarding 
Insurance and Occupational  Pensions, the Central  Bank  should enhance the supervisory  and 
surveillance  role  in  the  insurance  industry.  Despite  the  opinion  presented  by  the  Kosovo 
Competition  Authority,  the  prices  on  the  compulsory  motor  liability  insurance  market  remain 

89 

 
 
fixed. The Motor Third Party Liabilities price liberalisation process has yet to commence. Any 
liberalisation should be done in a gradual and phased manner to avoid disruption to the market.  

Progress has been made on the the issue of  uninsured and unregistered vehicles. Authorities 
have started a one-year  plan for the application  of window stickers on registered vehicles, that 
aims  to  facilitate  the  identification  of  non-registered  vehicles.  Due  to  the  high  number  of 
unregistered  vehicles,  Kosovo  is  the  only  country  in  Europe  that  is  not  part  of  the  green  card 
system  which  addresses  the  issue  of  cross-border  motor  accidents.  As  a  result,  insurance  is 
required for foreign-registered vehicles entering Kosovo and vehicles with Kosovo plates leaving 
Kosovo. This continues to represent a financial burden for travellers.  

No further progress was made with the adoption and operationalisation of the manual on the on-
site supervision of pension funds; further alignment with the EU acquis is needed. 

On  securities  markets  and  investment  services,  most  activity  centres  on  the  market  for 
government bonds, which are auctioned by the Central Bank. The Regulation on the repurchase 
of securities with the Central Bank enables securities trading between commercial banks on the 
secondary market. It aims to help eligible banks to manage their liquidity efficiently in the short 
term. 

Chapter 28 - Consumer and Health Protection  

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

Kosovo  is  at  an  early  stage  of  preparation  in  this  area.  There  was  limited  progress  overall, 
with  some  progress  on  consumer  protection,  and  the  government’s  recognition  of  independent 
consumer rights organisations. Kosovo made significant progress in improving surveillance, case 
investigation, contact tracing, case management and vaccination during the COVID-19 pandemic 
and  achieved  compliance  with  the  EU  Digital  COVID  Certificate.  However,  last  year’s 
recommendations were not fully addressed, so they remain valid.  

In the coming year, Kosovo should:  

  amend  the  law  on  consumer  protection  to  remove  problematic  articles  and  increase 
awareness  on  consumers’  rights  and  traders’  obligations,  particularly  regarding  online 
buying;  

  increase human and financial resources necessary to implement health sector reforms and to 
strengthen  the  health  care  system  including  further  roll-out  of  the  electronic  public  health 
information system, notably for Roma and Ashkali communities;  

  ensure  the  rigorous  implementation  of  tobacco  control  in  line  with  the  relevant  EU  acquis 

and international obligations. 

Consumer protection  

Regarding the  legislative framework for consumer protection, Kosovo’s legislation is  partly 
aligned  with  the  EU  acquis  on  consumer  protection,  and  adopted  a  consumer  protection 
programme for the period 2021-2025. It is not aligned with the EU  acquis on mortgage credit, 

90 

 
 
alternative  consumer  dispute  resolution,  better  enforcement,  modernisation  of  consumer 
protection rules, or the EU acquis on consumer rights, unfair commercial practices and package 
travel. Kosovo still requires products to be labelled with the flag of the country of origin, which 
is not in line with the EU acquis.  

Enforcement  of  consumer  rights  protection  remains  limited,  pending  a  reform  of  the  market 
inspectorate. An integrated platform to harmonise the complaints process remains to be created. 
The Division of Appeals of the Financial Services Users within the Central Bank handles most of 
the complaints regarding financial services.   

Regarding  product  safety  related  issues,  Kosovo  adopted  a  law  on  general  inspections  that 
increased  the  market  inspectorate’s  responsibilities  and  completed  the  unification  of  non-food 
product  inspection  rules.  The  law  on  general  product  safety  has  not  yet  been  adopted.  In  the 
reporting period, 361 product safety inspections were conducted with 5 cases of harmful goods 
confiscated  (366  market  general  surveillance  inspections  seizing  harmful  goods  in  3  cases  and 
711 inspections). 

As regards non-safety issues, the law on consumer protection addresses consumers’ economic 
interests,  but  it  cannot  be  properly  enforced  pending  reform  of  the  market  inspectorate.  The 
weakness of consumer rights organisations remains a challenge.  

Public Health  

During the reporting period, health authorities in Kosovo continued to focus on the management 
of  the  COVID-19  pandemic.  While  it  put  Kosovo’s  health  system  under  significant  strain, 
significant  progress  was  made  on  surveillance,  case  investigation,  contact  tracing  and  case 
management.  Thanks  to  a  well-organised  vaccination  campaign,  Kosovo  achieved  a  relatively 
high vaccination rate, even though it did not reach the goal defined by the National Deployment 
and  Vaccination  Plan.  New  facilities  and  equipment  were  established  in  Pristina  and  regional 
centres to support efforts of the Ministry of Health to manage the pandemic.  

Alongside  all  the  other  Western  Balkans,  Kosovo  is  a  member  of  the  EU  Joint  Procurement 
Agreement on medical counter measures, and an observer in the EU Health Security Committee. 
Kosovo  provides  information  to  the  Commission’s  data  collection  system  on  COVID-19  and 
regularly  reports  to  the  European  Centre  for  Disease  Prevention  and  Control  (ECDC)  on 
COVID-15 and, since 2015, on several other communicable diseases. By June 2022 EU Member 
States  provided  over  400  000  COVID-19  vaccine  doses  to  Kosovo,  and  the  COVAX  facility, 
which  receives  significant  EU  funding,  provided  over  2  million  doses  free  of  charge.  Kosovo 
achieved compliance with the EU Digital COVID Certificate. 

On public health policy, the quality of healthcare remains of concern. There was no progress on 
the introduction of a universal health coverage scheme, and public health information system is 
still  not  functional.  Although  several  dozen  doctors  and  over  200  nurses  were  hired,  health 
workers continue to emigrate, which has a detrimental impact on the health system. New laws on 
health and on health insurance were adopted on 19 Aril 2022, along with other health sector. The 
2022  health  budget  decreased  by  14.6%,  compared  to  2021,  though  the  primary  healthcare 
budget  was 1.5% higher than 2020, and the budget  for hospital and university clinical services 
(129.7 million EUR) was 10 % higher than 2021.  

There was no progress  on the  health sector strategy. While access  to  basic healthcare is  free, 
spending  on  diagnostic  services  and  medications  is  not  reimbursed  and  around  20  %  of  the 

91 

 
 
population have very limited access to healthcare. The high out-of-pocket cost of health (about 
40% of total medical costs) limits access for vulnerable groups, only about 65% of annual public 
health needs are covered by public spending, mostly on fixed costs. Kosovo still does not have a 
reliable methodology in place as to estimate medical expenses. On mental health there were no 
notable developments in the reporting period with services continuing to be integrated services. 
The  comprehensive  law  on  tobacco  control  (in  force  since  2013)  is  not  enforced,  due  to  both 
lack of political will and failure by enforcement authorities to apply the rules.  

The  legislation  on  blood,  tissues,  cells  and  organs  and  on  patients’  rights  in  cross-border 
healthcare is partly aligned with the EU acquis. In December 2021, the Assembly adopted the 
new  law  on  blood  and  blood  components,  which  is  partly  aligned  with  the  EU  acquis, 
predominantly on the quality and safety standards during the collection, testing, processing and 
distribution of blood and blood components. On serious cross-border health threats, including 
communicable diseases, immunisation coverage remains high, with mandatory vaccination rates 
between 87-89% reported among school-age children. Kosovo is still developing an action plan 
to address recommendations from the 2018 European Centre for Disease Prevention and Control 
technical  assessment  report.    Legislation  on  patients’  rights  in  cross-border  healthcare  is 
partially aligned with the acquis. For specialised health services that are not available in Kosovo, 
patients  can  benefit  from  the  health  insurance  fund  for  health  services  in  several  neighbouring 
countries, but the available funding only covers 45% of the needs. 

Kosovo has an e-health information system, based on the European core health indicators, that 
enables  virtual  communication  between  users/patients  and  general  practitioners,  provides 
counselling services, and captures data on patient admissions, discharges and transfers. However, 
it is not used by all health institutions and further functionalities (covering pathology, radiology, 
blood transfusion, vaccination and other interventions) remain to be added.  

The revised cancer-screening programme is  not yet  prepared. The number of women screened 
for cervical cancer is low.  

There has been no progress with the implementation of the health promotion action plan, or the 
strategic plans on mother and child healthcare. The prevention of non-communicable diseases 
remains  weak.  Kosovo  has  not  made  any  progress  in  adopting  the  nutrition  action  plan  on 
nutrition  and  physical activity.  Legislation  of  medicines  for  human  use  and  medicines  for 
veterinary use are partially aligned with the EU acquis. The list of essential medicines for which 
the costs are covered by the government needs to be updated. The supply of medicines from the 
essential list for primary healthcare, procured by the Ministry of Health, has improved in 2021-
2022.  Currently,  the  level  of  coverage  for  drugs  from  the  essential  list  is  75%  and  for 
consumables in primary healthcare is 90%.  

As regards health care inequalities, access to quality health care services for children remains a 
concern - there has been no improvement of the neonatal, infant and child mortality rates, which 
are  three  times  the  EU  average,  the  highest  in  the  region.  The  situation  of  children  in  Roma, 
Ashkali  and  Egyptian  communities  is  of  particular  concern  -  only  38%  of  children  in  these 
communities have been fully vaccinated. 

92 

 
 
 
CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH 

Kosovo  is  moderately  prepared  in  the  area  of  customs,  as  well  as  on  entreprise  and  industrial 
policy. It has some level of preparation in the area of taxation, digital transformation and media, 
as well as social policy and employment, and is at an early stage of preparation in the areas of 
science and research, and in the field of education and culture. During the reporting period, some 
progress was achieved in most areas of this cluster, but only limited progress on research. 

Chapter 10 – Digital transformation and media 

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

Kosovo  has  some  level  of  preparation  in  the  area  of  digital  transformation  and  media.  There 
was  some  progress  with  further  aligning  the  legislative  framework  with  the  acquis  and  with 
implementation.  Kosovo  advanced  with  the  implementation  of  the  Digital  Agenda  2013-2021 
and  the  Regional  Roaming  Agreement,  providing  consumers  with  roaming  free  services  as  of 
July  2021.  A  sustainable  solution  for  the  funding  of  the  public  broadcaster  and  ensuring  its 
editorial  independence  still  needs  to  be  found.  The  draft  e-government  strategy  has  not  been 
approved,  as  it  is  still  under  the  revision  of  the  Strategic  Planning  Office.  The  budgetary 
resources for cyber security remain insufficient. The process of digital switchover from analogue 
to digital television has not advanced.  

Last report’s recommendations were mostly not addressed and remain valid. In the coming year, 
Kosovo should in particular: 

  conclude 

the  alignment  of  Kosovo’s 

the  European  Electronic 
Communications  Code,  the  EU  Network  and  Information  Security  Directive  and  the  EU’s 
Toolbox for 5G cybersecurity, and revise the Law on the Independent Media Commission in 
line with the Audio-visual Media Service Directive; 

legislation  with 

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

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

competition. 

As  regards  electronic  communications  and  information  and  communication  technologies 
(ICT), the existing resources of the Electronic and Postal Communications Regulatory Authority 
remain  limited  and  not  proportional  to  their  responsibilities.  According  to  the  Kosovo  Agency 
for  Statistics,  in  2021,  96.1%  of  households  had  access  to  the  Internet  (compared  to  96.4%  in 
2020),  94  %  access  the  Internet  through  fixed  connections  (compared  to  95.1%  in  2020)  and 
62.3% through mobile connections (up from  54.7% in  2020). In 2021, the share of individuals 
purchasing  or  ordering  goods  and  services  online  (within  the  last  three  months)  was  23.1%, 
compared to 35.4% 2020.  

The authorities should ensure that markets are genuinely competitive including through number 
portability,  without  which  numbering  resources  cannot  be  used  effectively.  On  broadband, 
Kosovo has made some progress. In November 2021, the Assembly adopted a law on measures 
to  reduce  the  cost  of  deploying  high-speed  electronic  communications  networks,  aligning  it  to 

93 

 
 
the  EU  Broadband  Cost  Reduction  Directive.  Further  efforts  are  needed  for  alignment  to  the 
European  Electronic  Communications  Code 
to  provide  electronic 
communications networks and services. Kosovo 2030 Digital Agenda has not been finalised yet.  

to  ensure  freedom 

Kosovo made progress  in the area of  digital transformation  with  the adoption of the  Law on 
Electronic Identification and Trust Services for Electronic Transactions in December 2021. This 
law  aligns  Kosovo’s  legislation  to  the  EU  Electronic  Identification,  Authentication  and  Trust 
Services  Regulation.  The  Law  on  Network  Security  Measures  and  Information  Systems  is  not 
adopted.  The  e-government  portal  is  operational;  the  platform  offers  over  30  fully  digitalised 
services. (see also Public Administration Reform). 

Kosovo  developed  basic  capabilities  in  cybersecurity.  However,  it  lacks  a  comprehensive 
legislative  framework,  operational  mechanisms,  technical  capacities  and  human  resources  to 
effectively operate in cyberspace context. A Law on Cybersecurity and the Strategy and Action 
Plan on Cybersecurity remain to be adopted. 

On audio-visual policy, the amendment of the Law on Independent Media Commission (IMC) is 
not yet finalized. This process should be conducted in an inclusive and transparent manner, with 
meaningful  consultation  with  key  stakeholders.  The  IMC  failed  to  make  any  progress  on  the 
digital  switchover  to  align  with  EU  standards.  Currently,  the  IMC  lacks  adequate  staffing  and 
resources  to  exercise  its  powers  independently.  It  should  also  ensure  it  is  transparent  and 
inclusive in its decision-making, including through more consistent public consultation.  In part 
due to  a lack of information on media ownership and the distribution of advertising  funds, the 
IMC  does  not  impose  effective  sanctions  on  broadcasters  and  no  significant  enforcement 
interventions  were  undertaken.  The  current  Law  on  the  IMC  provides  broadly  for  sufficient 
regulatory, enforcement  and monitoring powers to ensure pluralism  and competitiveness  in  the 
market. However, the amendment of the Law on the IMC, which is currently under way, should 
further  align  the  Law  with  the  Audio-visual  Media  Service  Directive  to  extend  its  powers  to 
online  audio-visual  media.  The  Assembly  finalised  the  selection  of  the  Commission  Board 
members and the board is fully staffed for the first time in several years. Civil society assessed 
the selection process as open and merit-based. 

A review of the current Law on Radio Television of Kosovo (RTK) was launched in 2019 but 
the  process  is  slow.  The  new  draft  law  includes  a  realistic  and  sustainable  funding  model  for 
RTK.  The  Assembly  dismissed  the  RTK  board  in  July  2021,  citing  the  RTK’s  management 
refusal  to  be  audited,  and  its  failure  to  comply  with  procurement  procedures  and  compile  a 
legally  required  long-term  strategy.  At  the  end  of  2021,  the  new  RTK  board  was  elected  in  a 
process  that  was  considered  as  open,  transparent  and  merit-based.  The  Board  has  in  the 
meantime  dismissed  the  General  Director  and  few  of  the  key  management  positions,  due  to 
alleged mismanagement and has appointed new General Director of this institution. The board is 
currently undertaking changes in the RTK in order to make it more efficient in offering services 
to the public. 

Chapter 16 - Taxation  

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

94 

 
 
Kosovo has some level of preparation in the area of taxation. There was some progress with 
implementation  of  risk-based  tax  inspections  on  some  high-risk  sectors.  In  June  2022,  the 
Assembly adopted the amendments to the law on excise on tobacco. 

The  recommendations  in  the  previous  report  have  not  been  fully  addressed.  In  the  coming 
year, Kosovo should in particular: 

  pursue  further  alignment  of  tax  legislation  including  the  personal  income  tax  (PIT),  and 

value added tax (VAT) with the EU acquis;  

  ensure  more  systematic 

tax  audits  and  continue 
implementation  of  risk-based 
implementing  the  strategy  for  combating  the  informal  economy,  money  laundering, 
financing of terrorism and financial crime (2019-2023); 

  increase  cooperation  with  law  enforcement  and  judicial  institutions  to  ensure  timely 

adjudication of tax evasion and fraud cases, with emphasis on high-risk sectors. 

Good progress was made during the reporting period with regard to tax collection, with overall 
revenue for fiscal  year 2021 was 19% higher than in  2020. Total  tax collected for the  first  six 
months  of  2022  are  higher  by  16%  compared  to  same  period  in  2021.  This  is  due  to  robust 
economic activity following the easing of the COVID-19 pandemic restrictions and improved tax 
compliance but offset by high inflation rates.  

On indirect taxation, the VAT system is broadly aligned with the EU acquis. Kosovo applies a 
standard 18% rate and a reduced 8% rate. The Law on VAT needs to be further harmonised with 
the  EU  acquis.  The  legal  framework  and  procedures  on  e-commerce  taxation  need  to  be 
established Kosovo has reduced the average time of VAT refunds to 19 days, down from the 30-
day legal maximum.  The law on excise on tobacco products was amended, changing the basis 
for  calculating  excise  taxation  in  tobacco  products  and  increasing  monitoring  measures.  The 
price  remains  relatively  low  compared  to  the  EU,  although  the  government  continues  to 
progressively raise excise on tobacco to align it to EU  levels. The authorities should develop a 
plan  for  the  tax  treatment  of  material  loss  during  the  transportation,  production  or  storage  of 
excise goods.  

On  direct  taxation,  no  progress  was  made  on  amending  the  Law  on  personal  income  tax  to 
remove contradictory provisions and further align it with EU acquis.  

On administrative  cooperation and mutual assistance, Kosovo has not  been able to  join the 
inclusive framework of the OECD Base Erosion and Profit Shifting (BEPS) due to recognition 
issues. However, in relation to double taxation agreements, Kosovo has introduced some of the 
minimum  standards  of  OECD  BEPS  such  as  implementation  of  BEPS  measures  on  transfer 
pricing during the reporting period. Kosovo should consider adopting the standards enshrined in 
the OECD-Council of Europe Convention on Mutual Administrative Assistance in Tax Matters.  
A preliminary legal initiative has been launched to enable automatic exchange financial account 
information  with  other  jurisdictions.  Kosovo  currently  has  double  taxation  treaties  in 
application  with  Albania,  Austria,  Croatia,  Luxembourg,  Hungary,  Saudi  Arabia,  Malta,  North 
Macedonia, Slovenia, Switzerland, Türkiye, the United Arab Emirates, and the United Kingdom. 
Treaties with Germany, Finland and Belgium from the time of the former Yugoslavia remain in 
application. During the reporting period, an additional treaty with Latvia entered into force.  

95 

 
 
On operational capacity and computerisation, the Kosovo Tax Administration has developed 
a  good  service  quality,  in  particular  with  the  widespread  use  of  e-filing  and  e-payment.  The 
improved  and  simplified  e-solutions  have  supported  swift  tax-filing  processes  during  the 
COVID-19  pandemic.  In  terms  of  streamlining  and  improving  its  service  delivery,  the  tax 
administration needs to adopt a new organisational structure and further strengthen professional 
capacities, especially in the tax inspection/audit area.  

The tax administration has adopted a four-year strategic plan to  improve tax collection, reduce 
the tax gap, and improve its institutional capacity which is currently being implemented. During 
the  reporting  period,  the  tax  administration  intensified  its  actions  on  risk-based  approach  tax 
compliance. Despite higher revenues registered from tax audit processes, Kosovo still needs to 
strengthen enforcement of the risk-based approach on tax inspection/audit processes, particularly 
on  regional  level.  Data  quality  and  exchange  of  data  across  different  agencies  for  the 
administration of taxes  remain a challenge.  Between 2021  and March 2022, tax evasion  to  the 
value  of  around  EUR  3  million  was  detected,  compared  to  EUR  7  million  during  same  period 
2020-2021.  The  volume  of  tax  evasion  detected  can  varies  greatly  from  year  to  year  due  to 
individual  cases.  Further  efforts  are  needed,  in  particular  on  risk-based  field  inspections  and 
inter-institutional  cooperation.  As  domestic  revenue  mobilisation  is  relatively  low,  Kosovo 
should review its tax policy and intensify efforts to broaden the tax base by further formalisation 
of the economy.  

Chapter 17 - Economic and monetary policy 

EU  rules  require  the  independence  of  central  banks  and  prohibit  them  from  directly  financing 
the public sector. EU Member States coordinate their economic policies and are subject to fiscal, 
economic and financial surveillance. 

Kosovo  is  moderately  prepared  in  the  area  of  economic  and  monetary  policy.  Some 
progress was made with some data collection and transmission to Eurostat, however, further 
efforts are needed to address the methodological inconsistencies on national accounts. In the 
coming year, Kosovo should in particular: 

  increase  reporting  capacities  for  governmental  financial  statistics  according  to  the  EU 

(ESA 2010) and ensure regular monitoring of standards; 

  develop  new  draft  law  on  public  finance  management  and  accountability  addressing 
current regulatory weaknesses for an effective public finance management (PFM) system, 
while ensuring coherence with the reform priorities in the new PFM strategy 2022-2026. 

  improve  the  quality  of  macroeconomic  forecast  in  the  budgetary  process  and  advance 

work on the establishment of an independent body for fiscal oversight. 

Kosovo does not have an independent  monetary policy with standard monetary policy tools at 
its disposal, as it uses the euro as legal tender, leaving fiscal policy as the main macroeconomic 
policy  instrument.  Kosovo`s  use  of  the  euro,  which  was  decided  by  the  authorities  under 
exceptional circumstances, is fully distinct from membership of the euro area. 

The Central Bank of Kosovo is Kosovo’s sole authority to foster and maintain the stability of the 
financial system and to contribute to maintaining price stability. The Law on the Central Bank of 
Kosovo and the Kosovo Constitution establishes the functional and institutional independence of 
the  Central  Bank.  The  Law  on  the  Central  Bank  provides  independence  and  prohibits  the 

96 

 
 
decision-making  bodies  of  the  Central  Bank  on  giving  and  receiving  instructions  and  seeking 
influence by the public authorities. The Assembly of Kosovo appoints members of the Board of the 
Bank based on their merits, professionalism, and ability to carry on their tasks in an independent 
manner  and  free  from  political  interference.  The  Bank  still  needs  to  implement  reforms  with 
regard  to  its  corporate  governance  structure  in  order  to  improve  its  accountability  and 
transparency in the longer-term.  

The  Bank’s  Supervisory  Governing  Board  was  rendered  operational  once  again  by  the 
appointment  of  two  new  members,  allowing  for  the  reestablishment  of  a  quorum.  A  fifth  non-
executive member was later appointed to enhance the functioning of the board. The principles of 
transparency and merit-based selection processes are important for the integrity of the institution 
and any political  influence on the appointments within the Bank undermines the confidence of 
the public in this institution. The Central Bank needs to ensure that its core functions, including 
financial stability and banking supervision, are adequately staffed. Amendments to the Law on 
the Central Bank are required to ensure alignment with EU legislation. According to the Law on 
the Central Bank, monetary financing of the public sector is prohibited and the public sector does 
not have privileged access to financial institutions.  

On  economic  policy,  further  alignment  with  the  EU  Directive  on  requirements  for  budgetary 
frameworks is needed. Fiscal rules are well entrenched in the legislation, however, further effort 
is  required  for  compliance  with  the  legislated  fiscal  rules,  particularly  in  relation  to  the  fiscal 
ceiling  provisioned  for  in  the  Law  on  war  veteran  pensions.  To  address  the  pandemic-related 
budgetary shocks, in 2020 the budget deficit rule was relaxed for a 3-year term and is envisaged 
to be reinstated for 2023 budget. Kosovo has made some progress in terms of conducting fiscal 
risk  assessments  for  high-risk  publicly  owned  enterprises  (POE).  However  there  are  still 
shortcomings  in  this  area  and  more  efforts  are  needed  to  improve  the  quality  and  exchange  of 
financial  data  of  POEs,  expand  the  fiscal  risk  assessment  and  to  strengthen  institutional 
capacities  to  carry  out  financial  oversight.  Kosovo  has  yet  to  establish  an  independent  fiscal 
council,  but  authorities  have  produced  an  options  paper  on  the  establishment  of  such  a  body. 
Since  the  Law  on  public  finance  management  and  accountability  is  being  amended,  before  its 
adoption, legal provisions around the independent fiscal council should be incorporated into the 
amended law to pave the way for the establishment of such a council in the future. Kosovo is at 
the early stages of introduction of the programme-based budgeting. Some steps have been taken 
with  the  endorsement  of  a  new  overarching  strategic  management  framework,  which  aims  at 
better  linking  the  medium-term  policy  with  budget  planning  processes.  However,  authorities 
need  to  ensure  strong  political  will  and  inter-institutional  cooperation  to  transform  the  budget 
into a policy-planning tool and strengthen the medium-term budgetary framework. 

Kosovo has made slight improvements with  regard to  the further  alignment  with  the European 
System of Accounts 2010. The Kosovo Statistics Agency compiles annual and quarterly national 
accounts  and  has  managed  to  shorten  the  period  of  time  it  takes  to  produce  these  accounts, 
however  methodological  inconsistencies  need  to  be  addressed.  Fiscal  notifications  are  not 
available  yet.  The  alignment  of  fiscal  reporting  with  the  European  system  of  national  and 
regional accounts (ESA 2010) is  at  an initial  stage  and needs further improvement. During the 
reporting period, Kosovo took some steps with regard to the transmission to the Eurostat partial 
compilation of the excessive deficit procedure tables for the years 2017-2019. 

The  2022-2024  Economic  Reform  Programme  (ERP)  was  submitted  on  time.  The 
macroeconomic and fiscal framework is subject to high levels of uncertainties. The ERP projects 

97 

 
 
real  GDP  to  grow by 7.8% in  2022, well above the historic trend and not  accounting  for risks 
stemming  from  high  energy  and  food  prices,  which  had  been  on  the  rise  already  before  the 
outbreak of Russia’s invasion of Ukraine. The structural reforms represent the government plan 
to  boost  economic  recovery  in  the  medium-term.  However,  implementation  of  the  structural 
measures  have  often  been  delayed  and  improvements  have  not  materialized.  Similarly,  further 
efforts  are  needed  to  improve  macro-fiscal  forecasts  underpinning  the  budget  and  the  linkage 
between  the  macro-fiscal  framework  and  the  structural  reform  planning  (see  section  2.3 
Economic Criteria).  

Chapter 19 - Social policy and employment 

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

Kosovo is at an early stage of preparation in the area of  social policy and employment. Some 
progress  was  made  during  the  reporting  period,  in  particular  on  the  preparations  for 
implementation of the Youth Guarantee and in securing funding for social services. The rate of 
fatal occupational incidents remains concerningly high.   

Last  year’s  recommendations  were  partially  implemented  and  remain  valid.  In  the  coming 
period, Kosovo should in particular: 

  ensure  implementation  of  the  Youth  Guarantee  Implementation  Plan  to  prepare  for  the 
piloting  of  the  scheme;  adopt  the  new  Law  on  Labour  in  line  with  relevant  EU  acquis,  in 
particular in relation to non-discrimination in employment and parental leave;  

  intensify inspections in work sectors with higher risk,  and enforce rules on health and safety 

at work to ensure a decrease in workplace accidents; 

  pursue  thorough  reforms  in  the  area  of  the  social  assistance  schemes  to  ensure  better 
targeting and impact on poverty and improve delivery of social services in municipalities.  

Kosovo is working on a new Law on Labour to ensure further alignment with the EU acquis, 
including with the EU Directive on Work Life Balance. The new draft law includes provisions 
on  the  labour  inspectorate  and  the  Social  and  Economic  Council;  both  are  currently  regulated 
through separate laws.  

During the reporting period, Kosovo has continued to revise legislation on Health and Safety at 
Work,  to  ensure  further  alignment  with  the  acquis.  Implementation  of  this  law  remains  a 
concern, particularly in the private sector. The Law on Health  Insurance providing for the right 
and obligation to  have  mandatory  basic package  health insurance for all  citizens,  has not  been 
implemented.  The  Labour  Inspectorate  has  intensified  inspections,  but  with  limited  impact  on 
prevention of accidents.  

On  social  dialogue,  Kosovo  is  updating  legislation  on  the  Socio-Economic  Council  that  now 
constitutes an integral part of the new draft Law on Labour. During 2021, the Council held two 
meetings  to  discuss  a  new  Collective  Agreement  and  the  increase  of  the  minimum  wage. 
Regarding the latter, on 14th June 2022 the Assembly approved in the first reading an increase in 
the minimum wage at EUR 264 (from EUR 170). This is the first time that the minimum wage 
has increased since 2011.   

98 

 
 
The  capacity  of  social  partners  remains  limited.  Kosovo  needs  to  engage  more  in  tripartite, 
dialogue and authorities should support trade unions to increase their capacities. 

On employment policy, Kosovo is drafting a new Sectoral Strategy covering a five-year period. 
The last sectoral strategy (2018-2020), albeit with modest targets, had a very low implementation 
rate.  

Kosovo  continues  to  face  structural  labour  market  challenges  stemming  from  the  skills 
mismatch, the rapid growth of the working-age population and job creation, and the persistently 
low participation of women and generally precarious employment opportunities (fewer than half 
of employees have permanent work contracts). 

The  overall  activity  rate  stood  at  37.7%  in  Q2  2021,  a  slight  decrease  compared  to    38.3%  in 
2020. Unemployment rates in Q2 2021 were 20.5% (25.9% in 2020). The rates are higher among 
women,  22.1%  (32.3%  in  2020),  than  among  men,  19.9%  (23.5%  in  2020).  Some  44%  of 
employees  had  long-term  contracts  (42.3%  2020),  while  56%  worked  under  temporary  ones 
(57.7% in 2020). The indicators that still give rise to most concerns are the high inactivity rate, 
62.3%  (61.7%  in  2020)  and  youth  unemployment  38.9%  (49.1%  in  2020).  Unemployment  is 
even higher (over 90%) in the Roma and Ashkali communities. Members of these communities 
usually work in the informal sector, holding insecure, low-skilled and low-status jobs and few of 
them are registered as unemployed.  

Youth  unemployment  remains  high  (38.9%),  particularly  among  women.  Demographic 
pressures,  joblessness  growth  pattern,  a  propensity  towards  emigration  and  poor  education  are 
key factors in the precarious position of young people. A recent mapping shows that since 2018 
there  have  been  remarkable  shifts  in  the  categories  of  young  people  not  in  employment, 
education  or  training,  as  regards  educational  attainment.  The  rates  for  those  with  primary 
education  had  levelled  at  below  30%,  the  rates  of  secondary  educated  youth  increased,  at  a 
moderate pace, to just over 40%, while the rates for university educated young people increased 
from around 30% to over 50%.  

Kosovo  has  taken  steps  to  prepare  for  the  implementation  the  Youth  Guarantee  Scheme. 
Currently authorities are working to ensure conditions for piloting the Youth Guarantee, such as 
amending  five  pieces  of  legislation,  restructuring  the  key  delivery  mechanisms  (public 
employment services), and fast-tracking some long-due reforms in vocational education training. 

The  restructuring  of  the  Employment  Agency  is  underway  and  planned  to  be  finalised  by  the 
end of 2023. Yet, there is a long list of necessary actions to be able to deliver as per the youth 
guarantee implementation plan; most notably, they need to increase the portfolio of services and 
active  labour  market  measures,  and  to  cater  for  a  larger  number  of  jobseekers.  The  public 
employment  services  need  to  vastly  improve  their  management  and  operational  procedures,  as 
well  as  data  management.  They  should  also  upgrade  the  labour  market  information  system  to 
support evidence-based policy making and planning. Further improvements are needed also in its 
operational capacity, particularly on monitoring, evaluation, as well as employment counselling, 
prioritising women, youth and long-term unemployed.  

There  were  no  developments  as  regards  preparations  for  the  European  Social  Fund.  (See 
Chapter 22 - Regional policy and coordination of structural instruments). 

On social inclusion and protection, Kosovo’s spending on social protection amounts to 6% of 
GDP,  but  less  than  0.5%  of  GDP  is  allocated  for  the  social  assistance  scheme  as  most  of  the 

99 

 
 
amount is spent on old-age and war veterans’ pensions. Kosovo has yet to materialise its plans 
for a thorough reform of its social assistance, pension scheme and the social services. A proposal 
by the government to reform the Social Assistance Scheme for more efficient poverty targeting 
that  can  respond  to  crises  and  modify  the  equivalence  scale  to  compensate  larger  households 
failed to be ratified in the Assembly.  

Some progress was made in providing funding allocation for social services. The authorities have 
introduced amendments to the Law on Local Finances to earmark funding from the general grant 
for  municipalities,  but  these  have  yet  to  be  voted  on  in  the  Assembly.  Municipalities  should 
regardless make effort to improve service planning and delivery, data collection and integrated 
care. Care for the elderly remains a serious issue. Shelters for domestic violence remain poorly 
funded and stretched to their limits. Around 18% of Kosovo's population lives below the poverty 
line  (EUR  45  per  month  as  defined  by  the  World  Bank),  with  5.1%  percent  of  the  population 
below the extreme poverty line. Children from poor households, socially vulnerable communities 
and  those  with  special  needs  lack  equal  access  to  vital  health  and  education  services  due  to 
financial barriers.  

Children represent half of those benefiting from social assistance, but less than 10% of them are 
with special needs. Around 9% of children are involved in work, of whom 5.6% working under 
hazardous  conditions,  an  issue  being  particularly  evident  among  the  Roma  and  Ashkali 
communities. 

On  non-discrimination  in  employment  and  social  policy,  Kosovo  has  to  intensify  efforts  to 
address discrimination against women, among else by adopting implementing legislation for the 
Law  on  Protection  from  Discrimination.  The  authorities  must  address  discrimination  against 
women, particularly those belonging to non-majority communities During the reporting period, 
the Ombudsperson received 94 individual complaints on discrimination: 70 investigations were 
opened and 24 declared inadmissible. The Ombudsperson has opened four cases for investigation 
on its own-initiative. 

On  equality  between  women  and  men  in  employment  and  social  policy,  gender-based 
discrimination continued to be widespread in recruitment, promotion, pay, contract length. In Q2 
2021, the employment rate for the population aged 15-64 was 16% for women and 44% for men, 
resulting  in  a  very  high  gender  employment  gap  of  28  percentage  points.  Limited  access  to 
childcare  and  flexible  working  arrangements,  as  well  as  regulations  which  discourage  the 
recruitment  of  women  (e.g.  length  of  maternity  leave)  remain  important  barriers.  The  current 
draft Law on Labour anticipates to shift the burden of paying maternity leave from businesses to 
government,  however  it  has  yet  to  be  adopted  by  the  Assembly.  Other  challenges  faced  by 
women,  especially  in  rural  areas,  are  the  lack  of  care  for  the  elderly,  discrimination  when  it 
comes to access to property and gender-based violence.   

Chapter 20 - Enterprise and industrial policy 

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

Kosovo remains moderately prepared in this area. Some progress was made. In January 2022, 
the  Assembly  adopted  a  law  establishing  a  commercial  court  for  resolving  trade  disputes  of 
businesses  and  foreign  investors,  as  well  as  a  law  on  property  rights  of  foreign  citizens.  A 

100 

 
 
working  group on industrial  development strategy  (industrial  policy) and business  support was 
established in 2021.  

In the coming year Kosovo should: 

  adopt  and  start  implementing  a  strategy  for  industrial  development  and  business  and  the 

sustainable economic growth pillar of the National Development Strategy 2021-2030;  

  improve the capacities of the Ministry of Industry, Entrepreneurship and Trade (MIET) and 

the Kosovo Investment and Enterprise Support Agency (KIESA).  

As  regards  enterprise  and  industrial  policy,  Kosovo’s  Ministry  of  Industry  Entrepreneurship 
and  Trade  has  established  a  working  group  for  the  development  of  the  Strategy  for  Industry 
Development  and  Business  Support,  tasked  to  improve  the  business  environment  and  promote 
industrial development, as well as resource efficiency and a more circular economy. Incentives 
for the use of renewable energy sources in industry are foreseen in view of the expansion of solar 
energy in the carbon emissions policy, whose approval is expected in 2022. The government has 
launched a dialogue with stakeholders and held consultative meetings with a view to drafting the 
National  Development  Strategy  2021-2030,  where  one  of  four  pillars  relates  to  the  sustainable 
economic growth, and envisages the development of a Smart Specialisation Strategy.  

The  law  on  strategic  investments  remains  to  be  adopted  and  the  pending  applications  to  be 
recognised as strategic investor to be evaluated, which will occur in accordance with the current 
law. Although the current legislation on foreign investment foresees equal  treatment of foreign 
nationals and companies, in practice, this is not always the case (see chapter 4). The formulation 
of  a  strategy  to  reform  the  corporate  governance  of  state-owned  enterprise  has  not  yet  begun, 
even  though  part  of  the  European  Reform  Agenda,  while  state-owned  enterprises  of  strategic 
importance shall be transferred to a sovereign fund, whose concept has been set out. 

In  the  area  of  enterprise  and  industry  policy  instruments,  despite  some  positive  steps  to 
increase the administrative capacity of the Kosovo Investment and Enterprise Support Agency, 
the Agency faces organisational and capacity challenges. Further steps are needed to enable the 
agency  to  fulfil  its  objectives,  and  in  particular,  to  enable  the  implementation  of  before-  and 
after-care  services  and  programmes  and  promote  links  between  multinational  enterprises  and 
SMEs. 

Kosovo  should  establish  a  streamlined  process  to  handle  investors’  grievances  and  retain 
investments,  which  would  implement  the  principles  of  the  Systemic  Investment  Response 
Mechanism as proposed by the World Bank. Courts continue to struggle to ensure a timely and 
coherent adjudication of cases, with cases stalled for years. This situation has a negative impact 
on the productivity of local businesses and desire for foreign investors to do business in Kosovo. 
In  January  2022,  Assembly  passed  Law  establishing  the  legal  framework  for  a  Commercial 
Court. Further effort is required to ensure effective operation of the court. 

Although the legislation on foreign investment foresees equal treatment of foreign nationals and 
companies,  in  practice,  they  encounter  challenges  registering  property  rights.  To  address  this 
issue,  the  Assembly  passed  the  Law  on  property  rights  of  foreign  citizens  (EU  and  non-EU 
citizens) in January 2022.  

Some  progress  has  been  made  regarding  the  elimination  of  unnecessarily  permits  and 
reorganisation  of  licenses  on  the  e-government  platform  but  progress  on  implementation  is 

101 

 
 
needed.  Coordination  between  central  institutions  responsible  for  licenses  and  permits  remains 
limited.  Effectively  lowering  administrative  burden  contributes  to  reducing  informal  business 
activities. The action plan 2022-2023 is in force, yet the design of the new strategy has not yet 
begun. 

The lack of easily accessible and affordable credit serves as a substantial barrier to the growth of 
SMEs  in  Kosovo.  In  addition,  the  SME  and  corporate  sector  in  Kosovo  suffers  from  a  low 
capacity to prepare bankable projects due to informality in accounting practices, weak corporate 
governance  and  management  quality  in  addition  to  integrity  issues.  During  2021,  the  Kosovo 
Credit  Guarantee  Fund  (KCGF)  was  expanded  and  enabled  loans  worth  EUR  105.5  million  to 
1720  Micro-  Small  and  Medium-sized  Enterprises  (MSMEs)  in  the  sectors  of  production, 
services, agriculture and trade, including start-up firms and female owned businesses.  

Kosovo has applied to participate in the Single Market Programme (SMP), formal negotiations 
for an Association Agreement started in March 2022 and are at an advanced stage. 

On sectoral policies, the approach in policy-making is not sector-specific, resulting in the lack of 
specific sector policies and programmes.  

Chapter 25 - Science and research 

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

Kosovo  is  at  an  early  stage  of  preparation  in  the  area  of  science  and  research.  Limited 
progress  was  made  during  the  reporting  period.  Kosovo  further  improved  its  performance  in 
European Union Framework Programmes on Research and Innovation.  

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

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

  continue efforts to increase participation in the Horizon Europe programme; 

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

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

Kosovo’s  research  and  innovation  policy  remains  nascent.  It  lacks  a  strategic  approach  to 
develop,  prioritise  and  promote  research  activities.  The  Ministry  for  Education,  Science, 
Technology and Innovation (MESTI) made efforts to develop implementing instructions in line 
with  the  mentioned  laws,  but  they  are  not  yet  implemented.  The  legal  system  envisages  the  
connections  and  cooperation  between  the  academia  and  private  sector/businesses.  However,  in 
reality, both sectors remain distant. Kosovo established the National Science Council: its role is 
to  contribute  towards  the  advancement  of  the  quality  of  research  capacities  and  the 
internationalisation of the research and innovation system. 

Work is ongoing to establish a Kosovo register of researchers and to collect statistics on research 
and development, including in higher education institutions. A Smart Specialisation Strategy is 
under  development  since  2019.  A  Current  Research  Information  System  (CRIS)  is  under 

102 

 
 
development  since  2020.  It  aims  to  ensure  systematic  data  collection  with  regard  to  research, 
science  and  innovation,  that  would  be  used  to  support  the  research  information  system  as 
evidence-base for strategic decision. The final preparations are ongoing to first pilot the system 
in September 2022.  

The  sector  continues  to  be  severely  underfunded,  with  public  research  spending  amounting  to 
only 0.01% of GDP, despite a 0.7% target mandated by law. An increased budget in this area is 
key for the economic recovery, also given the relevance of innovation for the implementation of 
the  Economic  and  Investment  Plan  for  the  Western  Balkans.  The  quality  of  programmes 
preparing  postgraduates  for  research  careers  remains  unsatisfactory  (see  6.13  Education  and 
culture).  

There  was  limited  progress  on  integration  into  the  European  Research  Area  with  the 
completion of a Research Infrastructure roadmap under the guidance of the RCC.  

In  December  2021,  Kosovo  has  joined  the  Horizon  Europe  as  an  associate  member  (the 
agreement  entered  into  force  in  March  2022).  There  is  a  new  National  Contact  Point  (NCP) 
platform in place operating under new NCP regulation. MESTI has developed new incentives to 
boost the absorbtion capacities of the research entities in Kosovo, including by reimbursing the 
costs  of  each  Horizon  Europe  application  with  a  lump  sum.  A  new  Horizon  Europe  dedicated 
web  portal  provides  a  single  entry  point  for  all  participants,  including  SMEs,  and  every 
information  related  to  the  Horizon  Europe  opportunities.  In  2021  Kosovo’s  performance  in 
Horizon Europe remined limited with only two proposals receiving a total EU funding of EUR 
0.2 million. First figures for 2022 indicate already a much better performance. 

Chapter 26 - Education and culture 

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

Kosovo is at an early stage of preparation in the field of education and culture. While there has 
been  some  progress,  the  quality  of  education  needs  to  be  improved  and  key  legislation 
(including  on  pre-school  education,  higher  education  and  accreditation  agency)  should  be 
adopted by the Assembly. The COVID-19 pandemic further constrained the quality of teaching 
at all levels of education. 

As last year’s recommendations were partially implemented, in the coming year Kosovo should 
in particular: 

  systematically apply quality assurance mechanisms at all education levels, particularly in the 
pre-university  and  professional  education;  in  the  area  of  higher  education,  continue  post-
accreditation monitoring of programmes;  

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

textbooks and by providing sustainable training to teachers; 

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

in view of the Youth Guarantee.  

103 

 
 
Kosovo’s public spending on education in 2021 remained unchanged, at 4.6% of GDP (14% of 
the total  budget).  Similarly, there  were no  changes with  regard to  the structure of expenditure, 
with over 80% of the budget spent in teacher salaries, leaving very little funds for students per 
capita and for investment in quality education. Kosovo should consider a detailed assessment of 
the existing per capita allocation formulas, focusing on adequacy and equity, especially given the 
demographic  changes  and  new  policies.  During  2021,  classes  were  mainly  organised  with 
physical  presence  in  schools.  Schools  in  urban  areas,  which  are  overcrowded,  had  to  organise 
lessons  in  more  shifts  in  order  to  comply  with  recommendations  for  COVID  prevention.  The 
Ministry  of  Education,  Science,  Technology  and  Innovation  (MESTI)  also  obliged  schools  to 
organise additional classes and lessons to compensate for the lost learning hours. All these put an 
additional  pressure  on  the  education  sector.  Authorities  should  continue  efforts  to  increase 
financial  support  to  scale  up  community-based  social  and  health  services  for  children  with 
disabilities and to integrate them effectively into educational institutions.  

In  recent  years  Kosovo  has  made  considerable  progress  in  increasing  access  to  pre-primary 
and primary education, but more needs to be done to equitably increase coverage of pre-school 
and secondary education. Enrolment of children in compulsory education - primary, lower and 
upper secondary education - is universal (100% attending grades 1-5, 90.5% 5-9 and 86.6% 9-
12). Participation of children in pre-school education and care (age 0<5) remains low, well below 
the OECD average (over 87%) or the 2020 education and training targets (95%).   A persistent 
problem remains the small number and uneven distribution of pre-school institutions in Kosovo 
(44  public  kindergartens  in  23  out  of  38  municipalities),  lack  of  appropriate  infrastructure  and 
lack of didactic materials. The new Law on Pre-school Education is yet to be approved, and the 
curriculum  for  levels  of  education  0-2  has  been  developed.  The  number  of  students  in  higher 
education is decreasing (from over 133 000 students in 2017 to over 95 300 in 2021); yet more 
concerning are the low graduation rates. 

Kosovo has prepared a new Education Strategy 2022 - 2027, which for the first time includes 
plans for digitalisation of schools. The strategy  is pending formal adoption by the government. 
The  quality  of  education  remains  poor,  as  evidenced  by  the  last  two  OECD  Programme  for 
International  Student  Assessment  (PISA)  evaluations,  with  Kosovo  ranking  third  from  bottom. 
Kosovo  participated  in  the  2019  Trends  in  International  Mathematics  and  Science  Study 
(TIMSS), and in participating in the in the 2021 Progress in International Reading Literacy Study 
(PIRLS)  and  PISA  2022.  In  TIMSS  2019,  Kosovo  was  among  the  ten  poorest  performers. 
Reforms  are  still  lagging  behind  due  to  the  lack  of  suitable  textbooks,  teaching  materials  and 
sustainable professional development schemes for teachers. Another major issue is the mismatch 
between  education  outcome  and  skill  requirements.  The  ministry  needs  to  not  only  consider 
legislative changes, but also to increase capacities of education inspectorate. 

Higher  education  institutions  should  invest  more  in  research  and  appraise  the  scientific 
achievements,  publications  and  performance  of  teachers.  Academic  integrity  remains  an  issue, 
despite improvements as a result of public scrutiny. The Ministry has adopted a decision on the 
compatibility of scientific works and publications of the academic staff with ethics in research, 
obliging programme holders to upload their research in indexed platforms ahead of accreditation 
of their programmes. The contracts of the academic staff are based on teaching hours, not taking 
into account the additional work on research, science and innovation. Provisions of the Law on 
Performance-based Funding for Public Higher Education Institutions are not implemented. The 
ministry needs  to  have  a clear policy  guidance on how to  increase  accountability of the public 

104 

 
 
universities based on the above-mentioned provision. Apart from the University of Pristina, all 
public  universities  depend  financially  on  the  state  budget.  Progress  was  made  in  meeting 
minimum  transparency  criteria  (according  to  international  norms)  of  higher  education 
institutions. During the reporting period, the Assembly adopted the pending statutes of remaining 
public  universities,  and  the  affected  institutions  harmonised  their  existing  regulations  with  the 
new  provisions  of  the  new  statutes,  and  in  some  cases,  developed  new  regulations.  All  of  the 
public  universities  have    now  in  place  strategic  documents  that  will  boost  their  future 
development. 

Kosovo should adopt the new Law on Higher Education that would strengthen the autonomy and 
academic integrity of higher education institutions and improve quality assurance.  

The  Kosovo  Accreditation  Agency  (KAA)  continued  efforts  to  regain  membership  of  the 
European  Association  for  Quality  Assurance  in  Higher  Education  and  the  European  Quality 
Assurance  Register  for  Higher  Education.  Kosovo  should  adopt  the  Law  on  Accreditation 
Agency, to increase its operational independence and transparency of appointments of the KAA 
management.  The  new  draft  law  addresses  the  issue  of  declaration  of  wealth  by  international 
members of the board, which has pushed international members to withdraw from their posts. 

Over  half  of  upper  secondary  schools  students  enroll  in  vocational  education  and  training 
(VET), however, they are often a second choice for those unable to enrol in gymnasiums, since 
VET schools do not have entry criteria. The statistics for the 2021/2022 academic year show that 
out  of  70  850  students  enrolled  in  upper  secondary  education,  37  585  students  are  enrolled  in 
vocational  education  schools,  compared  to  33  265  students  enrolled  in  gymnasiums.  VET 
profiles offered by vocational schools are not based on occupational standards, thus not aligned 
to  labour  market  demands.  Progression  from  VET  to  university  education  remains  very  high. 
Funding for vocational education has not increased over the last few years, and is insufficient to 
provide the necessary materials for students. The legal framework is fragmented and needs to be 
revised  and  consolidated  to  regulate  all  VET  aspects  as  well  as  to  capture  latest  developments 
(e.g., the recent regulations governing practice in enterprises, the new VET profiles  piloted and 
the establishment of career guidance centres). The development of the core curriculum for VET 
has been initiated and its implementation is under way. 

Work-based learning, integrated in the current VET curriculum, is not systematically delivered. 
To a large extent, teaching in the workplace is organized in the form of a block system only for 
students in the 12th grade, while for lower grades, there is only practical teaching in school. In 
recent years, there has been progress in the establishment of partnerships between VET schools 
and employers, but  work-based learning remains too  limited to  substantially improve students’ 
prospects  in  the  labour  market.  Acceleration  of  thorough  reform  in  VET  is  crucial  also  to 
implementation of important aspects of the Youth Guarantee. For the first time, the Ministry has 
introduced dual education for a limited number of profiles, with the aim to expand it further in 
academic year 2022/23. 

Kosovo  needs  to  continue  efforts  to  provide  children  with  disabilities  access  to  quality 
education.  A  positive  development  is  the  decision  to  increase  the  number  of  assistants  for 
children  with  special  needs  for  100  per  year,  at  least  until  2024  (the  recruitment  for  100 
assistants in 2021 is finalised and budget for recruitment of 100 assistants is allocated for 2022). 
With  the  help  of  an  EU  funded  project,  the  Ministry  for  Education  organised  trainings  on 
inclusion and treatment of children with special needs for teachers and principals of six regional 

105 

 
 
resource centres. Kosovo has engaged 11 civil society organisations to help with children with 
special needs (age 0-6) by providing training for educators and preschool institutions’ staff.  

The  dropout  rate  remains  higher  among  Roma  and  Ashkali  children  though  statistics  are 
unreliable. During reporting period, trainings were organised for dropout prevention teams and 
municipal  departments  to  increase  their  capacities  for  implementing  child  protection  policies, 
also to prevent dropouts.  

Kosovo benefits from the international dimension of Erasmus+. During 2021, one project was 
selected for Erasmus Mundus Design Measures, and ninetudents received scolarships. 

On  culture,  Kosovo  should  maintain  efforts  to  meet  the  standards  of  the  2005  UNESCO 
Convention on the Protection and Promotion of the Diversity of Cultural Expressions. There has 
been  no  progress  on  drafting  the  Law  on  cultural  heritage,  reflecting  its  commitments  under 
Annex  V  of  the  Ahtisaari  Plan.  The  Implementation  and  Monitoring  Council  needs  to  resume 
meetings  and identify  joint solutions  to  be reached between Kosovo and the Serbian Orthodox 
Church. 

Kosovo  currently  participates  in  the  Creative  Europe  programme,  as  a  partner.  In  December 
2021, Kosovo signed the Agreement to participate in the Creative Europe programme 2021-2027 
as  an  associated  country  in  all  actions  of  the  Culture  Strand  and  in  the  action  to  support  the 
establishment of Programme desks contained in cross-sectoral Strand. Kosovo is to apply for the 
MEDIA  sub-programme  and  initiate  efforts  to  apply  for  full  membership,  once  legislation  is 
aligned with the EU audio-visual media service directive.   

Chapter 29 - Customs Union 

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

Kosovo is  moderately prepared in the area of customs.  It made  some progress during the 
reporting  period  by  continuing  to  improve  systematic  exchange  of  excise  data  with  other 
customs  jurisdictions  and  by  enforcing  customs  measures,  such  as  for  the  protection  of 
intellectual  property  rights  (IPRs).  Working  jointly  with  other  law  enforcement  agencies, 
Kosovo Customs has intensified the fight against narcotics and other smuggling activities. As 
the  recommendations  in  the  previous  report  have  been  addressed  to  a  limited  extent,  in  the 
coming year Kosovo should in particular: 

  pursue  further  alignment  with  the  Union  customs  code  and  the  excise  acquis,  including 

the Customs and Excise Code;  

  increase  the  number  of  field  inspections  and  coordinated  actions  between  Kosovo 
Customs  and  other  law  enforcement  agencies  in  the  fight  against  customs  fraud  and  tax 
evasion;  

  reduce fees charged to exporters/importers at inland customs terminals  

In the area of  customs  legislation, progress  is  yet  to  be achieved in  alignment of the Customs 
and Excise Code with that of the Union customs code, as recommended in the previous report. A 
draft  of  the  updated  Customs  and  Excise  Code  is  still  pending  approval.  Due  to  recognition 
issues, there was no progress on Kosovo’s application to become an observer under the Common 

106 

 
 
Transit  Convention.  Regarding  the  rules  of  origin,  Kosovo  continues  to  apply  the  Pan-Euro 
Mediterranean (PEM) Convention.  Kosovo Customs  continues  to  systematically  exchange data 
on the cross-border movement of goods among Western Balkan economies. Kosovo has signed 
an  agreement  with  the  Union  to  participate  in  the  CUSTOMS  programme  which  supports 
cooperation  between  customs  authorities  across  Europe,  particularly  in  the  area  of  IT.  Kosovo 
signed an agreement with North Macedonia on the joint use of railway crossing points. 

The  legislation  on  customs  measures  governing  intellectual  property  rights  (IPRs)  and  export 
controls for cultural goods is aligned with the EU acquis.  

Kosovo  Customs  continued  to  progress  on  trade  facilitation  by  approving  a  fifth  authorised 
economic  operator  and  continued  to  improve  its  systems,  procedures  and  administrative 
capacities  in  this  area.  A  publicly  owned  inland  customs  terminal  was  established  and  is  fully 
operational. The publicly owned terminal charges significantly lower fees to discharge customs 
obligations than the existing private terminals. However, these fees are not in line with the SAA 
provisions and EU acquis and should be abolished entirely.  

Kosovo Customs should strengthen its administrative and professional capacity, and ensure that 
merit-based  and  transparent  transfers  and  selection  processes  apply.  The  new  Customs  and 
Excise Code aims to increase the efficiency of the administration based on best practice. Kosovo 
Customs  should  continue  to  implement  its  medium-term  strategic  plan  (2019-2023)  aimed  at 
strengthening  its  capacity,  modernising  revenue  collection  and  facilitating  trade  and  the  fight 
against tax evasion, organised crime and other illicit activities. 

While Kosovo Customs work on the fight against illegal cross-border activities, including the 
smuggling  of  goods  such  as  narcotics  and  hazardous  materials,  including  that  of  IPR 
infringements,  additional  measures  are  needed  to  improve  its  effectiveness  and  efficiency. 
Among these, the need to step up the implementation of its anti-corruption plan, conduct more 
investigations  and  asset  declarations  checks  filled  by  customs  officials.  During  the  reporting 
period,  Kosovo  customs  jointly  with  other  law  enforcement  agencies  has  made  progress  in 
combating  different  types of smuggling activities, including  prevention, repression, and pursue 
narcotics  smuggling  has  sized  213.3  kilograms  of  various  narcotics  (151  kilograms  of  heroin, 
52.8  kilograms  of  marihuana  and  9.5  kilograms  of  cocaine.  The  anti-fraud  activities  have 
resulted in 10 customs officers being dismissed from service and 12 customs officers suspended. 
The  legal  framework  should  be  developed  in  order  to  enable  thorough  investigation  of  asset 
declarations  checks  filled  by  customs  officials.  There  is  a  significant  increase  of  activities 
directed towards fighting of informal  economy and tax evasion. Kosovo Customs, other law 
enforcement  authorities  and  line  institutions  cooperate  well  to  fight  against  the  informal 
economy and customs fraud. 

There  has  been  no  development  related  to  Common  Crossing  Points  (CCPs).  Two  of  the  six 
permanent CCPs have been established (Merdare and Mutivodë/Mutivode). Facilities of two EU-
funded crossing points Merdare and Mutivodë/Mutivode in use as of March 2022.  

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY  

Kosovo  has  some  level  of  preparation  on  areas  related  to  the  Green  Agenda  and  sustainable 
connectivity. Kosovo continues to actively participate in the Transport Community and Energy 
Community  meetings.  During  the  reporting  period,  limited  progress  was  made  in  the  energy 
sector.  Kosovo  drafted  an  ambitious  energy  strategy,  which  includes  an  increased  share  in 

107 

 
 
renewable  energy  sources;  however,  due  to  the  energy  crisis,  its  approval  has  been  delayed. 
Following the agreement reached on 21 June 2022 between Kosovo and Serbia as part of the EU-
facilitated Dialogue, the Energy Regulatory Office (ERO) Board approved on 24 June 2022 the 
request for issuance of the electricity supply license to Elektrosever, a Serbian-owned company 
established  under  Kosovo  law,  to  supply  electricity  to  consumers  in  four  Serb-majority 
municipalities  in  the  north.  Finalisation  of  the  necessary  technical  agreements  between 
Elektrosever,  Kosovo’s  Transmission  System  Operator  KOSTT  and  Distribution  System 
Operator KEDS are underway to make the company fully operational. Kosovo remains heavily 
reliant  on coal. Some progress  was  made in  the  transport sector,  whereas limited progress  was 
made in the areas of environment and climate change. Kosovo needs to significantly increase its 
ambition and administrative capacities to properly implement EU standards on transport, energy 
and  environment.  Strategies,  action  plans  and  legislation  in  these  sectors  need  to  be  more 
consistent  and  in  line  with  the  principles  and  objectives  of  the  Green  Agenda  for  the  Western 
Balkans and the Economic and Investment Plan.   

Chapter 14 - Transport policy 

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

Kosovo  remains  at  an  early  stage  in  the  area  of  transport  policy.  It  has  made  some  progress, 
notably on rail transport, where Kosovo has established the national investigation body. 

As most of the recommendations from the previous report are still pending, in the coming year 
Kosovo should : 

  invest  in  road  maintenance  and  inspections,  organise  prevention  campaigns  and  establish  a 

systematic monitoring mechanism for the collection of crash data; 

  transpose the EU rail market acquis and adopt the new rail safety and interoperability law; 

  adopt the strategy on multimodal transport, which should include inter alia the civil aviation 
strategy; continue efforts to align Kosovo’s aviation regulation with the European Common 
Aviation Area Agreement; 

  adopt  the  intelligent  transport  system  (ITS)  strategy  and  its  action  plan,  ensure  sufficient 
capacity and resources for its implementation and continue efforts to harmonise with the EU 
passenger rights acquis across all modes of transport. 

Generally, on transport matters, Kosovo proactively participates in the Transport Community. 
However, key strategic documents for the sector are still missing and further efforts are needed 
in aligning and implementing existing legislation. Direct concrete measures need to be taken to 
implement actions as defined in the Transport Community action plans on transport facilitation; 
rail,  road,  road  safety,  and  waterborne  transport  and  multimodality.  The  2021-2025  sectorial 
strategy and multimodal transport needs to be revised, as to reflect requirements deriving from 
European  strategic  documents  related  to  environment,  climate  resilience,  civil  aviation  and  the 
intelligent  transport  system  (ITS).  The  operational  and  administrative  capacities  of  the 
independent investigative bodies for air and railway accidents remain insufficient and need to be 
strengthened.  Kosovo  should  also  begin  to  enhance  transport  climate  resilience  and  the  use  of 
alternative  fuels,  in  line  with  the  Green  Agenda  for  the  Western  Balkans  and  the  Smart  and 

108 

 
 
Sustainable Mobility Strategy for the Western Balkans. 

On road transport, Kosovo remains to make further efforts to prepare the strategic framework 
and begin transposing the EU road transport acquis. Further work is needed to develop and set 
up road asset management systems. Work should start to establish a Road Safety Agency and to 
develop  a  comprehensive  Road  Safety  Strategy  for  2022-2030,  including  the  setting  of  targets 
and  collection  of  more  reliable  crash  data.    Kosovo  still  needs  to  align  its  legislation  on  road 
transport, including for example legislation related to the inspections of motor vehicles.  

The total number of fatal accidents was 94 in 2021. Kosovo has made positive progress but must 
continue  harmonising  its  legislation  with  the  EU  acquis.,  as  well  as  carry  out  activities  in  the 
fields of education, awareness campaigns, enforcements to achieve better results in line with the 
United  Nations  and  European  Union  goal  to  halve  the  number  of  road  deaths  and  injuries  by 
2030. In addition, Kosovo should implement CONNECTA report recommendations to improve 
the quality of the road network and actions, as set out in the road safety Transport Community 
Treaty regional action plan. 

Kosovo  has  made  some  progress  on  rail  transport,  by  establishing  the  national  investigation 
body.  The  railway  regulatory  authority  published  several  by-laws  on  safety  issues,  but  more 
efforts  are  needed  to  finalise  and  adopt  the  new  rail  safety  and  interoperability  law.  The 
extension and rehabilitation of the rail network and the adoption of a multiannual maintenance 
plan  are  a  solid  basis  for  ensuring  better,  more  reliable  and  more  sustainable  services  for 
passengers  and  freight  transported.  Some  progress  was  achieved  on  regional  cooperation,  with 
the signature of a memorandum of understanding by all infrastructure managers of the Western 
Balkan  region  and  of  a  Dedication  to  Rails  declaration  at  ministerial  level.  Moreover,  the 
implementation  agreements  for  joint  controls  on  the  rail  border  crossing  between  Kosovo  and 
North Macedonia were completed.  

Kosovo  should  ensure  the  signature  and  implementation  of  the  2020-2024  financial  agreement 
with INFRAKOS, the railway infrastructure manager.  

On air transport, Kosovo is part of the European Common Aviation Area (ECAA) and covered 
by the single European sky arrangements. The sector continues to face a number of challenges 
arising from Kosovo’s non-membership in several international civil aviation organisations. The 
institutional shortcoming of the air navigation service agency and the civil aviation authority, as 
well as the lack of revenue from upper airspace management are also issues. The upcoming civil 
aviation  authority  reorganisation  and  administrative  reforms  should  reflect  the  public 
administration  reform  principles  as  well  as  the  specific  circumstances  and  requirements  of  the 
aviation  sector.  Kosovo  continued  to  align  with  the  EU  acquis  of  the  ECAA  agreement.  It  is 
encouraged  to  continue  work  to  harmonise  with  the  remaining  ECAA  first  phase  items.  The 
extension  of  the  runway  at  Pristina  airport  and  the  installation  of  new  landing  systems, 
navigation,  metrology,  and radio  communications is  expected to  raise the level  of safety of  air 
operations. 

Chapter 15 -  Energy 

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

Kosovo  has  some  level  of  preparation  in  the  field  of  energy.  Kosovo  has  made  limited 
progress, notably by increasing its share of renewable energy and its investments in the energy 

109 

 
 
efficiency of public buildings.  

Kosovo  remains  heavily  reliant  on  coal,  which  in  addition  to  being  a  dominant  source  of 
greenhouse  gases,  causes  serious  health  and  environmental  hazards.  The  Kosovo  government 
drafted  an  ambitious  energy  strategy,  which  includes  an  increased  share  in  renewable  energy 
sources; however, due to the energy crisis, its approval has been delayed. The strategy will have 
to be aligned with the National Energy and Climate Plan.   

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

  continue the environmental upgrade of the Kosovo B thermal power plant and the works for 

decommissioning of the non-working parts of Kosovo A thermal power plant; 

  continue the rollout of the energy efficiency fund and extend it to residential buildings and 

small and medium enterprises; 

  adopt the law on renewable energy sources and introduce a competitive bidding process for 
renewable  energy  projects  in  compliance  with  the  state  aid  legislation,  and  sign  direct 
agreement  with  the  service  provider  to  use  national  electronic  register  for  issuance, 
cancellation and trade of guarantees of origin; 

  prepare  the  programme  for  protection  of  vulnerable  consumers  and  prepare  a  plan  and 

mitigation measures to support these consumers. 

Some  progress  was  made  on  security  of  supply.  To  establish  a  sustainable  market  in  Kosovo 
and Albania, Kosovo signed two agreements with Albania: the Electricity Markets Cooperation 
Framework Agreement and a Memorandum of Understanding aiming to recognise each other’s 
electricity  and  supply  licenses.  In  the  future,  the  current  Bulk  Supply  Agreement  between 
Kosovo  Electricity  Supply  Company  (KESCO)  and  the  Kosovo  Electricity  Corporation  (KEK) 
would need restructuring, as the current agreement prevents Kosovo from material contribution 
to ALPEX, and affects its liquidity. Following the separation of the Kosovo transmission system 
operator  KOSTT  from  the  Serbia  control  block,  the  Serbian  electricity  transmission  system 
operator EMS has so far not determined net transmission capacities and capacity allocation with 
the Kosovo control block.  Following the agreement reached on 21 June 2022 between Kosovo 
and  Serbia  as  part  of  the  EU-facilitated  Dialogue,  the  Energy  Regulatory  Office  (ERO)  Board 
approved  on  24  June  2022  the  request  for  issuance  of  the  electricity  supply  license  to 
Elektrosever,  a  Serbian-owned  company  established  in  Kosovo  and  under  Kosovo  law,  which 
will  start  supplying  electricity  to  consumers  in  four  Serb-majority  municipalities  in  the  north. 
The  Distribution  System  Operator  (KEDS)  has  significant  financial  problems  due  to  high 
electricity market prices, while the regulated tariff does not reflect its costs. On petroleum trade 
and  compulsory  oil  stocks,  as  well  as  biofuels  and  bioliquids,  Kosovo  made  some  steps  in 
implementing the EU acquis. 

The Kosovo government drafted an ambitious energy strategy, which includes an increased share 
in  renewable  energy sources;  however, due to  the energy  crisis,  its approval  has been delayed. 
The  strategy  will  have  to  be  aligned  with  the  National  Energy  and  Climate  Plan.  Kosovo’s 
electricity  system  remains  highly  dependent  on  two  aging  and  highly  polluting  lignite  fired 
thermal power plants, which, in addition to being a dominant greenhouse gases emission source, 
cause serious health and environmental hazards.  Kosovo should work on decommissioning the 
non-working parts of the Kosovo A thermal power plant. Works to enhance the environmental 

110 

 
 
performance of the Kosovo B thermal power plant and reduce dust and nitrogen oxide emission, 
expected to bring levels of gaseous emissions for dust and NOx into line with the EU acquis, are 
postponed  to  2024-2025.  Kosovo  is  in  breach  of  the  Energy  Community  requirements  for 
reducing  greenhouse  gas  emissions;  the  legal  framework  needs  to  be  aligned  with  the  EU 
Directives on large combustion plants and industrial emissions. 

Kosovo’s  new  energy  strategy  does  not  determine  the  development  of  gas  infrastructure.  The 
feasibility  study  for  the  Kosovo-North  Macedonia  pipeline  and  the  gas  master  plan  are 
completed.  However,  there  is  no  decision  yet  to  embark  on  any  gas  infrastructure-related 
investments  due to  developments  given gas supply  options.  In June, the Assembly adopted the 
Millennium  Challenge  Compact  and  the  Program  Implementation  Agreement  between  Kosovo 
and  Millennium  Challenge  Corporation  for  developing  battery  storage  to  provide  electricity 
balancing reserve.  

Concerning  the  internal  energy  market,  there  is  no  progress  with  the  further  opening  of  the 
retail market.   To ensure compliance with the Third Energy Package and other requirements of 
the  Energy  Community,  the  Energy  Regulatory  Office  of  Kosovo  still  needs  to  implement  the 
liberalisation of the retail electricity market in Kosovo. The Energy Regulatory Office adopted a 
new block tariff structure to reduce energy demand and reflect the additional costs in the power 
system. The plan for the protection of consumers in vulnerable situations is not yet in place.  

In the area of hydrocarbons, the law on trade in petroleum products and renewable fuels has been 
adopted by the Assembly in February 2022. 

On  renewable  sources,  by  the  end  of  2021,  Kosovo  registered  a  total  of  249.2  MW  of 
renewable electricity  generation, 101 MW of small  hydropower, 137  MW of wind, 10 MW of 
solar, and 1.2 MW of biomass. The increase is due to an additional 21 MW of hydropower. To 
achieve the ambitious targets of the Green Agenda for the Western Balkans, new investments in 
renewable energy sources need to be mobilised. The assessment of alternative sustainable energy 
sources  carried  in  2021,  confirmed  the  potential  for  development  of  renewables  in  Kosovo;  a 
second  assessment  carried  out  in  2022  will  define  available  land  for  the  initial  phases  of 
development.      The  adoption  of  a  National  Energy  and  Climate  Plan  will  present  the  2030 
renewable  energy  targets  and  establish  policies  and  measures  to  reach  them  in  the  most  cost-
effective way.  

The  biomass  supply  chain  for  the  cogeneration  plant  in  Gjakova/Đakovica  should  become 
operational  for  the  next  heating  season.  Due  to  concerns  over  their  environmental  impact,  the 
development of small hydropower plants faced strong public resistance.  In line with EU acquis 
on concessions and the environment, the development of new hydropower plants, should always 
be accompanied by proper environmental and social impact assessments. The law on renewable 
energy  and  the  procedures  for  competitive  bidding  for  renewable  energy  projects  needs  to  be 
completed  shortly.  Kosovo  should  also  sign  direct  agreement  with  the  service  provider  to  use 
national  electronic  register  for  issuance,  cancellation  and  trade  of  guarantees  of  origin  as 
provided in the regional project for guarantees of origin implemented in the Energy Community 
and in line with the EU standards. 

The implementation of the energy efficiency fund has shown some progress with investments in 
public buildings. However, progress remains to be made concerning residential buildings and the 
private sector, increasing efforts to monitor and verify energy savings. The new energy strategy 
includes specific indicators and targets to increase energy efficiency in this area. In addition, the 

111 

 
 
online  platform  for  energy  efficiency  monitoring  and  verification  needs  to  be  operational. 
Kosovo  should  provide  additional  financial  resources  for  the  replenishment  of  the  fund  and 
should  enforce  implementing  legislation  related  to  the  energy  performance  of  buildings.  It  is 
crucial to design a revolving mechanism for the residential and private sectors to ensure the long-
term  sustainability of the fund.  Kosovo continued the training of experts for energy audits and 
certification of buildings. Administrative  Instructions  on the General  Reporting Framework for 
Energy Efficiency and ESCOs were adopted in December 2021. Implementation of the Energy 
Efficiency Law requires adoption of remaining by-laws. 

The  capacities  of  the  Nuclear  Safety  and  Radiation  Protection  Agency  remain  weak,  and 
Kosovo has still not found a solution for the temporary storage of radioactive waste.  

Chapter 21 - Trans-European Networks 

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

In the area of trans-European networks (TENs), Kosovo has some level of preparation. Some 
progress  was  made,  notably  with  the  implementation  of  five  action  plans  of  the  Transport 
Community  Treaty,  i.e.  transport  facilitation,  rail,  road,  road  safety,  waterborne  and 
multimodality, and the operationalisation of the electrical interconnection with Albania. Kosovo 
should  continue  to  align  its  legal  framework  with  the  TEN-T  and  TEN-E  acquis.  As 
recommendations  from  the  previous  report  were  only  partially  addressed,  in  the  coming  year, 
Kosovo should: 

  implement  the pending connectivity projects  and  strengthen institutional  and administrative 

capacities for the implementation of strategic infrastructure projects;  

  improve the capacity of the regulatory authority of electronic and postal communications to 

enforce telecommunications market regulations. 

On  transport  networks,  Kosovo  continued  to  be  actively  involved  in  the  meetings  of  the 
various bodies established under the Transport Community Treaty. Progress in the development 
of the trans-European Transport Network (TEN-T) was limited, due to the COVID-19 pandemic 
and  the  lack  of  inter-institutional  capacities  to  implement  infrastructure  projects.  All  transport 
infrastructure investments need to be based on realistic cost/benefit analyses and should comply 
with  EU  standards  on  public  procurement,  state  aid  and  environmental  impact  assessments.  A 
revision of the indicative TEN-T core and comprehensive network is under discussion. 

In 2021, the segment of the “Peace Highway” (part of route 7) received additional EU financing 
and  Kosovo  authorities  should  secure  the  remaining  financing  from  IFIs  and  start  construction 
promptly. The railway works on the Orient/East-Med Corridor (rail route 10) connecting Fushë 
Kosovë/Kosovo  Polje  and  Mitrovicë/Mitrovica  to  North  Macedonia  continued  at  a  slow  pace. 
The  preparatory  works  for  signalling  and  telecom  should  follow  in  order  to  meet  the 
requirements of the TEN-T. 

Kosovo  achieved  some  progress  on  rail  market  opening,  with  the  TCT  Secretariat  assessing  a 
67%  implementation  rate,  which  is  an  increase  of  7  percentage  points  compared  to  last  year’s 
reporting  period.  Obstacles  remain,  such  as  the  mutual  recognition  of  train  driver  licenses, 
institutional framework and recognition of safety certificates and authorisations. Further efforts 
are needed to revise the railway law and finalise the new rail safety and interoperability law by 

112 

 
 
incorporating the market and technical pillars deriving from the fourth railway package (2016). 

On energy networks, an assessment of the gas interconnection between Kosovo and Albania has 
been completed and the feasibility study for the Kosovo-North Macedonia pipeline is ongoing. 
Both projects can contribute to the diversification of energy sources from coal and to the stability 
of the energy grid. The gas master plan is also under development. However, the use of gas in 
the new energy strategy remains unclear.  

On  telecommunications  networks,  the  institutional  capacity  of  the  electronic  and  postal 
communications regulatory authority remains to be reinforced.  

Chapter 27 - Environment and climate change  

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

Kosovo is at an early stage of preparation on environment and climate change. Kosovo made 
limited progress, notably on environmental reporting and air quality monitoring. Kosovo needs 
to  increase  its  political  commitment  to  address  environmental  degradation  and  climate  change 
challenges  and  substantially  improve  the  implementation  of  its  legislation,  to  align  it  with  the 
Green Agenda for the Western Balkans’ goals. Most of the  recommendations from the previous 
report are still pending. In the coming year, Kosovo should in particular: 

  increase  the  waste  collection  coverage,  apply  widely  reduction,  separation    recycling  and 
reuse  of  waste,  address  effectively  the  issue  of  illegal  dumpsites,  and  introduce  circular 
economy  measures  to  reduce  waste,  develop  and  approve  inter-municipal  integrated  waste 
management plans, and establish the extended producers responsibility system; 

  harmonise with  and start  implementing legal  provisions on environmental liability, damage 
and  crime;  implement  the  polluter  pays  principle  and  raise  public  awareness  on 
environmental protection;  

  implement  the  climate  change  strategy  and  the  action  plan  on  climate  change,  prepare  a 
roadmap for alignment with the Green Agenda for the Western Balkans and climate  acquis 
and  adopt  a  National  Energy  and  Climate  Plan,  in  line  with  the  Energy  Community 
requirements and finalise the drafting the long-term decarbonisation strategy. 

Environment  

As  regards  horizontal  issues,  Kosovo  needs  to  adopt  revised  strategies,  action  plans  and 
legislation  to  ensure  their  coherence  with  the  Green  Agenda  objectives  and  ensure  their 
implementation.  The  adoption  of  the  Strategy  for  Environmental  Protection  and  Sustainable 
Development  2022-2030  is  delayed.  The  implementation  of  the  current  strategic  framework  is 
challenged  by  the  lack  of  funding  and  administrative  capacity,  and  heavy  reliance  on 
international  donors.  Kosovo  still  needs  to  align  its  environmental  protection  with  the 
environmental liability directive. Even though the environmental inspections legislation has been 
redrafted, it is not yet adopted and the enforcement capacity is still missing. Kosovo also needs 
to  amend  and  implement  the  laws  on  environmental  and  strategic  impact  assessment.  Inter-
institutional coordination and civil society involvement needs to be enhanced. Kosovo needs to 
take over raising  awareness  responsibilities from  the international  community and civil  society 
organisations.  

113 

 
 
Air quality is still a major health threat. Although detailed identification of air pollution sources 
is  completed,  Kosovo  failed  to  implement  remedy  measures  to  curb  pollution.  Because  of  the 
preparation of new strategic documents the adoption of preventive legislations was delayed, such 
as on the National Emissions Reduction Plan. Moreover, Kosovo has not initiated the preparation 
of the new National Emissions Ceiling Directive. In June 2022, Kosovo adopted the Law on the 
Protection of Air from Pollution. Kosovo needs to effectively enforce measures for banning coal 
for  heating  and  start  introducing  subsidies  and  investments  for  other  forms  of  heating.  The  air 
quality  plans  for  zones  in  which  pollutant  levels  clearly  exceed  limit  values  still  needs  to  be 
adopted.  The  real  time  monitoring,  identification  of  air  pollution  sources  and  reporting  of  air 
quality has slightly improved. 

The  unsustainability  of  the  waste  management  system  remains.  While  the  legal  framework  is 
partially aligned with the EU acquis, it still needs to include the extended producer responsibility 
and the polluter pays principle. The Assembly adopted the Law on Waste with a delay, in August 
2022,  aligning  Kosovo  legislation  with  the  waste  framework  directive.  The  implementation  of 
the  hazardous  waste  management  legislation  is  lagging  behind.  Most  of  waste  still  ends  up  in 
landfills  that  are  not  properly  managed  or  are  categorised  as  illegal  dumpsites.  The  only 
noticeable progress  is  on organic waste:  some municipalities have implemented pilot  measures 
for separate collection of waste fractions as well as for the reduction of organic waste. So far, 15 
out  of  38  municipalities  have  initiated  home-composting  systems.  The  establishment  of  the 
Municipal  Performance  Grant  encouraged  removal  of  illegal  landfills.  The  number  of  illegal 
dumpsites has decreased (from 2 529 in 2019, 1 489 in 2020 and 1 189 in 2021). Kosovo needs 
to  increase  in  capacity  at  all  levels  and  set-up  realistic  targets  and  timeframes  to  ensure  the 
effective 
integrated  waste  management  and  circular  economy. 
Development, approval and adoption by municipalities of the inter-municipal waste management 
plans  would  allow  to  plan  measures  for  the  establishment  of  a  modern  waste  management 
system. The coal ash deposit lake operated by the Kosovo Electricity Company and the Mirash 
landfill  in  Obiliq/Obilić  remained  open  despite  its  negative  impact  on  the  environment.  The 
government selected locations for the new landfill for Pristina’s waste management and for the 
hazardous waste storage, but the development of environmental impact assessment is still to be 
conducted. 

implementation  of 

its 

Kosovo  made  some  progress  to  align  the  water  legislation  with  the  EU  acquis.  The  level  of 
alignment and the monitoring mechanism of the 2017- 2036 water Strategy with the EU acquis 
remain insufficient, as well as the implementation of the water law. Monitoring of surface water 
quality is  satisfactory,  while the ground  water  resource-monitoring network is  incomplete. The 
monitoring and effective management of Water protection zones still needs to be enhanced. An 
effective water monitoring system, with data available to the public, needs to be urgently set-up.  
The  river  basin  district  authority  needs  to  become  operational  as  a  matter  of  urgency.  The 
management plan for the White Drin basin has not been completed and progress is slow for the 
other  river  basin  management  plans.  The  planning  and  construction  of  wastewater  treatment 
plants  in  bigger  cities  showed  considerable  progress.  Improvement  is  still  needed  on  tariff 
collection and reduction of water losses.  Any small hydroelectric power plants needs to be built 
in  full  respect  of  the  environmental  legislation  and  to  undergo  appropriate  environmental 
assessments, due to potential harmful cumulative impact. Flood risk and hazard maps need to be 
completed.  Untreated  sewage  and  discharge  remain  the  main  sources  of  water  pollution, 
particularly rivers. In line with the Urban Waste Water Treatment Directive, agglomerations and 
sensitive areas remain to be identified.  

114 

 
 
No  progress  was  made  in  the  area  of  nature  protection.  The  Strategy  for  Environment  and 
Sustainable Development 2022-2031 is yet to be adopted. Detailed regulatory plans for the two 
national  parks  have  been  re-drafted  into  partial  plans  covering  smaller  areas.    The  2016-2020 
action  plan  for  biodiversity  is  still  partially  implemented,  the  designated  areas  continue  to  be 
polluted and poorly  maintained and illegal  activities such  as construction, hunting and logging 
are  not  addressed.  Effective  measures  remain  necessary  to  ensure  protection  of  critically 
endangered species. Even if Kosovo has taken steps to  start  inventories of natural  habitats  and 
species, the designation  of potential NATURA 2000 sites is  still at  a very  early stage. Kosovo 
made some progress on forestry mainly on planning and management, through the adoption of 
relevant secondary legislation. The forest Strategy and the forestry Law are yet to be adopted. An 
action  plan  on  fighting  illegal  logging  was  adopted  in  December  2021,  but  deforestation  and 
illegal logging remain matters of serious concern.  

No developments were noted on alignment with the EU acquis on industrial pollution and risk 
management,  which  remain  at  early  stage.  The  government  prepared  a  new  a  draft  law  on 
integrated  prevention  and  control  of  pollution  and  submitted  it  to  the  Assembly  beginning  of 
May 2022. Progress in drafting the legislation on pollution prevention and control and polluter 
accountability is very slow. Hazardous mine waste, industrial discharge into rivers and industrial 
dumpsites continue to pose serious threats to soil, water and health.  

No  progress  was  registered  on  chemicals,  where  alignment  with  the  EU  acquis  and 
implementation of existing legislation remains at low level. Kosovo is not party to the Rotterdam 
Convention and still needs to implement the regulatory framework on the export and import of 
hazardous chemicals. Some progress was achieved in providing information to stakeholders but 
further effort are needed to develop a centre for control of chemical poisoning. 

There was no significant improvement in the area of noise in the reporting period. 

Kosovo  is  not  part  of  the  Union  Civil  Protection  Mechanism,  but  can  benefit  from  certain 
activities of the Union Civil Protection Mechanism that are available to the beneficiaries of the 
Instrument  for  Pre-Accession  Assistance  (IPA),  and  benefits  from  regional  civil  protection 
programmes under the same Instrument. Kosovo is encouraged to participate more actively in the 
activities under the Union Civil  Protection Mechanism, such as trainings, exchange of experts, 
prevention  and  preparedness  projects,  exercises,  peer  reviews  and  advisory  missions.  In 
improving  its  disaster  management  capacities  Kosovo  should  develop  legislation,  governance 
and  financial  framework  related  to  preparedness,  develop  comprehensive  investment  plan  for 
preparedness and response, improve coordination among responsible authorities in case of large-
scale  disasters,  and  strengthen  governance  and  procedures  related  to  developing  national  risk 
assessment. The coordination between the central level and local level should be improved. No 
progress  has  been  made  regarding  the  disaster  risk  needs  assessment,  the  development  of  a 
recovery strategy, and the preparation of disaster response plans. Kosovo should start the process 
of installing the Trans European Services for Telematics between Administrations (TESTA) as a 
prerequisite  for  installing  the  Common  Emergency  Communication  and  Information  system 
(CECIS) of the European Commission.  

Climate change  

The implementation of the 2019-2028 climate change strategy and the action plan for the period 
2021-2023 is very limited. The law on climate change is not yet adopted. The National Plan for 
Energy and Climate is facing serious delays. Kosovo continues to rely heavily on coal and is not 

115 

 
 
complying  with  the  emission  ceilings  established  under  its  National  Emission  Reduction  Plan 
(NERP).  The  newly  re-established  National  Climate  Change  Council  took  some  few  concrete 
measures to mainstream climate action or raise public awareness, and there is little evidence of 
policies being aligned with climate change objectives. The greenhouse gas emissions inventory 
reporting  for  2020  is  not  yet  available.  The  strategic  and  legislative  framework  needs  to  be 
adapted  to  the  EU  strategic  goals  stemming  from  the  Green  Agenda  for  the  Western  Balkans. 
Administrative capacity and awareness raising needs to be considerably enhanced. Kosovo is not 
a  UN  member,  and  de  facto  not  a  signatory  to  the  UN  Framework  Convention  on  Climate 
Change and therefore does not  have  a nationally  determined contribution  under the 2015 Paris 
Agreement. However, full implementation of its climate change strategy should serve as a guide 
to achieve the objectives of the Agreement. 

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION  

Kosovo  has  some  level  of  preparation  on  cluster  5.  The  system  for  the  implementation  of  the 
agricultural  and  rural  development  policy  is  in  place.  In  June  2022,  the  Assembly  adopted  the 
Law  on  Strong  Spirit  Drinks  and  in  July  2022,  the  Law  on  Food.  Legislation  on  rural 
development,  genetically  modified  organisms,  plant  protection  and  forestry  still  needs  to  be 
aligned. In chapter 12, the longstanding issue of transferring the inspectors from municipalities 
to  the  Kosovo  Food  and  Veterinary  Agency  has  been  resolved  but  more  progress  is  needed  in 
acquis  alignment.  Kosovo  needs  to  adopt  the  Agriculture  and  Rural  Development  Programme 
2022-2027 and adopt the law on agriculture land. The measures encouraging land consolidation 
are insufficient. Implementation of the relevant acquis on fisheries also requires additional effort. 

Chapter 11 -  Agriculture and rural development 

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

Kosovo has some level of preparation on agriculture and rural development. Limited progress 
was made, in relation to the design and implementation of the agriculture and rural development 
programmes.  In  December  2021  the  government  adopted  the  strategy  for  agriculture  and  rural 
development 2022-2028, while the agriculture and rural development programme 2022-2027 has 
not yet been adopted.  

In the coming year, Kosovo should in particular: 

→  perform  a  qualitative  assessment  of  the  effectiveness  of  direct  payments  and  rural 
development programmes provided under the financial framework 2014-2020, adopt the Law 
on Agriculture Land and the programme for agricultural and rural development 2022-2027; 

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

legislation on spatial planning; 

→  take effective action towards developing its organic farming and quality policy sectors.  

On horizontal issues, the sector is affected by a predominance of small farms and fragmented 
arable land. In 2021, the budget for direct payments and grants, decreased to EUR 34.3 million, 
43%  lower  than  in  2020.  The  agriculture  and  rural  development  programme  implemented  in 
2021  included  important  support  for  investments  in  agricultural  households,  processing  and 
marketing of agricultural products, farm diversification and business development in rural areas, 

116 

 
 
and on farm irrigation. Cross-compliance remains to be addressed.  

Kosovo  is  still  in  the  process  of  establishing  an  integrated  agricultural  information  system  by 
upgrading and improving interconnectivity of the existing elements, which include the integrated 
administration  and  control  system  (IACS),  the  agricultural  market  information  system  (AMIS) 
and the farm accountancy data network (FADN).  

The    law  on  the  common  market  organisation  (CMO)  and  related  implementing  legislation 
remain  to  be  prepared.  In  April  2022,  the  government  approved  a  concept  document  for 
organising the common market of agricultural products.  

On rural development, the strategy for agriculture and rural development 2022-2028 has been 
adopted by the government. However, the agriculture and rural development programme 2022-
2027 still needs to be adopted. 

On quality policy, little progress was recorded. The registration of a first geographical indication 
is ongoing. 

Organic farming certification is addressed by four international organisations in the absence of 
a dedicated domestic agency.  

Kosovo established a Task Force for the Protection of Agricultural Land from Unplanned Urban 
Constructions and its Degradation in July 2021, with the purpose to address the issue of loss and 
degradation of agricultural land. An action plan, involving the Ministry of Agriculture and Rural 
Development,  the  Ministry  of  Environment,  Spatial  Planning  and  Infrastructure  and  local 
authorities, to address the steady loss and degradation of farmland, is needed. 

Chapter 12 - Food safety, veterinary and phytosanitary policy 

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

Kosovo has some level of preparation in the area of food safety, veterinary and phytosanitary 
policy.  Some  progress  was  achieved  namely  in  developing  the  food  control  and  traceability 
system as well as the management of the food safety and veterinary laboratory information.  

As  most  of  the  previous  year’s  recommendations  were  not  implemented,  in  the  coming  year, 
Kosovo should in particular: 

→  timely  secure  the  means  and  resources  required  for  effectively  operating  the  Food  Control 
and Traceability Management System and the Laboratory Information Management System 
developed with EU support as they are instrumental in securing compliance of the foodstuff 
produced or marketed by Kosovo with food safety, animal health, animal welfare, and plant 
health standards, a prerequisite for a competitive agri-food sector; 

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

and start operation of the rendering plant; 

→  strengthen  surveillance  and  control  of  the  animal  diseases  through  improved  planning  and 
implementation of disease control and surveillance programmes, including by taking over the 
responsibility  of  financing  fully  oral  rabies  vaccination  campaign  to  be  carried  out  from 
autumn 2023 onwards. 

117 

 
 
Kosovo  made  some  progress  in  developing  IT  infrastructure  for  managing  food  control  and 
traceability, and the laboratory information management system of the Food and Veterinaty 
Agency.  Further  effort  is  required  to  achieve  alignment  of  legislation  with  the  EU  acquis.  In 
2021,  the  transfer  and  training  of  75  inspectors  from  municipalities  was  completed.  
Nevertheless,  sufficient  financial  resources  need  to  be  ensured  for  the  Kosovo  Food  and 
Veterinary Agency to have an adequate number of inspectors. The food and veterinary laboratory 
continued  testing  and  participated  in  proficiency  testing  with  EU  reference  laboratories. 
However, no progress was made in obtaining international accreditation. 

No  progress  was  made  on  the  veterinary  policy.  The  Food  and  Veterinary  Agency  is  yet  to 
develop and implement a comprehensive disease monitoring and control system, in line with EU 
legislation and World Organisation for Animal Health requirements. The overall 2022 budget of 
the Agency increased by 17.8%. 

The  long-term  planning  and  implementation  of  programmes  to  eradicate  diseases  that  are 
endemic  in  Kosovo  require  improvement.  The  same  applies  to  animal  health  controls  at  farm 
level,  the  transport  of  animals,  and  livestock  markets.  The  lack  of  necessary  resources,  both 
human  and  financial,  as  well  as  the  lack  of  in-service  training  and  education  programmes 
hampered the adequate implementation of programmes in these areas.  

There were no relevant developments regarding animal health. The multi-annual animal disease 
control  and  surveillance  programme  still  needs  to  be  adopted  and  implemented.  With  EU 
support,  Kosovo  continued  rabies  eradication  vaccination  campaigns.  It  should  take  full 
ownership of these campaigns in the near future, in line with obligations stemming from the EU 
acquis. 

No progress was made on the system for collection and disposal of animal by-products, which 
is  not  yet  functional  despite the existence of a new and equipped rendering plant. The Agency 
still needs to select an operator to manage the rendering plant and the collection system. 

Limited progress was made on animal identification and registration. The under-reporting of 
animal  movements  remains  a  challenge.  The  Agency  has  yet  to  adopt  measures  to  enforce  the 
relevant regulation at the level of livestock markets, slaughterhouses and transport. No progress 
was made on identifying basic cross-compliance measures in the areas  of food safety, animal 
health and welfare.   

With  regard  to  phytosanitary  matters,  no  progress  was  made  on  the  harmonisation  of  the 
relevant legal acts. 

Chapter 13 - Fisheries 

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

Kosovo is still at an early stage of preparation in the area of fisheries. No progress was made in 
this  area.  As  none  of  the  recommendations  of  the  previous  reports  were  implemented,  in  the 
coming year Kosovo should:  

  further align its market policy with the EU acquis; 

118 

 
 
  establish an inventory of fish species. 

Kosovo  does  not  have  a  coastline,  therefore  the  EU  acquis  on  catch  quotas,  inspection  and 
control  is  only  partially  applicable.  Fisheries  consists  also  of  aquaculture  operations.    Kosovo 
should focus on establishing a market policy and data collection in line with the EU acquis as 
well as an inventory of fish species. Administrative capacity for policy management, inspection 
and control should also be reinforced.  

Chapter 22 - Regional policy and coordination of structural instruments 

Regional  policy  is  the  EU’s  main  investment  policy  for  sustainable  and  inclusive  economic 
growth.  Member  States  bear  responsibility  for  implementation,  which  requires  adequate 
administrative capacity and sound financial management of project design and execution. 

Kosovo is at early stage of preparation regarding regional policy and coordination of structural 
instruments. During the reporting period, Kosovo adopted the Law on Regional Development.  

In the coming year, Kosovo should in particular:  

→  adopt  the  Regional  Development  Action  Plan  2023-2025,  implement  the  Regional 

Development Strategy and adopt the Law on Regional Development; 

→  strengthen institutional and administrative capacities across the IPA structures; 

→  improve  the  single  project  pipeline,  including  indications  of  project  completeness  and 

maturity. 

The Regional Development Strategy 2020-2030 adopted in February 2021, as well as draft Law 
on Regional Development,  envisage that Kosovo would have seven regions at  NUTS  III level, 
and hence, seven regional development agencies. However, the legal basis, the law on Regional 
Development  has not  yet  been approved by the  government,  setting out  the basic principles of 
regional development management, the responsibilities of institutions, financial instruments, and 
the rules for balanced regional development. 

The  amended  Law  on  Regional  Development  that  should  be  adopted  in  2022,  will  improve 
regional development policy. The budget for regional development in 2022 amounts to EUR 4.2 
million.  

The  institutional  framework  for  the  management  of  the  EU  funds  is  not  yet  established. 
However,  structures  for  the  management  of  national  regional  development  programmes  and 
projects  are in  place and functional.  Kosovo should  further strengthen capacities and resources 
for  managing  the  EU’s  IPA  financial  assistance.  Regarding  administrative  capacities, 
significant efforts are required to allocate more human resources and to increase their capacities, 
particularly on planning and management of EU funds.  

Programming  is  focused  on  local  development  projects  and  future  IPA  assistance.  Currently, 
there  are  no  IPA  financed  projects  on  regional  development.  In  the  area  of  monitoring  and 
evaluation,  regular  activities  continued  in  the  field  of  regional  development  programmes  and 
projects.  

During the reporting period, Kosovo implemented cross-border cooperation programmes with 
Albania, North  Macedonia and Montenegro. Kosovo is  not taking part in  the transnational  and 

119 

 
 
interregional  cooperation  programmes  that  cover  the  Western  Balkans.  Kosovo  held  the  first 
international high-level conference on regional development in March 2022. 

Kosovo’s  Agency  of  Statistics  (KAS)  has  officially  received  Eurostat’s  approval  for  the 
Classification of Statistical Regions (NUTS) at II and III level. 

CLUSTER 6: EXTERNAL RELATIONS 

In the area of trade, Kosovo is at an early stage of preparation. Some progress was made during 
the reporting period in reducing Kosovo’s trade deficit, however Kosovo has not  yet adopted a 
comprehensive  trade  policy,  nor  ratified  the  CEFTA  Additional  Protocols  on  trade  facilitation 
and trade in services.  

Chapter 30 - External relations  

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

Kosovo  is  at  an  early  stage  of  preparation  in  the  area  of  external  relations.  Kosovo  made 
limited progress in this area. The trade deficit increased during the reporting period. Kosovo has 
yet to establish a humanitarian and development policy.  

Kosovo is at an early stage of preparation as regards its application for WTO observer status and 
no  progress  was  made  during  the  reporting  period.  Kosovo  has  made  some  progress  in 
implementation of Common Regional Market action plan. Kosovo introduced export restrictions 
on  a  number  of  agricultural  food  products  without  presenting  sufficient  justifications,  nor 
following  the  procedures  set  out  in  the  SAA.  These  decisions  should  be  lifted,  and  Kosovo 
should abstain from taking unilateral trade measures without justification and prior consultation 
with the Commission, in line with its commitments in the SAA. 

Not  all  recommendations  from  the  previous  report  were  implemented.  In  the  coming  year, 
Kosovo should in particular: 

  remove remaining unjustified trade restrictions; implement commitments under the Common 
Regional Market Action Plan 2021-2024; ratify and implement CEFTA Additional Protocol 
5 on trade facilitation and Additional Protocol 6 on trade in services as soon as possible; and 
finalise the negotiations on, and adopt, the Additional Protocol 7 on dispute settlement; 

  adopt the new Law on Internal Trade and the Law on External Trade; approve the Regulation 

on the establishment of the Trade Facilitation Enquiry Point. 

  start the process to establish a development and humanitarian aid policy. 

Overall, Kosovo remains highly reliant on imports and suffers from a chronic trade deficit. While 
it  benefits  from  a  surplus  in  the  trade  of  services  and  remittances  from  abroad  overall  Kosovo 
maintains  a  persistant  current  account  deficit  financed  by  Foreign  Direct  Investment  and 
borrowing. Data from the Kosovo Statistics Agency indicates that the trade deficit increased in 
nominal terms from EUR 2.18 billion in 2020 to 2.31 billion in 2021, representing a decrease in 
percentage terms from 32% to 30% of GDP. 

Kosovo  has  not  yet  adopted  a  comprehensive  trade  policy,  nor  ratified  the  CEFTA  Additional 
Protocols  on  trade  facilitation  and  trade  in  services.  Kosovo  should  make  further  efforts  to 
expand  export  opportunities.  It  is  yet  to  make  a  full  use  of  the  trade  preferences  of  the 

120 

 
 
Stabilisation and Association Agreement (SAA). Kosovo should ensure smooth implementation 
of  the  SAA  and  abstain  from  introducing  unilateral  trade  restrictive  measures  without  prior 
consultation  with  the  Commission,  in  line  with  SAA  obligations.  In  April  2022,  Kosovo 
introduced  an  export  ban  on  certain  agricultural  food  products  (including  wheat,  corn,  cereal, 
flour  and  edible  oil)  without  justifications  or  prior  consultation  with  the  Commission.  These 
export restrictions should be lifted without delay unless sufficient justification is presented. 

The CEFTA area has remained the main destination for the export of goods while the EU is the 
main  source  of  goods  imported  into  Kosovo.  In  2021,  Kosovo's  goods  exports  to  CEFTA 
countries amounted to 276.7 million EUR, or 36.9% of total exports meanwhile. goods imports 
amounted  to  886.9  million  EUR,  or  19.06%  of  total  imports.  Kosovo's  goods  exports  to  EU 
Member States amounted to 235.1 million EUR, about 31.3% of total exports in 2021 and import 
of goods from the EU stood at 2.06 billion EUR, or 444.32% of total imports. Most of Kosovo’s 
goods  exports  consist  of  basic  raw  materials  and  mineral  products,  reflecting  a  limited 
diversification of the production sector. 

Services exports are strongly dependent on travel services, which represented 78.2% of the total 
for the period of January to October 2021. While lower than in previous years due to pandemic 
travel  restrictions, the majority of them were Kosovo diaspora visits,  not foreign tourism. This 
alongside overall mobility in Kosovo raises concerns over the sector’s long-term sustainability. 

As regards bilateral agreements with third countries on economic/trade/technical cooperation, 
Kosovo  has  Free-Trade  Agreements  (FTAs)  with  Albania,  North  Macedonia,  Croatia,  Bosnia 
and  Herzegovina  and  Türkiye.  Kosovo  has  several  Generalized  System  of  Preferences  (GSP) 
Programmes with the US, Japan and Norway. The government supports the Common Regional 
Market (CRM) as a basis for a regional free trade agreement. Kosovo continues to make progress 
in implementing technical measures of the CRM action plan 2021-2024, notably regarding green 
lanes. However, disagreements relating to the representation of Kosovo are hampering progress 
in other areas, notably the free movement of workers. Kosovo, along with all participants in the 
CRM should play a constructive role and deliver on joint commitments set out in the action plan. 
Kosovo is a member of the Central European Free Trade Agreement (CEFTA).  

Kosovo has bilateral investment protection agreements with the US, Austria, Türkiye, Albania, 
Switzerland,  Belgium,  Luxemburg,  United  Arab  Emirates,  North  Macedonia,  and  Hungary.  In 
2022, Kosovo exchanged draft agreements for Promotion and Mutual Protection of Investments 
with the State of Qatar.  

There  is  a  need  to  enhance  the  capacity  of  the  trade  department  to  undertake  trade  defence 
related  investigations,  in  line  with  EU  procedures,  and  to  determine  protective  measures  for 
imports.  Information  on  the  scope  and  reach  of  trade  defence  measures  should  be  better 
disseminated to the private sector. Delays in access to the Kosovo Customs trade databases and 
to  the  Kosovo  Agency  of  Statistics  statistics  negatively  affected  the  efficiency  of  the  trade 
department. 

The Law on the trade of strategic goods provides a framework for the restriction or prohibition, 
export,  import,  transit,  transhipment,  and  re-export  of  strategic  goods  that  enter,  exit  or  pass 
through the territory of Kosovo.  

Kosovo’s law on dual-use goods remains aligned with EU Regulation 2021/821. The EU dual-
use list has been adopted as the national control list, with additions. Each year, the Department 

121 

 
 
for  Controlling  Market  of  Strategic  Goods  in  the  Ministry  of  Industry,  Entrepreneurship  and 
Trade, amends the List of the Dual-Use Goods and the Military Goods, in accordance with the 
EU Lists.  

There were few developments in the areas of development policy and humanitarian aid. The 
country is a recipient of aid programmes, does not provide humanitarian aid to third countries in 
a systematic manner and there is no development aid agency. Kosovo is encouraged to start the 
process  of  establishing  a  legal  framework  covering  international  cooperation  and  development 
policy  as  well  as  humanitarian  aid  towards  non-EU  countries,  in  accordance  with  EU  policies 
and  principles,  and  to  build  dedicated  administrative  structures.  In  the  context  of  Russia’s  war 
against Ukraine, Kosovo pledged to host up to 5 000 refugees and 20 journalists from Ukraine.  

122 

 
 
 
 
 
ANNEX I – RELATIONS BETWEEN THE EU AND KOSOVO  

In  April  2016,  the  EU-Kosovo  Stabilisation  and  Association  Agreement  (SAA)  entered  into 
force. The SAA constitutes the first contractual relationship between the EU and Kosovo. It is a 
comprehensive  agreement  that  provides  a  framework  for  political  dialogue  and  covers 
cooperation  in  a  wide  variety  of  sectors,  including  justice  and  home  affairs,  trade,  education, 
employment,  energy,  environment  and  a  range  of  other  policy  areas.  Four  Stabilisation  and 
Association Council meetings and five cycles of subcommittee meetings took place since 2016. 
Kosovo also participates in the ministerial dialogue between the economic and finance ministers 
of the EU and the candidate countries and potential candidates, which aims at helping the latter 
to  gradually meet  the  economic accession criteria and be better prepared in  terms  of economic 
reforms, competitiveness and job creation. The most recent meeting was held in June 2022. 

To guide reforms under the implementation of the SAA, the Commission and Kosovo adopted in 
November 2016 the European Reform Agenda (ERA) for Kosovo. The Agenda outlines priority 
actions  in  the  fields  of  good  governance  and  the  rule  of  law,  competitiveness  and  investment 
climate, and employment and education. Kosovo adopted the second phase of the ERA through a 
dedicated  action  plan  in  August  2021.  Since  2012,  the  Commission  has  issued  five  reports  on 
Kosovo's progress towards visa liberalisation (the most recent in June 2018). In July 2018, the 
Commission confirmed that Kosovo has met the two outstanding requirements, thus fulfilling all 
benchmarks set out in the Visa Liberalisation Roadmap. The European Parliament has voted in 
support of the Commission proposal. The proposal is pending in the Council. 

The bilateral EU support for Kosovo under the Instrument for Pre-accession Assistance (IPA II) 
in 2014-2020 amounted to EUR 562 million. The 2019 and 2020 action programmes included an 
EU contribution of EUR 181 million.  

As part of the response to the COVID-19 pandemic, last year Kosovo received 94,770 doses of 
vaccines  (the  deliveries  were  provided  from  mid-May  2021  to  beginning  of  Sep  2021).  The 
vaccines were provided thanks to a re-sale agreement through Austria.  

The  IPA  III  Regulation  (EU  2021/1529  of  15  September  2021)  for  the  2021-2027  financial 
period11 continues to provide financial support to the region and is also financing the Economic 
Investment  Plan  (EIP)  for  the  Western  Balkans.  As  from  2021,  Kosovo  benefits  from  EU 
bilateral  financial  assistance via  IPA  III, which is based on a performance-based  approach and 
the fair share principle. An amount of EUR 63.96 million has been allocated to Kosovo for its 
first year of implementation (IPA 2021) whereas for 2022, the IPA allocation has been fixed at 
EUR  62.25  million,  continuing  work  started  in  2021  to  support  justice  reform,  institutional 
capacity  building  in  the  civil  administration,  gradual  transition  of  the  energy  sector  towards 
decarbonisation  and  further  energy  efficiency,  and  socio-economic  development  through 
education and job creation schemes. 

The Economic and Investment Plan, accompanied by the Green Agenda for the Western Balkans 
offers  the  opportunity  to  Kosovo  to  adjust  its  economic  model  and  create  conditions  for 
sustainable growth and jobs in line with the green and digital transition.  Under the EIP, Kosovo 
will be supported with 5 specific flagship projects, which will significantly improve connectivity 
and energy supply (in complement to regional projects).  

11 Official Journal OJ L 330, 20.9.2021 

123 

 
 
                                                           
Kosovo  continues  to  benefit  from  support  under  the  IPA  multi-country  and  regional 
programmes. These programmes have been also,  in part, repurposed to address the response to 
the  COVID-19  crisis.  Additionally,  Kosovo  participates  in  three  cross-border  cooperation 
programmes, and also benefits, with IPA support, from participation in some EU programmes. 

Since 2018, Kosovo has joined the following  Union  programmes:  Erasmus+, COSME,  Europe 
for Citizens, Creative Europe, Customs 2020 and Fiscalis 2020. 

The  Kosovo  Specialist  Chambers  and  Specialist  Prosecutor's  Office,  established  to  investigate 
and  prosecute  allegations  stemming  from  the  2011  Council  of  Europe  Report,  which  alleges 
serious violations of international law, continued their work  

In 2008, the EU deployed in Kosovo its largest civilian European Security and Defence Policy 
mission. The European Rule of Law Mission in Kosovo (EULEX) assists Kosovo on the rule of 
law, notably police, justice and customs.  EULEX’s overall mission is to support relevant rule of 
law  institutions  in  Kosovo  on  their  path  towards  increased  effectiveness,  sustainability,  multi-
ethnicity  and  accountability,  free  from  political  interference  and  in  full  compliance  with 
international human rights standards and best European practices. 

EULEX’s  current  mandate has been extended to  cover the period until  14 June 2023 based on 
the  Mission  undertakes 
Council  Decision CFSP  2021/904. Within 
monitoring  activities  and  has  limited  executive  functions.  EULEX  continues  to  support  the 
Specialist Chambers and Specialist Prosecutor’s Office in line with relevant Kosovo legislation. 

its  current  mandate, 

To date, according to the government, Kosovo has been recognised by 117 countries, including 
22 EU Member States.  

During the reporting period, the UN Secretary-General continued to provide regular updates on 
the  implementation  of  the  UN's  mission  in  Kosovo  (UNMIK).  The  NATO-led  Kosovo  Force 
(KFOR) has continued to help ensure a safe and secure environment in Kosovo. In June 2022, it 
had 3 735 personnel. 

124 

 
 
 
 
 
STATISTICAL DATA (as of 01.09.2022) 

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 (2015 = 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 (%) 

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 (%) 

Note 

2009 

2016 

2017 

2018 

2019 

2020 

2 181 s 

1 772 s 

1 784 s 

1 799 s 

1 796 s 

1 782 s 

1) 

10 908 w 

10 908 w 

10 905 w 

10 905 w 

10 905 w 

10 905 w 

Note 

2009 

3 610 

2016 

6 037 

2017 

6 357 

2018 

6 672 

2019 

7 056 

2020 

6 772 

1 656 s 

3 408 s 

3 564 s 

3 709 s 

3 930 s 

3 800 s 

: 

: 

5.0 

: 

: 

: 

: 

: 

10.0 

24.9 

8.8 

56.3 s 

106.7 

30.7 

1.9 

19.2 

58.5 

: 

: 

5.6 

 c 

 c 

 c 

 c 

: 

10.2 

24.3 

9.1 

: 

: 

4.8 

 c 

 c 

 c 

 c 

: 

9.2 

24.1 

10.1 

: 

: 

3.4 

 c 

 c 

 c 

 c 

: 

8.1 

24.2 

10.4 

: 

: 

4.8 

 c 

 c 

 c 

 c 

: 

9.0 

23.4 

10.1 

: 

: 

-  5.3 

: 

: 

: 

: 

: 

8.9 

24.1 

9.3 

56.4 s 

56.5 s 

57.2 s 

57.5 s 

57.7 s 

93.8 

28.0 

5.5 

23.8 

51.2 

91.1 

30.0 

4.7 

27.3 

53.1 

91.9 

31.7 

4.6 

29.1 

57.3 

92.6 

31.0 

3.5 

29.3 

56.4 

98.8 

29.7 

3.7 

21.7 

53.9 

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

: 

: 

: 

: 

: 

: 

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) 

Note 

2009 

: 

: 

: 

: 

: 

: 

: 

Inflation rate and house prices 

Consumer price index (CPI), change relative to the previous year (%) 

**Annual change in the deflated house price index (2015 = 100) 

Note 

2009 

-  2.5 w 

: 

2016 

: 

2017 

: 

2018 

: 

2019 

: 

2020 

: 

33 274 w 

34 355 w 

31 028 pw 

32 268 w 

40 085 pw 

9.2 w 

8.7 w 

4.8 pw 

: 

: 

7.3 w 

4.2 w 

3.7 pw 

4.2 w 

2.6 w 

78.5 sw 

78.8 sw 

78.4 psw 

78.9 sw 

80.8 psw 

: 

: 

2016 

0.3 w 

: 

: 

: 

2017 

1.5 w 

: 

: 

: 

2018 

1.1 w 

: 

: 

: 

2019 

2.7 w 

: 

: 

: 

2020 

0.2 w 

: 

Balance of payments 

Note 

2009 

2016 

2017 

2018 

2019 

2020 

Balance of payments: current account total (million euro) 

-  373.7 

-  499.9 

-  348.6 

-  508.8 

-  399.5 

-  472.2 

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

- 1 646.3 

- 2 290.7 

- 2 464.2 

- 2 737.7 

- 2 840.2 

- 2 573.2 

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

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

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

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

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

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

227.4 

61.8 

983.4 

322.9 

: 

: 

650.7 

73.8 

827.3 

127.4 

855.8 

113.1 

926.0 

160.6 

391.6 

164.0 

1 066.3 

1 161.0 

1 260.0 

1 354.1 

1 545.4 

173.0 

-  7.5 

6.6 

199.7 

-  7.6 

28.4 

226.1 

-  7.1 

37.8 

236.6 

-  6.3 

37.3 

276.6 

-  6.8 

15.3 

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

276.9 w 

177.2 w 

212.0 w 

225.8 w 

188.4 w 

286.6 w 

Foreign direct investment (FDI) abroad (million euro) 

of which FDI of the reporting economy in the EU-27 countries (million euro) 

10.5 w 

: 

42.7 w 

13.2 w 

43.4 w 

14.1 w 

46.3 w 

66.2 w 

13.0 

6.1 

59.1 w 

16.5 w 

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

287.4 w 

220.0 w 

255.4 w 

272.1 w 

254.6 w 

345.7 w 

of which FDI of the EU-27 countries in the reporting economy (million euro) 

: 

16.4 w 

86.1 w 

58.7 

158.6 

152.1 w 

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

11.9 w 

-  1.3 w 

-  1.8 w 

-  6.1 w 

-  5.8 w 

-  12.3 w 

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

16.2 sw 

11.3 s 

11.9 s 

12.0 s 

12.1 s 

14.5 s 

Public finance 

Note 

2009 

2016 

2017 

2018 

2019 

2020 

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

: 

-  0.9 w 

-  0.8 w 

-  1.0 w 

-  0.5 w 

-  5.2 w 

General government gross debt relative to GDP (%) 

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

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

6.1 ew 

28.2 w 

30.3 w 

14.6 ew 

16.6 ew 

17.1 ew 

29.5 w 

29.2 w 

30.2 w 

28.9 w 

30.1 w 

29.6 w 

17.5 w 

31.5 w 

30.5 w 

21.8 w 

32.6 w 

34.4 w 

Financial indicators 

Note 

2009 

2016 

2017 

2018 

2019 

2020 

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

33.0 sw 

33.4 sw 

32.9 sw 

30.5 sw 

31.2 sw 

37.2 sw 

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

171.6 w 

140.1 w 

120.2 w 

105.0 w 

106.4 w 

171.2 w 

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

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

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

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

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

1 289.0 w 

2 338.9 w 

2 629.5 w 

2 939.2 w 

**Annual change in financial sector liabilities (%) 

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

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

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

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

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 (2015 = 100) 

**3 year change (T/T-3) in the trade-weighted effective exchange rate index, 42 countries 
(2015 = 100) 

: 

: 

: 

: 

2) 

2) 

14.08 w 

3.97 w 

: 

: 

: 

: 

: 

: 

: 

7.47 w 

1.01 w 

1 w 

: 

: 

: 

: 

: 

: 

6.83 w 

1.04 w 

1 w 

: 

: 

: 

: 

: 

: 

6.65 w 

1.31 w 

1 w 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

: 

6.51 w 

1.46 w 

1 w 

: 

: 

6.21 w 

1.49 w 

: 

: 

: 

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

576.5 w 

605.1 w 

683.4 w 

769.3 w 

863.7 w 

900.8 w 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External trade in goods 

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) 

Note 

2009 

1 936 

165 

2016 

2 790 

310 

2017 

3 047 

378 

2018 

3 347 

368 

2019 

3 497 

384 

2020 

3 297 

475 

- 1 770 

- 2 480 

- 2 669 

- 2 980 

- 3 114 

- 2 822 

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

: 

90.6 sw 

93.0 sw 

91.0 sw 

94.2 sw 

92.6 sw 

Share of exports to EU-27 countries in value of total exports (%) 

Share of imports from EU-27 countries in value of total imports (%) 

Demography 

Note 

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) 

44.3 s 

41.3 s 

2009 

12.5 

9.9 

: 

: 

22.3 s 

42.4 s 

2016 

8.4 e 

8.5 

75.9 p 

81.6 p 

22.0 s 

42.3 s 

27.5 s 

42.7 s 

33.2 s 

49.1 s 

2017 

8.2 e 

9.7 

: 

: 

2018 

7.7 

10.6 

: 

: 

2019 

6.9 

8.7 

: 

: 

34.5 s 

45.8 s 

2020 

: 

: 

: 

: 

Labour market 

Note 

2009 

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 (%) 

: 

: 

: 

: 

27.9 w 

6.2 w 

15.5 w 

7.9 w 

70.5 w 

2016 

44.0 w 

2017 

49.0 w 

2018 

46.6 w 

2019 

45.2 w 

2020 

42.9 w 

32.3 w 

34.4 w 

33.2 w 

34.2 w 

32.3 w 

49.9 w 

14.6 w 

29.6 w 

4.2 w 

18.0 w 

11.5 w 

66.3 w 

54.0 w 

14.6 w 

32.7 w 

4.4 w 

17.4 w 

12.9 w 

65.3 w 

52.6 w 

14.1 w 

31.5 w 

3.5 w 

14.3 w 

11.9 w 

70.3 w 

53.0 w 

15.6 w 

32.2 w 

5.2 w 

15.1 w 

12.6 w 

67.1 w 

48.8 w 

16.0 w 

30.9 w 

4.8 w 

16.3 w 

11.1 w 

67.9 w 

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

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

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

Male unemployment rate (%) 

Female unemployment rate (%) 

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

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) (%) 

: 

: 

45.4 w 

40.7 w 

56.4 w 

73.0 w 

16.8 w 

: 

: 

30.8 w 

28.4 w 

30.8 w 

27.6 w 

28.7 w 

69.2 w 

71.6 w 

69.2 w 

72.4 w 

71.3 w 

27.5 w 

26.2 w 

31.7 w 

52.4 w 

18.0 w 

30.3 w 

28.5 w 

36.4 w 

52.7 w 

21.7 w 

29.4 w 

28.3 w 

33.3 w 

55.4 w 

17.2 w 

25.5 w 

22.4 w 

34.4 w 

49.4 w 

16.2 w 

25.8 w 

23.4 w 

32.2 w 

49.1 w 

18.4 w 

29.6 w 

32.5 w 

35.8 w 

28.3 w 

30.2 w 

15.6 w 

23.4 w 

16.8 w 

18.0 w 

17.0 w 

Social cohesion 

Note 

2009 

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) (2016 = 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 (%) 

: 

: 

: 

: 

: 

2016 

422 w 

2017 

431 w 

: 

: 

: 

: 

: 

: 

12.7 w 

12.2 w 

2018 

453 w 

: 

44 

47.4 

9.6 w 

2019 

477 w 

: 

46 w 

55.3 w 

8.2 w 

2020 

466 w 

: 

: 

: 

7.8 w 

Standard of living 

Note 

2009 

2016 

2017 

2018 

2019 

2020 

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

77.0 sw 

146.8 sw 

153.6 sw 

155.9 sw 

162.2 sw 

164.4 sw 

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

Mobile broadband penetration (per 100 inhabitants) 

Fixed broadband penetration (per 100 inhabitants) 

: 

: 

: 

: 

: 

: 

1 200.7 ew 

1 281.1 ew 

1 266.4 ew 

1 095.0 ew 

65.4 ew 

73.9 ew 

78.4 ew 

84.5 ew 

15 ew 

18 ew 

20 ew 

21 ew 

Infrastructure 

Note 

2009 

2016 

2017 

2018 

2019 

2020 

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

1) 

30.5 sw 

30.5 sw 

30.5 sw 

30.5 sw 

30.5 sw 

30.5 sw 

Length of motorways (kilometres) 

: 

98 w 

108 w 

119 w 

137 w 

137 w 

Innovation and research 

Note 

2009 

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 (%) 

: 

: 

: 

: 

2016 

4.6 sw 

: 

: 

: 

2017 

4.4 sw 

: 

: 

2018 

4.5 sw 

: 

: 

2019 

4.6 sw 

: 

: 

2020 

4.6 sw 

: 

: 

89.0 

93.0 

93.0 

96.0 

Environment 

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

Energy intensity of the economy (kg of oil equivalent per 1 000 euro GDP at 2015 constant 
prices) 

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

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) 

Note 

2009 

: 

2016 

: 

2017 

: 

2018 

: 

2019 

: 

2020 

: 

567.0 

451.3 

409.0 

398.1 

392.3 

413.9 

1.1 

: 

Note 

2009 

1 845 

0 

4.0 

: 

2016 

2 016 

0 

3.6 

: 

2017 

1 793 

0 

4.2 

: 

2018 

1 822 

0 

5.2 

: 

2019 

1 849 

0 

5.3 

: 

2020 

1 901 

0 

1 601 

1 640 

1 412 

1 428 

1 503 

1 562 

0 

636 s 

2 459 

4 976 

0 

638 s 

2 704 

5 982 

0 

769 s 

2 569 

5 918 

0 

757 s 

2 585 

5 915 

0 

815 s 

2 669 

6 351 

0 

787 s 

2 665 

6 711 

Agriculture 

Note 

2009 

2016 

2017 

2018 

2019 

2020 

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

93.5 w 

116.9 w 

112.4 w 

108.3 w 

119.0 w 

100.0 w 

Utilised agricultural area (thousand hectares) 

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

412.4 

: 

416.7 

265.0 

417.0 

259.7 

419.5 

259.7 

421.0 

257.7 

421.1 

261.4 

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

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

Raw milk available on farms (thousand tonnes) 

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

Harvested crop production: sugar beet (thousand tonnes) 

: 

: 

: 

42.3 

41.1 

40.2 

40.5 

45.4 

212.0 s 

210.7 s 

209.8 s 

216.3 s 

241.7 s 

: 

411.2 

562.9 

: 

: 

365.1 

477.9 

: 

334.3 

441.8 

: 

: 

: 

459.4 

529.1 

: 

: 

Harvested crop production: vegetables (thousand tonnes) 

103.5 

151.7 

147.8 

155.3 

177.8 

169.4 

Source: Eurostat and the statistical authorities in Kosovo 

: = not available 

c =  confidential value 

  e = estimated value 

  n =  not significant value 

  p = provisional 

s = Eurostat estimate 

  w= data supplied by and under the responsibility of the national statistical authority and published on an "as is" basis and without any assurance as regards 

their quality and adherence to EU statistical methodology 

* = Europe 2020 indicator 

** = Macroeconomic Imbalance Procedure (MIP) indicator 

  Footnotes: 

1)  The change of the area between 2016 and 2017 reflects measurements made by the Kosovo Cadastral Agency. 

2) 

Includes disbursement fee charged by banks.