COMMISSION STAFF WORKING DOCUMENT Kosovo* 2023 Report Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 2023 Communication on EU Enlargement policy (* 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.)
Date: 2023-11-08
Institutions: Directorate-General for Neighbourhood and Enlargement Negotiations, European Commission
Subjects: Kosovo, accession criteria, accession negotiations, pre-accession strategy, regional cooperation

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 8.11.2023  SWD(2023) 692 final  COMMISSION STAFF WORKING DOCUMENT Kosovo* 2023 Report Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 2023 Communication on EU Enlargement policy {COM(2023) 690 final} - {SWD(2023) 690 final} - {SWD(2023) 691 final} - {SWD(2023) 693 final} - {SWD(2023) 694 final} - {SWD(2023) 695 final} - {SWD(2023) 696 final} - {SWD(2023) 697 final} - {SWD(2023) 698 final} - {SWD(2023) 699 final}  * This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence  
 
 
TABLE OF CONTENTS 

1. INTRODUCTION ............................................................................................................................................ 3 

1.1. CONTEXT ........................................................................................................................................................ 3 
1.2. SUMMARY OF THE REPORT ................................................................................................................................. 3 

2. THE FUNDAMENTALS OF THE ACCESSION PROCESS ..................................................................................... 7 

2.1. 

FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM .............................................. 7 
2.1.1  Democracy ........................................................................................................................................ 7 
2.1.2 Public administration reform .............................................................................................................. 11 
2.2. RULE OF LAW AND FUNDAMENTAL RIGHTS ........................................................................................................... 15 
2.2.1. Chapter 23: Judiciary and fundamental rights .................................................................................. 15 
2.2.2  Chapter 24: Justice, freedom and security......................................................................................... 42 
2.3. ECONOMIC DEVELOPMENT AND COMPETITIVENESS ................................................................................................ 59 
2.3.1. The existence of a functioning market economy ............................................................................... 59 
2.3.2. The capacity to cope with competitive pressure and market forces within the Union ...................... 67 
2.4. PUBLIC PROCUREMENT, STATISTICS, FINANCIAL CONTROL ....................................................................................... 71 
Chapter 5: Public procurement ................................................................................................................... 71 
Chapter 18: Statistics ................................................................................................................................... 73 
Chapter 32: Financial control ..................................................................................................................... 75 

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

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

5. EUROPEAN STANDARDS ............................................................................................................................ 82 

CLUSTER 2: INTERNAL MARKET ................................................................................................................................ 82 
Chapter 1: Free movement of goods ............................................................................................................ 83 
Chapter 2: Freedom of movement for workers ............................................................................................ 85 
Chapter 3: Right of establishment and freedom to provide services............................................................ 85 
Chapter 4: Free movement of capital .......................................................................................................... 86 
Chapter 6: Company law ............................................................................................................................. 87 
Chapter 7: Intellectual property law............................................................................................................ 88 
Chapter 8: Competition policy ..................................................................................................................... 90 
Chapter 9: Financial services ...................................................................................................................... 91 
Chapter 28: Consumer and health protection ............................................................................................. 93 
CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH ............................................................................................... 95 
Chapter 10: Digital transformation and media ........................................................................................... 95 
Chapter 16: Taxation ................................................................................................................................... 97 
Chapter 17: Economic and monetary policy ............................................................................................... 98 
Chapter 19: Social policy and employment ................................................................................................. 99 
Chapter 20: Enterprise and industrial policy ............................................................................................ 102 
Chapter 25: Science and research ............................................................................................................. 103 
Chapter 26: Education and culture ........................................................................................................... 104 
Chapter 29: Customs Union ...................................................................................................................... 107 
CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY ............................................................................... 108 
Chapter 14: Transport policy..................................................................................................................... 109 
Chapter 15:  Energy .................................................................................................................................. 110 
Chapter 21: Trans-European Networks ..................................................................................................... 113 
Chapter 27: Environment and climate change ........................................................................................... 114 
CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION ............................................................................................... 117 
Chapter 11:  Agriculture and rural development ....................................................................................... 117 

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Chapter 12: Food safety, veterinary and phytosanitary policy .................................................................. 118 
Chapter 13: Fisheries and aquaculture ..................................................................................................... 120 
Chapter 22: Regional policy and coordination of structural instruments ................................................. 120 
CLUSTER 6: EXTERNAL RELATIONS .......................................................................................................................... 121 
Chapter 30: External relations .................................................................................................................. 121 
ANNEX I – RELATIONS BETWEEN THE EU AND KOSOVO ............................................................................................... 124 

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1. INTRODUCTION  

1.1. CONTEXT 

The EU-Kosovo Stabilisation and Association Agreement has been in force since April 2016. 
Kosovo  adopted  a  revised  2023-2027  national  programme  for  EU  integration.  Kosovo 
submitted  an  application  for  EU  membership  in  December  2022.  The  authorities  remain 
committed to Kosovo’s European path.  

The Commission’s proposal to lift the visa requirements for Kosovo citizens was agreed by the 
Council and the European Parliament, with adoption of the relevant regulation taking place on 
9 March  2023  in  the  Council  and  on  18 April  2023  in  the  European  Parliament.  Visa 
liberalisation for Kosovo citizens is scheduled to enter into force on 1 January 2024. 

The  EU-facilitated  Dialogue  on  normalisation  of  relations  between  Kosovo  and  Serbia 
continued in the reporting period with regular meetings on the level of Chief Negotiators and 
Leaders. After months of intense negotiations and with the support of key partners, the Parties 
reached  an  Agreement  on  the  Path  to  Normalisation  in  Brussels  on  27  February  2023,  and 
agreed  on  its  Implementation  Annex  in  Ohrid,  North  Macedonia,  on  18  March  2023.  Both 
Kosovo and Serbia are yet  to  start  implementation of their respective obligations stemming 
from the Agreement, which are binding for the Parties and part of their European paths.  

Kosovo has continued to condemn Russia’s war of aggression against Ukraine and to support 
Ukraine’s independence, sovereignty and territorial integrity. The government has continued 
to adopt packages of restrictive measures against Russia and Belarus, mirroring those imposed 
by the EU and the US.  

1.2. SUMMARY OF THE REPORT1  

The government led by Vetëvendosje still holds a solid majority in the Assembly and continued 
to push ahead with its ambitious EU reform agenda.  

However, the continued lack of cross-party cooperation and disagreements within the majority 
proved  to  be  a  challenge  to  reforms.  Additionally,  Srpska  Lista  members  of  the  Assembly 
boycotted  the  Assembly’s  work.  Nevertheless,  the  reporting  period  witnessed  important 
legislative achievements, including electoral reform.  

Overall, Kosovo has remained engaged in the EU-facilitated Dialogue on the normalisation 
of relations with Serbia, but it needs to demonstrate more serious commitment, invest more 
efforts and make compromises to take the process of normalisation of relations with  Serbia 
forward.  Kosovo  needs  to  uphold  its  Dialogue  commitments  and  commit  to  the  full 
implementation  of  all  past  Dialogue  agreements  and  the  Agreement  on  the  Path  to 
Normalisation and its Implementation Annex. Kosovo and Serbia are expected to engage more 
constructively  to  enable  negotiations  on  the  comprehensive  legally  binding  normalisation 
Agreement  to  start  and  show  flexibility  in  order  to  make  rapid  and  concrete  progress. 
Normalisation of relations is an essential condition on the European path of both Parties and 

1  This  report  covers  the  period  from  June  2022  to  June  2023.  It  is  based  on  input  from  a  variety  of  sources, 
including contributions from the government of Kosovo, the EU Member States, European Parliament reports and 
information  from  various  international  and  non-governmental  organisations.  It  also  includes  the  results  of 
comparative assessments and indices produced by other stakeholders, in particular in the area of rule of law.  
The report uses the following assessment scale to describe the state of play: early stage, some level of preparation, 
moderately prepared, good level of preparation and well advanced. To describe progress made during the reporting 
period, it uses the following scale: backsliding, no progress, limited progress, some progress, good progress and 
very good progress. Where appropriate, interim steps have also been used. 

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both risk losing important opportunities in the absence of progress.  

The situation in the north of Kosovo has been affected by several crises of varying intensity on 
a  number  of  issues,  with  a  violent  attack  against  Kosovo  Police  on  24  September  2023, 
constituting  the  gravest  escalation  in  recent  years.  Huge  quantities  of  small  arms  and  light 
weapons (SALW) were found in the context of this attack2. The EU expects the perpetrators to 
be apprehended and swiftly brought to justice and Serbia to fully cooperate and take all the 
necessary steps in this regard.Other crises during the reporting period were triggered by issues 
over  the  freedom  of  movement,  in  particular  licence  plates,  following  the  Kosovo 
government’s  decision  on  29 June  2022  to  enforce  the  re-registration  of  all  vehicles  with 
Kosovo-issued licence plates. This led to the tensions in July 2022 and continued through the 
erection of roadblocks and the collective resignation of Kosovo Serbs from Kosovo institutions 
in November 2022. Following the withdrawal of Kosovo Serbs from Kosovo institutions, local 
by-elections  were  organised  in  the  four  municipalities  in  the  north  of  Kosovo.  Scheduled 
initially for December 2022 and then postponed to 23 April 2023, the mayoral and municipal 
by-elections were held in line with the legal framework of Kosovo and efforts were made for 
them to take place in a smooth and orderly manner. However, despite the milestone Agreement 
on the path to normalisation reached in Brussels on 27 February and its Implementation Annex 
agreed  in  Ohrid,  North  Macedonia,  on  18 March  2023,  and  despite  Kosovo  extending  the 
deadline  for  the  registration  of  candidatures  for  the  local  by-elections,  not  all  parties  and 
communities made use of their democratic right to participate and vote. The very low turnout 
(3.47% of voters), following the boycott by the Kosovo Serb community, showed that these 
elections  do  not  offer  a  long-term  political  solution  for  these  municipalities.  It  remains 
imperative to restore a situation where Kosovo Serbs participate actively in local governance, 
policing and the judiciary in the north of Kosovo. Early local elections need to be held as soon 
as  possible  in  all  four  municipalities,  organised  in  a  fully  inclusive  manner,  and  with  the 
unconditional participation of Kosovo Serbs. 
Due to the lack of decisive steps to de-escalate, and in line with the 3 June statement, the EU 
is implementing a number of measures vis-à-vis Kosovo, which also impact financial support. 
These measures are temporary and fully reversible, depending on the steps taken to de-escalate 
the tensions in the north of Kosovo. Kosovo has taken steps in the right direction, but more 
remains to be done.   

On public administration reform, as last year’s recommendations have not been sufficiently 
implemented. New legislation on public officials and salaries was approved by the Assembly 
using fast-track procedures. The law on salaries is currently under review by the Constitutional 
Court. The amended Law on public officials risks creating and exacerbating existing gaps in 
administrative capacities. 

Kosovo is still at an early stage in developing a well-functioning judicial system. There was 
limited  progress  during  the  reporting  period.  The  need  remains  to  strengthen  existing  tools 
safeguarding the integrity, accountability, independence and efficiency of the justice system. 
The Minister of Justice  and the  heads  of the main  justice system  institutions  signed a Joint 
Commitment  Statement  and  Action  Plan  on  justice  reforms.  Quick  follow-up  is  needed  to 
achieve tangible results. 

Kosovo  is  in  between  an  early  stage  and  some  level  of  preparation  in  the  fight  against 
corruption. Limited progress was made during the reporting period, and corruption remains 
an  issue  of  concern.  While  last  year  the  Assembly  adopted  significant  anti-corruption 

2  The  EU  and  Western  Balkan  partners  agreed  in  May  2023  to  prolong  beyond  2024  the  Roadmap  for  a 
comprehensive small arms and light weapons control in the Western Balkans. 

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legislation and the legal framework on criminal confiscation is advanced, a lot remains to be 
done to implement the anti-corruption legislation. Despite improvement in the performance of 
the Agency for Prevention of Corruption, the anti-corruption preventive tools laid down in the 
legislation  are  not  yet  fully  used.  Kosovo  should  step  up  efforts  to  have  more  proactive 
investigations, final court decisions and final confiscation of assets.  

Kosovo is at an early stage in the fight against organised crime. Limited progress was made 
on the investigation and prosecution of organised crime cases. Kosovo adopted a new police 
organisational structure and upgraded intelligence and analysis capacities. Law enforcement 
operations against organised crime continued. Despite this, the powerful tools envisaged by the 
Criminal Code and the Law on extended powers of confiscation are yet to be fully utilised. 
Fighting organised crime in the north of Kosovo continues to be challenging. 

Kosovo remained active in the fight against terrorism and the fight against and prevention of 
violent extremism. The legal framework on anti-terrorism is partly aligned with the EU acquis 
and international  standards. The Law on combating money laundering  and the financing  of 
terrorism is  yet  to  be amended.  The authorities need to  be more effective in  their efforts to 
combat money laundering. 

The legal framework broadly guarantees the protection of human and fundamental rights in 
line with European standards. While the capacity to monitor implementation of policies and 
legislation has improved, further efforts are required to effectively enforce fundamental rights. 
More  human  and  financial  resources  should  be  allocated  to  relevant  institutions.  Efforts 
continued to improve gender equality but Kosovo needs to further strengthen implementation 
of legislation.  

Kosovo has a well-established legal framework for the protection of non-majority community 
rights. However, further action is needed on long-standing issues such as lack of equal access 
to education and employment, lack of language compliance, and low representation in public 
institutions, including for the Roma and Ashkali communities3. 

Kosovo has some level of preparation as regards freedom of expression. Limited progress was 
made in addressing the recommendations of the previous report. Concerns remain regarding 
physical attacks and threats, public smear campaigns and hate speech. The lack of freedom of 
expression in the north of Kosovo is particularly concerning. 

The Kosovo authorities continued to make progress in managing migration and have engaged 
with the EU on the implementation of the EU Action Plan on Western Balkans presented in 
December 2022 by the Commission. Accommodation capacity was increased. Steps should be 
undertaken to further align legislation, including the Law on foreigners, with the EU acquis 
and international standards. 

As regards the economic criteria, Kosovo has made some progress and is between an early 
stage and some level of preparation of developing a functioning market economy. Kosovo’s 
economic  rebound  moderated  significantly  in  2022.  This  was  mainly  due  to  decreasing 
investment  and  slowing  household  consumption  growth  on  the  back  of  high  inflation, 
especially after the start of Russia’s war of aggression against Ukraine. Despite the resilience 
the  economy  has  demonstrated  during  the  recent  crises,  the  private  sector  continues  to  be 
hindered by long-standing structural challenges such as a widespread informal economy, a high 
prevalence of corruption and the overall weak rule of law. High revenue growth due to rising 
prices and increasing numbers of people in formal work, and a significant under-execution of 

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

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public capital spending led to an almost balanced budget in 2022, while the public debt ratio 
also  fell.  Inflation  surged  to  double  digits  due  to  rising  energy,  food  and  transport  prices, 
leading  to  an  increase  in  the  current  account  deficit.  The  financial  sector  remained  well 
capitalised and stable and bank lending continued to expand.  

Kosovo has made limited progress and is at an early stage in terms of its capacity to cope with 
competitive pressure and market forces in the EU. The education system does not sufficiently 
teach the necessary key skills and is not adequately aligned with labour market needs. Kosovo 
made efforts in improving road infrastructure and increasing investment in renewables, but the 
coal-based,  outdated  and  unreliable  energy  supply  remains  a  concern.  Kosovo  made  some 
progress on the digitalisation of the economy.  

Limited progress was made during the reporting period in the areas of public procurement and 
financial control. On statistics, there was some progress. 

As  regards  good  neighbourly  relations  and  regional  cooperation,  Kosovo  continued  to 
participate in most regional forums. Kosovo maintained overall good relations with Albania, 
Montenegro and North  Macedonia. There has been no change in  Kosovo’s formal relations 
with  Bosnia  and  Herzegovina,  as  the  country  does  not  recognise  Kosovo’s  independence. 
Georgia, Moldova and Ukraine have no formal relations with Kosovo, as they do not recognise 
Kosovo’s independence. 

On  alignment  with  European  standards,  Kosovo  made  some  progress  in  cluster  2,internal 
market with regards to free movement of goods, freedom to provide services, free movement 
of capitals and intellectual property law. It made limited progress in the area of freedom of 
movement for workers, company law, competition policy, financial services and consumer and 
health protection.  

In  cluster  3,  competitiveness  and  inclusive  growth,  Kosovo  made  some  progress  in  most 
areas  (customs,  taxation,  social  policy  and  employment,  education  and  culture),  except  for 
digital transformation and media where progress was limited.  

In policy areas related to cluster 4, the Green Agenda and sustainable connectivity, Kosovo 
made some progress in the energy sector (including by adopting an energy strategy for 2022-
2031). On transport, environment and climate change, it made only limited progress.  

In cluster 5, resources  and agriculture, Kosovo made limited progress  on  agriculture and 
some progress on food safety, veterinary and phytosanitary policy. On fisheries,  it made no 
progress.  

Concerning external relations, limited progress was made during the reporting period. Kosovo 
made  progress  with  implementing  the  Common  Regional  Market  action  plan,  notably  by 
ratifying the three ‘Berlin process agreements’ on free movement and mutual recognition of 
qualifications.  However,  the  government  continues  to  block  decision-making  mechanisms 
within CEFTA due to disagreements over Kosovo’s representation. Kosovo has not yet ratified 
the CEFTA additional protocols  on trade facilitation and trade in  services. Additionally, by 
imposing  a  ‘temporary  operational  security  measure’  in  June  2023  blocking  the  entry  into 
Kosovo of Serbian goods and postal parcels, Kosovo appears not to be in compliance with its 
commitments under CEFTA. The measure also goes against the spirit of the Stabilisation and 
Association Agreement.  

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

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2.  

THE FUNDAMENTALS OF THE ACCESSION PROCESS 

2.1. FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM 

2.1.1  Democracy 

The government led by Vetëvendosje continued to hold a solid majority in the Assembly and 
to push ahead with its ambitious EU reform agenda.  

Kosovo’s overall political stability provided the government with an opportunity to implement 
EU-related reforms and to adopt overdue legislation. However, the continued lack of cross-
party cooperation and disagreements within the majority proved a challenge to reforms. Despite 
this, the reporting period witnessed important legislative achievements. The majority agreed 
with the opposition to establish two ad hoc committees in the Assembly, including on electoral 
reform.  Some  104  pieces  of  legislation  had  been  adopted  as  of  June  2023;  many  of  these 
advanced EU integration priorities. 

Opposition  parties  supported  key  EU-related  laws  on  some  occasions.  However,  deep 
disagreements between majority and opposition remain. The Assembly often failed to vote on 
legislative proposals due to a lack of decision-making quorum, despite the government holding 
a  majority  in  the  Assembly.  The  Assembly’s  committee  meetings,  presidency  sessions  and 
plenaries continued to suffer from frequent boycotts and lack of quorum. 

Female participation at all levels of local governance and decision-making in institutions and 
political parties has improved, yet remains low. Kosovo should further implement the Law on 
Gender Equality, which calls for gender parity in public life. 

Elections  

Kosovo made important progress with electoral reform, as it adopted the Law on financing of 
political parties and the Law on general elections. The new legal framework addresses long-
standing recommendations of successive EU Election Observation Missions. A new law on 
the  Independent  Media  Commission  still  needs  to  be  adopted.  The  Central  Election 
Commission (CEC) needs to implement the new legal framework well in advance of the next 
general election. The CEC needs more financial and human resources to be able to carry on 
the additional tasks deriving from new legal framework.  

Following the withdrawal of Kosovo Serbs from Kosovo institutions in November 2022, local 
by-elections  were  organised  in  the  four  municipalities  in  the  north  of  Kosovo.  Scheduled 
initially for December 2022 and then postponed to 23 April 2023, these mayoral and municipal 
by-elections were held in line with the legal framework of Kosovo and efforts were made for 
them to  take place in  a  smooth  and orderly manner. However, due to  the very low turnout 
(3.47% of voters), in particular by Kosovo Serb citizens, these elections do not offer a long-
term political solution for these municipalities. Early local elections need to be held as soon as 
possible  in  all  four  municipalities,  organised  in  a  fully  inclusive  manner,  and  with  the 
unconditional participation of Kosovo Serbs. 

Kosovo made important progress on addressing long-standing recommendations of successive 
EU  Election  Observation  Missions  (EU  EOMs). The  Assembly’s  ad  hoc  committee  on 
electoral reform was established on 1 July 2022 and successfully completed its work on 5 April 
2023. The Committee, chaired by the biggest opposition party (PDK), in cooperation with the 
CEC and other stakeholders, addressed most of the EU EOMs’ recommendations and managed 
to present a consensual Law on general elections. It provides an adequate basis for the conduct 
of  democratic  elections,  in  line  with  international  and  regional  standards.  It  introduces 
important improvements in several parts of the process, including in relation to suffrage rights, 
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voters’ lists, registration of political parties, independence of the CEC, campaign regulations, 
polling and counting, electoral dispute resolution system and provides additional budget for 
political parties that exceed the 30% of women quota.   

In parallel, the CEC updated electoral rules. However, these will need to be aligned further 
with the new Law on general elections. In August 2022, the Assembly adopted the new Law 
on political party financing, which established a new Office for Registration, Certification and 
Financial Control of Political Entities. In December 2022, the CEC recruited its director within 
the legal timelines laid down in the new law.  

Following the mass resignation of Kosovo Serbs from Kosovo institutions in November 2022, 
local  by-elections  were  organised  in  the  four  municipalities  in  the  north. On  10 November 
2022, the President of Kosovo set 18 December as the date for extraordinary mayoral elections 
in North Mitrovica, Zvecan, Leposavic and Zubin Potok, and 25 December 2022 as the date 
for by-elections for the Municipal Assemblies of Zvecan and Leposavic. As in December, the 
security situation in  the north of Kosovo deteriorated and groups of Kosovo Serbs blocked 
CEC  staff  from  entering  the  two  Municipal  Election  Committee  offices.  As  a  result,  the 
President postponed the elections until 23 April 2023, a decision welcomed by the EU as it 
advanced efforts to promote a more secure situation in the north of Kosovo.  

The elections were held on 23 April in line with the legal framework of Kosovo and efforts 
had been made for them to take place in a smooth and orderly manner. However, despite the 
agreement  on  the  Implementation  Annex  of  the  Agreement  on  the  Path  to  Normalisation 
reached in Ohrid on 18 March 2023, and Kosovo extending the deadline for the registration of 
candidatures  for  the  local  by-elections,  not  all  parties  and  communities  made  use  of  their 
democratic right to participate and only 3.47% of voters cast their ballot. Kosovo Serb political 
parties did not participate and Srpska Lista called for voters not to turn up, with the result that 
the Kosovo Serb community largely boycotted the elections. Out of the 45 095 voters, only 
1 567  cast  their  ballot.  While  Kosovo’s  legislation  does  not  stipulate  a  threshold  for  voter 
participation, the very low turnout, in particular among Kosovo Serbs, clearly indicates that 
the elections do not offer a long-term political solution for these municipalities. Early local 
elections need to be held as soon as possible in all four municipalities, organised in a fully 
inclusive manner, and with the unconditional participation of Kosovo Serbs.  

Parliament  

During the reporting period, the Assembly’s work continued to be hampered by the lack of a 
decision-making quorum and limited efforts to build cross-party consensus. The Assembly was 
not able to adopt laws and to make necessary appointments to public bodies for long periods 
of  time.  The  boycott  by  Srpska  Lista  MPs  made  adopting  laws  in  the  category  of  vital 
legislation  impossible.  The  lack  of  political  consensus  for  some  of  the  key  reforms  and 
legislative processes continued. The Assembly needs to introduce measures and/or penalties to 
ensure  it  can  perform  its  role.  To  that  end,  it  would  also  need  to  improve  its  internal 
management,  adopt  an  annual  work  plan,  and  introduce  an  electronic  voting  system  and 
electronic presence recording system. In addition to its legislative function, the Assembly needs 
to strengthen its oversight function. On 8 June 2023, the Assembly adopted the new Law on 
general elections. It also achieved cross-party consensus with the swift adoption of the three 
Berlin  Process  agreements  on  freedom  of  movement.  The  Assembly  continued  using  fast-
track/accelerated procedures for the adoption of key legislation. The number of women MPs 
remains  the  same,  although  for  the  first  time  women  lead  more  than  half  of  the  Assembly 
committees. 

Discussions between the ruling majority and opposition in the Assembly were polarised and at 

8 

 
 
times  tense.  Some  MPs  used  inflammatory  language  against  political  opponents,  including 
stereotyping and non-sensitive gender language.  

The  Assembly  did  not  reach  consensus  on  many  issues,  including  on  energy  policy,  salary 
increases in the public sector, strikes in the education sector, security strategy and economic 
policy. While the Assembly remains the main forum for political dialogue between political 
parties and non-majority representatives, limited efforts are made to build consensus on issues 
of general interest. The political debate should be directed towards substantial discussions that 
lead to consensual and sustainable results. The lack of decision-making quorum, despite the 
government having a majority in the Assembly, led to a backlog of items on the agenda and 
parliamentary sessions dragging on for months, causing delays in adopting EU-related reforms 
and  in  making  appointments.  Absenteeism,  late  arrival  and  early  departure  from  plenary 
sessions and committee meetings have become common practice. The new Rules of Procedure 
lack  measures  to  impose,  financial  (or  other)  penalties  for  unjustified  absence  from 
parliamentary proceedings.  

On  7 November  2022,  10  Srpska  Lista  MPs  resigned  from  the  Assembly  as  part  of  the 
collective withdrawal of Kosovo Serbs from Kosovo institutions. On 17 November, candidates 
next in line took over their mandate. Nine new Srpska Lista MPs, one member of the Kosovo 
Serb opposition Civic Initiative ‘Freedom, Justice, Survival’ (SPO) and two Gorani and Roma 
MPs attended the plenary session of 6 April 2023 in order to secure the continuation of their 
mandates, only to continue their boycott of plenary sessions afterwards. The lack of discipline 
and a loose interpretation of parliamentary responsibilities have become a growing obstacle to 
the functioning of the Assembly and its bodies.  

During the reporting period, the Assembly adopted 104 laws, out of which 25 ratifications of 
international  agreements.  Out  of  the  104  adopted  laws,  21  were  adopted  using  a  fast-track 
procedure. This included essential laws such as the Law on the 2023 budget, the Law on public 
officials and the Law on salaries. There were no efforts to build consensus on key pieces of 
legislation, and opposition parties have referred a number of them to the Constitutional Court. 
On 23 February 2023, the Assembly promptly adopted three international agreements reached 
in the Berlin Process. These enable free movement with identity cards and recognition of higher 
education qualifications and professional qualifications in the Western Balkans. 

The Assembly did not manage to make timely appointments in most of the key independent 
bodies. As a result, there are several vacant posts in various institutions, and the Assembly has 
continued to postpone voting on appointments.  

The Assembly needs to strengthen its oversight function of the executive and of independent 
institutions. The new Rules of Procedure include advanced reporting procedures for handling 
annual reports of independent institutions, but this has not resulted in the timely review of these 
reports. Most of the 2021 annual reports of the independent institutions were reviewed in the 
first months of the 2023 spring session and often without substantial debate.  

The Assembly made limited efforts to address the lack of qualified staff, in particular regarding 
specialised legal and gender issues. It remains dependent on external experts and international 
donor support.  

Governance 

Kosovo  made  progress  in  implementing  EU-related  reforms:  Kosovo  adopted  the  National 
Programme  for  EU  integration  and  continued  to  implement  the  European  Reform  Agenda 
(ERA) II action plan. In December 2022, Kosovo submitted an application for EU membership. 
To pursue EU-related reforms in a more efficient and sustainable way, it is essential that the 

9 

 
 
government  ensures  cross-party  support,  increases  coordination  across  departments,  and 
decentralises  decision-making 
their 
responsibility.  

implement  policies  under 

line  ministries 

to 

to 

On 31 March 2023, the government approved the revised 2023-2027 National Programme 
for EU Integration, further endorsed by the Assembly on 15 June 2023. Kosovo continued to 
implement the ERA II Action Plan.  

Although the interinstitutional coordination structures for European integration are in place, 
weak  administrative  capacity  affected  the  EU  reform  agenda  and  integration  activities.  The 
number  of  key  positions  in  the  public  sector  functioning  with  staff  in  an  acting  capacity  is 
concerning. The other challenge is the lack of a permanent inter-ministerial coordination body 
at expert level. This results in limited political ownership of the EU agenda in line ministries 
and a lack of prioritisation and sequencing of reforms. More efforts are needed to increase trust 
and to strengthen coordination between the political and technical levels.  

As regards local government, disparities remain between municipalities in their performance 
and service delivery. With the increase of the overall budget for 2023, the general grant for 
municipalities expanded by 15% (EUR 100 million). However, municipalities led by mayors 
from opposition parties have raised concerns that the line ministries’ capital investment funds 
are not always allocated according to objective criteria. In July 2022, the Assembly adopted 
the  Law  on  the  Municipal  Performance  Management  System,  an  important  instrument  to 
promote  competitiveness  among  the  municipalities  in  delivering  quality  services  and  to 
incentivise transparency. Effective oversight of municipal legislative bodies over the municipal 
executive  bodies  remains  a  challenge.  Communication  and  cooperation  between  the 
government and the municipalities needs improvement. On audit practices, progress was made 
towards  more  effective  oversight  and  transparent  governance.  Municipalities  do  not 
sufficiently use the existing inter-municipal cooperation mechanisms.  

Women’s representation in senior government positions increased but remains unequal. They 
remain under-represented in local decision-making bodies Affirmative measures are needed to 
ensure equal representation of women and men in the local executive. Three political parties 
(Vetëvendosje, PDK and LDK) have undertaken measures to increase women’s participation 
in their parties. 

Civil society 

In  general,  civil  society  operates  in  an  enabling  environment.  Civil  society  continues  to 
actively participate in public consultations and contributes to policy-making and monitoring 
processes. Efforts by public authorities to involve the public in decision-making processes are 
welcomed and should be further increased.  The government should ensure that each public 
consultation  process  fulfills  the  minimum  standards,  principles  and  procedures  set  by  the 
relevant regulation. Efforts to increase the transparency and accountability of public funding 
to civil society organisations should be sustained.  

An empowered civil society is a key component of any democratic system and continues to be 
recognised  as  such  by  public  institutions.  Civil  society  remains  an  important  partner  in  the 
framework  of  Kosovo’s  preparation  for  EU  accession,  as  it  contributes  to  the  design, 
implementation and monitoring of EU-related reforms, and participates in the Stabilisation and 
Association policy dialogue platforms. Its role in promoting social change, building trust and 
promoting multistakeholder cooperation is widely recognised. Civil society also plays a critical 
role in advocating for the rights of persons with disabilities, gender equality, and the rights of 
persons belonging to non-majority communities. 

10 

 
 
The  Council  for  Government-Civil  Society  Cooperation  has  not  met  since  2022  (when  it 
endorsed its new Rules of Procedure). Besides some progress on the public consultation process, 
there were no significant developments on implementing the 2019-2023 strategy for cooperation 
with civil society.  

The government has made some efforts to involve civil society in decision-making. In 2022, the 
online platform for public consultations was upgraded with features facilitating the participation 
of persons with disabilities. Most legislative acts approved by the government were submitted 
to  public  consultation.  Civil  society  organisations  (CSOs),  interested  parties  and  the  public 
engaged almost four times more often in public consultations at the central level than in 2021. 
At the same time, the implementation of some standards, principles and procedures specified in 
the Minimum Standards for Public Consultation continued to lag behind. Public consultations 
are  generally  carried  out  at  central  level,  in  writing  and  electronically  through  the  online 
platform.  It  is  recommended to  increase the use of other forms  of public consultation.  Local 
administrations do not use those mechanisms sufficiently. 

The  implementation  of  the  Regulation  on  public  funding  for  NGOs  is  gradually  improving. 
Despite being included in the legislative agenda of 2022, the amendments to the Regulation were 
not  initiated.  The  online  platform  was  upgraded  with  data  visualisation  based  on  providers, 
beneficiaries and territory of implementation, and is now linked with the Platform of Donors’ 
Support to Civil Society. Kosovo would benefit from increased transparency and accountability 
on public funding for NGOs. More efforts are needed to update the CSO registry and to ensure 
that Kosovo’s electronic system of non-governmental organisations is fully reliable. 

In 2022, the government initiated the sectoral terrorist financing risk assessment process on non-
profit organisations, involving civil society. This work should feed into the review of the Law 
on the prevention of money laundering and terrorist financing. The aim is to remove unnecessary 
reporting  burdens  on  CSOs,  alleviate  excessive  control  measures  on  low-risk  CSOs,  lift 
limitations on cash donations, and remove barriers to access banking or financial services. The 
tax regime for CSOs is considered to partially meet relevant standards according to the EU’s 
Technical Assistance to Civil Society Organisations (TACSO) 2021 baseline assessment. 

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

2.1.2 Public administration reform  

Kosovo  has  some  level  of  preparation  and  made  no  progress  with  regard  to  public 
administration  reform  during  the  reporting  period.  Oversight  of  the  implementation  of  the 
legislative  framework  for  public  administration  reform  (PAR)  across  line  ministries  is  still 
ineffective. This is despite the adoption of a new strategic framework for both PAR and public 
finance  management.  New  legislation  on  public  officials  and  salaries  was  approved  by  the 
Assembly using fast track procedures. Both laws were sent for review to the Constitutional 
Court which ruled some articles of the Law on Public Officials unconstitutional. The amended 
Law  on  Public  Officials  risks  creating  and  exacerbating  existing  gaps  in  administrative 
capacities. Some progress was made with harmonising sectoral laws with the Law on general 
administrative  procedures  and  in  digitalising  public  services.  However,  the  overall  pace  of 
public administration reforms remained insufficient to deliver tangible results in the reporting 
period.  

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

11 

 
 
→  improve the functioning and accountability of the public administration, including through 
rationalising agencies and introducing performance management in agencies; to that end, 
strengthen  administrative  capacities,  fill  open  vacancies  regularly  and  in  line  with  the 
principle of merit-based recruitments, and amend the new Law on public officials in line 
with the principles of a modern public administration; 

→  ensure efficient functioning of the new remuneration system by implementing the Law on 
organisation and functioning of the state administration and independent agencies and to 
finalise the processes of: (i) regulating the internal organisations of public bodies, (ii) job 
classification;  and  (iii)  systematising  positions  at  central  level  according  to  job 
descriptions; 

→  improve legal certainty, reduce the administrative burdens and increase the number of e-

services in the public administration for businesses and the public. 

Strategic framework for public administration reform  

During the past year, Kosovo consolidated the strategic framework for PAR by adopting a new 
PAR strategy (2022-2027) and an action plan for its implementation. The Ministerial Council 
on PAR, which is the main oversight and coordination mechanism on public administration 
reform at political level, generally meets only once a year to approve the annual reports under 
the PAR strategic framework. This mechanism is ineffective in ensuring coordination among 
key bodies to steer the PAR process. The Ministry of Internal Affairs (MIA) leads reforms at 
the  technical  level.  However,  both  the  MIA  and  line  ministries  have  limited  capacities  to 
effectively  supervise,  analyse  data  in  an  evidence-based  manner,  and  manage  the  reform 
processes.  The  2022  monitoring  report  on  PAR  implementation  was  adopted.  The  internet-
based  platform  for  monitoring  PAR  has  been  built  and  tested  but  is  not  yet  functioning 
efficiently.  

Policy development and coordination  

On the policy-making system, the government adopted the national development strategy and 
-plan 2023-2029 (NDS/NDP), which sets both long-term and short-term priorities, covering 
activities on a three-year rolling basis. There are no clear links between the NDP/NDS and the 
sector  strategies  and  their  respective  action  plans,  or  with  the  medium-term  expenditure 
framework. The Strategic Planning Office (SPO) is responsible for planning, monitoring, and 
reporting on the strategies as well as ex ante impact assessment. The SPO’s capacities need to 
be further strengthened. 

Kosovo has made limited progress on gender-mainstreaming, as well as on inclusive and 
evidence-based policy development. The government’s Rules of Procedures are still under 
consultation.  Procedures  on  regulatory 
in  place;  however, 
implementation remains weak. Public institutions should foster inclusive participation.  Despite 
the fact that almost all primary draft laws and policy documents are regularly published on the 
government web portal, public consultations and public inclusion in reform agendas remains 
limited and should be improved. The involvement of civil society, stakeholders and the public 
in the government’s policy and legislative development processes remains limited.  

impact  assessments  are 

Public financial management 

A  new  public  finance  management  (PFM)  strategy  (2022-2026)  was  adopted  in  December 
2022. The 2022 monitoring report on PFM was adopted in July 2023. The concept document 
of the new law on PFM and accountability has been approved and legislative preparatory work 
is  ongoing.  The  new  law  should  foresee  a  better  linkage  between  the  policy  planning  and 
budgeting process in the annual and medium-term. A first step was the integration of medium-
12 

 
 
term policy priorities in the medium-term expenditure framework adopted in April 2023.  In 
general,  Kosovo’s  budget  classification  system  for  public  finances  remains  consistent  with 
international standards.  

Fiscal  risks  contained  in  contingent  liabilities,  at  both  central  and  local  levels,  are  still  a 
weakness, and these risks are not identified in a systematic way. Kosovo needs to advance its 
planning  and  spending  of  capital  expenditure  by  improving  execution  of  multi-year  public 
investments through a transparent appraisal of costs and benefits as a basis for investment 
decisions. Better linkage between the public investment programme and the Kosovo Financial 
Management Information System should be ensured, as well as further strengthening of the 
credibility  and  accuracy  of  medium-term  budget  revenue  and  expenditure  plans.  Budget 
systems  should  include  objectives  towards  gender  equality  and  gender-disaggregated  data 
indicators with specific targets.  

On public procurement, contract management and commitment controls remain weak. The 
government’s  electronic  procurement  platform  is  still  not  connected  to  the  financial 
management information system in the Treasury. On budget transparency, citizen-friendly 
budgets  and budget  implementation  reports are  regularly  published  (See  chapters on public 
procurement, taxation, customs and financial control). 

The public service and human-resource management  

The Law on public officials from 2020 provides for merit-based recruitment, promotion and 
dismissal,  but  has  not  been  effectively  implemented.  In  particular,  a  centralised  system  for 
merit-based recruitment for the professional category is lacking.  In addition, the public sector 
has not managed to fill open vacancies effectively or in a timely manner, resulting in major 
weaknesses in administrative capacity. Extensive use of acting positions in the civil service, 
especially at senior managerial levels, as well as ineffective external recruitment procedures 
for senior management have instead undermined the quality of management in the institutions. 
The Law on public officials was amended at the end of 2022, introducing substantive systemic 
changes. The revised law was consequently suspended pending review by the Constitutional 
Court  which  found  some  of  the  provisions  unconstitutional.  There  are  other  amendments, 
which, if implemented, would risk further weakening the administrative capacities of the civil 
service. Particularly the proposed introduction of fixed-term mandates at all managerial levels 
potentially puts the stability and professionalisation of the civil service at risk.  

Women remain under-represented at senior level positions in the civil. Measures need to be 
adopted to increase the number of women in senior positions in line with the Law on gender 
equality. 

The capacity of the MIA to manage the implementation of a human-resources-management 
policy  throughout  the  public  administration  has  not  increased.  The  Department  for  the 
Management  of  Public  Officials  (DMPO),  together  with  the  human-resources-management 
units of institutions, should: (i) improve their coordination; (ii) provide regular training; (iii) 
promote the transfer knowledge; and (iv) disseminate/promote methodological tools. The data 
collection  system  through  the  internal  human  resource  management  (HRM)  information 
system covers modules on civil servants categories, recruitment, remuneration, and promotion. 
However, this tool is not effectively used by the civil service to monitor HRM performance 
and  the system needs further update and improvement. Transparency on HRM needs to be 
improved,  although  the  public  can  have  some  information  through  a  dedicated  website  for 
applications  and  appointments.  Advancement  in  finalising  the  regulations  on  internal 
organisations  for  state  institutions  -  including  ministries-  and  alignment  with  the  Law  on 

13 

 
 
organisation and functioning of state administration and independent agencies (LOFSAIA) has 
been slow. This has further weakened human resource management and planning.  

The Independent Oversight Board for the Civil Service is effectively exercising its mandate on 
ruling  on  appeals  and  monitoring  the  implementation  of  the  legislation  regarding  the  civil 
service. The planned amendments to the law governing the board curtail some of the Board’s 
powers  to  review  and  decide  on  appeals  and  do  not  ensure  compliance  with  all  rules  and 
principles governing the civil service. 

A  new  Law  on  salaries  helped  to  lay  down  a  clearer  and  more  transparent  remuneration 
framework  for  all  public  employees.  However,  the  Law  is  currently  under  review  by  the 
Constitutional Court. Some salary levels  are not  based on a thorough assessment of the job 
requirements  due  to  delays  in  finalising  the  job  classification  and  streamlining  positions 
according  to  job  categories.  As  a  result,  without  the  right  conditions  on  human  resource 
management, the new law, even if implemented, risks not to ensure a fair remuneration system.  

There is no systematic approach to the professional development of civil servants. Training 
at both central and local levels largely depends on donor support. Despite practical guidelines 
for appraising the performance of civil servants  and training delivered to DMPO and HRM 
units,  the  system  for  managing  performance  remains  ineffective.  A  mandatory  training 
programme stipulated by the Law on public officials for all civil servants was developed in 
2022, but has still not been implemented.  

Integrity in the public service remains a challenge. Some institutions still lack integrity plans, 
and the implementation of these plans is ineffective. The Law on conflict of interest and the 
Law on protection of whistle-blowers should be applied in  a coherent  and efficient  manner 
throughout the public administration. 

Accountability of the administration  

Implementation of the LOFSAIA remains slow, with the MIA’s capacity to lead and steer the 
implementation process still ineffective. There are no clear lines of managerial accountability 
and no clear delegation of powers between ministries and sub-ordinated bodies. As a result, 
there are many executive agencies subordinated to the Assembly or to line ministries but with 
no  clear  reporting  procedures  in  place.  The  Law  on  rationalisation  and  establishment  of 
accountability lines of independent agencies (first wave) and the Law on rationalisation and 
establishment of accountability lines of executive agencies (second wave) were adopted.  In 
addition, the government has adopted a methodology for rationalising agencies, which should 
support the accountability and supervision of bodies subordinated to the executive. The system 
for managing  the performance of agencies is  not in  place due to  delayed finalisation of the 
organisational set-up of line ministries. 

Recommendations from oversight mechanisms are still poorly implemented. The availability 
and provision of information and documents from public institutions remains a challenge. At 
present the system for gaining access to this information and these documents does not work 
well.  

The legislative framework regulating access to administrative justice is being reviewed in line 
with international practices, and access to justice continued to be inefficient due to delays in 
processing cases  by the basic court and the appeal  court in  Pristina. Fragmented legislation 
affects  the  liability  of  public  authorities  in  cases  of  wrongdoing  and  the  right  to  seek 
compensation.  

Delivering services to businesses and the public  

14 

 
 
The  programme  to  prevent  and  reduce  administrative  burden  (2022-2027)  is  being 
implemented. A list of public services at central and local level has been drawn up together 
with analyses of how these services are to be digitalised. There has been some progress with 
the Assembly adopting an omnibus law covering the harmonisation of sector-specific laws with 
the Law on general administrative procedures. In addition, the government approved an action 
plan  to  further  harmonise  and  align  sector-specific  laws  with  the  Law  on  General 
Administrative Procedure. 

The  government’s  e-Kosovo  portal  further  improved  the  online  delivery  of  services  to  the 
public while including more services in the e-catalogue. However, data quality and reliability 
on  this  portal  remains  a  challenge.  The  management  of  the  technical  structures  for  e-
government  is  still  dependent  on  donor  support.  In  order  to  simplify  and  digitalise  public 
services, efficient e-government processes and systems must be set up to ensure consistency in 
the design and maintenance of digital solutions, and to ensure the interoperability, safety and 
security of these solutions. The draft e-government strategy is not adopted yet. As the reforms 
in this area are general and touch on all areas of public administration, there is a need set up an 
inter-institutional  coordination  mechanism  under  the  leadership  of  the  Office  of  the  Prime 
Minster. 

2.2. RULE OF LAW AND FUNDAMENTAL RIGHTS 

2.2.1. Chapter 23: Judiciary and fundamental rights 

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

Kosovo is in between an early stage and some level of preparation to apply the EU acquis 
and European standards on the judiciary and fundamental rights. Limited progress was made 
in this area. Some improvements were observed on the functioning of the judiciary, as well as 
on investigation and prosecution in organised crime and high-level corruption cases. Further 
efforts must be made to reinforce freedom of expression. 

Functioning of the judiciary  

Kosovo  is  at  an  early  stage  in  developing  a  well-functioning  judicial  system.  During  the 
reporting period, Kosovo made limited progress, despite an increase in the ratio of productive 
court hearings, a faster pace in scheduling court hearings, and improvements in recruitment of 
judges  and  prosecutors.  The  human  resources  situation  and  the  organisation  of  the 
administration across the judiciary remains affected by inefficiencies. The National Centralised 
Criminal  Records  System  was  established  and  has  been  accessible  online  since  December 
2022,  enabling  the  public  to  obtain  certificates  of  criminal  records  online.  The  government 
decision lowering the salaries of judges and prosecutors and the subsequent Law on salaries 
raised concerns with regards to the independence of the judiciary. In March 2023, the Minister 
of  Justice  and  the  heads  of  the  main  justice  system  institutions  signed  a  joint  commitment 
statement  on  justice  reforms,  reflecting  the  most  important  reform  issues  that  need  to  be 
tackled.  Swift  follow-up  is  needed  to  achieve  tangible  results.  In  September  2022,  the 
government handed over the file related to integrity checks of judges and prosecutors to the 
Assembly, which established an ad hoc committee to finalise the constitutional amendments 
and  the  relevant  legislation  towards  integrity  checks  of  senior  positions  within  the  justice 
system, in line with the Venice Commission Opinion of June 2022. Kosovo should ensure that 
the  Venice  Commission  is  re-consulted  throughout  the  process  of  finalising  the  draft 
constitutional amendments and relevant legislation related to justice reform. It is crucial that 

15 

 
 
the  justice  reform  focuses  on  strengthening  the  existing  tools  to  safeguard  the  integrity, 
accountability,  independence  and  efficiency  of  the  justice  system,  in  line  with  the 
recommendations  of  the  Venice  Commission  Opinion  and  relevant  European  standards.  
Kosovo should ensure that the guidance of the Venice Commission on the amendments to the 
Law on the Kosovo Prosecutorial Council is duly incorporated in the new law. Efforts should 
continue to fully use the Case Information Management System, further promote the alternative 
dispute 
reliable  statistical  data.  The  Commission’s 
recommendations  from  last  year  were  only  partially  met  and  therefore  remain  valid.  In  the 
coming year, Kosovo should in particular:  

tools,  and  ensure 

resolution 

→  take immediate action to implement the obligations deriving from the joint commitment 
statement  signed  by  the  heads  of  justice  system  institutions,  with  specific  focus  on 
improving the integrity, accountability and efficiency of the judiciary; 

→  step up efforts to reduce the backlog of cases, based on a clear action plan with audits and 
internal control supported by a digitalisation strategy. To that end, Kosovo should reform 
the  court  and  prosecution  administration,  and  strengthen  management  functions  in  the 
judiciary and prosecution to ensure efficient use of resources; 

→  improve the capacity of judges and prosecutors to handle cases of gender-based violence 
in accordance with laws, the 2022-2026 strategy against domestic violence and violence 
against women and the new State Protocol for the treatment of sexual violence cases. 

Strategic documents  

The rule of law strategy and action plan continue to be implemented at a slow pace. Nevertheless, 
the  April  2023  annual  implementation  report  highlighted  a  number  of  positive  developments, 
including: the establishment of the Commercial Court; an increase in the recruitment of judges and 
prosecutors; the advancement of the Case Management Information System in accordance with 
European  Commission  for  the  Efficiency  of  Justice  (CEPEJ)  requirements;  the  automatic 
assignment of cases to judges; and the strengthening of free legal aid. In terms of risks, the report 
mentions the lack of prioritisation of the implementation of activities, and a lack of capacities, 
budget and interinstitutional cooperation.  

The Kosovo Prosecutorial Council (KPC) and Kosovo Judicial Council (KJC) regularly update 
their  strategic  plans,  setting  objectives  for  the  judicial  and  prosecutorial  systems  respectively. 
Both Councils adopted annual action plans. During the previous reporting period, the KJC adopted 
a  strategic  plan  for  the  efficient  solving  of  cases  of  corruption  and  organised  crime,  a 
communication strategy for 2022-2024, and the strategic plan for access to justice for 2022-2025. 
It also established a committee aimed at overseeing implementation of its strategy on corruption 
cases.  The  KPC  adopted  the  2022-2024  strategic  plan  of  the  prosecutorial  system.  The 
prosecutorial  system  requires  urgent  reform  of  its  administration  and  management  structure. 
Kosovo should step up its efforts to ensure proper donor coordination regarding support for the 
judicial and prosecutorial systems.  

In March 2023, a joint commitment statement and an action plan on justice reforms was signed by 
the  Minister  of  Justice,  the  KJC,  the  KPC,  the  Supreme  Court  and  the  acting  Chief  State 
Prosecutor.  The  action  plan  provides  for  a  series  of  assessments  and  legislative  revisions  to 
improve  the  systems  of  performance  evaluation,  disciplinary  sanctions,  recruitments  and 
appointments, integrity checks, status, professional development, and asset declarations. Working 
groups have been established to cover each of these areas. 

Management bodies  

The KJC and KPC are the main bodies responsible for ensuring the independence and impartiality 

16 

 
 
of the judiciary and for managing the judicial system and careers of judges and prosecutors. Their 
composition and appointment procedures are broadly in line with European standards. 

On 23 June 2022, the  Assembly  adopted  amendments to  the Law on the Kosovo Prosecutorial 
Council, aiming to reduce corporatism by, for example, changing the composition of the Council 
itself. The Venice Commission issued two opinions on the drafts, which the Assembly addressed 
before adopting the amendments to the draft. A number of MPs submitted the adopted amendments 
to the Constitutional Court for review in July 2022. On 24 March 2023, the Constitutional Court 
announced a judgment declaring the amending law invalid in its entirety. The Court found that the 
law infringed the KPC’s constitutional independence on several accounts, as well as the principles 
of  separation  of  powers  and  control  and  balance  among  constitutional  bodies.  Following  the 
judgment,  the  law  is  under  revision.  Kosovo  should  ensure  that  the  guidance  of  the  Venice 
Commission on the amendments to the KPC Law is duly incorporated. 

The appointment of the Chief State Prosecutor has been pending since April 2022 and is overdue. 
The EU and other international actors, as well as civil society, publicly expressed disappointment 
over the lack of fairness, transparency and merit principles in the selection process. The lengthy 
proceedings  have  caused  a  state  of  uncertainty,  which  detracts  from  the  functioning  of  the 
institutions.  The  Assembly  must  increase  efforts  to  ensure  timely  appointment  of  Council 
members, as there are persistent delays. The Councils should make use of available statistics for 
policy analysis and development.  

The  mass  resignations  of  Kosovo  Serb  officials  from  public  institutions  in  November  2022 
included the resignations of Kosovo Serb judges, prosecutors and administrative staff working in 
the north of Kosovo. The KJC and KPC decided to postpone any decision on such resignations, 
pending other developments. At the same time, both Councils arranged to ensure that cases are 
processed, especially those requiring urgent action. Kosovo must consistently ensure that judicial 
proceedings  are  accessible  in  all  official  languages,  as  required  in  the  Constitution.  Additional 
court translators have been recruited, and the KJC is in the process of developing a platform to 
centralise translations in courts. However, more efforts are necessary to address the shortage of 
qualified translators, also with an aim to reducing the backlog of cases. Access to judgments and 
decisions rendered by the Serbian courts in Kosovo between 1999 and up until the integration of 
Serbian judges in October 2017 remains challenging.  

Independence and impartiality  

The Constitution and the applicable legal framework outline the principles of independence and 
impartiality. Consistent efforts are necessary to ensure respect of these principles in practice, and 
to effectively shield the judicial system from undue pressure and interference. The Councils should 
ensure  prompt  reaction  in  all  cases  of  alleged  undue  interference.  The  government  decision  of 
November 2022 reducing the salaries of judges and prosecutors and the Law on salaries, with a 
similar effect, raised concerns about the judiciary’s independence. 

The  regulatory  framework  provides  for  the  random  allocation  of  most  cases  through  a  case 
management information system, except for the cases of the newly established Commercial Court, 
which are not yet included. In practice, improvement has been noted. However, a number of cases 
remain manually assigned, creating concerns. This happens especially when a judge is unavailable 
or when there is a change of court jurisdiction. Court presidents need to follow the rule that any 
deviation from the random allocation of cases needs to be explicitly justified and transparently 
documented. The timely handling of several high-profile and sensitive cases remains a challenge. 
This is due to recourse to long adjournments, inadequate mechanisms to avoid excessive duration 
of  cases,  lack  of  effective  remedy  when  trials’  duration  goes  beyond  a  reasonable  time,  and 
insufficient management of cases.  

17 

 
 
During the reporting period, three prosecutors and one judge requested close protection from the 
police. Following the risk assessment, only one prosecutor was granted protection. 

Accountability  

While  codes  of  ethics  for  judges,  prosecutors  and  attorneys  are  in  place,  authorities  must 
continuously ensure their effective implementation. Professional ethics is part of the initial training 
programme for judges, prosecutors and support staff. 

The  KJC  established  an  Advisory  Committee  on  Judicial  Ethics  and  adopted  a  regulation  on 
disciplinary proceedings against KJC Members. Both Councils continue to conduct disciplinary 
procedures  against  judges  and  prosecutors.  The  Councils  should  ensure  strict  and  efficient 
proceedings  in  full  compliance  with  the  applicable  legislation  and  the  necessary  procedural 
safeguards. While efforts are being undertaken, more is needed to ensure consistent and effective 
application of disciplinary proceedings against judges and prosecutors. For example, the KPC and 
KJC’s  communication  strategy  on  proceedings  should  be  further  improved,  training  should  be 
reinforced  and  the  Law  on  disciplinary  liabilities  should  be  amended,  to  enable  further 
specialisation  of  the  investigation  bodies.  During  the  reporting  period,  the  KJC  established  an 
electronic  database  to  register  all  complaints  and  requests  for  initiation  of  disciplinary 
investigations as required by law.  

By law, judges and prosecutors are obliged to declare their assets and gifts received, and to report 
any possible conflict of interest to the Agency for Prevention of Corruption. In 2022, all judges 
and prosecutors submitted the annual asset declarations on time (see fight against corruption).   

Following  the  Venice  Commission’s  June  2022  Opinion  on  the  Concept  Document  on 
Development of the vetting process within the justice system of Kosovo, in September 2022 the 
government handed over to the Assembly responsibility for leading the process and the related 
file. The file contains, among others, draft constitutional amendments and a draft law on integrity 
checks.  In December 2022, the Assembly established an ad hoc committee which finalised the 
constitutional amendments. Representatives of Srpska Lista do not take part in this committee, as 
they continue to boycott the Assembly’s work. In March, the Speaker of the Assembly submitted 
the constitutional amendments to the Constitutional Court for review. Kosovo should fully align 
with  the  Venice  Commission  recommendations,  including  on  the  need  to  explore  further 
alternative  measures  instead  of  a  large-scale  vetting.  These  should  include,  through  legislative 
changes, the establishment of ‘verification units’ within the Councils, making more active use of 
judges’  and  prosecutors’  asset  declarations,  ensuring  that  proper  checks  are  made  and  that 
irregularities  in  asset  declarations  eventually  trigger  meaningful  disciplinary  actions.  Integrity 
checks for high-level judicial institutions (in particular the Councils) could also be established. 
These  are  examples  of  possible  measures  that  could  effectively  strengthen  independence  and 
accountability of the judicial system through targeted legislative changes. Kosovo should continue 
the dialogue on the next stages of the envisaged justice reform, both with the Venice Commission 
(including re-consulting on any constitutional and legislative changes regarding integrity checks), 
and with the European Commission. Consultations with all relevant internal stakeholders should 
also continue. Finally, any reform aimed at improving the quality and independence of the system 
should include mitigating measures to prevent any deterioration of efficiency across the judicial 
system. 

Professionalism and competence  

The  Councils  independently  organise  recruitment  procedures  for  judges  and  prosecutors, 
based on merit-based criteria. Successful candidates are appointed by the President of the Republic 
for an initial three-year term, based on the proposals of the Councils. During the reporting period, 
the KJC initiated the recruitment process for 84 judges, including 12 positions for the Kosovo Serb 
18 

 
 
community. The President decreed 77 judges, out of which 3 are Kosovo Serb and 2 are Bosnian. 
Out of the reserved positions for the Serbian community, 5 positions remain unfilled. In June 2023, 
the  President  appointed  the  President  of  the  Supreme  Court.  The  KJC  recruited  a  significant 
number of legal  associates to  support the work in the Basic Courts and certified 1 401 judicial 
experts.  Any  initiative  in  this  regard  should  be  properly  coordinated  among  the  relevant 
institutions.  During  the  reporting  period,  the  KPC  initiated  2  recruitment  processes  for  new 
prosecutors, which resulted in 29 candidates being appointed by the President. The general process 
of appointment and reappointment of judges and prosecutors after their initial term of office should 
fully  respect  the  constitutional  principles  of  the  independent  functioning  of  the  judiciary  and 
prosecution system.  

The Councils are required to carry out performance evaluations of prosecutors and judges with 
a permanent mandate every 3 years. Both Councils have made efforts to regulate the performance 
evaluation process over the years. Despite this, issues remain, including the need to improve the 
regulatory framework’s implementation and to increase managerial accountability. Further actions 
are needed to address poor performance by judges and prosecutors. Both Councils must ensure 
rightful and objective performance evaluations based on clear criteria.  

A number of cases of femicide raised questions about the role of judges and prosecutors in the 
handling of cases of domestic violence and gender-based violence. As accusations of failing to 
protect  victims  and  of  justice  actors’  lack  of  accountability  were  widespread,  the  Ministry  of 
Justice  proposed  changes  to  the  Criminal  Code  and  Criminal  Procedure  Code.  These  changes, 
however,  need  to  ensure  proper  safeguards  for  those  suspected  or  convicted  of  committing 
domestic  violence  and  gender-based  violence  offences.  The  handling,  prosecution  and 
adjudication  of  cases  is  still  inappropriate.  Specialised  prosecutors  and  judges  have  been 
appointed, but human resource shortages slow prioritisation. The duration of cases from when they 
are  committed  to  when  a  verdict  is  reached  is  still  long.  In  addition,  victims  are  often  not 
represented.  Judges  and  prosecutors  need  further  training  to  understand  their  role  and  assume 
responsibilities. In a landmark decision, in  March 2023 the Constitutional  Court confirmed the 
failure of state institutions to protect a victim of domestic violence.  

Quality of justice  

The Academy of Justice is responsible for delivering initial and in-service training for all legal 
professionals. The Academy’s budget is insufficient, which affects the quality of human resources 
management and the quality of training. The total budget allocated to training initiatives at the 
Academy in 2022 amounted to EUR 687 156 (the budget per inhabitant was EUR 0.39, increasing 
from EUR 0.30 in 2020). The law on the Academy was amended in 2022, addressing the issue of 
independence and supervision of the Academy. Further in-service training is needed on ethics and 
integrity and professional skills, in particular in management, ICT/administration and the analysis 
of jurisprudence/case-law. Oversight and reporting lines of the Academy should be strengthened 
in line with European best practices. 

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

On jurisprudence, Kosovo made further progress on the legal obligation for all courts to publish 
their judgments on an accessible and searchable web portal within 60 days. While there have been 
improvements  in  the  publication  of  judgments,  timely  and  consistent  publication  will  need 
improved  audit  and  internal  control.  In  addition,  although  the  Albanian-language  versions  are 
published, not all courts respect the requirement of the Law on languages to publish them in both 
official  languages.  The  KJC  has  approved  the  publication  of  decisions  of  court  presidents 
regarding complaints against judges by members of the public, as well as publication of the regular 

19 

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

In 2022, Kosovo had 443 full-time judge positions (155 women and 288 men), 24.4 per 100 000 
inhabitants  and  198 full-time prosecutor positions  (82 women and 116 men), 10.9 per 100 000 
inhabitants.  According to  the European Commission  for the Efficiency of Justice (CEPEJ), the 
European averages are 22.2 judges and 11.8 prosecutors per 100 000 inhabitants. Kosovo still has 
a  low  percentage  of  female  judges  and  prosecutors  in  comparison  with  most  other  European 
countries. The Commercial Court, functional as of August 2022, has now 18 appointed judges, as 
planned in total. In July 2022, 6 754 cases were transferred to the chambers of first instance of the 
Commercial Court and 1 342 cases to the chamber of second instance. 

The  number  of  professional  associates  in  all  Kosovo  courts  increased  significantly  in  2022, 
including a high number of female associates. The number of legal and administrative staff directly 
assisting judges and prosecutors remains a challenge in terms of efficiency and quality of staff and 
of human resources management. Human resources planning and management need to focus on 
the quality  of legal  and  administrative staff rather than sheer numbers.  A number of vacancies 
remain unfulfilled, as the Assembly did not approve the full request of the judiciary’s budget for 
2023.  

The budget approved for the judiciary for 2022 was about EUR 48.9 million (an increase of 
15.6% from 2021), equivalent to EUR 27 per inhabitant. An additional EUR 17.9 million were 
allocated to the probation and correctional services. 

For e-justice tools, the Court Management Information System (CMIS) is implemented in almost 
all  courts,  including  the  Supreme  Court,  resulting  in  improved  efficiency,  accountability  and 
transparency. In the recently established Commercial Court it is not yet in place4. Some courts still 
apply a manual registry of cases, although only for internal purposes and not as a parallel case 
registration  system.  Manual  registration  books  are  no  longer  allocated  and  will  eventually  be 
eliminated. The CMIS is planned to remain in a transition phase until May 2025, the ultimate aim 
being to ensure the system’s optimal usage in all courts and prosecution offices. The KJC is in the 
process of developing an electronic file system for judges. 

For  the  prosecution,  implementing  the  CMIS  remains  a  challenge.  While  formally  all  Basic 
Prosecution  Offices  are  using  the  system,  certain  cases  are  still  handled  manually.  Based  on  a 
decision of March 2023, the KPC introduced a new ICT/administration methodology to eliminate 
the  manual  handling  of  cases.  Consistent  use  of  the  system  should  be  encouraged  by  the 
management  to  ensure  that  the  system  is  applied  systematically  and  that  the  data  entered  is 
accurate. This is of particular importance in ensuring the reliability of the statistical data obtained 
automatically  on  the  performance  of  the  judiciary  and  prosecution  (in  line  with  CEPEJ 
recommendations  and  methodology).  Administrative  staff  need  further  training  to  ensure 
consistent use and accuracy of data.  

As a positive step, the National Centralised Criminal Records System (NCCR) was established 
and is accessible online since December 2022, enabling the public to apply and obtain certificates 
of  criminal  records  online.  However,  the  KJC  and  the  courts  need  to  ensure  the  system’ 
sustainability, including the verification of data entered into the CMIS, so that only verified and 

4 The CMIS is in use in the three tiers of the court system (Basic Court, Appellate Court and Supreme Court). One 
of the system’s main features is the automatic assignment of cases to judges, based on predefined criteria approved 
by the Kosovo Judicial Council on 29 January 2020. The KJC amended criteria and introduced new ones, which 
have applied since 15 February 2023. 

20 

 
 
 
complete data about convictions is transferred to the NCCR. Once data quality is improved, the 
two IT systems will become interoperable. While the Law on NCCR is still with the Assembly, 
NCCR  operates  based  on  a  regulation  deriving  from  the  Law  on  the  Kosovo  Judicial  Council. 
There  is  a  tracking  mechanism  for  high-level  corruption  and  organised  crime  cases,  which 
currently includes 88 cases. (See section on the fight against corruption) 

The mediation system is implemented by the KJC and KPC and has been operational since 2008. 
There  is  still  a  need  for  a  monitoring  and  evaluation  system  to  assess  the  overall  impact  of 
mediation services, the allocation and acceptance procedures, and the impact on the reduction of 
pending and backlog of cases. Both Councils have adopted internal regulations and protocols to 
support the mediation system, but they struggle with proper budget allocation. In 2022, the Basic 
Courts referred 5 887 cases to mediation and solved 2 426 cases, slightly lower than in 2021 (3 119 
cases referred to mediation and 2 472 cases solved).  

In  2022,  the  State  Prosecutor  and  the  prosecution  offices  solved  1 769  cases  using  alternative 
procedures, a decrease compared to 2021 (2 153). The number of licensed mediators remained the 
same, at 190 (67 women, 123 men), of whom 14 were from the Serb-majority municipalities. The 
mediation system needs strengthening; this can be achieved through full implementation of the 
Law on mediation and through the allocation of a sufficient budget. The Ministry of Justice has 
adopted two administrative instructions to improve the liberal professions system and increase the 
overall efficiency of the judicial system. The KJC published a protocol for referring appropriate 
civil cases to mediation. 

Efficiency 

The efficiency of the judicial system slightly improved. In 2022, the courts of first instance for 
civil/commercial, administrative and criminal cases received 63 229 new cases and the clearance 
rate was 76.06% (up from 70% in 2021). During 2022, the Supreme Court received 1 425 new 
cases,  while  the  court  solved  1 630  cases  or  114%  (99%  in  2021).  During  2022,  the  Court  of 
Appeals received 13 075 new cases and solved 11 588 cases or 88% (71% in 2021). Out of 220 
cases filed at the Constitutional Court in 2022 and 145 cases carried over from the last 2 years, the 
Court ruled in 184 cases. More challenging are the number of old cases (pending for over three 
years). At the beginning of 2022, there were 49 110 such cases, while at the end of 2022 the number 
stood at 58 240. As for the number of civil, commercial, administrative and other pending cases 
(first instance), during 2022, 144 014 cases, or 8 cases per 100 inhabitants, remained unresolved 
(up from 7 per 100 inhabitants in 2021). For the number of civil, commercial, administrative and 
other pending cases in appeal per 100 inhabitants, there were 15 050 cases during 2022, or 0.8 
cases per 100 inhabitants (similar as in 2021).  

In April 2023, the KJC approved a regulation for the work standards of judges, with the aim of 
increasing efficiency. The capacity of the judiciary and prosecution to handle cases in a timely 
manner remains limited, particularly in high-level corruption cases, with numerous defendants and 
complex evidence. Court adjournments could be avoided if the trial panels were more assertive in 
using the tools to sanction defendants and other parties for unjustified absences from hearings. 
There is, however, a continued increase in the percentage of productive court hearings (hearings 
held as scheduled and where progress is made towards adjudication) and an increased pace in the 
scheduling of court hearings. 

The  time  taken  for  judgments  (i.e.  the  average  time  from  filing  a  court  case  to  receiving  a 
judgment) remains a cause for concern as this overall takes far too long. In 2022, the disposition 
time was 1 396 days for civil cases in first/second instance, and 953 days for administrative cases 
in first/second instance (in 2021 the figures were 1 339 and 426 days respectively). The average 
time for solving criminal cases in the General Department was 673 days, while for the Penal Crime 

21 

 
 
Department the average time was 740 days. For the Special Department the figure was 1 037 days. 

These  delays  in  proceedings,  in  combination  with  a  preference  for  detention  over  alternative 
measures, have led again to cases of overly long pre-trial detention. During the reporting period, 
the Ombudsperson continued to receive complaints against courts and prosecutors over allegations 
of  unjustifiable  delays  in  judicial  proceedings.  The  authorities  need  to  consider  introducing  an 
effective judicial legal remedy to address such delays, including compensation. The authorities 
also  need to  ensure proper managerial  follow-up  on  the deadlines,  including  reacting to  delays 
with proper and timely managerial action. 

To  further  improve  the  quality  and  efficiency  of  the  judicial  system,  judges,  prosecutors  and 
support staff should make full use of the CMIS and related training. In addition, monitoring and 
evaluation of courts’ activities and giving judicial systems adequate funding and qualified human 
resources need to be a priority. The revised Criminal Procedure Code, which entered into force in 
February  2023,  addresses  shortcomings  in  criminal  proceedings  that  detracted  from  the 
functioning  of 
justice  system.  The  Code  allows  online  court  hearings  under 
exceptional/objective  circumstances  (epidemics  and  natural  disasters)  and  codifies  the  practice 
allowing  parties  to  agree  on  considering  previous  testimonies  as  read  in  the  records.  The 
sentencing policy on organised crime and corruption continued to be erratic. Courts are still not 
systematically implementing the Supreme Court’s 2018 sentencing guidelines, even though the 
Court established a committee to monitor its implementation. 

the 

The  KJC  designed  and  developed  advanced  statistical  reports  using  the  CMIS.  These  reports 
include  CEPEJ  indicators  for  measuring  and  evaluating  judges  and  court  performance.  They 
provide a wide range of data, including the number of pending cases, age of pending cases, number 
of resolved cases, length of procedures and number of sessions held per solved cases. Continuous 
efforts are needed to produce and analyse reliable statistical systems and to use the findings for 
management and policy-making purposes.  

Domestic handling of war crime cases 

The  government  has  put  forward  measures  to  strengthen  domestic  institutional  mechanisms 
dealing with war crimes. The amendments to the new Criminal Procedure Code on the applicable 
procedure  of  trial  in  absentia  for  war  crimes  are  in  line  with  Venice  Commission 
recommendations.  

Kosovo continued to implement its war crime strategy, although with limited results given the lack 
of  resources  and  lack  of  effective  international  and  regional  cooperation.  In  2022,  the  Kosovo 
Police  arrested  5  individuals  suspected  of  war  crimes  and  initiated  19  new  investigations.  The 
number  of  war  crime-related  cases  adjudicated  during  2022  was  15.  Out  of  these  cases,  most 
judgments were later either sent back for retrial or significantly modified in appeal. Significant 
obstacles remain in the proper adjudication of war crime cases. More broadly, concerns remain 
about the willingness to hold former Kosovo Liberation Army members accountable in war crimes 
cases. 

During the reporting period, the Kosovo Police arrested five individuals suspected of war crimes. 
The relevant court issued a decision ordering detention on remand for all five suspects. The Special 
Prosecution  Office  of  Kosovo  (SPRK)  started  investigations  against  62  people,  expanded 
investigations against 39 and re-started investigations against 71. Seven cases were solved. Also, 
the SPRK indicted four individuals on war crime charges, while three were convicted based on 
indictments filed before 2022. 

Despite the increase in assigned prosecutors (from three to four), the War Crimes Department of 
the Special Prosecution Office continues to struggle in processing the workload. There are over 

22 

 
 
1 000 war crimes cases pending, mainly inherited from the European Union Rule of Law Mission 
in Kosovo (EULEX) in 2018. There is a need for continuous training and support staff, in particular 
on cooperation between police and the prosecution. Mutual legal assistance between Kosovo and 
Serbia  in  war  crimes  cases  remains  difficult.  Cooperation  with  the  UN  International  Residual 
Mechanism for Criminal Tribunals in The Hague is good.  

The Kosovo Specialist Chambers and Specialist Prosecutor’s Office continued to investigate and 
prosecute violations of international law. During the reporting period, pre-trial preparations in two 
cases were completed and trial proceedings started, including the case against the then President 
of Kosovo and another case involving a former Kosovo Liberation Army member. In one other 
case, the Chambers found a former member guilty of torture, arbitrary detention and murder and 
sentenced him to 26 years of imprisonment. The verdict was appealed. It is essential that Kosovo 
institutions  provide  full  cooperation  with  the  Specialist  Prosecutor’s  Office  and  Specialist 
Chambers,  enabling  them  to  fulfil  their  mandate  in  full  independence,  without  any  outside 
interference. Kosovo has put in place a fund that dispenses legal aid to the accused at the Kosovo 
Specialist Chambers, as well as financial support to their families, without any proof of financial 
needs. However, no financial support has so far been made available for victims who have been 
found by the Kosovo Specialist Chambers to have suffered as a result of war crimes and crimes 
against humanity. The Kosovo Specialist Chambers has issued a first reparation order to victims. 
It  is  therefore not  clear  how the victims will  be compensated in  the absence of funds from  the 
accused or a fund by Kosovo for this purpose. It is key that Kosovo addresses this inequality of 
treatment. 

The  Government  Commission  on  Recognition  and  Verification  of  the  Status  of  Survivors  of 
Sexual  Violence  during  the  Conflict  continued  its  work.  Since  the  beginning  of  the  process  in 
February 2018, this Commission has received 1 939 applications. Of these, 1 473 applicants had 
their status recognised (1 402 women and 71 men), while 283 requests were rejected (247 women 
and  36  men).  During  the  reporting  period,  the  Commission  received  249  applications:  356 
applicants  had  their  status  recognised  (332  women  and  24  men)  while  50  applications  were 
rejected (43 women and seven men). As of February 2023, the Commission could not accept new 
applications due to the deadline set by the law. Although the government approved the request to 
extend the deadline and the respective draft, as of March 2023 this is still pending approval by the 
Assembly. The draft law approved by the Kosovo government makes provision for extending the 
Commission’s mandate by another 3 years despite appeals by civil society calling for an indefinite 
mandate. The law’s timeframe still excludes those who suffered conflict-related sexual violence 
after 20 June 1999. The government assigned 14 April as a memorial day for survivors of sexual 
violence during the war as an acknowledgment of their pain and suffering.  

The unresolved fate of missing persons who disappeared during the conflicts of the 1990s remains 
a key issue to be solved in the Western Balkans. The Kosovo authorities conducted 16 exhumations 
and officially identified 6 people in 2022. As of April 2023, there were still 1 621 missing persons 
as a result of the conflict.  

The adoption of the transitional justice strategy is still pending. The Assembly adopted the law 
to establish an Institute for crimes committed during the war in Kosovo. This initiative has replaced 
the initiative on a truth and reconciliation commission. The Government Commission on Missing 
Persons within the Office of the Prime Minister took over the leading role in the working group to 
amend  the  Law  on  missing  persons.  Civil  society  remains  actively  engaged  in  truth-seeking, 
reconciliation and memorialisation initiatives. 

In  the  context  of  the  EU-facilitated  Dialogue,  the  Parties  agreed  on  and  endorsed  a  joint 
Declaration on Missing  Persons at  a High-level  Dialogue meeting in  Brussels on 2 May 2023, 
committing to improving Kosovo and Serbia’s joint efforts towards resolving the outstanding cases 
23 

 
 
of missing persons from the Kosovo conflict. Work is ongoing to establish the Joint Commission 
that will monitor the implementation of this Declaration. During the reporting period, a number of 
field  operations  and  exhumations  were  carried  out  in  Kosovo.  Four  of  them  included  the 
participation of forensic experts from Serbia, which is a positive development. There has been no 
session of the ICRC-led Belgrade-Pristina Working Group on Missing Persons since April 2021, 
as the Kosovo delegation refuses to hold meetings until the Serbia delegation changed its head. 
Nonetheless, lower levels of the mechanism (sub-working group on forensic issues analytical team 
and one meeting on unidentified bodies)  have continued to work on specific cases and sites. Both 
the Kosovo and Serbia delegations have shown interest in resuming excavations at the Stavalj mine 
complex in summer 2023. From June 2022 until March 2023, the combined efforts of EULEX and 
local forensic experts resulted in 34 field operations and 12 exhumations. Some 12 sets of remains 
were recovered, representing a minimum of 12 individuals. Eight individuals were identified, of 
which three were on the list of missing persons. A total of 21 individuals were handed over to the 
families and 74 DNA samples were sent for analysis. 

Fight against corruption  

Kosovo  is  in  between  an  early  stage  and  some  level  of  preparation  in  fighting  against 
corruption. During the reporting period, Kosovo made  limited progress. Kosovo adopted a 
new regulatory framework on auditing political parties and campaign financing. A lot remains 
to be done to implement the recently adopted anti-corruption legislation, including the Law on 
the  Agency  for  Prevention  of  Corruption,  the  Law  on  asset  declaration  and  legislation  on 
political parties and campaign financing. The legal framework on criminal confiscation is fairly 
advanced, including the Law on extended powers of confiscation. However, the law remains 
largely unimplemented and the value of finally confiscated assets remains low. The Law on 
the  State  Bureau  for  Verification  and  Confiscation  of  Unjustified  Assets,  which  aims  to 
introduce a system of non-conviction-based confiscation, is pending before the Constitutional 
Court. Sustained efforts are needed to have more proactive investigations, final court decisions 
and  final  confiscation  of  assets.  Accessory  punishments  prohibiting  the  exercise  of  public 
functions or other professions, in particular for those convicted of corruption-related offences, 
are  not  sufficiently  enforced.  Despite  improvement  in  the  performance  of  the  Agency  for 
Prevention of Corruption, the anti-corruption preventive tools laid down in the legislation are 
not yet fully implemented, in particular the adoption of integrity plans in public institutions, 
legislation ‘proofing’, risk assessments, and the practical use of whistle-blower procedures in 
the public and private sectors. Overall, corruption remains an issue of serious concern. There 
is a need for a robust criminal justice response to high-level corruption cases. In this regard, 
the removal of the Head of the Kosovo Police Special Investigative Unit is a cause for concern, 
sending a negative signal about Kosovo’s commitment to fight corruption. The Commission’s 
recommendations  from  last  year were only  partially met, and therefore remain valid. In the 
coming year, Kosovo should in particular:  

→  further strengthen the capacity of the Agency for the Prevention of Corruption in terms of 
staff and expertise, to ensure it can effectively carry out its mandate; relevant institutions 
should  adopt  and  implement  integrity  plans  and  whistle-blower  internal  procedures 
(including in the private sector); 

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

→  further  strengthen  law  enforcement  and  prosecution  as  well  as  multidisciplinary 
cooperation and a target-based approach to ensure proactive investigations, and effectively 

24 

 
 
combat high-level corruption cases; systematically conduct financial investigations during 
the criminal investigations; ensure the security of judges and prosecutors. 

Track record  

Kosovo  continued  to  make  efforts  on  its  track  record  of  investigations,  prosecutions  and 
convictions  in  the  fight  against  corruption.  However,  more  political  will  and  resources  are 
necessary, in particular to tackle high-level corruption. These efforts should continue, and the 
Commission will continue to monitor development. By the end of the reporting period, the track 
record mechanism for visa liberalisation, established in 2015 to monitor and coordinate high-
level corruption and organised crime cases, included 88 cases in total. By that time, there 
had  been  75  indictments:  33  organised  crime  cases  (involving  320  individuals)  and  42 
corruption cases (involving 310 individuals). Of these, 22 cases ended in  convictions/partial 
acquittals, leading to the conviction of 22 individuals for corruption-related offences and 66 for 
organised  crime-related  offences.  At  present,  the  track  record  mechanism  includes  only  the 
cases  selected  in  the  context  of  visa  liberalisation  benchmarks.  However,  in  the  future  it  is 
expected that the track record will cover all high-level cases relating to organised crime and 
corruption. 

During  2022,  the  Agency  for  Prevention  of  Corruption  handled  some  619  cases  under 
preliminary  investigation  for  suspicion  of  corruption-related  offences.  Of  these,  267  reports 
were submitted to  prosecution and police to  initiate criminal  proceedings, including  4 cases 
delegated  to  other  institutions  (Police  Inspectorate,  Medical  Inspectorate  and  Education 
Inspectorate). In addition, 6 cases were transferred to competent administrative bodies with a 
request  to  initiate  disciplinary  proceedings.  267  cases  were  terminated,  and  65  cases  are 
ongoing.  

In 2022, 4 687 of the 4 748 officials (98.72%) obliged to submit regular annual declarations 
of assets did so on time, while 61 (or 1.28%) officials did not meet the deadline (51 officials 
declared  after  the  deadline,  and  11  did  not  declare  at  all).  The  Agency  for  Prevention  of 
Corruption performed a full assets control procedure for 973 officials. The checks were mainly 
done through random selection, but for 41 officials based on the Agency’s own information or 
reports by members of the public. As a result of the full control of assets, around 180 officials 
are being investigated for having made a false declaration or for failure to declare assets. 178 
cases  were  referred  to  prosecution  and  police  for  further  investigation.  There  were  38  court 
decisions in 2022, of which 37 convictions and a single acquittal. Shortcomings persist in the 
system for declaring and assessing the origin of property belonging to senior public officials. 
The Agency’s staffing, IT resources and training capacities should be increased. An electronic 
declaration system came into operation, simplifying the declaration and submission process and 
increasing transparency and accuracy in monitoring and verification. Cooperation and exchange 
of  data  should  be  strengthened  with  the  police,  the  Tax  administration,  the  Financial 
Intelligence Unit, the cadastral registry and municipal authorities.  

In 2022, the Agency handled 233 cases of suspicion of conflicts of interest. The number of 
requests of institutions submitted to the Agency for advice and opinion on conflicts of interest 
doubled  from  the  previous  year.  The  Agency  provided  advice  and  opinions  in  129  cases. 
Conflict of interest was avoided in 49 cases, while 34 cases resulted in non-existence of conflict, 
a single case was forwarded to the competent court, and 4 cases were referred for preliminary 
investigation. 

In 2022, the Agency handled 218 cases related to the monitoring and prevention of corruption 
in public procurement activities. These resulted in 211 opinions being issued, out of which 162 
opinions  were  respected  and  49  were  not.  Some  33  cases  were  submitted  for  preliminary 

25 

 
 
investigation, and 7 cases terminated. 

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

In  2022,  the  value  of  assets  frozen,  sequestrated  and  confiscated  amounted  to  about 
EUR 21.4 million (EUR 14 million in 2021) while the value of final confiscated property was 
around EUR 670 000 (EUR 770 000 in 2021). The Agency for the Management of Sequestrated 
and  Confiscated  Assets  (handling  more  than  EUR 1.5  million  in  various  assets  in  2022) 
continues to struggle to manage the assets in its portfolio. This is partially due to the courts not 
allowing the anticipated sale of assets pending proceedings and partially due to the Agency’s 
set-up. The value of assets  sold  in  2022 was  about  EUR 36 000, which  is  less than in  2021 
(about EUR 52 000). The government approved the concept document on the establishment of 
a  confiscation  fund,  which  would  allocate  confiscated  funds  in  part  to  law  enforcement, 
prosecution and courts, and in part to social projects. 

Kosovo  adopted  a  new  regulatory  framework  on  auditing  political  parties  and  campaign 
financing.  The  aim  of  the  framework  is  to  ensure  complete  reporting,  timely  disclosure, 
meaningful oversight and accountability for irregularities. The power to conduct the auditing 
was shifted from the Assembly to the newly established Office for Registration, Certification 
and Financial Control of Political Entities under the Central Election Commission (CEC). This 
Office has operational independence in performing monitoring and financial control of political 
entities. It has powers to receive financial annual reports and campaign funding reports, to hire 
external auditors to conduct the auditing, and to issue annual reports which form the basis for 
Parliament’s  allocation  of  public  funds  to  political  entities.  During  the  reporting  period,  the 
Chairman of the CEC appointed the Director of the Office. In recent years, the Assembly has 
not  regularly  conducted  audits,  and  the  CEC  applied  selective  sanctions,  which  resulted  in 
incomplete  oversight  of  campaign  finance.  There  is  limited  awareness  and  compliance  with 
campaign finance rules. Most political entities did not establish internal financial control rules, 
and numerous sources of income and expenditures remain unreported.  

Institutional framework 

Interinstitutional coordination and cooperation between preventive anti-corruption institutions 
and law enforcement entities are key to implementing anti-corruption legislation. 

Prevention measures 

The competences of the Agency for Prevention of Corruption include the verification and 
control  of  asset  declarations  and  gifts,  dealing  with  whistle-blowing  and  the  prevention  of 
conflicts of interest. A law reorganising the competences of the former Anti-Corruption Agency 
was adopted in July 2022 with a view to strengthening its mandate. Specifically, the Agency 
has  powers  to  implement  tools  such  as  corruption  proofing,  corruption  risk  assessment  and 
integrity plans in public institutions, which should be adopted without delay. The Agency also 
has  powers  to  initiate  administrative  investigations  and  impose  sanctions.  Its  performance 
overall reflected progress as it became more operational and conducted an increased number of 
inspections.  The  Agency  also  launched  an  awareness-raising  campaign  on  its  mandate  and 
competences. However, it is essential to strengthen its staffing capacity and expertise, and to 
increase its budget in order to fully and effectively fulfil its mandate and fulfil its new powers, 
26 

 
 
including  checking  asset  declarations  and  implementing  the  new  anti-corruption  prevention 
tools.  

There is a continuous need to promote the drafting and adoption of integrity plans in the public 
service as a tool for preventing corruption and ensuring discipline, including at municipal level. 
Under the new law on the Agency,  central  administration bodies, independent  agencies  and 
municipal authorities are required to adopt integrity plans and appoint the official responsible 
for managing the integrity plan’s preparation and implementation. This should be implemented 
without delay. 

Law enforcement 

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

There  are  concerns  that  the  accessory  punishment  of  prohibition  from  exercising  public 
functions or other professions (as provided for in the Criminal Code and the Law on execution 
of  criminal  sanctions)  is  not  being  applied,  in  particular  for  those  convicted  of  corruption-
related offences. There are inconsistencies and a lack of standardised practice in enforcement, 
and staff (administrative staff, judges or prosecutors) lack willingness or understanding of the 
concept  of  accessory  punishments  and  of  their  responsibilities  when  applying  such 
punishments. 

The Kosovo Police’s Special Investigation Unit, the successor of the Special Anti-Corruption 
Task Force abolished in 2020, continued to operate with the same chain of command and under 
a temporary legal mandate. The government needs to ensure its sound legal and organisational 
structure and that it cooperates effectively with the Prosecution Service. The ongoing reform 
of  the  police’s  organisational  structure  should  ensure  that  the  Special  Investigation  Unit 
maintains sufficient investigation capacity to efficiently fulfil its functions. The Head of the 
Unit was removed from this position in order to be appointed to another post this year. This 
change  is  a  cause  for  concern.  It  is  essential  that  the  integrity  of  ongoing  investigations  is 
preserved  and  that  the  Kosovo  Police’s  investigative  capacities  on  anti-corruption  are 
independent and impartial. 

Following the restructuring of the Special Prosecution Office in 2020, its capacity increased 
with the recruitment of prosecutors, professional associates and translators. It is essential to 
increase  the  level  of  specialisation  and  expertise  on  prosecuting  high-level  corruption  and 
financial crimes. In 2022, the total number of indictments was 236 (147 in 2021), while the 
total  number  of  sentencing  decisions  was  29  (122  in  2021).  A  new  law  on  the  Special 
Prosecution Office is  pending  before Parliament. The law clarifies the scope  of jurisdiction 
between  the  Special  Prosecution  and  the  Basic  Prosecution  on  the  adjudication  of  the 
investigations and prosecution.  

The special departments in the Basic Court of Pristina and the Court of Appeals, which handle 
all cases of the Special Prosecution Office, solved 85 cases in 2022 (42 cases by the Basic Court 
27 

 
 
and 43 by the Court of Appeals) and an additional 45 cases in 2023 (25 cases by the Basic Court 
and 20 cases by the Court of Appeals). 

Legal framework 

Owing to status-related issues, Kosovo is not party to international anti-corruption conventions 
such  as  the  UN  Convention  against  Corruption  and  the  Council  of  Europe’s  Criminal  Law 
Convention on Corruption. Nevertheless, Kosovo’s legislation is generally aligned with these 
instruments and in line with relevant European standards. 

In July 2022, Kosovo adopted new anti-corruption legislation: the new Criminal Procedure 
Code, the Law on the Agency for Prevention of Corruption and the Law on asset declaration. 
The new law on the Criminal Procedure Code aims at strengthening criminal proceedings. The 
anti-corruption legal framework introduces, among other novelties, the suspension of officials 
from duty as a preventive measure in case of obstruction of proceedings. The new Law on the 
Agency for Prevention of Corruption strengthens the Agency’s mandate on the prevention of 
corruption and in the implementation of the Asset Declaration Law, the Protection of Whistle-
blowers Law and the Prevention of Conflicts of Interest Law. The Agency has been given new 
tools to prevent corruption; these include corruption proofing, corruption risk assessments and 
monitoring of integrity plans in the institutions. The new Law on asset declaration adds new 
categories  of  public  officials  obliged  to  declare  assets.  It  also  includes  more  complete  asset 
information and data to  be declared by officials, increases the number of officials under the 
Agency’s  full  control  and  introduces  an  online  system  for  asset  declarations.  Effective 
implementation remains largely pending. 

The legal framework on criminal confiscation remains fairly advanced. The Law on the State 
Bureau  for  Verification  and  Confiscation  of  Unjustified  Assets,  which  aims  to  introduce  a 
system of non-conviction-based confiscation, is pending before the Constitutional Court. Such 
an advanced system  requires clear safeguards against possible misuse and abuse and should 
respect the principles enshrined in the Constitution and fundamental rights. Moreover, such a 
system  should  not  replace  or  undermine  the  application  of  the  existing  legal  framework  on 
criminal confiscation, including the Law on extended powers of confiscation. 

The legal framework on money laundering is still not sufficiently implemented. Although the 
law does not require proof of a predicate offence to retain a conviction, many prosecutors and 
judges continue to consider a predicate offence an essential part of money laundering offences. 
As a result, many stand-alone money laundering cases are dismissed either by the prosecution 
or  by  the  court.  The  legislation  on  prevention  of  money  laundering  and  combating  terrorist 
financing  needs  to  be  fully  harmonised  with  the  4th  and  5th  EU  Directives  and 
recommendations of the Financial Action Task Force (See also Chapter 4 on the free movement 
of capital and the section on organised crime). 

The legal framework on the prevention of conflicts of interest is in place since 2018 but still 
needs to be fully implemented. The Agency for the Prevention of Corruption continues to try 
to  identify officials  holding multiple positions  in breach of the law. Kosovo has no specific 
legislation on lobbying. 

The Law on the protection of whistle-blowers aims to align the national framework with the 
EU legislation. Implementing legislation determining the procedure for receiving and handling 
whistle-blowing  cases is in  place. Strengthened  whistle-blowing  mechanisms and protection 
requirements still need to be implemented in the public and private sectors. 

The Assembly adopted amendments to the legal framework on political parties and election 
campaign  financing  in  line  with  the  Venice  Commission  Opinion.  These  need  to  be 

28 

 
 
implemented  promptly  to  ensure  more  accountable,  transparent  and  enforceable  party  and 
campaign financing. One remaining element missing in the law is the  requirement for interim 
reporting of the income and expenditure of contestants during the campaign period. 

Strategic framework 

The rule of law strategy and action plan include specific measures to improve the institutional 
framework  against  corruption,  as  well  as  the  assets  declaration  system  and  regulations  on 
accepting gifts. Since 2018, Kosovo has no anti-corruption strategy in force. The government 
established a working group to draft a strategy and action plan against corruption. The Judicial 
Council adopted a 2022-2025 strategic plan for the efficient resolution of cases of corruption 
and organised crime. 

Fundamental rights 

In general, the legal framework guarantees the protection of fundamental rights and is in line 
with European standards. During the reporting period, Kosovo adopted the Law on the Kosovo 
Property Comparison Verification Agency and set up a protocol  for the  treatment of sexual 
violence cases. The capacity of the authorities to monitor implementation of fundamental rights 
policies and legislation has improved and the rate of implementation of the Ombudsperson’s 
recommendations  increased.  The  Parliament  adopted  the  Law  on  prevention  and  protection 
from domestic  violence,  violence  against  women  and  gender-based  violence.  Despite  these 
positive developments, additional efforts are needed to enforce fundamental rights effectively. 
The government’s capacity to streamline and oversee fundamental rights issues requires further 
improvements, including in coordinating mechanisms to protect human rights, gender equality 
and non-majority communities, at both central and local levels. Fundamental rights issues need 
to feature higher on the political agenda and consequently more human and financial resources 
should be allocated to relevant institutions. Kosovo must continue its efforts to ensure equal 
access of persons with disabilities to institutions, quality services, employment and education. 
More efforts should be made to implement the process of verification of university diplomas 
from the University in Mitrovica North and extend this process to high school diplomas, to 
ensure language compliance in both official languages and to ensure that the representation 
quota  for  all  non-majority  communities  is  respected  in  public  institutions.  There  was  no 
progress on implementing the Constitutional Court decision on the Dečani Monastery. 

The  Commission’s  recommendations  from  last  year  were  only  partially  met  and  therefore 
remain valid. In the coming year, Kosovo should in particular: 

→  reinforce  the  protection  of  women’s  civil  and  fundamental  rights  by  adopting  the  Civil 
Code, by implementing the Law on prevention and protection from domestic violence, and 
by strengthening the implementation  of the Law on gender  equality  and  the strategy on 
gender-based violence; 

→  strengthen the protection of the rights of the child by adopting all the sub-legal acts of the 
Law on child protection as a matter of urgency and reinforcing capacities to implement the 
law; 

→  improve implementation of legislation on the rights of non-majority communities, adopt 
the strategy for protection and promotion of the rights of communities, adopt the law on 
cultural heritage and the law on religious freedom, re-establish relations with the Serbian 
Orthodox  Church  and  implement  the  Constitutional  Court  decision  on  the  Dečani 
Monastery. 

International human rights instruments form an integral part of Kosovo’s legal framework 
and are directly applicable, as provided for in the Constitution. Kosovo continued to align its 

29 

 
 
legislation with these instruments and maintained its practice of ad hoc reporting. Implementing 
human rights legislation and overseeing and coordinating existing human rights mechanisms 
remain  a  challenge.  In  general,  human  rights  issues  still  do  not  feature  high  enough  on  the 
government’s political agenda. 

The 2021-2025 programme for the protection and promotion of human rights and fundamental 
freedoms and its action plan are the main human rights instruments. The two main mechanisms 
responsible for monitoring the implementation of the programme are: (i) the Inter-Institutional 
Coordination Group on Human Rights led by the Deputy Prime Minister for Minority Issues 
and Human Rights; and (ii) the Office for Good Governance within the Office of the Prime 
Minister  (OGG/OPM).  In  March  2023,  the  OGG/OPM  issued  several  monitoring  reports, 
including  on  the  implementation  of  the  human  rights  programme.  Some  progress  in 
implementation was noted, with activities without progress predominantly relating to health, 
well-being and environmental protection. Furthermore, a human rights indicators framework 
was developed for the first time for each mandatory right laid down in the Constitution and in 
legally binding international acts.  

The  government’s  Inter-institutional  Coordination  Group  on  Human  Rights  held  its 
constitutive meeting in June 2022 but met only once more in June 2023. The aims of the DPM 
for Minority Issues and Human Rights, the Assembly’s Committee on Human Rights and the 
Council for Democracy and Human Rights under the Presidency, are to effectively implement 
and streamline human rights policies and legislation. In practice, there seems to be insufficient 
synergy between them. The OGG/OPM was active in trying to fulfil its broad mandate, but 
continuously  lacks  appropriate  human,  financial  and  administrative  resources,  while  its 
performance remains reliant on donor support. The Assembly needs to take a more proactive 
role in overseeing the implementation of human rights legislation. 

The  Ombudsperson  Institution  continues  to  play  a  significant  role  in  the  promotion  and 
protection of human rights. During the reporting period, an electronic system for monitoring 
implementation  of  its  recommendations  was  established,  as  well  as  a  joint  team  for  their 
coordination and monitoring. The latter includes the OGG/OPM, the Ombudsperson Institution 
and the Gender Equality Agency. After a lengthy delay, the process to select the fifth deputy 
Ombudsperson from the non-majority communities was finalised in June. The Parliament also 
finally approved the Ombudsperson’s 2021 annual report in January 2023. More systematic 
tabling of review of the annual reports and selection of deputies in the Assembly are needed to 
avoid such delays. Although the institution has progressively expanded its responsibilities, it 
was  not  provided  with  matching  financial  and  human  resources.  Nevertheless,  the 
Ombudsperson  still  enjoys  broad  public  trust.  In  2022,  the  Ombudsperson  received  1 595 
complaints, of which 672 were opened for investigation, a level comparable  to the previous 
year. The institution issued 646 recommendations. The total rate of implementation stands at 
23%, while 46% of recommendations issued in 2021 had been implemented as of the end of 
2022. This denotes increased responsiveness on the part of Kosovo’s institutions, which needs 
to  be  further  strengthened.  The  institution  has  taken  a  proactive  approach  to  addressing 
complaints  from  residents  of  the  north  of  Kosovo  regarding  the  expropriation  of  privately 
owned land. 

The  Kosovo  authorities  continue  to  show  commitment  to  preventing  torture  and  ill-
treatment.  The  National  Preventive  Mechanism  (NPM)  operates  under  the  umbrella  of  the 
Ombudsperson  Institution.  In  2022,  the  National  Preventive  Mechanism  conducted  62 
unannounced visits in places of detention, including psychiatric and social care institutions (the 
same number as in 2021) and published 8 reports. Overall, it addressed 38 recommendations 
to  the authorities (against 11 in  2021);  10 were already fully or partially implemented. The 

30 

 
 
NPM enjoyed very good cooperation with the institutions visited but reported one case where 
it was denied access. No case of torture or mistreatment of prisoners was reported during the 
reporting period. There were reports of alleged ill-treatment during the arrest of four Kosovo 
Serbs in relation to their alleged involvement in the violent events of 29 May in Zveçan/Zvečan. 
The Police Inspectorate registered 14 cases of suspected ill-treatment by police officers (11 the 
previous year); all cases were referred to the prosecution. One police officer was arrested and 
suspended. The Ombudsperson received 6 complaints against officers of the Kosovo Police 
over excessive use of force; which led to the opening of 3 investigations. 

While  the  prison  system  broadly  complies  with  the  UN  Standard  Minimum  Rules  for  the 
Treatment of Prisoners and with the European Prison Rules, some challenges remain. Further 
efforts are needed to safeguard the rights of prisoners, especially among women and girls and 
non-majority groups. The Law on the Correctional Service and the Law on the execution of 
criminal sanctions were adopted in July 2022. Under the latter, the official for prisoners’ rights 
within  the  Ministry  of  Justice’s  Office  for  Human  Rights  is  tasked  with  monitoring  their 
protection. A number of regulations are yet to be adopted to ensure implementation of these 
laws. The Institute for the Treatment of Persons (prisoners) with Special Needs was established 
on the premises of the Dubravë/Dubrava correctional centre. Several management posts in the 
Correction Service remained vacant or with an acting manager, hampering the functioning of 
this  service.  A  total  of  3 163  alternative  measures  to  detention  were  imposed  during  the 
reporting period, about half of which for juveniles. No overcrowding of existing facilities was 
reported  by  the  NPM.  Efforts  to  improve  drug  treatment  programmes  and  prison  medical 
facilities are ongoing. The agreement for transferring prisoners from Denmark to Kosovo is 
pending ratification by the Assembly of Kosovo. 

On personal data protection, the laws in force are broadly in line with the EU General Data 
Protection  Regulation  and  the  Law  Enforcement  Directive.  The  Information  and  Privacy 
Agency oversees the implementation of the Law on personal data protection and the Law on 
access to public documents. The Agency has shown itself to be independent and continued to 
improve its capacity. It further strengthened the legal framework by adopting regulations and 
guidelines on the organisation, systematisation and operational procedure for controllers and 
inspections.  Although  restrained  by  limited  budget  and  human  resources,  the  Agency  is 
processing complaints on access to public documents and on data protection in an independent 
and efficient manner. During the reporting period, the Agency conducted 44 inspections on its 
own initiative and 51 inspections based on complaints, and issued 66 decisions on violations 
of the Law on personal data protection, maintaining similar standards as the previous year. It 
issued 8 fines. Challenges remain concerning the implementation of the Agency’s decisions by 
public and private institutions. On access to information, legislation is broadly in line with 
EU standards. The Agency needs to step up its capacity to monitor transparency levels among 
public  institutions.  In  2022,  the  Agency  reported  that  public  institutions  received  a  total  of 
4 481 requests for access to public documents (7 561 in 2021). Among them, 154 were rejected 
(95 in 2021). 

On freedom of thought, conscience and religion, there are legal provisions, mainly in the 
Constitution and the Law on freedom of religion, intended to promote religious tolerance and 
provide for the separation of religious communities from public authorities. A new draft law 
on religious freedom underwent consultation and was reviewed by the Venice Commission. It 
is expected to address one important gap by enabling registration of religious communities as 
legal entities. However, while the government adopted the draft law in January 2023, it remains 
pending  before  Parliament.  Relations  between  the  government  and  the  Serbian  Orthodox 
Church remained poor. This year marked the seventh anniversary of the Constitutional Court 

31 

 
 
decision  confirming  the  ownership  rights  of  the  Visoki  Dečani  Monastery  of  the  Serbian 
Orthodox Church over a portion of land surrounding the monastery. The decision has still not 
been implemented and this should be done without further delay.  

The  Kosovo  Assembly  approved  a  working  definition  of  antisemitism  as  defined  by  the 
International  Holocaust  Remembrance  Alliance.  The  Jewish  community  does  not  have  a 
synagogue. However, the construction of a Jewish Cultural Centre in Prizren began in 2022 
with  the  support  of  the  government.  Efforts  need  to  be  made  to  promote  Holocaust 
remembrance, education and research. 

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

Freedom of expression 

The media environment in Kosovo remains lively and pluralistic, and the legal framework is 
mostly in line with European standards. In this area, Kosovo has some level of preparation. 
Limited  progress  was  made  in  addressing  the  recommendations  of  the  previous  report. 
Concerns  remain  regarding  physical  attacks  and  threats,  public  smear  campaigns  and  hate 
speech directed against journalists. Not all threats against journalists and media are reported to 
the authorities, although 2022 noted a slight increase in number of reported cases. Particularly 
concerning  is  freedom  of  expression  in  the  north  of  Kosovo,  including  with  regard  to  self-
censorship and the security of journalists and media professionals. There was no progress on 
amending  the  Law  on  the  radio  and  television  of  Kosovo  or  on  amending  the  Law  on  the 
Independent  Media  Commission  to  align  it  with  the  EU’s  Audiovisual  Media  Services 
Directive. This process needs to be transparent and inclusive, with involvement of media actors 
and  civil  society.  The  lack  of  financial  self-sustainability  leaves  the  media  vulnerable  to 
political and business interests. This is further amplified by the lack of information and data on 
the final beneficiary of media ownership – provisions on this are still not enshrined in law. The 
decision  to  withdraw  the  business  licence  of  a  major  private  broadcaster  has  raised  serious 
concerns.  The  Commission’s  recommendations  from  last  year  were  not  met  and  therefore 
remain valid. In the coming year, Kosovo should in particular:  

→  improve  the  institutional  cooperation  and  response  of  key  institutions  to  attacks  against 
journalists and other forms of undue pressure, including by enhancing the prosecutorial, 
judicial and law enforcement authorities’ capacity to handle cases concerning the right to 
freedom of expression and information; 

→  review  the  Law  on  radio  and  television  to  ensure  sustainable  funding  preserving  its 
independence; review the Law on the Independent Media Commission to update its powers, 
including  regarding  audiovisual  media,  in  line  with  the  Audiovisual  Media  Services 
Directive; 

→  increase the availability of data on the audiovisual market, especially on media ownership. 

Intimidation of journalists 

In  2022,  the  Association  of  Journalists  in  Kosovo  (AJK)  reported  33  cases  of  intimidation, 
threats and attacks against journalists and other media professionals, an increase on the 29 cases 
reported  in  2021.  Out  of  these,  19  cases  were  classified  as  threats  and  harassment  against 
physical persons (journalists), eight were physical attacks, and six were attacks against media, 
media  organisations  and/or  journalist  associations.  More  than  half  of  the  cases  of  attacks 
against journalists targeted women journalists. During the reporting period, the Directorate for 
the Investigation of Serious Crimes registered 32 cases of physical attacks against journalists, 
qualifying 12 cases as intimidation, seven cases as assault, one as bodily injury, and one as 

32 

 
 
arson. The Kosovo Prosecutorial Council’s statistics show that 14 cases of incitement of attacks 
and threats against journalists are ongoing, with nine cases solved. In several instances, public 
officials,  including  high-level  officials,  made  derogatory  statements  and  smears  and  used 
intimidating language against journalists. 

With  the  setting  up  of  roadblocks  and  increased  political  tension  in  the north  of  Kosovo,  a 
series of attacks targeting Albanian-language media professionals and journalists occurred. The 
AJK and journalist associations condemned the attacks and called on the Kosovo Police, KFOR 
and EULEX to provide security for journalists and media professionals. They also called for 
swift and thorough investigations. During May and June 2023, an unprecedented number of 
attacks against journalists and media professionals were recorded. The AJK recorded over 30 
attacks, including physical assault, damage to equipment and vehicles. 

During  the  reporting  period,  AJK  reported  one  case  of  strategic  litigation  against  public 
participation lawsuits (SLAPP) filed by a public figure against journalists. Handling of cases 
remains slow, and lenient sentences have been handed down in cases adjudicated. The AJK 
advocates for the crime case database to include reference to the profession of victims so that 
cases  against  journalists  can  be  identified.  Kosovo  prosecutorial  and  judicial  authorities 
undertook measures to address crimes against journalists by appointing specialised prosecutors 
and judges. They have set the collection of statistics and the prioritisation of these cases as an 
objective in the 2022-2024 strategic plan for the prosecutorial system. 

Legislative environment 

Kosovo’s  legal  framework  guarantees  freedom  of  the  media  and  freedom  of  expression.  In 
general, relevant laws are in line with international standards. Kosovo ranked 61st in the 2022 
World Press Freedom Index, 17 places higher than in the previous year. 

No steps were taken towards adopting the draft law on the public broadcaster/ Radio Television 
of  Kosovo  (RTK)  proposed  in  2018.  Similarly,  the  draft  law  on  the  Independent  Media 
Commission, harmonised with the 2018 EU Audiovisual and Media Services Directive, is still 
pending before the Assembly. The Law on protection of journalists’ sources is yet to be aligned 
with European standards. The Law on the protection of whistle-blowers aims to align with EU 
acquis,  but  whistle-blowing  mechanisms  and  protection  requirements  still  need  to  be 
strengthened and effectively implemented. 

Despite improvements in the implementation of laws relevant to access to public documents, 
journalists still encounter some obstacles, in particular due to delays or denials of access by 
public  institutions,  including  the  government.  Lack  of  language  compliance  by  public 
institutions in their communication with the local media continues to be concerning, mainly for 
Serbian-language media. Some local media occasionally report that certain political parties and 
public  institutions  engage  in  discriminatory  selection  when  inviting  media  to  their  official 
events.  Public institutions do not  consistently  provide relevant  and complete information  in 
official  languages.  Violations  of  the  law  on  official  languages  were  noted  in  several  other 
instances, such  as a public media outlet’s failure  to  air the press  conference of government 
members in the Serbian language. The Assembly has continued to fail to provide translation 
into Serbian during plenary sessions. 

Implementation of legislation/institutions 

Implementation of existing legislation remains insufficient. During the reporting period, the 
Independent Media Commission (IMC) was largely dysfunctional due to the lack of quorum, 
including in the Media Appeals Board. The IMC Board has not been functional since March 
2021, as the mandate of one of the members expired and the Assembly failed to appoint a new 

33 

 
 
member until May 2023. The Press Council is effective in implementing the Press Code for 
online media. 

Public service broadcaster  

The  Radio  Television  of  Kosovo  (RTK)  Board  is  not  involved  in  the  legislative  revision 
process for the draft law on RTK. The RTK’s budget allocation remained below the legally 
specified amount in the Law on budget appropriations, prompting RTK to assess possibilities 
for  participatory  financing  and  a  reorganisation  of  its  internal  structure.  Civil  society  and 
opposition  political  parties  criticised  the  appointment  of  the  RTK  Director  of  Albanian-
language channels due to alleged ties with the ruling party. Additionally, the artistic community 
and civil society saw the signing of a contract between RTK and the Ministry of Culture, Youth 
and Sport as unfavourable to RTK’s editorial independence.  

Economic factors 

The media sector in Kosovo suffers from a lack of transparency in ownership and financing 
and  a  lack  of  financial  self-sustainability,  making  it  vulnerable  to  political  influence  and 
financial pressure. The public broadcaster is financed through the public budget, while private 
media  rely  on  advertising  as  their  primary  means  of  revenue.  Government  advertising  on 
private media is no longer permitted. Media registered as NGOs continued to receive support 
from donors. The non-majority media in Kosovo rely on short-term projects and donor support. 
Lack of data on the advertising market and media ownership structures, especially for online 
media, remains a concern. There is lack of transparency on media market share, with some 
mainstream media publishing individual viewership surveys with significant discrepancies in 
the  respective  results.  In  June,  the  Kosovo  Business  Registration  Agency  suspended  the 
business licence of Klan Kosovo, one of the main private media outlets. Such action may have 
a negative impact on the state of freedom of the media in Kosovo. 

Internet  

There  is  no  restrictive  legislation  on  the  functioning  of  the  media  online  or  on  freedom  of 
expression online,  and no restriction  was noted  during the reporting period. Kosovo should 
consider  developing  a  strategy  for  a  better  internet  for  children,  including  facilitating  the 
detection  of  and  response  to  online  child  sexual  abuse.  Slight  progress  is  noted  with  the 
approval of the Administrative Instruction that lays down measures to protect children from 
pornographic content and other inappropriate content. Online threats and sexual harassment 
against women and girls are widespread, with no prevention or redress mechanisms. 

Professional organisations and working conditions 

Journalists  in  private  media  continue  to  work  on  short-term  contracts,  or  without  contracts, 
unlike public service media journalists, who enjoy longer contracts. The lack of professional 
security and the relatively uncertain employment and economic situation of journalists creates 
conditions for abuse and restrictions. According to the AJK, although there is no indication of 
discriminatory contracts  or salaries  against women, those working  in  the private sector still 
face obstacles to enjoying their rights, including to maternity leave. Further, fewer women have 
access  to  managerial  positions  than  men.  There  is  no  trade  union  representative  body  for 
journalists in the private sector, while the public broadcaster is the only media that has a trade 
union. 

The AJK is a non-governmental organisation with the mission of promoting, encouraging and 
improving  quality  and  open  journalism  in  Kosovo,  as  well  as  improving  the  position  of 
journalists  in  general  in  Kosovo  society.  The  association  contributed  to  the  Journalists-in-
Residence in Kosovo programme, under which Kosovo offered a safe space for 20 Ukrainian 

34 

 
 
journalists, most of them women. In December 2022, the programme was expanded following 
the government-approved decision to also host journalists from Afghanistan. Currently Kosovo 
is hosting 14 Ukrainian and six Afghani journalists. 

Freedom of artistic expression 

The freedom of artistic creativity is guaranteed by the Constitution. No limitation on any form 
of artistic expression was reported during the reporting period. 

(See also Chapter 10 on digital transformation and media) 

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

Freedom  of  assembly  and  association  is  guaranteed  by  the  Constitution  and  generally 
respected. During the reporting period, the Law on public gathering entered into force, aiming 
to guarantee the right to organise and participate in public events. No case of inadequate use of 
force has been reported by the Police Inspectorate. Police officers received training on policing 
during gatherings and use of force. The LGBTIQ Pride Parade was held in June 2022 in Pristina 
with no recorded incidents. 

Issues of labour and trade union rights are further covered in Chapter 19 on social rights 
and employment. 

On property rights, in December 2022 the Assembly adopted amendments to the Law on the 
Kosovo Property Comparison  and Verification Agency. The authorities should  ensure swift 
implementation. Due to some shortcomings in the Kosovo property sector, including ambiguity 
in  legislation  and  the  inconsistent  enforcement  of  rights,  the  implementation  of  judicial 
decisions (including by the Constitutional Court) remains an issue. This is the case in particular 
in  conflict-related  property  cases.  Prolonged  court  proceedings  in  civil  cases,  especially 
property related, remain an issue of concern. 

Ownership  of  property  by  women  increased.  The  affirmative  measure  that  assists 
implementation of property legislation favouring women was extended by another year; this 
measure has led to an increase in the registration of women as property owners, from 1 505 
registered properties in 2021 to 6 951 in 2022. Only 19.2% of properties are registered in the 
name of two spouses. 

In 2022, institutions continued to take measures to protect the property rights of communities 
in  vulnerable  situations,  displaced  persons  and  women.  The  Property  Comparison  and 
Verification Agency performed 25 evictions, out of a total of 27 eviction requests. The legal 
remedy to demolish illegal structures was not used as there were no requests from interested 
parties. Out of 33 cases in mediation during 2022, 10 were completed successfully in the first 
quarter of 2023. In June 2023, the Agency’s Director and Deputy Director were appointed by 
the  Kosovo  Assembly.  Concerns  remain  about  fraudulent  property  transactions  and  illegal 
transfers of ownership of properties, mainly belonging to displaced persons. 

There was limited progress on the issue of more than 350 052 buildings constructed without a 
permit. The regularisation of large-scale informal settlements whose residents mainly belong 
to marginalised vulnerable communities continues to be hampered by lack of political will to 
address the issue. The government approved six expropriation decisions in Kosovo’s northern 
municipalities. Kosovo Serbs raised concerns  about  how the  expropriation procedures  were 
conducted and their compliance with the requirements of the applicable Law on expropriation 
of  immovable  property.  It  is  essential  that  the  government  make  efforts  to  ensure  that 
expropriation activities comply with the law, that due process is followed, and that the property 
rights of concerned owners and interest holders are fully respected. 

35 

 
 
The Law on protection from discrimination is broadly in line with European and international 
standards  but  its  implementation  remains  limited,  including  due  to  a  lack  of  institutional 
capacity. This affected rights related to employment, education, access to social services and 
freedom  of  movement,  among  others.  The  uneven  application  of  legislation  on  official 
languages continues to result in unequal access to public services, justice and employment. The 
Ombudsperson  Institution  is  the  equality  body  responsible  for  promoting,  monitoring  and 
supporting equal treatment without discrimination. During the reporting period, it received 164 
individual complaints of alleged discrimination; 101 cases were referred for investigation. In 
February  2023,  the  Office  of  Legal  Affairs,  together  with  the  Office  of  Good  Governance, 
initiated an  ex post  evaluation of the Law on protection from  discrimination. The aim is  to 
identify institutional, legal and functional gaps related to its implementation. Additionally, the 
Office of Legal Affairs launched the National Platform for Protection against Discrimination 
for  the  Roma,  Ashkali  and  Egyptian  Communities,  aiming  to  facilitate  the  reporting  of 
discrimination cases. In its first year 23 cases were reported. 

The collection of judicial statistics on discrimination cases is a challenge due to inappropriate 
identification  and  categorisation.  During  the  reporting  period,  courts  reached  a  verdict  in 
several  discrimination  cases,  including  cases  of  discrimination  based  on  gender  and  on 
disability. It is essential to further build legal professionals’ capacities to litigate and adjudicate 
cases  of  discrimination.  Implementation  of  the  policy  against  sexual  harassment  in  public 
administration is facing challenges due to lack of awareness among officials and the absence 
of complaint mechanisms. On hate crime, while the Kosovo Prosecutorial Council maintains a 
tracking  mechanism,  data  collection  remains  insufficient.  Hate  speech  against  those  in 
vulnerable  situations,  including  the  LGBTIQ  and  non-majority  communities,  persists, 
especially on social media. 

With regard to cases of discrimination, hate crime or hate speech targeting persons belonging 
to non-majority communities, the Kosovo Police reported 12 potential inter-ethnic cases falling 
within the reporting period. In October 2022, a former government minister was sentenced to 
one year in prison for inciting ethnic hatred, discord or intolerance.  

Legislation  and  institutional  mechanisms  on  gender  equality  are  broadly  in  line  with 
international  and  European  standards.  Despite  efforts  to  strengthen  the  application  of  these 
mechanisms, women continue to face discrimination in the public administration (see public 
administration section), the labour market (see functioning of the economy), access to finance, 
ownership  of  property  (see  property  section)  and  treatment  by  the  justice  system  (see 
justice/rule of law section). 

Kosovo institutions made some efforts to place gender equality higher on their political agenda. 
The  President  organised  the  first  Women  Peace  and  Security  Forum  and  set  up  a  gender 
equality working group under the Council for Democracy and Human Rights to analyse the 
harmonisation of laws with the Law on gender equality. The government measures to improve 
women’s  economic  empowerment  have  increased  the  number  of  women  who  have  opened 
bank accounts to receive child allowances. 

The Agency for Gender Equality continues to play a central role in advancing gender equality. 
It published the first monitoring report for the 2020-2021 action plan on gender equality with 
a long delay. Coordination with gender equality officers in the ministries and municipalities 
has  improved,  although  their  roles  and  responsibilities  are  yet  to  be  harmonised.  Capacity 
building  on  gender  equality  should  be  extended  to  ensure  that  all  civil  servants  fulfil  their 
responsibilities  in  this  regard,  specifically  those  in  managerial  positions.  Civil  society 
continued to play a critical role in advancing gender equality. It contributes to the improvement 
of legislation, monitors policy implementation, provides services, assists victims of violence 
36 

 
 
and raises awareness, reflecting the need for the authorities to further step up their engagement 
in these areas.  

Domestic  violence  continues  to  be  the  most  prominent  form  of  gender-based  violence  in 
Kosovo. A police directorate for the prevention  and investigation of domestic violence was 
established. Implementation remains insufficient despite institutional efforts, and despite the 
legal  and  institutional  framework  in  this  area  being  largely  in  line  with  European  and 
international standards. Kosovo needs to prioritise implementing the Law on prevention and 
protection  from  domestic  violence,  violence  against  women  and  gender-based    violence, 
including  by  adopting  the  relevant  bylaws.  There  was  limited  progress  on  preventing  and 
combating  domestic  violence,  protecting  and  reintegrating  victims  and  the  rehabilitation  of 
perpetrators. Reporting of domestic violence has increased, although cases are still not handled 
adequately  (see  judiciary).  The  total  number  of  reported  cases  during  the  reporting  period 
continued  increasing  (2 710  in  2022,  against  2 456  in  2021).  Prominent  cases  of  rape  and 
femicides caused public outrage. 

Other  forms  of  violence  against  women  continued.  Women  in  public  life,  including  MPs, 
continue  to  be  judged  and  stereotyped.  Sexual  harassment,  body  shaming  and  other  verbal 
attacks  continue,  but  reactions  from  public  officials,  institutions,  civil  society  and  women 
rights’ organisations continue contributing to making sexism less acceptable. Implementation 
of the government’s December 2020 policy against sexual harassment in public administration 
remains a challenge, with limited knowledge of the policy within the institutions. 

The Ministry of Justice continued its efforts to give visibility to the phenomenon and to tackle 
institutional  and  legal  shortcomings.  The  latest  government  action  includes  the  proposal  to 
amend the criminal legislation to protect victims and increase penalties for perpetrators. The 
position  of  Coordinator  for  Domestic  Violence  remains  vacant  since  September  2022.  This 
appointment  is  essential  for  overseeing  and  monitoring  the  2022  strategy  and  action  plan 
against domestic violence and violence  against  women.  In December 2022, the Ministry of 
Justice adopted the State Protocol for handling cases of gender-based violence, which defines 
responsibilities for each institution. This should be swiftly implemented. 

In  2023,  the  government  increased  the  funds  allocated  to  shelters  for  victims  of  domestic 
violence  and  trafficking  in  human  beings  and  delivered  the  funds  on  time.  Nevertheless, 
financial support is still inadequate. A multi-annual budget line under the Kosovo budget and 
funding  commitments  by  municipalities  are  needed.  The  functioning  of  the  municipal 
coordination mechanisms for domestic violence is still uneven. 

On  the  rights  of  the  child,  Kosovo’s  legal  framework  is  largely  in  line  with  international 
standards, but implementation remains limited. The Inter-ministerial Committee for Children's 
Rights provides advice and coordinates state policies to guarantee the rights and protection of 
children in all areas. The implementation of the Law on child protection is delayed. Out of the 
17 pieces of implementing legislation planned, only 6 were published in the Official Gazette. 
As per the administrative instructions deriving from the law, the Council for Children’s Rights 
was established, making it the highest professional  mechanism at  central  level  coordinating 
work on implementing the law. Child rights teams have been established in 14 municipalities. 
The systematic collection of reliable and comparable data disaggregated by age and sex will 
contribute  to  the  development  of  evidence-based  policy  priorities  and  ensure  effective 
protection of children. 

The Ombudsperson Institution continued to strengthen its child protection department; to that 
end it finalised a programme on reporting, protecting and monitoring children’s rights. During 
the reporting period, the Ombudsperson received 80 complaints, out of which 20 were assessed 

37 

 
 
as inadmissible and 60 complaints were referred for investigation.  The following legislation 
should be adopted: (i) the Civil Code, which includes among its aims the regulation of legal 
concepts and the clarification of provisions on the treatment of children in highly vulnerable 
situations; and (ii) the draft law on local government finances, which has a specific grant for 
social services that will allow for better implementation of the Law on child protection.  

Children with disabilities lack proper access to education. In a significant effort to address this 
challenge,  100  assistants  for  children  with  special  needs  in  regular  schools  and  three  sign 
language  interpreters  were  hired  during  the  reporting  period.  Eighty  directors  of  vocational 
secondary schools, 25 teachers of vocational schools, and 18 teachers of primary and lower 
secondary  schools  were  trained  on  inclusive  education.  Authorities  should  also  make  more 
efforts to reach out to children with disabilities that remain outside the education system and 
scale up community-based social and health services for children with disabilities, including 
by increasing financial support.  

No steps were taken to adopt the Civil Code, which would enable support to persons in foster 
care up to 26 years of age, instead of 18. There remains a lack of quality services and dedicated 
programmes for the prevention and reintegration of children with drug problems. Official data 
is incomplete. Services for treatment of children using drugs in the public health system are 
non-existent. The new Law on early childhood education remains pending. Over the years, the 
authorities have failed to address problems related to street children, including child begging. 
Child,  early  and  forced  marriages  remain  an  issue,  particularly  among  Roma  and  Ashkali 
communities.  While  the  Law  on  child  protection  aims  to  prevent  physical  violence  against 
children, it remains a concern in society. Furthermore, there are no foster families established 
to provide care for children in conflict with the law, despite legal provisions in place to address 
this.  A  comprehensive  strategy  for  child  protection  is  necessary  to  accelerate  de-
institutionalisation  and  the  transition  towards  quality,  family-  and  community-based  care 
services, including with an adequate focus on preparing children to leave care. While the Law 
on child protection aims to prevent physical violence against children, this remains a concern 
in society.  

Persons with disabilities lack access to healthcare, rehabilitation, social services, education 
and assistive equipment and physical infrastructure. There remains a clear gap in harmonising 
legislation and policies with the relevant UN Conventions and the EU acquis on the rights of 
persons with disabilities The Administrative Instruction for access by persons with disabilities 
is in force but not being applied. Direct discrimination against persons with disabilities was 
confirmed  through  a  court  judgment.  Five  persons  with  disabilities  filed  lawsuits  against 
various institutions in Kosovo based on the Law on protection from discrimination. In 2022, 
the Pristina Basic Court decision confirmed discrimination in one case. Overall, health services 
for persons with disabilities need to improve, including for women and girls with disabilities. 
The employment of persons with disabilities remains a great challenge. Implementation of the 
Law on the status and rights of persons with disabilities is a challenge, while the new draft law 
remains  pending.  Civil  society  has  expressed  concerns  about  the  medical  evaluation 
commission for the status and rights of paraplegic and tetraplegic persons.  The government 
declared  2022  as  the  year  of  persons  with  disabilities.  In  this  context,  it  launched  several 
initiatives  to  increase  accessibility  to  central  and  local  institutions  and  to  legal  and 
administrative documents. The government also issued a report on the progress of the action 
plan for the rights of persons with disabilities. In December 2022, the government asked the 
Assembly to  incorporate the Convention on the Rights of Persons with Disabilities into the 
directly applicable human rights instrument of the Constitution. 

On the rights of lesbian, gay, bisexual, transgender, intersex and queer (LGBTIQ) persons, 

38 

 
 
the  Constitution  protects  against  discrimination  based  on  sexual  orientation  or  gender.  No 
significant  change  can  be  reported  regarding  public  awareness  and  acceptance  of  LGBTIQ 
persons. The draft Civil Code, which includes provisions for civil partnerships for same-sex 
partners, has still not been approved by the Assembly. There remain concerns that discussions 
surrounding  same-sex  unions  instigate  homophobic  language  by  public  figures,  political 
figures and media outlets. The 2019-May 2022 working plan of the Advisory and Coordinating 
Group for Community Rights LGBTI has expired. Civil society reports a lack of improvement 
in  attitudes  towards  LGBTIQ  persons.  Dedicated  social  services  are  exclusively  offered  by 
NGOs,  which  report  an  increased  suicide  rate  among  LGBTIQ  persons  and  an  increase  in 
domestic  violence  cases.  There  was  no  progress  on  the  planned  building  of  a  shelter  for 
LGBTIQ victims of domestic violence or family rejection in the municipality of Pristina. As 
for legal gender recognition, the process of amending the Law on civil status remains pending. 
Further  training  for  law  enforcement  agents  is  needed,  especially  on  transgender  rights, 
qualification of hate crimes and secondary victimisation. 

The  procedural  rights  of  persons  suspected  of  crime  and  rights  of  victims  of  crime  are 
stipulated  in  the  Constitution  and  the  law.  Amendments  to  the  Criminal  Procedure  Code 
entered  into  force  in  February  2023,  addressing  shortcomings  in  criminal  procedure.  The 
reforms include a stricter test for the Court of Appeals in returning cases for retrial; permission 
for trials in absentia in relation to all types of criminal offences; and expansion of the ex officio 
appointment  system.  The  effect  of  these  reforms  will  depend  on  their  interpretation  and 
implementation.  Some  of  the  remaining  issues  of  concern  are  delayed  and  excessively 
prolonged court proceedings jeopardising the right to a fair trial, including for cases of domestic 
and  gender-based  violence;  lack  of  professional  interpreters/translators  and  low-quality 
standards of interpretation; excessive use of pre-trial detention and insufficient consideration 
of other measures for securing the presence of defendants. On victims’ rights, there remains 
insufficient  provision  of  legal  information  to  victims  of  crimes  on  their  rights  and  on 
professional assistance and representation during criminal proceedings. Despite the extension 
of free legal aid to all women victims of gender-based violence, very few are represented in 
court  proceedings.  The  level  of  legal  aid  (for  both  victims  and  suspects/accused),  although 
improved,  remains  inadequate  due  to  conflicting  legislation,  lack  of  public  awareness  and 
different systems for providing free legal aid. The budget allocated for legal aid in 2022 was 
EUR 1 877 134, up 9.4% on the previous year. However, the budget implemented in 2022 was 
EUR 1 692 393, similar to 2021 (EUR 1 686 056). The lack of a system of quality assurance 
of free legal aid remains an issue. Out of 1 595 complaints received by the Ombudsperson in 
2022, 472 concerned the right to a fair trial within a reasonable time. Protection and assistance 
officers  need  to  provide  a  better-  quality  service  to  victims.  The  number  of  requests  for  a 
compensation  programme  for  victims  of  crime  was  the  same  as  in  2021.  In  2022,  the  total 
number of requests for compensation was 53, with one carried over from 2021. The Committee 
for  Crime  Victims  Compensation  approved  27  of  these  requests,  for  a  total  value  of 
EUR 99 106. A positive development to be highlighted is the increase of the 2023 budget to 
EUR 148 000, up from EUR 78 000 in 2022. 

Kosovo has a well-established legal framework for the protection of non-majority community 
rights at the central and local level. The Communities Consultative Council in the President’s 
Office,  the  Office  of  the  Language  Commissioner  and  the  Adviser  on  Communities  to  the 
Prime  Minister  continued  their  work  to  address    their  most  urgent  concerns.  These  include 
equal access to education, employment, lack of language compliance, their representation in 
local  and  central  level  institutions,  the  promotion  of  cultural  identity  and  access  to  social 
welfare.  As  of  November  2022,  the  Communities  Consultative  Council  has  new  members 
appointed for the next two-year term: the government appointed three members to the Council, 

39 

 
 
which  is  a  positive  step.  During  the  reporting  period,  representatives  from  the  central 
institutions conducted a series of visits to non-majority communities, focusing on outreach to 
civil society and the business sector. At the same time, challenges remain over institutional 
coordination  between  different  levels  of  government  and  the  lasting  underfunding  of 
mechanisms  to  protect  the  rights  of  communities.  Initiatives  aimed  at  addressing  concrete 
problems  lack  political  commitment  and  are  mostly  donor-driven.  Furthermore,  security 
concerns,  unequal  access  to  education,  employment  and  social  welfare,  access  to  illegally 
occupied property and non-compliance with the Law on languages remain widely unaddressed. 
Further efforts are needed to ensure inclusiveness for all communities residing in Kosovo. 

The 2023-2027 strategy for the protection and promotion of the rights of communities and their 
members  is  pending.  Furthermore,  the  appointment  of  a  new  Kosovo  Serb  Minister  for 
Communities and Return on 1 December 2022 raised questions regarding its compliance with 
the Constitution. If the appointee is not an elected member of the Assembly, the Constitution 
requires formal endorsement by a majority of Kosovo Serb MPs. 

Steps have been taken to appoint a new director of the Office for Community Affairs within 
the Office of the Prime Minister; despite this, the post has been vacant since February 2021. 
For the first time since 2019, in May the government reconvened the Technical Working Group 
for  the  implementation  of  the  recommendations  of  the  Council  of  Europe’s  Framework 
Convention on National Minorities. 

Kosovo institutions still lack the capacity to ensure adequate implementation of the Law on the 
use  of  languages.  The  lack  of  translation  of  official  websites  of  central  and  local  level 
institutions  in  both  official  languages  hinders  equal  access  to  information.  Inconsistency 
between Albanian and Serbian translations of legislation and the limited number of translators, 
including in courts, limits equal access to justice for members of non-majority communities. 
The working group, composed of representatives of the Office of the Prime Minister as well as 
international  partners,  was  put  in  place  to  lead  the  preparatory  work  to  set  up  a  unit  for 
translation, harmonisation and linguistic control. As of the end of May 2023, the working group 
had held three meetings.  

The Balkan Studies programme of the Philology Faculty of the University of Pristina is the 
only  educational  programme  offered  by  the  Kosovo  educational  system  in  both  official 
languages. The programme lacks concrete support and promotion from the Kosovo institutions 
to address its rather low enrolment rates (below 15 students). 

Discontinuation in 2021 of the work of the Commission verifying university diplomas obtained 
from the (Serbia-run) University in Mitrovica North continued to affect graduates from this 
university and hinder their access to employment. Additionally, the lack of recognition of high 
school  diplomas  obtained  from  the  Serbia-run  educational  system,  combined  with  limited 
access  to  employment  and  a  poor  economic  situation,  exacerbates  the  migration  of  young 
people from non-majority communities out of Kosovo. In February 2023, the government of 
Kosovo  issued  a  decision  to  re-establish  the  Commission,  which  by  mid-May    held  eight 
procedural  meetings.  By  21 June,  the  Ministry  of  Education,  Science,  Technology  and 
Innovation had received 44 applications, out of which none had been verified yet.  

Inter-ethnic  and  potentially  ethnically  motivated  security  incidents  continue  to  negatively 
impact the perception of security and safety among non-majority communities. Although the 
number of potentially ethnically motivated incidents  affecting non-majority communities in 
2022 continued its long-term  downward trend, the perception of security  among  some non-
majority communities has deteriorated, especially in the Kosovo Serb community.  

Overall, relations between the government and the Kosovo Serb community have deteriorated 
40 

 
 
significantly.  Following  a  series  of  crises,  Kosovo  Serbs  resigned  from  their  positions  in 
Kosovo institutions in November 2022 and subsequently many of them signed employment 
contracts  with  the  Serbian  government.  Kosovo  and  Serbia  should  prioritise  enabling  the 
expedient  return  of  Kosovo  Serbs  to  institutions  in  Kosovo.  Furthermore  Kosovo  should 
engage additional efforts to build trust with this community. Expropriations of privately-owned 
land in the north of Kosovo and the increased presence of special police units in the north   have 
created widespread discontent among the local Kosovo Serb population,  negatively affected 
the confidence of the Kosovo Serb population in Kosovo institutions and negatively affected 
the Dialogue. 

In 2022, the voluntary return and reintegration of refugees and displaced persons continued 
to  witness  a  decreasing  trend.  According  to  the  United  Nations  High  Commissioner  for 
Refugees, 204 individuals returned, compared to 368 in 2021. Some progress was achieved, 
with the Ministry for Communities and Return finalising and putting into operation a returns 
case management system consisting of a returns database and an appeals commission. 

In 2022, Kosovo adopted the 2022-2026 strategy for the advancement of the rights of the Roma 
and Ashkali communities and the 2022-2024 action plan. The Municipal Assembly in Prizren 
unanimously voted in favour of granting the Romani language the status of language in official 
use at municipal level, meaning that Romani is a language in official use at municipal level in 
two municipalities in Kosovo. Furthermore, the Office for Good Governance within the Office 
of the Prime Minister, in cooperation with the Social Justice for Roma, Ashkali and Egyptian 
project, launched the National Platform for Protection against Discrimination for the Roma, 
Ashkali and Egyptian Communities, which members of this community can use to denounce 
acts  of  discrimination.  However,  the  Anti-discrimination  law  remains  largely  ineffective  in 
combating  anti-gypsyism.  The  housing  situation  remains  a  challenge  due  to  poor  living 
conditions and lack of property documents. Municipalities in Kosovo have made progress in 
including  settlements  whose  residents  mainly  belong  to  marginalised  communities  in  their 
urban  development  plans.  However,  more  political  will  is  required  to  increase  the  level  of 
investment  and  infrastructure  building  in  these  settlements.  Further  efforts  are  needed  to 
transform undeclared work among Roma to implement the Poznan Declaration’s objective on 
employment. The government created an inter-institutional team to promote the employment 
of Roma, Ashkali and Egyptians, led by the Office of Good Governance. 

On cultural rights, there have been no developments concerning the adoption of the new Law 
on  cultural  heritage.  Relations  between  the  government  and  the  Serbian  Orthodox  Church 
witnessed a further souring following the incident on 26 December 2022 when the Patriarch 
was  denied  entry  to  Kosovo.  The  mutual  distrust  and  compounding  factors  due  to  political 
tensions  between  Kosovo  and  Serbia  have  not  provided  an  enabling  environment  for  the 
Implementation and Monitoring Council to resume its work, which has been suspended since 
November  2021.  Furthermore,  there  has  been  no  implementation  of  the  ‘arrangement’ 
previously agreed in order to find a solution to the roadworks in the special protective zone of 
the Visoki Dečani Monastery. Efforts towards reconvening the Implementation and Monitoring 
Council should be taken as a matter of priority. Kosovo should complete legislation in the field 
of cultural heritage by finalising and adopting the relevant Law on cultural heritage. 

2.2.2  Chapter 24: Justice, freedom and security 

Kosovo is in between an early stage and some level of preparation in this area. Limited 
progress was made. Previous improvements in the legislation on the fight against organised 
crime  have  not  yet  delivered  tangible  results.  Sustained  efforts  are  needed  to  ensure  more 
proactive  investigations,  final  court  decisions  and  the  final  confiscation  of  assets.  Kosovo 

41 

 
 
advanced in the area of counter-terrorism and prevention of violent extremism with progress 
in  the  implementation  of  the  bilateral  arrangement  on  counter  terrorism  with  the  European 
Commission. Progress was also made on migration management as accommodation capacity 
for migrants increased. Kosovo has spare capacity to accommodate a migration influx of up to 
2 000  people.  With  regards  to  its  asylum  policy,  Kosovo  should  ensure  that  refugees  are 
included  in  social  protection  schemes.  Kosovo  should  roll  out  an  information  campaign  on 
rights and obligations linked to the visa free travel status, to prevent possible misuse. In the 
area of drugs, Kosovo is yet to adopt a new drug strategy and action plan, to take the necessary 
steps to ensure the operational capacity of its National drug observatory and to establish an 
early  warning  system.  As  last  year’s  recommendations  are  only  partly  implemented,  they 
remain valid. In the coming year, Kosovo should in particular: 

→  continue to reinforce the capacity of the Special Prosecution Office and further improve the 

investigation and prosecution of high-profile organised crime cases; 

→  establish a National Centre for Countering Terrorism and Violent Extremism, or reinforce 
the  Office  of  the  National  Coordinator  for  CT/CVE  with  adequate  financial  and  human 
resources and ensure the regular practice of conducting joint threat assessments; 

→  implement the EU Action Plan on the Western Balkans by: further improving migration 
governance,  coordination  and  monitoring  of  policies;  reinforcing  capacities  for  data 
collection  and  analysis;  further  strengthening  the  asylum  system;  amending  the  Law  on 
foreigners in line with EU standards. 

Fight against organised crime  

Kosovo is at an early stage in the fight against organised crime, and made limited progress 
in investigating and prosecuting organised crime cases. Kosovo should make better use of the 
existing powerful tools envisaged by the Criminal Code and the Law on extended powers of 
confiscation.  Law  enforcement  operations  against  organised  crime  continued;  nevertheless, 
efforts to map and target organised criminal structures should be further intensified. Sustained 
efforts  are  needed  to  ensure  proactive  investigations,  final  court  decisions  and  the  final 
confiscation  of  assets.  The  operational  independence  of  law  enforcement  agencies  must  be 
ensured.  Fighting  organised  crime  in  the  north  of  Kosovo  continues  to  be  challenging, 
including because of the resignation of Kosovo Serb officials from public institutions in 2022. 
In  addressing  this,  the  authorities  must  continue  to  strictly  uphold  all  relevant  rule  of  law 
standards.  

Kosovo  has  partly  implemented  the  2022  recommendations,  mostly  regarding  training  and 
awareness  raising  on  new  legislation.  It  adopted  a  new  police  organisational  structure  and 
upgraded intelligence  and  analysis  capacity. Cooperation with  Europol  and Eurojust further 
advanced. The new Law on implementation of targeted international financial sanctions should 
be  an  effective  tool  in  combating  organised  crime.  In  addition  to  recommendations  on 
confiscation of criminal assets (see section on fight against corruption), in the coming year, 
Kosovo should: 

→  effectively implement the new police organisational structure, and continue implementing 
intelligence-led and community policing approaches as core police business models; 
→  proactively  and  jointly  target  and  map  organised  criminal  groups  and  continue  to 
systematically conduct financial investigations at all stages of the criminal investigations 
into all serious, organised crime and corruption cases and initiate stand-alone investigations 
for money laundering; 

→  enhance efforts to prevent and combat criminal networks involved in migrant smuggling 
and trafficking in human beings, as well as on the identification and referral of victims to 

42 

 
 
assistance services; ensure financial sustainability of shelters and assistance for victims of 
trafficking. 

Institutional set-up and legal alignment  

The Kosovo Police has 437 police officers per 100 000 inhabitants, compared with an EU average 
of 335.3 per 100 000 inhabitants (Eurostat, 2019-2021); 85% of officers are men and 15% are 
women. A total of 446 cadets, including 53 women, graduated from the Kosovo Academy for 
Public Safety. During the reporting period, 578 Kosovo Serb officers from the north of Kosovo 
resigned from the Kosovo Police following the decision of Kosovo Serb political representatives 
to abandon Kosovo institutions in four northern municipalities. This created a security vacuum 
and conditions favourable for organised crime in the north of Kosovo. To address the situation, 
the  Kosovo  Police  temporarily  relocated  Kosovo  Albanian  officers  from  South  Mitrovica  to 
occupy vacant  positions.  In addition,  the Kosovo Police launched two separate calls to  recruit 
non-majority officers at the North Mitrovica Regional Police Directorate. In the first recruitment 
process, out of 145 (116 males and 29 females) received applications, 73 (57 male and 16 female) 
non-majority candidates were enrolled, including 43 Kosovo Serbs (36 male and 7 female). In the 
second recruitment process, which closed on 30 May 2023, out of 205 applications received (167 
males  and  38  females),  87  (69  males  and  18  females)  were  from  Kosovo  Serbs.  The  police’s 
composition  needs  to  reflect  the  four  municipalities’  ethnic  composition.  The  resignation  of 
several newly deployed police cadets from non-majority communities following intimidation is 
of concern. 

The  Special  Prosecution  Office,  the  Special  Department  of  the  Basic  Court  and  the  Court  of 
Appeals in Pristina are the key institutions involved in the fight against organised crime. Some 15 
additional support staff were hired in the Special Prosecution Office in 2022. The increase in staff 
has  thus  far  not  had  a  significant  impact  on  the  investigation  and  prosecution  of  high-profile 
organised crime cases.  

In March 2023, the Prime Minister appointed the new General Director of the Kosovo Police, 
following a transparent and competitive recruitment process. In the same month, the Minister for 
Internal Affairs and the General Director of the Kosovo Police approved a new organisational 
structure for the police and established a working group to oversee implementation of the new 
structure. In order to appoint qualified officers, the process needs to be transparent, impartial and 
meritocratic, and requires commitment from the police’s management. The new police structure 
is organised around three main pillars: operations, investigations and border police, and promotes 
two key concepts: community policing and intelligence-led policing. The police’s Investigation 
Department,  responsible  for  preventing,  detecting  and  investigating  organised  crime  and 
corruption-related offences, has also been restructured. The Intelligence and Analysis Directorate 
has become a stand-alone department, with separate offices. In addition, the Crime Investigation 
Division includes directorates for cybercrime and war crimes.  

Working  groups  continued  monitoring  the  implementation  of  police  strategic  documents, 
including  the  2021-2025  strategic  development  plan,  the  integrated  intelligence-led  policing 
approach,  the  community  policing  strategy  and  the  action  plan  2021-2025.  In  July  2023,  the 
second Strategic Level Tasking and Coordination Group drafted new priorities based on an annual 
strategic crime assessment report. The Ministry of Internal Affairs should take into account the 
findings  of  the  police  risk  assessment  analysis  of  the  government  buildings  and  accordingly 
refrain from utilising police officers for tasks that are not core police service tasks.  

The Kosovo Border Police, Kosovo Customs administration, Financial Intelligence Unit and Tax 
administration  remain  responsible  for  monitoring  and  controlling  the  internal  and  cross-
border/boundary  flow  of  goods,  materials  and  capital  that  might  be  involved  in  any  form  of 

43 

 
 
organised  crime.  The  Kosovo  Customs  administration  and  the  Financial  Intelligence  Unit 
continued to perform well. The Asset Recovery Office (the ‘Unit for Asset Investigations’ under 
the new police organisational structure), which remains operational, continued to receive limited 
requests for asset recovery. The authorities should support and accelerate the transfer of the Asset 
Recovery Office to the State Prosecution Office, and assign dedicated staff from the Prosecution 
Service, the police, the Financial Intelligence Unit and the Customs and Tax administrations. The 
Police  Information  System  is  advanced  and  linked  to  other  law  enforcement  databases. 
Implementing legislation regulates access levels to the Police Information System and ensures 
full harmonisation between the various databases.  

The process of internal reorganisation of the Civil Registration Agency continued to stall during 
the  reporting  period.  There  were  delays  in  the  revision  of  the  Law  of  the  Civil  Registration 
Agency, which remains pending. The Agency functions without a strategic plan to guide its vision 
for development and modernisation, or to align with the public administration reform process. For 
over 2 years now, an acting General Director leads the Civil Registration Agency. The National 
Audit Office found that the Civil Registration Agency has still not put in place an IT governance 
risk and compliance framework to ensure continuity in the operation of its information systems. 
Current systems do not sufficiently guarantee data confidentiality, integrity and availability. Due 
to supply chain issues, for over 4 months in the second half of 2022 personal documents/passports 
could  be  issued  only  in  emergency  cases.  Urgent  steps  need  to  be  taken  to  ensure  continuous 
provision of essential services to citizens.  

The main strategic framework, the rule of law sector strategy, consists of the Kosovo Judicial 
Council’s strategic plan for the efficient solving of cases of corruption and organised crime, and 
other relevant strategies on arms control, the informal economy, money laundering and terrorist 
financing,  counterterrorism,  trafficking  in  human  beings,  and  cybersecurity.  All  relevant 
institutions must cooperate to implement these strategic documents effectively. The 2018-2022 
strategies and action plans against narcotics and organised crime in Kosovo have expired. The 
authorities should assess the implementation of the previous expired strategies and adopt strategic 
documents  and their respective action plans for  the following period In  addition  to  the annual 
strategic  crime  assessment  report,  Kosovo  police  prepares  a  serious  and  organised  crime 
assessment report every 3 years.  

The legal framework on the fight against organised crime is broadly aligned with the EU acquis. 
For status-related reasons, Kosovo is not party to international conventions on the fight against 
organised crime, such as the UN Convention on Transnational and Organised Crime (the Palermo 
convention), but still applies these international principles in its criminal legislation.  

The Law on money laundering and terrorism financing should be amended to bring it fully in 
line with the 4th and 5th EU Directives on anti-money laundering and countering financing of 
terrorism and with evolving international standards. The government should review the legislation 
to ensure its full compliance with these directives and the Financial Action Task Force (FATF) 
recommendations. The Assembly adopted the Law on implementation of targeted international 
financial  sanctions.  Kosovo  made  progress  in  strengthening  its  asset  recovery  regime,  having 
adopted a concept document on establishing a confiscation fund. In 2022, the Assembly adopted 
the Law on the State Bureau for Verification and Confiscation of Unjustified Assets, introducing 
the  concept  of  illicit  enrichment  into  the  domestic  legal  system  and  providing  the  basis  for 
establishing the Bureau for Verification and Confiscation of Assets. The opposition Democratic 
Party of Kosovo (PDK) filed an action for Constitutional Court constitutional review of the law. 
To  increase  the  transparency  of  legal  persons  and  arrangements,  the  government  adopted  a 
concept document on the beneficial ownership register, addressing shortcomings identified by the 
2018  Council  of  Europe  anti-money  laundering  and  countering  the  financing  of  terrorism 

44 

 
 
(AML/CFT) assessment and paving the way for legislative changes. 

On  the  implementation  of  the  Law  on  interception  of  electronic  communications,  upgraded 
interception capacities and the procurement of technical equipment resulted in the decentralisation 
of monitoring centres to other regional police directorates. Legislation on cybercrime is generally 
in  line  with  the  EU  acquis.  The  Kosovo  Police  upgraded  its  cybercrime  unit  to  a  cybercrime 
directorate and will allow to increase the number of cybercrime investigators in accordance with 
its newly adopted organisational structure. Legislation on trafficking in human beings is broadly 
aligned  with  the  relevant  EU  acquis,  but  implementation  remains  limited.  In  May  2023,  the 
Ministry of Internal Affairs adopted the Administrative Instruction on the Database for Victims 
of Human Trafficking. The new Criminal Procedure Code, which entered into force in February 
2023, further aligned Kosovo legislation with the relevant EU acquis on the procedural aspects 
of  trafficking  offences.  The  2022-2026  strategy  and  action  plan  against  trafficking  in  human 
beings is being smoothly implemented. In November 2022, the Ministry of Justice adopted the 
State  Protocol  for  handling  cases  of  sexual  violence,  setting  out  the  responsibilities  of  each 
relevant institution. 

Implementation and enforcement capacity  

The Kosovo authorities continue to report on the total number of indictments and convictions for 
the charge of ‘organised crime’ as defined in the UN Convention on Transnational and Organised 
Crime. During  2022, 25 new cases were  initiated (19 cases  in  2021), and 16 individuals were 
convicted. 

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

As  for  organised  crime-related  cases  and  serious  crime  cases  currently  not  included  in  the 
aforementioned track record, during 2022, 50 cases were initiated regarding trafficking in human 
beings  involving  70  persons  (70  in  2021),  and  prosecution  presented  indictments  against  42 
individuals (45 indictments  were presented in  2021).  In 2022, 14 people  were  convicted  (3 in 
2021). In addition, in 2021, 3 people were indicted (23 in 2020) for illicit trafficking of firearms; 
there were no court decisions (3 people convicted in 2021). For money laundering, 2 people were 
indicted in 2022 (9 in 2021) and 3 were convicted (1 in 2021). Police and prosecution should 
continue to actively use all powers at their disposal to target criminal networks and their economic 
support base. Sentencing policy remains erratic (see the section on the judiciary). The low number 
of confiscated criminal assets is still a key concern (see the section on the fight against corruption). 
The  institutions  involved  in  the  fight  against  organised  crime  need  to  set  up  and  use 
multidisciplinary joint investigation teams, wherever possible. 

The  Kosovo  Police  has  basic  capacity  and  capability  to  combat  organised  crime.  However, 
organised crime investigations remain vulnerable to corruption and undue interference. This issue 
should be tackled with more corruption prevention measures such as robust integrity and ethics 
training,  as well as disciplinary and criminal investigations. The changes in the organisational 
structure of the Kosovo Police aim to enforce the police’s integrity plans by introducing a new 
Integrity Section under the new Deputy  Director General.  The Ministry of Internal  Affairs, as 
envisaged  by  the  Law  on  the  Police  Inspectorate,  should  adopt  a  plan  to  implement  Police 
Inspectorate  recommendations.  So  far  this  has  still  not  been  done.  During  2022,  the  Police 
Inspectorate investigated 257 officers which resulted in the suspension of 164 police officers; the 
filling of the resulting  vacancies is  slow. The trend of  successful  police operations  targeting 
organised crime continued during the reporting period, also involving international and cross-
border  cooperation.  In 2022, the police dismantled 34 organised crime groups (49 in  2021), a 
decrease of 30% on 2021. The main reasons for the decrease are twofold: increased operational 

45 

 
 
reassignment of police in the north, especially during the second part of 2022, and the focus of 
investigations on more complex cases. Operations against organised crime groups resulted in a 
number of arrests and the preliminary confiscation of assets, which need to be followed up by 
prosecution  and  the  judiciary.  The  fight  against  organised  criminal  structures  should  be 
intensified. Investigations should be more proactive and criminal groups should be adequately 
mapped. The police should target criminal groups and structures as opposed to single types of 
crime. The new police organisational structure is an improvement in this regard.  

The  Kosovo  Police  Special  Investigation  Unit  continued  to  play  an  essential  role  in  the 
investigation of high-profile corruption cases. In 2022, the Special Investigation Unit handled 98 
corruption cases, 46 of which were high-profile. Prosecution received 6 criminal reports. Four 
indictments were filed, and 13 cases were closed. The government should ensure that the police’s 
Special  Investigation  Unit,  the  successor  of  the  abolished  Anti-Corruption  Task  Force,  has  a 
sound legal and organisational structure (see section on the fight against corruption). 

Kosovo  made  some  steps  to  improve  implementation  of  the  intelligence-led  policing  and 
community  policing  approaches.  In  the  new  organisational  structure,  the  Kosovo  Police  has 
strengthened its intelligence structures, both at central and regional levels. To that end, it upgraded 
the Intelligence and Analysis Directorate into a stand-alone police department and added a new 
division  for  community  policing.  During  2022,  the  Directorate  for  Intelligence  and  Analysis 
received 11 250 information reports (37.55% increase on 2021) and distributed 3 965 intelligence 
reports  (27.16%  increase  on  2021).  Dedicated  community  officers  within  sectors  have  been 
integrated  into  the  organisational  structure.  Outreach  activities  are  planned  to  build  trust  with 
communities.  During  2022,  the  police  carried  out  a  pilot  project  entitled  ‘Get  to  know  your 
police’,  which  will  be  implemented  throughout  Kosovo.  However,  the  implementation  of 
intelligence-led policing remains overall weak as structures and systems are not yet fully in place. 
Under the new police organisational structure, the police should take the following actions: further 
establish  intelligence  structures  at  regional  and  central  levels;  continue  the  recruitment  and 
training of dedicated analysts; and fully operationalise the strategic tasking coordinating group at 
the top management level and the tactical tasking coordinating group at the regional level. There 
is a need for more specialised and on-the-job training for all institutions involved in fighting the 
more complex organised crime cases. The police and Special Prosecution Office should cooperate 
closely  to  develop  strategies  to  better  conduct  investigations  and  have  a  clear  division  of 
responsibilities.  The  police  should  establish  a  verification  office  for  special  investigative 
measures  to review investigators’ requests for special measures from the prosecution. This would 
enable a joint target-based approach to improve the proactive detection of illicit and ill-gained 
wealth. 

There  is  well-established  cooperation  with  Interpol  and  Europol.  Kosovo  regularly  exchanges 
information  with  Interpol  via  the  United  Nations  Interim  Administration  Mission  in  Kosovo 
(UNMIK). In March 2023, cooperation between Europol  and Kosovo Police improved further 
with the deployment of a Kosovo Liaison Officer at Europol’s headquarters in The Hague. The 
Secure Information Exchange Network Application (SIENA) is operational. The Kosovo Police 
cooperates well with police services in EU Member States, including through joint investigation 
teams and exchanges of information on civil and criminal cases. During the reporting period, as 
part  of  its  international  cooperation,  the  Kosovo  Police  recorded  19  investigations  and  2  joint 
operations. The police has signed 103 international police cooperation agreements, including with 
11 EU Member States, five EU agencies and other countries and international organisations. The 
Kosovo Police mutually exchanges liaison officers with seven partner countries. Since December 
2020, Kosovo and Eurojust have cooperation in place through the appointment of the two contact 
points. Kosovo has joined the Eurojust WB CRIM JUST project to enhance the level of interaction 

46 

 
 
and integration between the EU and the Western Balkans in the criminal justice field. 

The Kosovo Police is working to improve the handling of cases of domestic violence and other 
forms of gender-based violence. It has updated the standard operating procedure on addressing 
domestic violence cases and improved police officers’ capacities to handle cases, produce risk 
assessments and set up victim-friendly interview rooms. However, the handling of cases is still 
deficient. The failure to protect victims, including the dismissal of reports, disclosure of identity, 
inadequate interviewing and non-enforced protection orders was reported in some severe cases of 
rape and killing by intimate partners. More needs to be done to ensure that Kosovo police officers 
understand their role in cases of domestic violence. in accordance with existing laws, strategies 
and the new State Protocol for the handling of cases of gender-based violence. 

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

The  fight  against  money  laundering  and  terrorist  financing  is  not  producing  the  expected 
results. In 2022, there was one final conviction for money laundering. More efforts are needed to 
achieve a substantial level of proactive investigations, final court decisions and final confiscation 
of assets. The capacities of the police and prosecution should be strengthened. Money laundering 
and terrorist financing are often not prosecuted as a stand-alone crime. There is a pressing need 
to foster prosecutors’ and judges’ enhanced understanding of the concept of money laundering 
and terrorist financing and to increase their specialisation in this field. Financial investigations 
are still not systematically launched in cases of organised crime and corruption and are not used 
in the context of a broader approach to fighting organised crime and high-level corruption. Recent 
or  ongoing  sectoral  risk  assessments  enable  the  competent  authorities  to  develop  their 
understanding  of  the  high-risk  areas  in  several  sectors,  including  real  estate,  non-profit 
organisations, construction and games of chance. The level of understanding of different types of 
financial institutions and designated non-financial businesses and professions in this area varies 
significantly.  Reaching  a  substantial  level  of  effectiveness  will  require  targeted  training  and 
outreach. In 2022, the Financial Intelligence Unit received 947 suspicious transaction reports (up 
3% on 2021). In total, EUR 2 077 995 of assets were confiscated. Overall, although the efficacy 
of  financial  investigations  has  improved  at  the  police  level,  they  are  still  not  systematically 
conducted  in  parallel  with  criminal  investigations/proceedings.  Inter-agency  cooperation  and 
coordination needs to improve significantly. The adoption of police standard operating procedure 
to  centralise  all  aspects  of  financial  investigations  in  line  with  Financial  Action  Task  Force 
(FATF) recommendations is yet to produce concrete results. 

Despite progress, the involvement of organised and armed groups in arms trafficking remains a 
serious concern. Kosovo is implementing its strategy in this area and the Law on the legalisation 
and surrender of weapons, ammunition and explosive devices. During 2022, the Kosovo Police 
seized  1 473  firearms  (1 280  in  2021)  and  29 903  pieces  of  ammunition  of  various  calibres 
(42 031 in 2021). The authorities should accelerate efforts towards drafting amendments to the 
key laws, by-laws and strategy on firearms, ammunition and explosives, with a view to achieving 
harmonisation  with  the  main  EU  firearms  directives  and  regulations.  Kosovo’s  firearms  focal 
point  continues  to  function  as  good  practice  in  the  region,  and  its  ballistics  laboratory  is  well 
equipped.  Kosovo  continues  to  have  the  highest  level  of  harmonisation  in  the  region  with  the 
provisions of the UN Firearms Protocol. 

Kosovo remains a country of origin, transit and destination for victims of trafficking in human 
beings, notably for sexual exploitation. During 2022, the Kosovo Police identified 22 victims of 
trafficking, out of which 21 were girls and women and one man, with 14 victims under the age of 
47 

 
 
18 and 8 over the age of 18. Victims were offered protection and support services by relevant 
police units, licensed NGOs and social protection services. The authorities have taken coordinated 
efforts to prevent and raise awareness on this issue. Actions include enhancing the identification 
procedure, starting from victim identification to long-term reintegration, and increasing efficiency 
in prosecuting those leading the trafficking in human beings.  However, there is still much room 
for  development  to  gain  a  better  understanding  of  the  scope  of  and  conditions  under  which 
trafficking in human beings is taking place, including how it inter-relates with labour exploitation. 
A strong focus is needed on data collection and monitoring of workplaces, especially in the private 
sector. In addition, more work is needed to strengthen institutional capacity to enforce existing 
legislation (including prosecution), structures and mechanisms to counter trafficking in human 
beings.  

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

During 2022, there were 54 cases (37 in 2021) of cybercrime. An indictment was filed against 
one person but there was no final judgment, and one investigation was terminated. The Kosovo 
Police  Sector  for  the  Investigation  of  Cybercrime  initiated  8  cases  over  child  abuse  in 
pornography, and 8 criminal charges were filed against 8 people. Kosovo needs to address several 
issues,  such  as  the  limited  availability  of  cybercrime  training  for  newly  appointed  judges  and 
prosecutors and those handling electronic evidence. 

Under  the  2017  working  arrangement  with  the  EU  Agency  for  Law  Enforcement  Training 
(CEPOL), Kosovo plays an active role in a number of the Agency’s activities. Kosovo has full 
access to the CEPOL exchange programme and its electronic learning system. It is recommended 
that  the  authorities  of  Kosovo,  with  the  assistance  of  CEPOL,  design,  prepare  and  organise 
targeted  training  to  address  counter  terrorism  from  the  protection,  prevention  and  responding 
angles, as a priority training topic. 

Kosovo  participates  in  the  European  Multidisciplinary  Platform  Against  Criminal  Threats 
(EMPACT).  In  2022,  Kosovo  participated  in  22  operational  actions  in  3  of  the  15  EMPACT 
operational action plans, in the first half of 2023, Kosovo has participated in 9 operational actions 
In  2022,  Kosovo  appointed  a  National  EMPACT  Coordinator,  the  Police  Director  for 
International Cooperation, and continued to participate in EMPACT Joint Action Days. It also 
continued to cooperate with EU police services through the European Network of Fugitive Active 
Search Teams, in which it has observer status.  

Cooperation in the field of drugs 

Institutional set-up and legal alignment 

A national strategy on drugs spanning the period 2018-2022 has expired and so far no new strategy or 
action plan has been adopted. The legislative framework to combat illicit handling of and trafficking 
in narcotic drugs is based on the 2007 Law on narcotic drugs, psychotropic substances and precursors 
and on the Criminal Code. A more comprehensive revised draft law aligned with the most recent EU 
legislation is yet to be adopted. 

A coordination mechanism is in place to prevent  and combat drug trafficking and the illicit use of 
precursors.  While  a  National  Drug  Observatory  has  been  in  place  since  August  2018,  it  has  been 
without a head since December 2018. With only one full-time staff member, the Observatory lacks 
the necessary human resources to fulfil its role and remains ineffective. In March 2023, the Ministry 
of  Internal  Affairs adopted the new Regulation on the internal  organisation  and systematisation of 
jobs, which makes provision for  a Drug Observatory within the Secretariat of Strategies. The early 

48 

 
 
warning  system  on  new  psychoactive  substances  is  not  yet  established.  The  Ministry  approved  an 
internal regulation on the organisation of the National Drug Observatory and the early warning system, 
which  ensures  adequate  human  and  financial  support,  but  additional  staff  are  yet  to  be  recruited. 
Despite general progress on data collection, difficulties remain regarding the sustainable and routine 
collection of drug-related data. In the absence of a functional health information system, establishing 
a drug treatment register is not a priority. 

Implementation and enforcement capacity 

Kosovo continues to be both a storage and transit country for narcotic drugs and their derivatives. 
Drug seizures continued to increase: around 662 kg of marijuana, 246 kg of heroin, 4 kg of cocaine 
and 24 500 cannabis plants were seized in 2022. During 2022, the Kosovo Police registered 808 
new  drug-related  cases  (726  in  2021),  arrested  1 039  suspects,  and  filed  532  criminal  charges 
against 791 suspects. Out of all the cases, 271 were charged for drug trafficking, 505 for illegal 
possession of drugs, and 32 for cultivation. Provisions are in place for the secure storage of seized 
drugs awaiting destruction.  

Organised  crime  groups  continue  to  play  a  dominant  role  in  large-scale  drug  trafficking  and 
subsequent distribution to the EU. The Western Balkan drug trafficking routes constitute a major 
challenge.  Kosovo  law  enforcement  agencies  continue  to  engage  in  successful  drug  targeting 
operations, in cooperation with EU Member States. Industrial-scale indoor and outdoor cannabis 
cultivation facilities have been identified in several countries in the region, including in Kosovo. 
During  the reporting period,  several  successful operations against drug cultivation  laboratories 
were carried out, including in northern Kosovo. Law enforcement agencies and prosecution need 
to further increase their understanding of the drug market through analytical work. Inter-agency 
cooperation and exchange of information in the fight against drug trafficking in the chain of justice 
sector  should  further  improve.  The  Prosecution  Service  continues  to  be  understaffed  and 
insufficiently  trained  to  deal  efficiently  with  drug-related  offences.  Increased  cooperation, 
coordination  and  exchange  of  information  among  law  enforcement  agencies  in  the  Western 
Balkan region is paramount and should improve. Kosovo has a 24-hour drug abuse hotline and 
offers  addiction  treatment  and  methadone  therapy.  Cooperation  with  the European  Monitoring 
Centre for Drugs and Drug Addiction remains satisfactory. 

Fight against terrorism  

Institutional set-up and legal alignment 

A  range  of  institutions  remains  active  in  combating  terrorism  and  violent  extremism,  and  in 
dealing with reintegration of returning foreign terrorist fighters and their families. The Minister 
for Internal Affairs acts as the National Coordinator for the Prevention of Violent Extremism and 
the Fight against Terrorism. This position is intended to improve interinstitutional coordination, 
monitor and report on the implementation of policies, activities and other actions, and serve as a 
point of contact. However, given the nature of the Minister’s other tasks, the focus on this issue 
is limited.  

Kosovo’s  legal  framework  on  anti-terrorism  is  partly  aligned  with  the  EU  acquis  and 
international  instruments.  The  Law  on  combating  money  laundering  and  the  financing  of 
terrorism needs to be amended to be fully in line with EU and international standards (see section 
on the fight against organised crime and on the free movement of capital). Kosovo adopted the 
important  Law  on  implementation  of  targeted  international  financial  sanctions.  Legislation  on 
critical  infrastructure  protection  remains  in  place;  the  adoption  of  implementing  legislation  is 
pending, there is also need for appropriate capacity to implement the legislation.  

Kosovo  has  a  strategy  and  action  plan  against  terrorism  (2018-2023)  in  line  with  the  EU’s 
49 

 
 
 
counterterrorism  strategy.  A  strategy  and  action  plan  against  violent  extremism  (2015-2020) 
expired at the end of 2020 and the National Coordinator decided to merge the two strategies into 
one. The new 2023-2028 national strategy and action plan on the prevention and countering of 
terrorism were adopted in June 2023. The EU supported Kosovo in the revision process through 
the  Radicalisation  Awareness  Network  Policy  Support.  The  Joint  Threat  Assessment  Centre, 
including  a  threat-level  grading  system,  is  yet  to  be  established.  In  the  second  half  of  2022, 
Kosovo Police and the Kosovo Intelligence Agency produced the second joint threat assessment 
analysis as part of the situation analysis for the new strategy on the prevention and countering of 
terrorism.  There  is  a  need  to  improve  donor  coordination  and  to  establish  a  more  structured 
mechanism.  The  Kosovo  authorities  continue  to  implement  the  bilateral  Implementing 
Arrangement  with  the  EU  for  the  Joint  Action  Plan  on  Counter-Terrorism  for  the  Western 
Balkans. Kosovo submitted its fifth implementation report in February 2023. 

Implementation and enforcement capacity 

Kosovo continued to fight the threat of terrorism. In 2022, 7 indictments were filed and 6 people 
were  convicted.  Investigations  were  completed  in  12  cases  against  43  suspects.  Greater 
consistency in sentencing practices for offences related to terrorism  and violent extremism is 
necessary.  The  functioning  of  the  Special  Department  in  the  Basic  Court  of  Pristina  and  the 
Court of Appeals has contributed to effective handling of terrorism cases. At present, 19 inmates 
for terrorism-related crimes are in prisons in Kosovo, with 5 inmates sentenced, 5 in detention 
at the high-security prison and 9 sentenced at the Dubravë/Dubrava correctional centre. During 
2022, 11 people were released, of which 4 on parole, 3 on early release and 3 after having served 
their  sentences.  Between  January  and  June  2023,  5  prisoners  sentenced  for  terrorism-related 
crimes  were  released.  Sentences  for  terrorism  crimes  for  foreign  terrorist  fighters  have  been 
relatively lenient (average sentence 3.6 years). The Ministry of Internal Affairs took measures 
related to conditional release to ensure that the conditional release panel pays more attention to 
security aspects when dealing with inmates leaving prison with higher level of radicalisation. So 
far,  there  have  been  a  few  cases  of  recidivism  among  those  convicted  of  terrorist-related 
offences.  

Despite  significant  efforts,  some  challenges  remain  in  the  countering  of  terrorism  and  the 
prevention  and  countering  of  violent  extremism and  radicalisation.  The  increase  in  violent 
incidents  of  domestic  religious  extremism  and  the  impact  of  other  forms  of  extremism  is 
concerning. Militant Salafist ideology, growing ethnonational and far-right movements in the 
region5,  including  Kosovo,  remain  a  threat.  False  bomb  threats  against  public  institutions 
emerged during the reporting period, including at the airport. Despite the efforts of the Kosovo 
authorities to improve the situation, there are a number of push and pull factors for radicalisation, 
including poverty, the perception of corruption, lack of institutional capacity, and the political 
situation.  The  Kosovo  authorities  need  to  balance  efforts  to  prevent  and  counter  violent 
extremism  in  all  its  forms  with  rehabilitation  and  reintegration  measures.  It  is  important  to 
continuously  revise  the  existing  strategies,  action  plans  and  reintegration  and  rehabilitation 
programmes. 

Kosovo  authorities  have  taken  a  leading  role  in  the  rehabilitation  and  reintegration  of 
returnees from foreign conflicts; to that end, they repatriated a large number of Kosovans and 
provided them with psychosocial support and economic reintegration initiatives. Since the start 
of the civil war in Syria in 2012, 257 Kosovans have returned (133 men, 39 women, 85 children), 
106 have died, and 83 allegedly remain in the Middle East (35 men, 8 women, 40 children). 
After the return operation in May 2022, there has been no further developments to repatriate the 

50 

 
 
 
 
remaining individuals from the region. The Reintegration Division of the Ministry of Internal 
Affairs needs appropriate financial and human resources. The authorities need to continue to de-
securitise the rehabilitation and reintegration process and prevention of violent extremism work, 
while ensuring risk mitigation. In terms of planning and implementation of rehabilitation and 
reintegration processes, Kosovo should establish multidisciplinary mechanisms at local  level. 
There  is  a  need  to  focus  more  on  education,  training  and  preparedness  of  local  practitioners 
dealing with returnees. The National Coordinator for the Prevention of Violent Extremism and 
the Fight against Terrorism should play an enhanced role in overseeing the rehabilitation and 
reintegration process, including by linking up with municipalities. During the reporting period, 
the Ministry of Internal Affairs piloted multidisciplinary mechanisms in the municipality of Hani 
I Elezit handling cases of returned foreign terrorist fighters, their families and other individuals 
at risk of radicalisation. These mechanisms should be further strengthened. Civil society plays 
an important role in rehabilitation and reintegration efforts in local communities. The Law on 
the  Kosovo  Correctional  Service  formally  established  an  Intelligence  Unit  and  Unit  for 
Extremism  Management  within  the  Correctional  Service,  thus  contributing  to  improved 
coordination when dealing with extremist and terrorist inmates. However, de-radicalisation and 
disengagement programmes within the correctional system need to be significantly intensified. 
Authorities  need  to  intensify  specific  training,  including  for  the  Kosovo  Probation  Service, 
which  must  develop  programmes  for  convicted  terrorist  who  are  released  after  serving  their 
sentence.  

The  Kosovo  authorities  should  improve  their  capacity  to  address  terrorist  content  online, 
including  increasing  their  efforts  to  refer  terrorist  content  to  internet  providers,  as  well  as 
enhancing efforts to empower civil society to develop effective counter-narratives. 

Judicial cooperation in civil and criminal matters 

For status-related reasons, Kosovo is not party to most multilateral treaties governing mutual 
judicial  cooperation  but  unilaterally  applies  internationally  recognised  treaty  standards. 
Cooperation  between  Kosovo  and  Eurojust  further  advanced.  During  the  reporting  period, 
Kosovo did not apply to become party to any multilateral treaty or organisation in the field of 
judicial cooperation. Two new bilateral treaties on judicial cooperation in civil matters entered 
into force and Kosovo has taken steps to conclude additional bilateral treaties.  

The legal framework for judicial cooperation in civil matters is consolidated and fully aligned 
with  the EU  acquis. Cooperation with  countries with  which Kosovo does  not  have bilateral 
agreements is based on the principle of reciprocity and comity. During the reporting period, 
Kosovo  addressed  269  requests  on  civil  matters  to  EU  Member  States  and  received  344 
responses. It received 372 requests from EU Member States and provided 382 responses. 

Kosovo’s  international  legal  cooperation  in  criminal  matters  is  based  on  the  Law  on  legal 
cooperation in criminal matters and on 40 bilateral treaties. During the reporting period, Kosovo 
issued 142 requests in criminal matters and received 178 responses. Over the same period, it 
received 365 requests and provided 325 responses. In addition, 11 people were extradited from 
the EU Member States to Kosovo, and 7 people from Kosovo to EU Member States.  

In 2022, the Kosovo authorities did not undertake any action to cooperate with the European 
Public Prosecutor’s Office.  

The 2015 procedures on mutual legal assistance agreed between Belgrade and Pristina form the 
basis  for  judicial  cooperation  between  their  judicial  authorities.  Most  countries  that  do  not 
recognise  Kosovo  have  voluntarily  accepted  the  facilitating  role  of  the  EU  Special 
Representative  (EUSR)  in  the  transmission  of  judicial  requests  (including  those  concerning 

51 

 
 
extradition). However, the lack of cooperation by some non-recognising states has resulted in 
cases  of  impunity.  Since  the  end  of  August  2022,  Kosovo  has  not  received  any  request  for 
mutual legal assistance or related responses from Serbia.  

Legal and irregular migration 

Kosovo has mobilised additional resources to adjust the existing contingency plan to manage 
mixed  migration  flows.  Stranded  migrants  outside  reception  centres  faced  particular 
challenges, as they remain unregistered.  

Kosovo has engaged with the EU on the implementation of the EU Action Plan on Migration 
presented by the Commission in December 2022. Delivery should continue on all the strands 
of the Action Plan.  

Kosovo participates in the regional Anti-Smuggling Operational Partnership with the Western 
Balkans launched in the EU-Western Balkans Justice and Home Affairs Ministerial meeting 
on  3  November  2022  to  support  law  enforcement  and  judicial  cooperation  against  criminal 
smuggling networks, and to increase border management capacities. 

Institutional set-up and legal alignment 

The  institutions  dealing  with  migration  in  the  Ministry  of  Internal  Affairs  and  the  Border 
Police remain effective. The capacity of the Department for Citizenship, Asylum and Migration 
in the Ministry of Internal Affairs should be increased. Currently, the Department employs 34 
staff members, while the organisational chart makes provision  for  a staff of 52. One of the 
deputy  ministers  is  the  National  Anti-Trafficking  Coordinator  and  National  Migration 
Coordinator.  The  authorities  should  reflect  on  creating  a  permanent  position  to  bring  more 
stability to this role. 

In September 2022, the government restructured the Government Authority on Migration. The 
Multistakeholder  Forum  remains  an  important  platform  where  all  relevant  stakeholders 
cooperate on migration-related issues. 

The  legal  framework  is  largely  in  line  with  the EU  acquis.  Steps  should  be  undertaken  to 
further align legislation, including the Law on foreigners, with the EU acquis and international 
standards. It is recommended that Kosovo align legislation with Directive 2008/115/EC (the 
Return Directive), include a humanitarian protection category, and extend the voluntary return 
period.  

Kosovo has readmission agreements with 24 countries, including 20 EU Member States and 
members  of  the  Schengen  area.  During  the  reporting  period,  Kosovo  did  not  sign  any  new 
readmission agreements. There is no readmission agreement with the EU as a whole. During 
2022, the government approved initiatives to conclude new readmission agreements with 14 
countries:  Latvia,  Lithuania, Portugal,  Poland,  Ireland, the  United Kingdom,  Pakistan, Côte 
d’Ivoire, the United States, Jordan, Egypt, Libya, Chad and Australia.  

The  2021-2025  migration  strategy  and  action  plan  reflect  the  priorities  in  the  government 
programme  for  the  same  period.  The  strategy  and  action  plan  take  into  account  obligations 
deriving  from  the  Stabilisation  and  Association  Agreement  as  well  as  European  and  global 
initiatives such as the EU Pact on Migration and Asylum and the Global Compact on Safe, 
Regular  and  Orderly  Migration.  The  strategy  meets  all  requirements,  including  on  defining 
baselines,  clear  budgeting  and  setting  target  values.  Issues  related  to  the  diaspora  are  not 
included in the migration strategy; instead, it will form a part of the future diaspora strategy. 
This is a first step towards developing a comprehensive strategy covering all relevant policy 
areas,  coordination  and  implementation.  The  Department  of  Citizenship,  Asylum  and 

52 

 
 
Migration prepared the first six-month report on the implementation of the migration strategy. 

Implementation and enforcement capacity 

In 2022, the number of registered migrants decreased from 1 487 to 957. There were 469 non-
registered migrants in the period January-December 2022. Most migrants are single men, with 
a limited number of single women, families and children.  

During the first half of 2023, 308 new migrant arrivals were registered in Kosovo: 222 of them 
applied for 15 days of international protection and have been accommodated in the temporary 
reception centre in Vranidoll, while 86 applied for asylum and have been accommodated in the 
asylum centre in Magure. 134 evacuees from Afghanistan are still present in the US facility in 
Kosovo. There are 71 unregistered migrants inside Kosovo residing outside regular reception 
centres. 

The International Organization for Migration (IOM)’s displacement tracking matrix remains 
an important mechanism to monitor movements in and out of Kosovo, and as such helps the 
authorities to develop evidence-based policies and provide migrants with adequate protection 
services. Kosovo has limited capacity to manage labour mobility to and from Kosovo. There 
is a need to establish and ensure access to safe and regular migration pathways, and to work 
with skills mobility partnerships. This would also foster an environment conducive for circular 
migration. 

Migrants  who  enter  Kosovo  can  either  apply  for  asylum  or  make  use  of  15  days  to  decide 
whether to apply for asylum or leave. After 15 days, if they did not apply for asylum and leave, 
or  apply  for  voluntary  return  assistance,  they  may  be  subjected  to  forced  return.  As  no 
alternatives to detention are in place, they may be subject to detention.  

The authorities expanded accommodation capacities, which are currently sufficient. There are 
three reception centres, with a current capacity of up to 600 (Magure, 100 people; Vranidoll, 
200 people; Belvedere Camp, 300 people, which can be expanded up to 2 200). The refurbished 
temporary reception centre in Vranidoll, which can host up to 70 people, opened in June 2022. 
The average stay of a migrant in the Magure asylum centre is 20 days, 6 days at the Vranidoll 
temporary reception centre for migrants, and 90-120 days at the Vranidoll detention centre for 
foreigners. 

While  fundamental  rights  are  generally  upheld,  services  provided  at  the  centres  should 
improve,  including  medical  assistance,  psychological  support  and  interpretation  services. 
Measures should be taken to increase safety for asylum seekers in facilities, in particular to 
prevent  gender-based  violence.  Providing  proper  care  and  security  for  the  most  vulnerable 
groups  of  migrants  remains  a  challenge.  Kosovo  needs  to  further  increase  and  strengthen 
authorities’ capacities to evidence irregular migration and offer protective quality services. In 
2022, the government adopted the guidelines on the prevention, risk management and response 
to gender-based violence in the context of mixed migration. 

In 2022, 20 migrants  were detained in the detention centre for foreigners. Detention should 
only be applied as a last resort, in line with the EU acquis. Establishing sustainable alternatives 
to detention for irregular migrants remains a priority. The IOM, funded by the EU, provided 
essential support to migrants at the detention centre for foreigners. Conditions need to improve 
to  align  with  international  and  human  rights  standards.  In  the  first  5  months  of    2023  9 
foreigners  present  in  Kosovo  were  returned  to  their  place  of  origin  under  the  readmission 
agreements,  one  third  each  by  force,  voluntarily  or  through  IOM  voluntary  channels 
respectively. 

Despite  the  government’s  efforts,  transnational  smuggling  networks  continued  to  facilitate 

53 

 
 
secondary movements of irregular migrants from entry points along the Western Balkan route. 
During the reporting period, the Kosovo Border Police intercepted 869 migrants entering in an 
irregular manner. They also initiated 24 cases of migrant smuggling (compared to 27 in the 
previous  reporting  period)  involving  44  people  (57  in  the  previous  reporting  period).  26 
indictments and 13 guilty verdicts were issued. During the first half of 2023, 4 individuals were 
arrested for involvement in migrant smuggling.  

Gaps  remain  in  enforcement  of  the  laws,  mostly  due  to  a  lack  of  coordination  between 
government  agencies.  The  Border  Police’s  capacity  in  the  area  of  protection-sensitive 
migration  needs  to  be  further  strengthened.  Qualified  interpreters  are  needed  to  service  the 
asylum  and  detention  centres  and  the  Border  Police.  The  lack  of  biometric  equipment  and 
interoperability  of  data  affects  the  efficiency  of  initial  registration  and  further  processing. 
Overall, there is a need for better interinstitutional coordination, including with municipalities. 
Further efforts are needed to put in place a gender-responsive system.  

Kosovo has strengthened its inter- and intra-institutional systems for migration management, 
including  on  migration  statistics.  This  should  allow  comparative  and  regional  analyses  of 
migration trends. The Migration, Asylum, Refugees Regional Initiative (MARRI) established 
a  Permanent  Working  Group  on  Migration  Statistics  to  collect,  process  and  disseminate 
migration data through the regional platform for migration data exchange in the region.  

According to Eurostat, the number of Kosovo citizens  refused entry at the external borders of 
the EU was 1 795 in 2022 (1 650 in 2021), and those found to be illegally present was 3 960 in 
2022    (3  545  in  2021). The  number  of  Kosovo citizens    ordered  to  leave  the  EU  increased  
slightly from 3 740 in 2021 to 3 930 in 2022. 1 380 returned to a third country in 2022.  

The readmission agreements with EU Member States and Schengen associated countries are 
being implemented satisfactorily. The total number of readmitted persons in 2022 was 613, out 
of which 536 were by force (87%), 13 voluntarily (2%) and 64 through IOM voluntary channels 
(10%), marking a decrease compared with 2021. The majority of those readmitted are in the 
age groups 35-64 (266 or 43.4%) and 18-34 (242 or 39.5%). Among those readmitted by force 
in 2022, 470 (87.6%) were male, while 66 (12.3%) were female. According to data from the 
IOM, out of the voluntarily readmitted persons in 2022, 41 (64%) were male and 23 (36%) 
were female. For 2023, by May a total of 209 persons had been readmitted to Kosovo, 174 
(83.25%) by force, 15 (7.18%) voluntarily and 20 (9.57%) voluntarily through IOM channels.  

The return rate of Kosovo citizens ordered to  leave EU territory was 58% in  2018, 41% in 
2019, 29% in 2020 and 39% in 2021. While statistics show a drop in the return rate between 
2018 and 2020, EU Member States have confirmed that the Kosovo authorities continue to 
cooperate well on readmission. The number of Kosovans ordered to leave the EU increased 
from 3 740 in 2021 to 3 930 in 2022, according to Eurostat. 1 380 returned after the order to 
leave in 2022 (35.1%).  

The  number  of  asylum  applications  made  by  Kosovo  citizens  in  both  EU  and  Schengen 
associated countries has fallen steadily, from the peak of 73 210 in 2015 to 1 515 in 2020 and 
1 600  in  2021,  rising  to  2 445  in  2022.  The  overall  number  of  Kosovo  citizens  readmitted 
dropped from 18 789 in 2015 to 625 (512 forced and 113 voluntary) in 2020, and 849 (710 
forced and 139 voluntary) in 2021.  

Overall, there is a need for better interinstitutional coordination, including with municipalities, 
as well as improved systemic monitoring and evaluation A referral mechanism was established 
and functions through the reception centre for repatriated persons. A manual identifying and 
advancing the referral of vulnerable cases and training on needs assessment were provided to 
central and local reintegration officials.  

54 

 
 
In  August  2021,  Kosovo  began  temporarily  hosting  US-linked  and  NATO-related 
evacuees/refugees  from  Afghanistan,  based  on  the  Kosovo  government’s  decision  to  grant 
them temporary protection for one year. They are hosted in two open facilities in Kosovo on 
the understanding they will be further resettled in the United States under a specific visa regime 
or in NATO Member States committing to taking them in. Since January 2023, 158 departures 
have been registered and 134 people are present in Bondsteel Camp.  

Asylum 

Institutional set-up and legal alignment 

In  March  2022,  the  EU  Agency  for  Asylum  (EUAA)  and  Kosovo  adopted  and  started  to 
implement a bilateral roadmap for cooperation (2022-2024). 

Kosovo’s legal and institutional framework on asylum is mostly in line with the EU acquis. 
The Kosovo legal framework provides for access to the territory and respects the principle of 
non-refoulement. Refugees should be included in social protection schemes. Certain sectors of 
the system require further strengthening in line with the Roadmap agreed with the EUAA. 

The establishment of a fully effective and protection-sensitive entry system requires clear legal 
provisions.  These  should  include  identification,  screening  and  referrals  of  people  seeking 
international  protection  and  those  with  specific  needs.  The  new  Law  on  foreigners  is  an 
opportunity  to  provide  clear  definitions;  it  should  also  lay  down  provisions  on  facilitated 
integration. 

Implementation and enforcement capacity 

Kosovo continues to be a transit route for most people arriving in mixed movements. Limited 
capacity in terms of biometric devices and lack of data interoperability affect the efficiency of 
the  registration  and  further  processing  of  asylum  claims.  To  comply  with  its  mandate,  the 
Border Police needs adequate equipment and more expertise. 

The Ministry of Internal Affairs Asylum Division / Department for Citizenship Asylum and 
Migration  consists  of  3  officials  who  handle  asylum  cases.  Authorities  should  consider 
accelerating the process of hiring new staff.  

In  2022,  Kosovo  recorded  550  asylum  applications,  a  trend  similar  to  2021  (578).  By  May 
2023, 73 asylum claims had been registered. During 2022, Kosovo granted protection to 25 
people. By May 2023, protection had been granted to 13 people.  

Most asylum requests are suspended, as applicants disappear without completing the procedure 
(52  out  of  73  as  of  May  2023).  Cases  of  gender-based  violence  remained  institutionally 
unattended due to the lack of appropriate response systems.  The current practice of issuing a 
“Certificate for accommodation at the Temporary Reception Center for Migrants” allowing for 
accommodation rights for 15 days, without granting any legal status during this period is not 
in line with the EU acquis in the field. 

The integration system is at an early stage of development. Kosovo made some progress to 
increase staffing and build capacity through training and new procedural guidance. On child 
protection,  it  remains  crucial  to  strengthen  procedures  concerning  unaccompanied  minors, 
including age determination, legal guardianship and communication.  

The Ministry of Internal Affairs has contracted companies to provide translation services; in 
addition, the United Nations High Commissioner for Refugees provides translation support. 
Under  the  Migration,  Asylum,  Refugees  regional  initiative,  the  Department  of  Citizenship, 
Asylum and Migration benefits from the exchange of translators of rare languages among the 
MARRI  member  states.  Investment  in  further  strengthening  the  quality  of  refugee  status 
55 

 
 
determination is required to ensure that asylum officials are able to carry out quality assessment 
of asylum claims. In August 2022, the Ministry of Internal Affairs concluded a memorandum 
of  understanding  with  the  Free  Legal  Aid  Agency  on  the  provision  of  free  legal  aid  to 
foreigners.  

In August 2022, the temporary reception centre for migrants, which also hosts asylum seekers, 
improved  its  reception  conditions  in  terms  of  accommodation  capacities.  The  right  to  be 
accommodated  at  the  centre  and  access  to  services  are  granted  for  15  days,  which  can  be 
extended at the authorities’ discretion. In addition, asylum seeker registration is still conducted 
outside the centre without proper profiling and referrals. 

The budget for the integration of refugees in Kosovo is planned under the annual budget law 
for the Ministry of Internal Affairs’ Department for Reintegration of Repatriated Persons and 
Integration of Foreigners. In 2023, the budget is EUR 1 381 395.  

In October 2022, Kosovo approved the guidelines for foreigners’ access to vocational training 
and  employment.  The  authorities  continue  to  provide  effective  support  to  those  granted 
international protection by offering rent for accommodation, language courses and integration 
courses for 2 years. This period may be extended on a case-by-case basis.  

Since  August  2021,  Kosovo  began  temporarily  hosting  US-linked  and  NATO-related 
evacuees/refugees  from  Afghanistan,  based  on  the  Kosovo  government’s  decision  to  grant 
them temporary protection for one year. They are hosted in two open facilities in Kosovo on 
the understanding they will be further resettled in the United States under a specific visa regime 
or in NATO Member States committing to taking them in. Since January 2023, 158 departures 
have been registered and 134 evacuees/refugees are still present in Bondsteel Camp. 

The authorities have confirmed their readiness to host up to 5 000 Ukrainian citizens, providing 
temporary residence for humanitarian reasons. Kosovo also hosts 14 Ukrainian journalists with 
temporary  status,  including  accommodation  and  employment  with  the  Association  of 
Journalists. Six Ukrainian nationals were granted subsidiary protection. 

Visa policy 

Kosovo has yet to fully align its legislation with EU visa policy. Kosovo grants visa-free travel 
to travellers of 110 countries with ordinary passports for 90 days within a six-month period, 
including 22 countries that do not have a visa-free regime with the Schengen area. Passport 
holders of 89 countries need to obtain a visa prior to entering, 4 of which enjoy visa-free travel 
to  the  Schengen  area.  The  visa-issuing  authorities  have  the  capacity  to  digitally  collect 
biometric identifiers from visa applicants, although the equipment needs upgrading. All granted 
visas and rejections are registered in the visa information system. 16 Kosovo consulates around 
the world can issue visas.  

Kosovo continues to fulfil the visa liberalisation roadmap benchmarks. On 18 April 2023, the 
European  Parliament  endorsed  the  agreement  with  the  Council  on  a  Commission  proposal  
enabling  Kosovo  passport  holders  to  travel  to  the  EU  without  a  visa.  Based  on  this,  as  of 
1 January 2024, passport holders from Kosovo will be able to travel to the EU without a visa 
for up to 90 days in any 180-day period. During the process, Kosovo authorities demonstrated 
commitment to addressing all questions raised by the EU.  

Kosovo should roll-out an information campaign on rights and obligations linked to the visa 
free travel status to prevent possible misuse.  

Schengen and external borders 

Institutional set-up and legal alignment  

56 

 
 
The National Centre for Border Management is an important tool to effectively manage the 
security  of  Kosovo’s  borders.  The  Centre  hosts  an  operational  and  coordination  room.  The 
latter monitors all activities at the border and common crossing points through closed-circuit 
television, coordinates the real-time exchange of information between the border authorities at 
all  levels,  and  handles  calls  from  the  public.  The  Centre  has  a  Joint  Intelligence,  Risk  and 
Threat Analysis Unit, which collects, analyses and disseminates information from and to the 
border  authorities.  Since  1 June  2022,  the  Centre  is  also  hosting  the  Passenger  Information 
Unit,  which  scans  advance  passenger  information  and  passenger  name  records.  Standard 
operational procedures need to be further developed.  

The legislative framework for managing Kosovo’s borders is mostly in line with the EU acquis 
and international standards. The Law on state border control and surveillance and the Law on 
cooperation  between  authorities  involved  in  integrated  border  management  are  the  main 
regulations  in  this  field.  Kosovo  has  a  2020-2025  integrated  border  management  (IBM) 
strategy  and  2020-2023  action  plan  in  place;  these  were  reviewed  in  February  2023.  The 
relevant executive board reviews implementation on a quarterly basis.  

Implementation and enforcement capacity  

The Kosovo Police Border Department is able to conduct its daily tasks and obligations despite 
the current operational situation, especially in the northern parts of Kosovo, and the constantly 
changing  human  resources  challenges  due  to  the  resignation  of  Kosovo  Serb  officers. 
Operational tasks have been facilitated by internal transfers and other compensatory measures. 
Staffing  numbers  in  all  Border  Police  units  in  the  north  of  Kosovo  do  not  reflect  the 
composition of the local population, in accordance with Brussels Agreement. Responsibilities 
for border security tasks are divided between three regional border directorates (West, East and 
North)  and  the  Pristina  airport  police.  All  regional  directorates  have  quick  reaction  units 
responsible for supporting  border surveillance stations. The Kosovo Border Police does not 
have special units or capacities, even though quick reaction teams are well trained and equipped 
to address challenging situations in the border area. Based on risk analysis, the Border Police 
established four additional bases in the north of Kosovo. 

The  Border  Police’s  performance  and  its  knowledge  of  border  procedures  have  improved. 
Statistics  indicate  increasing  effectiveness  in  several  areas  of  cross-border  crime.  As  an 
example, in 2022 Kosovo arrested 61 people engaged in the trafficking of human beings in 37 
cases and disbanded 4 organised groups. Development of infrastructure, equipment and tactical 
methods,  especially  at  the  green  border  areas,  would  enhance  the  whole  border  security 
system’s capacity and bring it closer to EU standards. The Kosovo Police Information System 
is linked to all border crossing points. The infrastructure at border crossing points has improved 
and the border management system continues to operate satisfactorily. However, some of the 
facilities need renovation. The lack of direct online access to some international databases is a 
hindrance to effective crime prevention work.  

The Ministry of Internal Affairs of Kosovo’s working arrangement with the European Border 
and Coast Guard Agency (Frontex) enables close cooperation on irregular migration, cross-
border crimes, border security and overall border management. Cooperation between Kosovo 
and Frontex is good and improving. Frontex is deploying officers to several border crossing 
points in Kosovo, based on mutually agreed operational plans (e.g. project coordination points). 
The Agency provides other border management-related support, such as guidance to establish 
a national coordination centre, in accordance with the EU acquis. Kosovo participates in the 
Western  Balkan  risk  analysis  network  (WB  RAN)  and  in  several  other  regional  exercises 
organised by Frontex.  

57 

 
 
Cooperation with all neighbours is good, except with Serbia. The Border Police has appointed 
focal points in charge of international cooperation. Joint patrolling agreements with Albania, 
North Macedonia and Montenegro are in force, and joint activities are conducted regularly. 
Based on police cooperation agreements in force, there are joint police cooperation centres with 
Albania  and  North  Macedonia.  Kosovo  participates  in  the  trilateral  (Kosovo,  Albania, 
Montenegro) Joint Police Cooperation Centre based in Plav, Montenegro.  

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

In 2022, two specific corruption-related operations took place, resulting in the investigation of 
70  people  on  suspicions  of  bribery.  According  to  the  Kosovo  Police  Inspectorate,  these 
operations  had  a  preventive  affect.  Such  preventive  actions,  in  cooperation  with  IBM 
authorities, in connection with possible corruption cases, continue to take place.  

Kosovo made progress  on implementing the revised 2020-2025  National  Centre for Border 
Management development plan. However, there is still need for better strategic assessment and 
analyses of border-related risks, and for better cooperation with other border authorities. The 
effectiveness of such cooperation is affected by the lack of connection, for status-related issues, 
to important international networks such as Interpol’s I-24/7.  

Counterfeiting of the euro (criminal law aspects)  

The 2019 Kosovo Criminal Code is broadly in line with the EU acquis on the suppression of 
counterfeit currency. Kosovo has competent authorities and procedures in place to deal with 
counterfeit money. However, the Criminal Code would need to be further aligned with the EU 
Directive on the Protection of the Euro and Other Currencies against Counterfeiting.  

The Forensics Agency within the Ministry of Internal Affairs carries out technical analysis of 
counterfeit money (including euro banknotes and coins), in line with international standards. 
The  Agency  has  concluded  an  agreement  with  the  European  Commission  on  exchange, 
assistance and training for the protection of the euro against counterfeiting (the Pericles 2020 
programme).  

Between  June  and  December  2022,  the  police  initiated  433  cases  for  a  total  value  of 
EUR 54 333,  and  10  people  were  detained.  Between  January  and  March  2023,  the  police 
initiated 275 cases valued at EUR 44 731. Two individuals were detained.  

(See Chapter 32 on financial control).  

58 

 
 
 
 
 
 
2.3. ECONOMIC DEVELOPMENT AND COMPETITIVENESS 

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

2.3.1. The existence of a functioning market economy 

Kosovo  is  between  an  early  stage  and  some  level  of  preparation  and  has  made  some 
progress in developing a functioning market economy.  

Kosovo’s economic rebound moderated significantly in 2022 as investment contracted and 
household  consumption  growth  slowed  owing  to  high  inflation,  which  surged  to  double-
digits in the wake of rising energy, food and transport prices. Russia’s war of aggression 
against Ukraine had mainly indirect effects, through higher import prices and uncertainty. 
Supported  by  high  revenue  growth  and  a  significant  under-execution  of  public  capital 
spending, the headline budget was close to balance in 2022 and the public debt ratio fell. 
However,  the  investor  base  for  government  debt  remains  narrow.  Social  benefits  remain 
poorly targeted. The Assembly passed the new law on the minimum wage, which decoupled 
the level of war veterans’ pensions from the minimum wage. The financial performance of 
publicly  owned  enterprises  represents  a  fiscal  risk.  The  current  account  deficit  rose 
significantly on the back of strong increases in energy import prices.  The financial sector 
remained  well  capitalised  and  stable,  and  bank  lending  continued  to  expand  in  nominal 
terms.  However,  sustained  supervisory  vigilance  is  required  in  the  context  of  slowing 
economic growth, tightening financial conditions and the rapid rise in mortgage lending to 
households.  The  economy  remained  resilient  during  recent  crises,  but  the  private  sector 
continues  to  be  hindered  by  long-standing  structural  challenges  such  as  a  widespread 
informal economy, a high prevalence of corruption and the overall weak rule of law. The 
business  environment  improved  somewhat.  Labour  market  formalisation  continued,  but 

59 

Table 7.1:202020212022Kosovo - Key economic figuresGDP per capita (% of EU-27 in PPS)24252727Real GDP growth 4.6-5.310.73.5Economic activity rate of the population aged 15-64 (%), total40.438.339.338.6      female19.620.822.022.0      male60.956.056.655.5Unemployment rate of the population aged 15-64 (%), total30.325.920.712.6      female30.632.325.016.5      male24.423.519.011.0Employment of the population aged 15-64 (annual growth %)1.4-4.410.45.4Nominal wages (annual growth %)3.6-2.33.97.6Consumer price index (annual growth %)0.90.23.311.6Exchange rate against EUR*1.01.01.01.0Current account balance (% of GDP)-7.1-7.0-8.7-10.5Net foreign direct investment, FDI (% of GDP)3.24.24.06.7General government balance (% of GDP)-2.0-7.6-1.2-0.5General government debt (% of GDP)14.922.421.519.9* The euro is used as a de facto domestic currencySource: Kosovo statistics, World Bank and IMF2014-19 average 
 
 
 
labour  market  participation  and  employment  rates,  especially  among  woman  and  young 
people, remain very low, while unemployment remains high.  

Last  year’s  recommendations  were  partly  addressed  and  remain  mostly  valid.  In  order  to 
improve the functioning of the market economy, Kosovo should in particular:  

→  continue  to  mitigate  the  impact  of  the  energy  crisis  by  well-targeted  and  temporary 
support measures if needed, while complying with the fiscal rule’s deficit ceiling of 2% 
of GDP; 

→  ensure compliance with the legal ceiling on war veteran pensions and with the wage bill 
rule,  and  undertake  a  review  of  tax  expenditure,  quantifying  the  size  of  the  revenue 
forgone from all exemptions, preferential rates and special regimes; 

→  improve  the  quality  of  public  spending  by  reforming  the  social  security  system  and 

addressing weaknesses in public investment management; 

→  implement relevant business environment measures, in particular on the fight against the 
informal economy and the simplification and digitilisation of licences and permits. 

Economic governance 

Kosovo’s economic policies focused on providing policy support to cushion the impact of 
higher energy prices and on re-establishing fiscal buffers. In 2022, the government allocated 
and implemented around EUR 316 million (3.5% of GDP) in temporary support to vulnerable 
households  and  firms,  and  wage  and  pension  bonuses  and  subsidies  to  the  energy  and 
agricultural sectors. The 2023 budget includes an allocation for contingencies of 3.5% of GDP, 
of which 2.7% of GDP is a blanket allocation, which undermines fiscal transparency. There 
was  limited  progress  in  improving  the  planning,  selection  and  management  of  public 
investment, and the public capital budget was significantly under-executed. The government 
took  fiscally  prudent  decisions  by  rejecting  a  proposal  to  withdraw  more  funds  from  the 
Kosovo Pension Savings Trust (KPST). The Assembly passed the new law on the minimum 
wage, which decoupled the level of war veterans’ pensions from the minimum wage. The new 
Law on public-sector salaries, combined with a suitable value of the wage coefficient set by 
the government, ensures that the public wage bill does not exceed its legal ceiling. On 25 May, 
the IMF Executive Board approved a 24-month precautionary Stand-By-Arrangement in the 
amount of EUR 100 million for Kosovo and a EUR 78 million support from the IMF’s newly 
established  Resilience  and  Sustainability  Facility,  to  be  used  for  investments  in  renewable 
energy and energy efficiency.  

The policy guidance jointly agreed at the May 2022 Economic and Financial Dialogue 
between the EU and the Western Balkans and Türkiye has been partially implemented. 
Tax  revenue  grew  strongly  on  the  back  of  high  inflation  and  a  reduction  in  the  informal 
economy, but there was little progress on reviewing tax exemptions. The financial oversight of 
publicly owned enterprises (POEs) has improved but work to set up a fiscal oversight body has 
not  advanced.  For  2023-2025,  Kosovo’s  Economic  Reform  Programme  (ERP)  aims  to 
maintain stable public finances and comply with fiscal rules, while supporting the economic 
recovery mainly through higher capital spending. 

60 

 
 
 
 
 
 
Macroeconomic stability 

Kosovo’s  economic  rebound  moderated 
significantly  in  2022  due  to  the  fallout 
from Russia’s war of aggression against 
Ukraine.  Real  GDP  growth 
eased 
markedly  from  10.7%  in  2021  to  3.5%  in 
2022,  which  is  below  the  pre-pandemic 
(2015-2019) average rate of GDP growth of 
about  5%.  The  key  factors  behind  the 
economic  slowdown  were  a  decline  in 
formation  and  a 
gross  fixed  capital 
consumption 
deceleration 
growth. The slower growth in private consumption was due to high inflation and the resulting 
fall in real disposable income as well as a moderate drop in net inflows of remittances as a 
share of GDP. Still, household consumption remained one of the main drivers of growth on the 
back of government support measures and higher bank lending. Moreover, a strong increase in 
exports of goods and services, together with a sharp slowdown in real imports growth, resulted 
in a positive contribution of net exports to GDP growth. Economic growth accelerated slightly 
to  3.9%  year-on-year  in  the  first  quarter  of  2023,  up  from  3.6%  in  the  previous  3  months. 
Despite  some  gradual  improvement,  the  lack  of  economic  diversification,  high  import 
dependency  and  an  unreliable  energy  supply  render  Kosovo  vulnerable  to  adverse  external 
shocks. Kosovo’s per capita GDP remains the lowest in the Western Balkan region, standing 
at 27% of the EU average in 2022 Income inequality is high due to a large informal sector and 
high inactivity rates, especially among women.  

in  private 

The  negative  terms-of-trade  shock  led  to  a  substantial  deterioration  in  the  current 
account balance. The current account deficit widened significantly to 10.5% of GDP in 2022, 
up from 8.7% in 2021. A key factor was the energy-balance-induced surge in the merchandise 
trade deficit, which outpaced the continued rebound of services exports, resulting in an increase 
in the overall trade deficit to 32.5% of GDP, up from 31.8% a year before. Affected by the 
economic slowdown in the EU, remittances decreased to 13.7% of GDP in 2022, down from 
14.5% in 2021, while the primary income surplus fell to 1% of GDP, down from 1.9% a year 
earlier. Further unofficial services exports and remittances were reflected by large errors and 
omissions in the balance of payments (equivalent to 2.7% of GDP) in 2022. The four-quarter 
moving average current account deficit narrowed to 9.2% of GDP in the first quarter of 2023.  

Net foreign direct investment (FDI) inflows increased strongly to 6.7% of GDP in 2022, 
covering around two thirds of the current account deficit. The key drivers for the 88% year-
on-year increase were continued investment 
by the diaspora in the real estate sector, as 
well  as  higher  inflows  in  mining  and 
quarrying, financial and insurance activities, 
and manufacturing. In 2021, Kosovo issued 
its 
totalling 
EUR 10.4 million,  most  of  them  5-year 
bonds, in an effort to tap additional sources 
of  financing.  Otherwise,  Kosovo  remains 
absent from international debt markets. The 
four-quarter  moving  average  of  net  FDI 
inflows  increased  slightly  to  7%  of  GDP  in  the first  quarter  of  2023,  while  official  reserve 

diaspora 

bonds 

first 

61 

-9-6-3036912201720182019202020212022Graph 7.1: Kosovo -Real GDP growth and contributionsPriv. cons.Gov. cons.GFCFStocksNet exportsReal GDP growthSource: WiiW% y-o-y-12-9-6-30369-40-30-20-100102020182019202020212022Graph 7.2: Kosovo -Current account selected components and FDI Workers' remittances balanceGoods and services trade balanceCurrent account balance (rhs)Net FDI (rhs)% of GDPSource: IMF and Central Bank of Kosovo  
 
assets amounted to 2.3 months of imports of goods and services. 

After peaking in 2022, annual inflation started to gradually decline since the last quarter 
of that year. Annual average consumer price inflation accelerated significantly to 11.6% in 
2022, up from 3.3% in 2021. The main drivers were rising energy, food and transport prices. 
However, in the last months of the year inflation started to moderate, reaching an average of 
10.1% year-on-year in the first quarter of 2023 and decreasing further to 2.4% in July on the 
back of gradually decelerating global commodity prices. Most energy prices are regulated in 
Kosovo.  Following  a  request  by  KEDS,  Kosovo’s  energy  distribution  company,  in  early 
December 2022, the Energy Regulatory Office increased electricity tariffs by 15.4% for all 
consumer  categories  in  late  March  2023.  The  government  continued  subsidising  tariffs  for 
households and businesses consuming up to 800 Kwh. 

Fiscal consolidation continued in 2022 with a further reduction of the headline deficit on 
the  back  of  high  revenue  growth  and  underexecution  of  the  capital  investment 
programme.  The  headline  budget  deficit 
fell to 0.5% of GDP in 2022 (from 1.2% of 
GDP  in  2021),  which  corresponds  to  a 
surplus  of  0.2%  of  GDP  under  the  fiscal 
rule’s definition6. Government deposits fell 
slightly to 3.5% of GDP, down from nearly 
4%  in  2021.  The  fall  in  the  government 
deficit  resulted  primarily  from  a  higher-
in  budgetary 
increase 
than-projected 
revenue,  which  rose  by  nearly  14%  year-
on-year, on the back of high inflation and 
some formalisation gains. Tax revenue increased by 14.3%, with direct and indirect tax income 
growing healthily by 21% and 12% respectively in 2022. Public expenditure grew by 10.5% 
year-on-year. The largest increase took place in the category of transfers and subsidies (26.3% 
year-on-year), mainly driven by energy subsidies. The execution of overall current expenditure 
was roughly in line with the revised budget plan. Wages and allowances recorded an annual 
decrease  of  2.2%,  while  spending  on  goods  and  services  rose  by  9.4%.  Capital  spending 
practically stagnated compared to 2021, and only reached around 60% of the revised budget 
allocation, affected by weak public investment management capacity and higher input prices, 
which have led to a surge in project costs.  

On the back of the improved budget balance and high nominal GDP growth in 2022, the 
public debt-to-GDP ratio declined, but the domestic investor base for government debt 
remains narrow. The public debt ratio fell to a revised 19.9% at the end of 2022 and further 
to 17.3% in June 2023. These figures do not include the liability for the State from COVID-
19-related tax-free withdrawals of 10% of pension savings from the Kosovo Pension Savings 
Trust, which the government promised to reimburse from 20237. Domestic debt, which is held 
by a narrow investor base, increased only by 0.5% in nominal terms in 2022. In March 2023, 
the share of domestic debt held by the KPST rose to 49%, up from 44% in 2021, while the 

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

7  The IMF estimates the liability to the Kosovo Pension Savings Trust at 1.8% of 2020 GDP. 

62 

0510152025-8-6-4-2024201720182019202020212022Graph 7.3: Kosovo -Fiscal developmentsPrimary balance (lhs)Interest (lhs)GG balance (lhs)Public debt (rhs)Source: IMF and MoF% ofGDP 
 
 
Central Bank of Kosovo and commercial banks hold a further 20% and 24% of domestic debt 
respectively. In the absence of a sovereign credit rating and very limited access to international 
bond markets, foreign financing has been provided by international donors. Foreign debt rose 
by 11.2% in 2022. This includes loans from the World Bank (EUR 60.1 million), the European 
Investment Bank (EUR 23.8 million), the European Bank for Reconstruction and Development 
(EUR 14.5 million) and the Council of Europe Bank (EUR 10.8 million). The new Law on 
public  debt  and  state  guarantees,  aligning  the  legal  framework  with  EU  standards  and 
international practices, was adopted at the end of 2022, and the secondary legislation will be 
reviewed and approved by the end of 2023. Under this new law, the definition of public debt 
will  also  include  debt  issued  on  behalf  of  municipalities.  The  law  regulates  municipality 
borrowing (including the power to borrow), reporting requirements and debt limits.  

Progress with public investment management and adressing fiscal risks has been mixed. 
Budgeted public  capital  spending  is  expected to  increase by 3.6% of GDP  compared to  the 
2022  outturn,  despite  weak  planning  and  implementation  capacities  and  recurring  under-
execution of the capital budget in the previous years. Some steps were taken to unlock project 
implementation,  including  through  paid  land  expropriations  and  making  the  Procurement 
Review Body board operational again in the second quarter of 2022. Furthermore, the Law on 
public works support, adopted at the end of 2022, compensates contractors up until mid-2023 
for higher project costs resulting from very high inflation. The implementation of the Law on 
salaries of public officials is expected to increase the wage bill by 11.1% in 2023. This is lower 
than the nominal GDP growth in 2021, meaning that the wage bill rule is being respected. The 
issue of recurring spending overrun on war veteran pensions has not been resolved due to the 
absence of a reclassification of beneficiaries. The 2023 budget again includes a large blanket 
allocation, which undermines fiscal transparency and budget planning unless it is justified as 
part  of  a  concrete  risk  assessment  framework.  The  fiscal  risk  analysis  of  the  main  central 
publicly  owned  enterprises  in  the  medium-term  expenditure  framework  (MTEF),  annual 
budget  and  the  ERP  has  been  expanded  beyond  the  POEs  overseen  by  the  Ministry  of 
Economy.  However,  the  analysis  is  limited  to  high-risk  POEs,  excluding  other  companies. 
Implementation of the Energy Roadmap reached on 21 June 2022 between Kosovo and Serbia 
in the EU-facilitated dialogue to address electricity billing issues in four municipalities in the 
north of Kosovo is yet to move forward. Fiscal risks related to billing and payment of invoices 
remain. In 2022, the financial obligations of KOSTT, the Kosovo transmission operator, for 
the losses caused by the energy consumed (but not paid for) in that part of Kosovo reached 
EUR 63 million. 

After 2 years of substantial fiscal consolidation, the planned strong fiscal impulse in 2023 
is appropriate. In 2022, the government adopted temporary support packages that helped to 
mitigate the impact of the energy crisis, including energy subsidies and transfers to vulnerable 
households  and  firms.  However,  the  measures  could  have  been  better  targeted  and  more 
transparent. Budget revenue relies on a narrow tax base, mainly from indirect taxes, weakened 
by numerous tax exemptions, preferential tax rates and special regimes, while public spending 
is burdened by category-based specific transfers, leaving little space for means-tested benefits 
and  employment  policies.  The  2023  budget  provides  for  a  strong  fiscal  stimulus,  which  is 
largely  appropriate  after  2  years  of  substantial  fiscal  consolidation.  This  would  mainly  be 
implemented through an increase in public spending on wages and investment. However, there 
is a risk of the latter facing constraints due to weak public investment management.  

Functioning of product markets 

Business environment 

The gap between newly registered and terminated firms has widened over the last 5 years. 
63 

 
 
The difference between new (11 049) and terminated firms (1 775) widened to 9 274 in 2022, 
up from 8 066 in 2018, mainly due to a higher number of newly registered companies.  

Some  progress  was  made  in  improving  the  business  environment.  In  July  2022,  the 
government  approved  the  concept  document  for  the  Register  of  Beneficial  Owners.  The 
Commercial Court became fully operational in August 2022, which is expected to increase the 
efficiency of the judicial system in settling commercial disputes, but the court still faces a large 
backlog  of  cases.  In  September  2022,  the  government  adopted  an  improved  programme  to 
reduce  and  prevent  the  administrative  burden  on  citizens  and  businesses.  The  e-Kosova 
platform has increased the number of services available through the platform from 21 in 2021 
to 140 in 2023. In October 2022, the government approved the concept document for business 
organisations and the secondary legislation on the Business Registration Agency. In November 
2022,  an  assessment  of  the  agency’s  database  compatibility  with  the  requirements  of  the 
Business Register Interconnection System (BRIS) was finalised. The Kosovo Investment and 
Enterprise Support Agency (KIESA), whose task is to support foreign and domestic businesses 
including  SMEs,  promote  exports  and  attract  foreign  direct  investment,  lacks  capacity  and 
resources to execute its broad mandate, while its restructuring and reform are long overdue. 
For  this  reason,  in  January  the  government  approved  the  Law  on  sustainable  investments, 
which is awaiting the Assembly’s approval. Its purpose is to regulate the protection, promotion 
and encouragement of sustainable investments. The law also envisages to replace the KIESA 
by a new agency, which would facilitate foreign investment and report directly to the prime 
minister’s office. 

Despite some progress in reducing the informal economy, it still accounts for more than 
30% of GDP. Formalisation efforts by the government, Kosovo’s Agency of Statistics, and 
the  Customs  administration  have  borne  fruit,  contributing  around  35%  of  the  cumulative 
change in tax revenues in 2020-20228. The government subsidies for registered employees to 
mitigate the negative impact of the COVID-19 pandemic on households and firms helped shift 
more employees from the informal to the formal sector. Increased labour demand at the time 
of the economic rebound contributed to an increased number of formal employees. During the 
reporting period, the Secretariat of the Government Working Group for the implementation of 
the  2019-2023  National  Strategy  for  the  Prevention  and  Combating  of  Informal  Economy, 
Money Laundering, Terrorist Financing and Financial Crimes, published a report covering the 
first half of 2022, which showed that only 50% of the planned actions were implemented. A 
second action plan covering the period 2022-2023 was adopted in 2022, while the Secretariat 
has started drafting the new national strategy for 2024-2028. To tackle corruption, a set of new 
anti-corruption laws was adopted in 2022. These aim at strengthening criminal proceedings, 
the anti-corruption agency, and asset declaration. According to Transparency International’s 
corruption perceptions index, Kosovo improved its index score in 2022, ranking 84 out of 180 
countries, 3 positions higher than in 2021. 

State influence on product markets 

The State aid policy framework is at an early stage of development. The current framework 
lacks a coherent approach to State aid or a comprehensive strategy and cost-benefit evaluations 
for aid and subsidies granted. In the reporting period, the State Aid Department developed an 
online  monitoring  system  for  State  aid.  Training  of  the  competent  staff  on  recording  and 
monitoring State aid in the system is in progress. The State Aid Commission has still not been 
appointed by the Assembly and remains without a decision-making quorum. In 2022, in the 
context  of  higher  energy  and  crop  prices  amid  Russia’s  war  of  aggression  against  Ukraine, 

8 IMF Country Report No. 23/55, January 2023. 

64 

 
 
 
about 1% of GDP was allocated for subsidies to firms operating in the agricultural and energy 
sectors.  

Privatisation and restructuring 

Kosovo took further steps to set up a sovereign fund. In June 2022, the government adopted 
a concept document on the sovereign fund, and a public consultation was launched in March 
2023 on the draft law on its establishment. The sovereign fund is expected to take over socially 
owned enterprises9 and assets managed by the Privatisation Agency of Kosovo (PAK), as well 
as some publicly owned enterprises managed by the Ministry of Economy after these improve 
their financial performance. However, setting up the fund will not be sufficient to address the 
long-standing issues of poor financial performance and management, which reflect weaknesses 
in  corporate  governance  and  oversight  of  publicly  owned  enterprises.  In  June  2023,  the 
government  approved  the  draft  law  on  the  sovereign  fund,  which  will  be  discussed  in  the 
Assembly. During the reporting period, the PAK initiated liquidation procedures for 3 socially 
owned enterprises. In total, 582 socially owned enterprises are under liquidation procedures. 
The process of dismissing and appointing new board members of publicly owned enterprises 
continued, with more women being appointed.  

Functioning of the financial market 

Financial stability 

The  financial  sector  showed  resilience  amid  continued  challenges.  The  predominantly 
foreign-owned  banking  sector  accounts  for  68.4%  of  financial  system  assets,  followed  by 
pension funds, micro-financial institutions and insurance  companies, with  24.5%, 4.1% and 
2.7%  respectively.  The  banking  sector’s  profitability  improved  in  nominal  terms,  with  the 
average return-on-equity ratio rising to 20.6% in 2022, up from 17.6% in 2021, and increasing 
further  to  21.1%  in  July.  At  the  end  of  2022,  the  non-performing  loans  ratio  stood  at  a 
historically low 2% and remained unchanged at end-March 2023, partially supported by the 
denominator  effect  of  high  nominal  credit  growth.  The  banking  sector  has  to  be  closely 
monitored  due  to  non-negligible  risks  from  a  weaker  economic  outlook,  higher  commodity 
prices  and  lower-than-projected  remittances.  Furthermore,  as  new  mortgage  lending  to 
households  has  been  growing  relatively  strongly,  it  appears  appropriate  to  strengthen 
surveillance  of  the  housing  market.  The  ratio  of  banks’  regulatory  capital  to  risk-weighted 
assets  stood  at  14%  in  2022  and  increased  to  15.3%  in  July,  comfortably  exceeding  the 
regulatory minimum of 12%. Banks continued to be financed by deposits, predominantly from 
households. The loan-to-deposit ratio increased to 78.3% in 2022, up from 76.5% in 2021, and 
rose further to 81.1% in March. In 2022, the net profit of micro-financial institutions increased 
to EUR 17.2 million, up from 14.1 in 2021. The insurance sector’s net profit fell by 44% on an 
annual basis, reflecting the increase in operating expenses, namely the cost of purchasing goods 
and services, administrative expenses and claims incurred.  

Access to finance 

Lending to the private sector continued to expand in 2022.  Driven by both business and 
household  lending,  bank  loan  growth  accelerated  to  an  average  of  17.4%  in  2022  up  from 
11.2% in the previous year, before slowing to 15% year-on-year in the first quarter of 2023. 
The  average  interest  rate  on  loans  increased  to  6.3%  in  2022,  up  from  5.8%  in  2021,  and 
remained at 6.3% in March, reflecting tighter financing conditions in the euro area. Deposits’ 
average growth eased to 10.8% in 2022, down from 13.8% a year earlier, before picking up to 
16.3% year-on-year in the first quarter of 2023. New loans issued to businesses with a focus 

9 The ownership of socially owned enterprises was considered as shared social property in the former Yugoslavia. 
65 

 
 
 
on investment grew by 9.6% in 2022. Despite some new initiatives undertaken by the Kosovo 
Credit Guarantee Fund, the lack of easily accessible and affordable credit continues to  be a 
barrier to SME growth. This is partly due to the existing disparity between the market value of 
collaterals  and their legally assigned value taken into account by banks. The capital market 
remains  at  an  early  stage  of  development.  Microfinance  has  gained  momentum  in  recent 
years10, but shortcomings in the legal framework regulating micro-financial institutions hinder 
the industry’s long-term growth and sustainability.  

Functioning of the labour market 

Despite some progress, the labour market continues to suffer from very low participation, 
high  unemployment  and  large  gender 
gaps. Labour Force Survey results continue 
to be published with large delays. The latest 
available  data  refer  to  the  last  quarter  of 
2022. In line with the continued rebound of 
economic  activity,  the  employment  rate 
increased to 34%, up from 31.7% in the last 
quarter 
the 
unemployment  rate  declined  markedly 
from 19% to 11.8%, while the labour force 
participation rate decreased from 39.2% to 
38.5% in the same period. The wide gap between male and female employment rates (50.8% 
and 17.1% respectively) persisted.  In the  last  3  months  of 2022, the share of young people 
(aged 15-24) not in employment, education or training decreased somewhat to 33.7%, down 
from 34.8% in the same period a year before. To improve the situation, the government adopted 
a multiannual youth guarantee implementation plan, and there are ongoing reforms to public 
employment services. Tax administration data suggest that official employment in the private 
and public sector increased by 4.9% in 2022. In December 2022, the number of registered job 
seekers decreased by 1.5% compared to the same period a year before.  

2021.  Meanwhile, 

of 

Despite  some  recent  formalisation  gains,  an  overall  poorly  targeted  system  of  social 
assistance  creates  disincentives  to  joining  formal  employment.  In  2022,  spending  on 
transfers and subsidies reached nearly 12% of GDP, of which expenditure on poverty-targeting 
social assistance was less than 0.5%. Category-based social transfers, such as the war veteran 
pension scheme, undermine the soundness and fairness of the social benefit system. The lack 
of social and other benefits in formal employment  – given the lack of structures to provide 
them  –  discourages  many  informal  employers  and  employees  from  formalising  working 
arrangements.  According  to  estimates,  40%  of  the  workforce  is  not  declared  or  is  under-
declared.  Relatively  high  public-sector  wages  and  remittances  increase  reservation  wages, 
restricting  labour  supply,  while  the  lack  of  jobs  fuels  the  emigration  of  young  people. 
Increasing  private-sector  productivity  would  improve  export  competitiveness,  increase  job 
opportunities  and  allow  for  higher  wages.  The  lack  of  childcare  and  elderly  care  facilities 
hinders female employment.  

10 Despite the expansion of the microfinance sector, the interest rate on loans was around 18%, which is nearly three higher 
than the rate on bank loans.  

66 

1020304050201720182019202020212022Graph 7.4: Kosovo -Labour market trends(15-64 age group)Participation rateUnemployment rateEmployment rateSource: Kosovo Agency of Statistics 
 
 
 
 
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 its capacity to cope with 
competitive pressure and market forces in the EU. The education system does not sufficiently 
teach the necessary key skills and is not adequately aligned with labour market needs. Limited 
progress  was  made in  improving transport infrastructure. The energy sector  remains  a major 
bottleneck for Kosovo’s economic development, and the ongoing energy crisis underlined the 
urgency of ensuring a reliable and clean energy supply and diversifying energy sources. Kosovo 
made some progress on digitalising the economy. Structural changes are advancing slowly, as 
the  economy  remains  highly  reliant  on  small  and  micro  firms,  which  cannot  compete 
internationally. At the same time, the export structure has somewhat diversified, although it is 
still  dominated  by  base  metals.  Trade  openness  increased  as  both  exports  and  imports  grew 
robustly. The recommendations from 2022 were not fully implemented and remain mostly valid. 

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

→  improve  the  quality  of  education  at  all  levels,  and  align  education,  particularly  higher 
education programmes and vocational education and training, with labour market needs by 
closely cooperating with the business community; 

→  strengthen energy security and increase energy efficiency incentives in the residential and 
private sectors and increase the share of renewables in power generation in a cost-efficient 
way;  

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

competitiveness and export capacity.  

Education and innovation 

Little progress has been achieved on reforming the education system and aligning it with 
labour market needs. Public spending on education amounted to 4.1% of GDP in 2021 (down 
from 4.6% in 2020 and 4.3% in 2019), which is broadly in line with the EU average. However, 
in  terms  of  outcomes,  Kosovo  performs  worse.  The  enrolment  rate  of  children  in  early 
childhood education stands at 6.7%, the lowest in the region, while for primary and secondary 
education the combined enrolment rate of 88.1% is very similar to those of regional peers. To 
address an insufficient participation in early childhood education, the government has approved 
the  draft  Law  on  early  childhood  education,  which  is  with  the  Assembly  for  adoption.  The 
absence of quality learning materials (including a lack of digital resources) in schools and the 
lack  of  teachers’  initial  training  and  continuous  professional  development  have  a  negative 
impact  on  the  quality  of  education.  Learning  materials  were  adapted  in  the  light  of  the 
Programme for International Student Assessment (PISA) 202211 test, after Kosovo registered 
its lowest-ever ranking in 2018. Kosovo students’ scores were lower than the OECD average 
in reading by the equivalent of 5 years of schooling, and in mathematics by a little over 4 years. 
The education system is not geared to developing the necessary key skills and is not adequately 
aligned with labour market needs. The 2022-2026 education strategy, adopted in October 2022, 
aims to raise the quality of pre-university education and, in particular, to harmonise education 
and professional training. It also fully recognises the need to develop a real-time information 
system  and  forecasting  on  labour  market  needs,  as  well  as  a  standardised  methodology  for 
labour market research. This commitment has yet to be translated into action. In September 
2022, the Kosovo Accreditation Agency (KAA) was granted the status of affiliated member of 
the European Association for Quality Assurance in Higher Education (ENQA). The agency is 

11 PISA 2022 test results will be published in December 2023. 

67 

 
 
 
currently in the process of applying for membership in the ENQA and the European Quality 
Assurance Register. Kosovo adopted the Law on KAA, which aims to increase the agency’s 
operational independence and transparency of management appointments.  

Kosovo’s  performance  lags  behind  in  research  and  innovation.  This  is  true  for  policy 
governance, the public research system, public-private linkages, innovation in firms and human 
resources for innovation; overall Kosovo has one of the lowest scores in the Western Balkan 
region12. Budget allocation for research and development, at 0.1% of GDP, is far below the 
0.7% of GDP required by law (compared to an average of 2.2% in the EU), in particular for 
business innovation. There is chronic fragmentation in implementing innovation policy and no 
overall coordination among line ministries and the SME support agency, KIESA. In 2022, the 
Kosovo  National  Science  Council  managed  successfully  to  develop  the  National  Science 
Programme as the main strategic document on science and research. Kosovo has successfully 
completed negotiation with the EU to become a fully associated member of the Horizon Europe 
programme, although there is a need to improve performance in accessing grants. 

Physical capital and quality of infrastructure 

Foreign  direct  investment  (FDI)  has  not  led  to  an  increase  in  domestic  productivity. 
Kosovo has primarily attracted investment in areas with limited scope for productivity spill-
overs, such as construction and real estate, which represent 80% of FDI13. In 2022, 67% and 
7%  of  all  FDI  inflows  were  directed  to  real  estate  and  financial  and  insurance  activities 
respectively.  Additionally,  FDI  is  limited  to  a  handful  of  countries,  namely  states  where  a 
sizeable, well-established Kosovo diaspora exists. Export-oriented FDI has been very scarce, 
and overall figures are relatively low, passing the EUR 300 million figure only once in the past 
7 years. 

Kosovo made limited progress in improving road and railway infrastructure, delaying 
the  implementation  of  major  projects.  The  government  submitted  a  loan  request  to  the 
EBRD and EIB for Route 7 Peace Highway. The rehabilitation works for Railway Route 10 
continued at a slow pace, with the first segment expected to be completed in the first quarter 
of  2024.  The  works  on  the  second  segment  started  at  the  end  of  2022,  while  the  related 
signalling  and  telecom  works  have  yet  to  start.  The  transport  system  still  faces  several 
challenges in  terms  of safety,  inadequate maintenance,  and weak  administrative capacity of 
regulatory institutions. 

An  unreliable  and  undiversified  energy  supply  and  an  extremely  fragile  energy  sector 
remain major bottlenecks for Kosovo’s economic development. The reliability of energy 
supply is still below the average for Europe and Central Asia. Despite some improvements, 
Kosovo ranks 90th in the world for ease of getting electricity14. The lack of energy security 
gives  rise  to  significant  costs  for  business  and  represents  one  of  the  biggest  obstacles  to 
attracting high-quality foreign direct investment. Energy demand and consumption continue to 
grow  quickly,  and  have  doubled  since  2000.  Kosovo  also  suffers  from  high  technical  and 
commercial losses in the distribution and transmission grids due to poor infrastructure (around 
20%).  

Kosovo’s  electricity  generation  relies  heavily  on  coal-fired  plants.  More  than  90%  of 
electricity is produced by two outdated, unreliable and highly polluting lignite power plants, 
which the government plans to refurbish. Renewable energy sources account for just over 5% 

12 OECD (2021), Competitiveness in Southeast Europe – a policy outlook 2021. 
13 IMF (2023), Republic of Kosovo, Selected Issues Paper. 
14 World Bank (2020b), Doing Business 2020: Comparing Business Regulation in 190 economies. 

68 

 
 
 
of electricity supply. The roll-out of renewables is expected to accelerate through the newly 
adopted  2022-2031  national  energy  strategy  and  the  law  on  renewable  energies  due  to  be 
adopted by the Assembly in Q3-2023. The draft law provides for a competitive bidding process 
to support renewable energy projects, replacing the previous system of feed-in tariffs. In May 
2023, Kosovo launched a pilot auction for 100 MW of solar power. There has been an increase 
in renewable energy investments, and several projects to develop significant wind and solar 
energy sources are already planned. (See also Chapter 15 – Energy). 

The digital transformation of the economy is gradually advancing, but the digitalisation 
of public services is still at an early stage. 100% of households nationwide now have access 
to fixed broadband electronic communications infrastructure. Fixed access internet penetration 
is estimated to be 125% of households, compared to 89% in the EU,  and mobile telephony 
penetration  is  around  95%  of  the  population.  Kosovo  has  a  small  but  rapidly  growing  ICT 
sector,  particularly  in  the  export  of  software  development,  smart  phone  application 
development and web design. More needs to be done to train skilled workers in this sector, 
where demand for employees outstrips supply. Since 1 July 2021, Kosovo has constructively 
engaged in high-level regional dialogue on digital transformation and the implementation of 
the Regional Roaming Agreement. Despite some improvements in implementing e-commerce 
programmes,  there  seems  to  be  little  progress  in  increasing  the  adoption  of  e-commerce 
practices among SMEs. The Digital Agenda strategy covering the period up to 2030 has been 
submitted for public consultation. The policy document is expected to provide a comprehensive 
framework for digital transformation, including 5G technologies and the digital transformation 
of businesses and public services.  

Sectoral and enterprise structure 

The services sector continues to dominate the economy in terms of GDP and employment. 
The  sectoral  structure  of  gross  value  added  (GVA)  shows  a  steady  increase  in  the  share  of 
wholesale  and  retail  trade  to  nearly  14%  in  2022,  up  from  12.5%  in  2018.  This  has  been 
followed by slight  growth  in  the share held  by agriculture (7.4% in  2022, up from 6.5% in 
2018).  At  the  same  time,  the  share  of  real  estate  activities  in  GVA  fell  by  1.2  pps to  5.9% 
compared  to  2018,  followed  by  shrinking  contributions  from  public  administration  and 
education.  Despite  its  slight  decline  compared  to  2018,  the  services  sector  continued  to 
dominate  economic  activity  in  2022,  providing  around  45%  of  GVA.  The  contribution  of 
construction remained virtually unchanged at around 8% compared to 5 years before, while 
employment in the sector fell to 11% in 2022, down from 11.9% in 2018. For the same period, 
the proportion of employees in the services sector increased slightly from 70% to 73%. 

Kosovo’s private sector is dominated by very small firms with difficult access to finance. 
Although  SMEs  represent  over  99%  of  registered  enterprises,  almost  all  of  them  are  micro 
firms employing 1-9 employees, while the proportion of larger companies (10-249 employees) 
is less than 1%. SMEs and family-run businesses account for 80.4% (2020) of employment in 
non-financial businesses (significantly above the EU average of 65.2%) and generate 81% of 
the country’s total value added. Access to finance remains an obstacle to growth due to banks’ 
stringent loan requirements, affecting mostly smaller enterprises. Within almost  7 years, the 
Kosovo  Credit  Guarantee  Fund  (KCGF)  portfolio  has  reached  the  cumulative  value  of 
approved loans of around EUR 550 million, while the value guaranteed by the Fund has reached 
EUR 290 million, distributed in almost 13,000 loans.  

69 

 
 
 
 
 
Economic integration with the EU and price competitiveness 

Over the last 5 years the EU remained Kosovo’s largest trading partner, while the share 
of CEFTA countries declined. In 2022, the EU accounted for 42.4% of Kosovo’s total imports 
of goods, marginally lower than in 2018, while the CEFTA partners’ share fell by around 8 pps 
to 17.7%. On the other hand, the proportion of goods imported from Türkiye increased to nearly 
15%, up 5 pps on 2018. The EU’s share in Kosovo’s merchandise exports increased to 33.9% 
in 2022, up from 27.5% in 2018, while the proportion of CEFTA countries decreased to 36.2% 
from 47.2%. Among CEFTA partners, North Macedonia and Albania are the main destinations 
for Kosovo’s exports of goods. The share of base metals15 in goods exports fell to 23.1% in 
2022,  down  from  34.1%  in  2018,  but  they  still  account  for  the  largest  part  of  merchandise 
exports. The proportion of various manufactured articles increased significantly to around 20% 
in 2022, up from 4% in 2018.  

Trade openness improved significantly in 2022, in line with the robust performance of 
trade  in  goods  and  services.  Overall,  trade  openness  (i.e.  the  total  value  of  exports  and 
imports) increased to 109.2% of GDP in 2022, up from 98.6% in 2021 and 86.3% in 2018. The 
improvement took place for both merchandise and services trade. The increase in goods exports 
(21.8%) in 2022 was mainly driven by mineral products as well as plastic, rubber and their 
manufactured  articles.  Services  exports  continued  to  grow  robustly,  by  31.3%  in  nominal 
terms, mainly driven by diaspora tourism from Western Europe. In addition to travel services, 
which currently account for the largest share of service exports (74.4%), there were positive 
developments  in  exports  of  telecommunications  and  computer  and  information  services. 
Imports of goods rose quickly (20.4%) mainly due to higher energy imports. 

The EU Member States remain the main investors in Kosovo. Net FDI inflows surged by 
88% in 2022, mainly on the back of significant diaspora investment in real estate, followed by 
financial and insurance activities. Heavy concentration in these sectors (around 75% of FDI 
inflows) contributes little to improving export capacity. The EU’s share in Kosovo’s net FDI 
stock reached 40.5% in 2022, up from 32.1% in 2018. The shares of Germany and Switzerland 
(two countries with large diasporas from Kosovo), increased to 17.5% and 16.4% respectively 
in 2022, up from 11.8% and 11.4% in 2018. 

2.4. PUBLIC PROCUREMENT, STATISTICS, FINANCIAL CONTROL 

Chapter 5: Public procurement 

15 This is partly because Ferronikeli (Kosovo’s largest exporter) halted production in the last quarter of 2021 on 
the back of higher energy prices. 

70 

02040608020152016201720182019202020212022Graph 7.5a: Kosovo -Exports of goodsEUCEFTAOtherSource: WiiW% ofGDP02040608020152016201720182019202020212022Graph 7.5b: Kosovo -Imports of goodsEUCEFTAOtherSource: WiiW% ofGDP 
 
 
 
 
EU rules ensure that the public procurement of goods, services and works in any Member State 
is  transparent  and open  to  all EU companies on  the basis of  non-discrimination and equal 
treatment. 

Kosovo  is  in  between  some  and  moderate  level  of  preparation  in  the  area  of  public 
procurement. It made limited progress in this area. Public procurement remains prone to 
irregularities and vulnerable to corruption during both the procurement process itself and in 
the subsequent implementation of the contract.  No progress was made in adopting a new 
public  procurement  law.  Since  last  year’s  recommendations  were  not  implemented,  they 
remain valid. 

In the coming year Kosovo should in particular: 

→  adopt a new law on public procurement and a new law on concessions in line with the 
EU acquis; prepare the corresponding implementing legislation and ensure their proper 
implementation;  

→  increase the capacity of – and cooperation between – all public-procurement institutions 

and contracting authorities; 

→  ensure that the Procurement Review Body is fully operational and remains functionally 
independent;  it  should  also  strengthen  the  Body’s  capacity  and  ensure  that  its  review 
process is timely, effective and transparent. 

Institutional set-up and legal alignment 

The legal framework on public procurement is partially aligned with the EU’s 2014 public-
procurement  acquis.  A  new  public  procurement  law  is  still  awaiting  adoption  by  the 
government for over two years. The authorities have not yet started to draft the implementing 
legislation. A new law on public private partnerships is also awaiting governmental approval.  

Strategic priorities in the area of public procurement, including activities in this area, are now 
part of the new 2022-2026 public finance management strategy and its 2022-2024 action plan, 
both of which were approved at the end of December 2022. 

The Central Procurement Agency, under the Ministry of Finance, Labour and Transfers, carries 
out  centralised  purchases  on  behalf  of  the  central  government.  The  Public  Procurement 
Regulatory  Commission  is  responsible  for  the  overall  coordination  and  supervision  of  the 
public  procurement  system.  The  Procurement  Review  Body  examines  all  allegations  of 
breaches of public procurement law and reviews bidders’ complaints. The Body’s functional 
independence  should  be  reflected  in  the  new  law.  It  is  also  important  to  ensure  better 
cooperation among these and other institutions, such as the Kosovo National Audit Office and 
the  Kosovo  Competition  Authority.  Cooperation  in  this  area  would  help  to  detect  any  bid-
rigging and reduce risks through careful planning and design of the tenders. 

Implementation and enforcement capacity  

Kosovo’s public-procurement market was estimated as being worth 6.5% of GDP in 2022, 
compared with 5.6% of GDP in 2021. By June 2023, the country’s e-procurement system had 
registered approximately 14 400 businesses and around 16 300 active users. In 2022, 10 290 
public contracts were signed, compared with 9 892 in 2021. In terms of value, contracts worth 
EUR 559  million  were  signed  in  2022,  compared  with  contracts  worth  close  to  EUR 430 
million in 2021. A significant amount of public procurement activities (21.80%) were carried 
out via negotiated procedure without formal procurement and bidding process. The value of 

71 

 
 
contracts  signed under negotiated procedure without  being  published represents  EUR 78.56 
million or 14.05%.  

On the monitoring of  contract awards and implementation, in  2022, 78.2% of  contracts 
were awarded through open procedure and 94.34% of public contracts were awarded according 
to a lowest-price criterion, with only 5.66% (or EUR 31.6 million worth) using the best-price-
quality ratio. The use of best-price-quality ratios should be further encouraged in line with the 
EU directives on public procurement. Interoperability has still not been ensured between the e-
procurement system and other relevant government IT systems to increase transparency (such 
as with the Kosovo Financial Management and Information System) to track payments.  

The  capacity  of  the  contracting  authorities  to  manage  public-procurement  processes 
varies. Improvements are needed in market research, in the tender evaluation process as well 
as in the implementation and the monitoring of contracts. Further improvements are needed in 
the drafting of technical specifications to better support the quality, efficiency and transparency 
of procurement. There is a risk of mismanagement and corruption due to limited enforcement, 
insufficient  managerial  accountability,  insufficient  quality  control  and  limited  contract 
management capacity. The Public Procurement Regulatory Commission organised trainings to 
improve the capacities of contracting authorities to use the best-price quality ratio as award 
criterion. Furthermore, it held seminars on the use of the modules on contract management and 
on the performance evaluation of contractors. The e-procurement system needs to be updated 
to ensure full functionality. 

Centralised procurement is mandatory for agencies with fewer than 50 employees and for 14 
listed  categories  of  goods  and  services.  The  Central  Procurement  Agency  continues  to  be 
understaffed.  Kosovo  should  improve  its  planning  of  procurement,  and  reduce  the  use  of 
negotiated procurement procedures. To mitigate the risks of misuse and fraud, it is important 
to ensure full transparency, ensure robust reasoning to explain the award decision and maintain 
audit trails. 

The  Procurement  Review  Body  would  benefit  from  more  qualified  staff,  particularly  with 
respect to review and legal experts, to ensure timely and quality decisions on complaints. 

There  were  no  developments  in  the  area  of  integrity  and  the  fight  against  conflicts  of 
interest.  Kosovo  has  a  code  of  ethics  for  public  procurement,  but  it  does  not  monitor 
compliance with this code. Specialised professional and ethics training should be delivered to 
all contracting authorities. Further efforts are underway to both the procurement systems and 
audit oversight of local governments. More and more municipalities are now publishing their 
procurement contracts. 

Efficient remedy system 

Kosovo’s  legislation  on  the  right  to  legal  remedy  is  broadly  in  line  with  the  EU  acquis. 
Appeals  to  contest  procurement  awards  can  be  lodged  through  the  e-procurement  platform. 
Following the resignation of one board member, the Procurement Review Body board is once 
again  incomplete,  although  it  continues  to  operate.  Kosovo  needs  to  ensure  that  the 
Procurement Review Body becomes fully operational and remains functionally independent. 
The  Body’s  capacity  needs  to  be  strengthened  and  its  review  process  managed  in  a  timely, 
effective and transparent manner. A total of 820 appeals were lodged and the board handled 
732 cases in 2022 and 88 cases in 2023.  

72 

 
 
 
 
Chapter 18: Statistics 

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

implementation  of 

Kosovo has some level of preparation in the area of statistics. Some progress was made in 
the reporting period, notably in improving:  the data-collection methodology;  data transmission 
recommendations. 
to  Eurostat;  and 
Communication between the different statistical institutions has improved, but coordination at 
the technical level and the use of available administrative data are insufficient. Kosovo has also 
improved the frequency of its statistical outputs. Some statistics on energy, social statistics and 
short-term statistics in the services sector are now being sent to Eurostat on a monthly basis, 
whereas they used to be sent on a quarterly basis. The delayed population and housing census 
is now planned to take place between 1 November and 31 December. 

the  Eurostat  peer-review 

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

→  finalise  preparations  for  the  population  and  housing  census  and  its  implementation  by 

ensuring operational details and full coverage of the territory; 

→  increase  the  number  of  statistical  products  and  send  these  products  more  frequently  to 

Eurostat;  

→  fill existing vacancies and increase the capacities of the Kosovo Agency of Statistics. 

On  statistical  infrastructure,  the  legal  framework  is  broadly  in  line  with  the  European 
Statistics  Code  of  Practice.  However,  the  implementation  of  this  framework  needs  to  be 
strengthened. To that end, Kosovo should: (i) preserve a leading role for the Kosovo Agency 
of  Statistics  (KAS);  (ii)  improve  statistical  governance  and  coordination  between  the  main 
statistical institutions; (iii) and ensure better access to administrative data sources. The KAS 
should continue to implement Eurostat’s peer-review recommendations, particularly in relation 
to  increasing  the  Agency’s  cost-effectiveness,  strengthening  quality  management,  and 
strengthening relations with data users. KAS should also fill vacant positions. The efficiency 
of  internal  systems,  processes  and  delegated  management  remains  a  challenge.  Data 
transmission  to  Eurostat  continues  to  improve.  Despite  improvements  to  its  web-based 
dissemination of statistics, the Agency should seek to strengthen its relations with data users 
and  academia.  Kosovo  continues  to  use  the  European  classification  of  economic  activities 
(NACE  Rev.2).  The  existing  registers  (agriculture,  business  and  households)  are  updated 
regularly, but the population register needs to be improved. KAS has improved access for the 
public to some existing administrative data, such as data from the Civil Registry Agency, and 
the  Food  and  Veterinary  Agency.  In  March  2023,  the  Agency  signed  a  memorandum  of 
understanding  with  the  Czech  Statistical  Office  setting  a  framework  for  cooperation  and 
procedures for the exchange of information and expertise in the field of official statistics. The 
Agency does not systematically compile gender-disaggregated data. Kosovo still does not yet 
have a Gender Equality Index.  

On  macroeconomic  statistics,  Kosovo  has  made  some  slight  improvements,  and  further 
alignment  with  the  European  System  of  Accounts  (ESA)  2010  is  ongoing.  Although  the 
Agency compiles annual and quarterly national  accounts, methodological  inconsistencies in 
these accounts need to be addressed. The reporting period has seen some improvements: (i) the 
experimental compilation of GDP by income approach (for 2011-2019); (ii) the compilation of 

73 

 
 
Non-Financial Sector Accounts (2015-2021) to be transmitted to Eurostat in September 2023; 
and (iii) Supply and Use Tables (2013-2016) expected to be sent to Eurostat in October 2023.  

Quarterly sector accounts and regional accounts are not  regularly  compiled. The number of 
ESA  2010  transmission  tables  sent  to  Eurostat  has  increased  and  improved.  As  regards 
government  finance  statistics  (GFS)  and  excessive  deficit  procedure  (EDP)  ,  further 
methodological work is expected to fully adhere to ESA 2010. Kosovo should continue efforts 
to improve the coverage and timeliness of the EDP tables as well as to start completing the 
questionnaire relating to the EDP tables.  After the tables for quarterly financial account for 
general government and quarterly debt for general government were transmitted to Eurostat for 
the  first  time  in  2023,  Kosovo  now  provides  the  currently  full  set  of  required  GFS  tables. 
However, efforts are still needed to improve various qualitative aspects of the tables. 

Monthly  statistics  for  international  trade  in  goods  are  submitted  to  Eurostat.  Balance  of 
payments data are compiled by the Central Bank and are broadly in line with the EU acquis; 
annual and quarterly data on the balance of payments are submitted to Eurostat. KAS publishes 
quarterly government finance statistics. The Harmonised Index of Consumer Prices is regularly 
published on the KAS  webpage and transmitted to  Eurostat.  There has  been no progress  in 
broadening the work by adding data on Purchasing Power Parities (PPP).  

Structural business statistics and some short-term statistics are partially in line with the EU 
acquis.  However,  the  availability  of  both  these  types  of  statistics  is  limited  and  they  lack 
distinction between public and private investments or by sectors. Only one set of short-term 
statistics  (on  building  permits)  has  been  sent  to  Eurostat.  Industry  statistics  are  produced 
broadly  in  line  with  the  relevant  EU  regulation.  Short-term  service-sector  statistics  are 
produced  quarterly.  Construction-sector  statistics  are  largely  not  available;  only  the 
construction cost index is produced on a quarterly basis. Industry statistics on manufactured 
goods  (PRODCOM  survey)  for  the  year  2021  were  published  in  December  2022.  Foreign 
affiliates statistics are not available. Tourism statistics and transport statistics are not aligned 
with  the  EU  acquis,  while  statistics  on  development  and  innovation  are  not  produced  on  a 
regular  basis.  The  statistics  on  information  and  communication  technologies  (ICT)  for 
households  started  in  2018,  and  are  now  published  regularly  (the  results  for  2022  were 
published  in  October  2022).  The  2021  ICT  statistics  for  enterprises  were  published  in 
November 2022. 

In  the  area  of  social  statistics,  only  demographic  statistics  are  broadly  in  line  with  the  EU 
acquis. The preparations for the forthcoming population census are ongoing: in July 2022, the 
Assembly  adopted  the  Law  on  population  and  the  housing  census.  In  August  2023,  the 
government decided that the census will take place from 1 November to 31 December 2023, 
and allocated EUR 10 million for this.. Statistics on income and living conditions (regular EU-
SILC survey) are produced annually. The last set of SILC statistics for Kosovo was for the year 
2020 and was published in December 2022. Social-protection and labour-market statistics are 
only partially produced. Kosovo carries out an annual and quarterly labour-force survey and 
the timeliness of publication of the results of this survey has improved. Kosovo still does not 
produced statistics on the labour cost index, the structure of earnings data, and job vacancies. 
Education statistics for 2022/2023 are aligned with the international education classification 
standards (ISCED 2011) Public health and crime statistics are not yet in line with EU standards.  

For  agricultural  statistics,  KAS  publishes  data  on  annual  agricultural  crops,  livestock 
production, and orchards statistics. The agricultural holding survey is regularly produced and 
aligned  with  acquis  standards.  The  next  farm-structure  survey  is  not  planned  until  2025. 
Agricultural  price  indices  and  economic  accounts  for  agriculture  are  produced  on  a  regular 
basis. Supply balance sheets and the agriculture labour index are not yet produced on regular 
74 

 
 
basis. Agriculture statistics are sent  to  Eurostat through the EU  IT system  for statistics, the 
Electronic Data Files Administration and Management Information System (EDAMIS). 

Energy and environment statistics are partially in line with the acquis. During the reporting 
period,  KAS  reduced  the  timeframe  for  publishing  energy  balance  results  (publishing  on  a 
monthly rather than quarterly basis since mid-2022). Thus, it increased the number of statistical 
products sent to Eurostat. In April 2023, the share of renewable energy sources in the overall 
electricity consumption stood at 17.32%. Energy-consumption statistics are collected for the 
residential, services and transport sectors, but the results are not published regularly. The lack 
of energy-efficiency indicators is an obstacle to reporting on energy savings. Waste and water 
statistics  are  produced  regularly.  Statistics  on  greenhouse-gas  emissions  are  not  published 
regularly. Other environmental statistics, such as air-emissions accounts, environmental taxes, 
environmental-protection expenditure. and material flow balances, are not yet produced. 

Chapter 32: Financial control 

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

There is some level of preparation in this area. Kosovo made limited progress during the 
reporting  period  by  adopting  the  new  2022-2026  PFM  strategy  and  its  action  plan.  The 
implementation  of  both  needs  to  speed  up.  Kosovo  needs  to  further  harmonise  its  public 
legislation  with  EU  best  practices.  Additionally, 
internal  financial  control  (PIFC) 
implementation  of  managerial  accountability,  including  delegation  of  decision-making 
responsibilities; (ii) addressing effective internal control measures; and (iii)systematic follow-
up of internal  and external audit recommendations remain key priorities. The parliamentary 
oversight of management of public funds is not efficient. Because the recommendations from 
the previous year were not fully implemented, Kosovo should in the coming year:  

→  implement efficiently the new 2022-2026 PFM strategy, and its actions relevant to PIFC 

and external audit; 

→  develop and adopt the new Law on public financial management and accountability based 

on best EU practices and harmonise this new Law with PIFC law;  

→  improve the managerial accountability of budget users at both central and local level; 

→  improve cooperation between the Kosovo National Audit Office (KNAO) and Parliament 
by: (i) improving parliamentary scrutiny of budget implementation; and (ii) continuously 
and efficiently implementing and following-up on the KNAO audit recommendations.   

Public internal financial control 

Kosovo has made some progress in improving its strategic framework for PIFC, as it adopted 
the new 2022-2026 PFM strategy and its action plan. Kosovo needs to make further efforts to 
ensure  inter-institutional  coordination  and  to  improve  its  framework  for  monitoring  and 
reporting. Making improvements to this framework will lead to a more consistent and coherent 
approach in implementing the internal control standards. The work on the development of the 
new law on PFM and accountability has started.  This new law should be harmonised with the 
PIFC legislation.  

The efficient implementation of managerial accountability remains a challenge for budget 
users  at  both  central  and  local  level.  Kosovo  needs  to  ensure  the  consistent  application  of 
international internal audit standards and better delegate management powers in public entities   
75 

 
 
The process to rationalise government agencies is moving slowly, and is insufficient to bring 
about any improvements. The implementation of the Regulation on financial management and 
control remains inefficient, and the lines of delegation and accountability are not yet embedded 
in the administrative culture of the budget users. The Law on the organisation and functioning 
of  the  administration  and  independent  agencies,  which  sets  out  the  lines  of  accountability 
between first-level spending units and subordinate bodies, is not applied in a consistent manner 
(See section on PAR).  

The  legal  framework  on  internal  control  is  largely  harmonised  with  the  international 
standards, but is not being sufficiently implemented. Financial management and control and 
budget supervision should both be improved, following best EU practices. In 2022, the process 
of  development  and  adoption  of  risk-management  registers  continued  at  central  and  local-
government  level.  However,  the  incorporation  of  these  measures  into  financial  control  and 
management processes remains insufficient. 

On internal audit practices, further efforts are needed to efficiently implement internal audit 
standards  in  the  public  sector.  Most  internal  audit  units  lack  experienced  and  skilled  staff. 
Internal audit committees are not efficient nor properly functioning and it is recommended that 
their role and legal basis be reconsidered. Further efforts are needed in building up the skills of 
budget users so they can use internal audit methodological tools in a consistent and coherent 
way. The implementation of internal audit recommendations is limited in practice. The quality-
assurance methodology is not yet systematically implemented. The Administrative Instruction 
on the training programme and certification of internal auditors in the public sector has been 
updated, but not yet adopted. There are therefore delays to the start of the national programme 
for certification of internal auditors in the public sector. Further efforts are needed to provide 
continuous training to internal auditors, at both central and local level. 

The  Central  Harmonisation  Unit  provides  methodological  guidance  and  coordinates  the 
development  in  the  public  sector  of  internal  audit  and  financial  management  and  control. 
However,  its  capacities  remain  insufficient,  especially  in  monitoring  and  reporting  on  the 
functioning of the overall system for internal control. The government adopted the 2022 PIFC 
annual report, but its structure and scope could be further improved and its recommendations 
could be more systematically implemented. 

There is no legal basis in the PIFC law with regard to anti-corruption and there is no mechanism 
in place to monitor the number of cases investigated, prosecuted and subject to court resolutions 
as a result of internal audits or inspections.   

External audit 

The Law on the Auditor General and the National Audit Office of Kosovo (KNAO) is largely 
harmonised  with  the  standards  set  by  the  International  Organisation  of  Supreme  Audit 
Institutions.  Nevertheless,  further  review  of  the  legal  framework  is  needed  to  improve  the 
external audit function in the public sector for example to increase the KNAO’s financial and 
operational independence and to remove its obligation to conduct annual financial audits of all 
organisations that receive a budget from the state. These legal changes are of crucial importance 
for improving the capacities and the quality and impact of the KNAO’s audit work. KNAO has 
the institutional capacity to carry out its tasks, with 164 employees of which 82% are audit 
staff, and 18% are employees providing other professional support services. Kosovo continued 
to implement the 2022-2025 strategic development plan.  

In  2022,  some  progress  was  noted  as  the  annual  audit  plan  was  fully  met,  with  133  audits 
carried out, including 3 compliance audits and 15 performance audits. On the impact of the 
audit work, auditees do not effectively implement the KNAO’s recommendations. Out of 606 
76 

 
 
audit  recommendations  provided  by  the  KNAO  in  2020,  50%  were  fully  implemented,  5% 
were partially implemented, and 45% were not implemented. Although cooperation between 
the  KNAO  and  Parliament  has  improved,  parliamentary  scrutiny  of  the  preparation  and 
implementation of the budget preparation should be improved. In 2022, the Commission for 
the  Supervision  of  Public  Finances  reviewed  23  reports,  two  less  than  during  the  previous 
reporting period. The transparency and accountability of the management of public funds must 
be  ensured  through  efficient  monitoring  mechanisms  by  the  executive  and  the  Parliament, 
including through follow-up on the KNAO’s audit recommendations. 

Protection of the EU’s financial interests  

On alignment with the acquis, national legislation is not yet harmonised with the Convention 
on  the  protection  of  the  EU’s  financial  interests,  and  this  harmonisation  will  require 
amendments to the Criminal Law. Kosovo has also not yet set up an anti-fraud coordination 
service (AFCOS) and a national anti-fraud strategy for protecting the EU’s financial interests 
has not yet been developed. Since the Kosovo authorities do not directly manage the EU funds, 
irregularities are not reported to the Commission through the Irregularity Management System. 
While  there  is  not  yet  a  solid  track-record  on  cooperation  with  the  Commission  during 
investigations, Kosovo Police ensures cooperation on an ad-hoc basis. 

Protection of the euro against counterfeiting  

On alignment with the acquis, there is to some extent harmonisation with the EU regulations 
on the system for the fight against counterfeiting of the euro. The Criminal Code considers the 
counterfeiting of currency a criminal act and the Law on the Central Bank regulates the fight 
against  counterfeiting.  Kosovo  has  a  Regulation  for  cash  operation  that  obliges  financial 
institutions to treat and withdraw from circulation all euro banknotes and coins suspected as 
counterfeit, and to submit them to the police. The Agency for Forensics is responsible for the 
technical analysis of suspected counterfeit banknotes and coins. It has concluded an agreement 
with the European Commission on coins, but not yet on banknotes with the European Central 
Bank. In 2022, out of 2 162 suspected banknotes assessed by the agency 718 were confirmed 
as  counterfeit,  and  out  of  12 028  coins,  10 979  were  confirmed  as  counterfeit.  There  is  no 
shared electronic system for the exchange, processing, analysis and reporting of cases with the 
Central  Bank  and  the  agency.  Kosovo  needs  to  build  capacities  of  key  institutions  to  use 
methodological tools and exchange data with national and international authorities. All relevant 
institutions for fighting counterfeit currency participate in EU’s Pericles IV programme. 

3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION  

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

Kosovo maintained its engagement in a number of regional cooperation initiatives, such as the 
Central  European  Free  Trade  Agreement  (CEFTA),  the  Energy  Community,  the  Transport 
Community,  the  South-East  European  Cooperation  Process  (SEECP)  and  the  Regional 
Cooperation Council (RCC)16. 

The  EU-Western  Balkans  Summit  in  December  2022  took  place  for  the  first  time  in  the 
region,  in  Tirana.  The  summit  focused  on  support  to  the  region  in  the  fields  of  energy  and 

16 Kosovo is a member of CEFTA. Kosovo has free trade agreements (FTAs) with Albania, North Macedonia, 
Croatia,  Bosnia-Herzegovina  and  Türkiye.  Kosovo  has  several  Generalized  System  of  Preferences  (GSP) 
programmes with the US, Japan and Norway. 

77 

 
 
 
migration,  as  well  as  on  youth  cooperation,  roaming,  green  lanes  and  overall  progress  on 
implementing the Economic and Investment Plan.  

On  the  Common  Regional  Market,  a  political  breakthrough  was  achieved  at  the  Berlin 
Process  Summit  in  Berlin  in  November  2022,  where  leaders  adopted  the  three  mobility 
agreements  on  higher  education  qualifications,  on  professional  qualifications  and  on  free 
movement with identity cards. Kosovo has ratified all three mobility agreements and deposited 
the related notification instruments. A number of important decisions agreed at the technical 
level within CEFTA remain blocked.  

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

Kosovo’sbilateral  relations  with  Albania  remain  good  overall.  In  July  2022,  Albanian 
President Meta chose Kosovo as the destination of his last official visit before completing his 
term as president. In August 2022, President Begaj paid his first official visit to Kosovo, and 
Kosovo  President  Osmani  hosted  President  Begaj  in  Pristina  again  in  February  2023.  The 
assemblies of Albania and Kosovo held their first joint meeting in November 2022.  

There has been no change in Kosovo’s formal relations with Bosnia and Herzegovina, which 
does not recognise Kosovo’s independence. The two maintain a strict visa regime. Bilateral 
meetings  took  place  occasionally  on  the  margins  of  regional  and  multilateral  summits.  An 
initiative to simplify the visa procedure for all citizens of Kosovo is still pending. 

Kosovo maintained close relations with Montenegro. Throughout the reporting period, several 
meetings took place at the level of prime ministers and foreign ministers on the margins of 
international  and  regional  events.  Bilateral  relations  were  improved  by  the  official  visit  of 
Kosovo’s  President  to  Montenegro  in  February  2023,  and  the  visit  of  Montenegro’s  Prime 
Minister to Kosovo in April 2023.  

Kosovo  continued  to  enjoy  overall  good  relations  with  North  Macedonia,  with  Kosovo 
President  Osmani  paying  an  official  visit  in  April  2023.  Other  contacts  between  political 
leaders took place on the margins of international and regional events. 

Kosovo continued to maintain good relations with Türkiye, including in the political, economic 
and cultural sectors. Kosovo PM Kurti visited Türkiye in February 2023. Kosovo provided 36 
Kosovo  Security  Force  troops  to  an  international  humanitarian  operation  in  response  to  the 
devastating earthquake on 6 February 2023.  

Georgia, the Republic of Moldova and Ukraine have no formal relations with Kosovo, as they 
do not recognise Kosovo’s independence. The Moldovan Parliament, however, ahead of the 
European Political Community Summit on 1 June 2023, amended the law on visitors from third 
countries  allowing  Kosovo  representatives  to  obtain  visas  for  participation  in  international 
meetings held in Moldova. 

4. NORMALISATION OF RELATIONS BETWEEN KOSOVO AND SERBIA  

The  EU-facilitated  Dialogue  on  normalisation  of  relations  between  Kosovo  and  Serbia 
continued  in  the  reporting  period  with  regular  meetings  at  the  level  of  Leaders  and  Chief 
Negotiators.  After  months  of  intense  negotiations  and  with  the  support  of  key  partners,  the 
Parties reached an Agreement on the Path to Normalisation in Brussels on 27 February 2023, 
and agreed on its Implementation Annex in Ohrid, North Macedonia, on 18 March 2023. As 

78 

 
 
part of the Agreement, the Parties took note that the Agreement and the Implementation Annex 
will become integral parts of the respective EU accession processes of Kosovo and Serbia.17  

Both  Kosovo  and  Serbia  are  yet  to  start  implementation  of  their  respective  obligations 
stemming from the Agreement, which are valid and binding for the Parties and part of their 
European  paths.  The  Parties  are  urged  to  start  engaging  more  constructively  and  start 
implementation without further delay or precondition. This includes the establishment of the 
Association/Community of Serb Majority Municipalities (A/CSM). Kosovo is expected to start 
the  process  leading  to  the  establishment  of  the  A/CSM    based  on  the  European  proposal 
presented to the Parties on 21 October 2023 and Serbia is expected to support this process and 
start delivering on their key obligations from the Agreement in parallel. Formalities, including 
related to adoption, should not stand in the way of making progress in implementation. The 
Parties  also  have  an  obligation  to  fully  implement  all  past  Dialogue  Agreements.  The 
constructiveness of the Parties will be assessed based on their implementation performance. 
The European Council on 26 October 2023 regretted the lack of implementation by both Parties 
of the Agreement on the path to normalisation and its Implementation Annex as well as other 
agreements  reached  in  the  EU  facilitated  dialogue,  led  by  the  High  Representative  and 
supported  by  the  EU  Special  Representative.    Normalisation  of  relations  is  an  essential 
condition on the European path of both Parties and both risk losing important opportunities in 
the absence of progress.18 

Despite the conclusion of the Agreement on the Path to Normalisation, the Dialogue has been 
hampered throughout the reporting period by a number of negative developments and crises in 
the north of Kosovo triggered by actions of one or both Parties. Kosovo has executed a number 
of such actions in the north of Kosovo, including the increased presence of Kosovo’s special 
police and expropriation of land,  which have created widespread discontent among the local 
Kosovo Serb population and negatively affected the Dialogue. The mass resignation of Kosovo 
Serbs from  Kosovo institutions  – police, judiciary and administration  – in November 2022, 
roadblocks in the north of Kosovo in reaction to arrests of Kosovo Serbs in December 2022, as 
well as the boycott of early local by-elections in April 2023 by Kosovo Serbs further damaged 
the Dialogue and exacerbated the negative atmosphere around it.  As a result of the Kosovo 
Serbs leaving all Kosovo institutions in November 2022, by-elections took place in the four 
Kosovo  Serb  majority  municipalities  in  the  north  of  Kosovo  on  23  April  2023.  While  the 
elections were held in line with the legal framework of Kosovo, not all parties and communities 
made use of their democratic right to participate and vote in the elections, resulting in a record 
low turnout, which does not offer a long-term political solution for these municipalities. 

17 Implementation Annex to the Agreement on the Path to Normalisation of Relations between Kosovo and Serbia: This Annex constitutes an integral part of the Agreement. 
Kosovo and Serbia fully commit to honour all Articles of the Agreement and this Annex, and implement all their respective obligations stemming from the Agreement and this Annex 
expediently and in good faith. 
The Parties take note that the Agreement and the Implementation Annex will become integral parts of the respective EU accession processes of Kosovo and Serbia. The Parties note that 
immediately after the adoption of the Agreement and this Annex, the EU Facilitator will start the process to amend the Chapter 35 benchmarks for Serbia to reflect Serbia’s new 
obligations stemming from the Agreement and this Annex. The agenda of Kosovo’s Special Group on Normalisation will equally reflect Kosovo’s new obligations stemming from the 
Agreement and this Annex. 
The Parties agree to endorse the Declaration on Missing Persons, as negotiated under the EU-facilitated Dialogue, as a matter of urgency. 
To implement Article 7, Kosovo launches immediately negotiations within the EU-facilitated Dialogue on establishing specific arrangements and guarantees to ensure an appropriate 
level of self-management for the Serbian community in Kosovo, in compliance with relevant previous Dialogue agreements as determined by the EU Facilitator. 
The Parties agree to set up a Joint Monitoring Committee, chaired by the EU, within 30 days. The implementation of all provisions shall be ensured and supervised by the Joint 
Monitoring Committee. 
To implement Article 9, the EU will organise a donor conference within 150 days to set up an investment and financial aid package for Kosovo and Serbia. No disbursement will happen 
before the EU determines that all provisions of the Agreement have been fully implemented. 
Kosovo and Serbia agree that all Articles will be implemented independently of each other. 
The order of the paragraphs of this Annex is without prejudice to the order of their implementation. 
Kosovo and Serbia agree not to block implementation of any of the Articles. 
All discussions related to implementation of the Agreement will take place under the EU-facilitated Dialogue. 
Kosovo and Serbia recognise that any failure to honour their obligations from the Agreement, this Annex or the past Dialogue Agreements may have direct negative consequences for 
their respective EU accession processes and the financial aid they receive from the EU. 

18 https://www.consilium.europa.eu/media/67627/20241027-european-council-conclusions.pdf 

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While there had been no progress in the implementation of the Energy Roadmap adopted in 
June 2022, the tentative agreement in August 2023 between the commercial companies KEDS 
and Elektrosever on the scope of functions potentially marks a significant step forward in the 
implementation of the Roadmap. The Parties are now expected to quickly enable the signing 
of the outstanding commercial and technical agreements between the two companies to ensure 
that people living in the four Kosovo Serb-majority municipalities in the north start paying for 
the electricity they consume. 

During  the  reporting  the  period,  the  Parties  agreed  on  and  endorsed  the  political 
declaration  on  Missing  Persons  in  May  2023.  The  Parties  are  encouraged  to  start 
implementation  of  the  declaration  immediately  and,  as  the  first  step,  agree  to  the  Terms  of 
Reference for the Joint Commission that is to be established as per the declaration.   

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

-  The  withdrawal  of  Kosovo  Serbs  from  Kosovo  institutions  in  November  2022  and  the 
boycott of local elections in the north of Kosovo in April 2023 violate Serbia’s Dialogue 
obligations and they constitute severe backsliding in Serbia’s compliance to the April 2013 
“First agreement of principles governing the normalisation of relations” and direct violation 
of the Justice Agreement of 2015. Serbia is urged to encourage Kosovo Serbs to return to 
the institutions immediately and Kosovo to enable this return to happen. Since November 
2022, neither Party has taken any steps in this regard. The recruitment of new Kosovo Serb 
police  cadets  undertaken  by  the  Kosovo  Police  while  welcomed,  did  not  follow  the 
procedures in line with Dialogue agreements.  

-  There  has  still  been  no  further  progress  on  the  implementation  of  the  August  2015 
Agreement. While the EU welcomes the presentation of a first draft Statute of the A/CSM 
to the High-level Dialogue in May 2023, the draft presented is not in line with the relevant 
the 
Dialogue  Agreements.  A  European  proposal 
A/CSM in Kosovo was presented to the Parties on 21 October 2023. Formalities, including 
related  to  adoption  should  not  stand  in  the  way  of  making  progress  in  implementation. 
Kosovo and Serbia are now urged to engage constructively   on the establishment of the 
A/CSM with no further delay, conditions or obstructions. This obligation forms a part of 
the implementation of the Agreement on the Path to Normalisation of Relations, which the 
Parties are expected advance on, without delay or precondition, as recalled by the European 
Council in October 2023. The issue of Serbia-run structures needs to be addressed in this 
same context.  

the  establishment  of 

for 

-  The works on the Mitrovica Bridge have long been completed and Serbia is expected to 
engage constructive to allow the bridge to be opened to vehicle traffic without obstruction. 
Any decision on opening of the Bridge has to be agreed and coordinated in the Dialogue. 

-  As regards the technical Dialogue agreements (2011-2012), some are not or only partially 
being  implemented.  Until  sustainable  solutions  are  found,  both  Parties  need  to  remain 
committed  to  the  continued  implementation  of  the  agreement  on  representation  and 
participation of Kosovo in regional forums and not block the work of regional forums over 
bilateral  disputes.  The  implementation  of  the  cadastre  and  acceptance  of  university 
diplomas agreements is still pending due to non-implementation by Serbia. Serbia also has 
yet  to  address  the  issue  of  re-located  Serbian  administrative  customs  structures  with 
Kosovo  denomination  that  operate  from  within  Serbia,  and  to  cease  the  issuance  of 
documentation  or  affixing  of  stamps  with  denomination  that  contravenes  the  related 
agreement.  

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-  On  IBM,  the  Interim  Common  Crossing-Points  (CCPs)  between  Kosovo  and  Serbia 
continue  to  be  operational.  Only  two  of  the  six  permanent  CCPs  have  been  established 
(Merdare and Mutivodë/Mutivode). Serbia still has not established permanent CCPs to be 
hosted by their side (Jarinje/Rudnica, Končulj/Dheu i Bardhë and Depce/Muçibabë), which 
led to a suspension of EU funds for this project in July 2018. In addition, Serbia needs to 
engage constructively to enable the construction of the third CCP hosted by Kosovo in the 
north of Kosovo at Tabavije/Bërnjak-Tabalije/Brnjak. Additional efforts are required from 
Serbia to close illegal roads and bypasses to ensure exclusive use of official crossing points 
for goods and persons entering into or leaving Kosovo. Serbia also must allow resumption 
of the joint technical IBM meetings at all levels. 

-  On  Freedom  of  Movement,  after  months  of  tensions,  Kosovo  and  Serbia  agreed  in 
November  2022  that  Serbia  will  stop  issuing  new  licence  plates  with  Kosovo  cities’ 
denominations, and that Kosovo will suspend any further actions related to re-registration 
of  vehicles.  The  full  implementation  of  the  Freedom  of  Movement  agreements  is  still 
pending. This also requires the Parties to find a permanent solution to the issue of licence 
plates  in  compliance  with  the  relevant  Dialogue  agreements.  Lack  of  such  solution  has 
continued to cause tensions in the north of Kosovo during the reporting period.  

-  Both  Parties  need  to  fully  respect  the  Telecoms  Agreement  and  not  put  its  hitherto 
successful implementation at risk. Kosovo needs to ensure that MTS d.o.o has a business 
licence  for  the  functions  that  have  been  agreed  as  part  of  the  Agreement  to  enable  the 
company to continue providing mobile and landline telephony services. MTS d.o.o needs 
to engage constructively and in line with the Kosovo law to enable this to happen.   

-  The  processing  of  Mutual  legal  assistance  requests  has  been  stopped  by  Serbia.  Serbia 
needs to resume the processing immediately, in line with the relevant Dialogue Agreement.  
-  Both Parties need to respect the Arrangements for Official Visits more consistently. Kosovo 
needs  to  allow the visits  of the Serbian Chief Negotiator and other Serbian government 
officials when they are announced and conducted in line with the Arrangements, which has 
not always been the case during the reporting period.  

Overall,  Kosovo  has  remained  engaged  in  the  Dialogue,  but  it  needs  to  demonstrate  more 
serious  commitment,  invest  more  efforts  and  make  compromises  to  take  the  normalisation 
process forward. Kosovo needs to uphold its Dialogue commitments and commit to the full 
implementation  of  all  past  Dialogue  agreements  and  the  Agreement  on  the  Path  to 
Normalisation of Relations. Moving forward, Kosovo also needs to make further substantial 
efforts to avoid actions that undermine stability and rhetoric that is not conducive to dialogue. 
Kosovo also needs to create a conducive environment for the conclusion of the legally-binding 
normalisation Agreement with Serbia. Kosovo is expected to engage more constructively to 
enable  negotiations  on  the  comprehensive  legally-binding  normalisation  Agreement  to  start 
and show flexibility in order to make rapid and concrete progress. Reaching such an Agreement 
is urgent and crucial so that Kosovo and Serbia can advance on their respective European paths. 
An important requirement for negotiations on the comprehensive legally-binding Agreement 
is  for  the  Parties  to  implement  the  Agreement  on  the  Path  to  Normalisation  swiftly  and 
efficiently and without any conditions or obstructions. 

The  reporting  period  was  marked  by  multiple  crises  and  violent  incidents  in  the  north  of 
Kosovo. The most serious crisis during the reporting period occurred on 24 September 2023, 
when Kosovo Police was attacked by heavily armed individuals,  who were surprised in the 
midst  of  a  major  weapons’  smuggling  operation,  leaving  one  police  officer  dead  and  three 
wounded.  During  the  the  operation  the  attackers  had  taken  several  pilgrims  hostage  while 
barricading  themselves in  the Serbian Orthodox  Monastery of  Banjska/Banjskё, which they 
81 

 
 
left behind when fleeing. During the ongoing investigation into the events, large amounts of 
military-grade weapons were seized. In the following days the Deputy Leader of Srpska Lista 
through his lawyer, announced that he prepared and coordinated the attack. He was questioned 
by Serbian authorities, shortly detained and released with his passport confiscated. In the days 
following the attack Serbia increased its military presence in the vicinity of Kosovo, which was 
subsequently  reduced.  The  perpetrators  of  the  attack  need  to  be  apprehended  and  swiftly 
brought to justice and Serbia is expected to fully cooperate and take all the necessary steps in 
this regard. The attack should not serve as an excuse for either side to divert attention from the 
EU-facilitated  Dialogue.  Kosovo  and  Serbia  must  pursue  sustained  de-escalation  efforts,  as 
well as ensure the holding of new elections in the north of Kosovo as soon as possible, with 
the active participation of Kosovo Serbs.  

Prior to it, another serious escalation took place in May 2023 when the newly elected Kosovo 
Albanian mayors were installed in the municipal buildings in the north of Kosovo, against the 
clear  recommendation  of  the  international  community,  which  triggered  protests  by  Kosovo 
Serbs. Some turned violent and led to unacceptable and unprovoked attacks against citizens, 
KFOR soldiers, law enforcement and representatives of media, which are yet to be condemned 
and acted upon by Serbia. Several arrests of Kosovo Serbs by Kosovo Police in relation to their 
alleged involvement in the violence of 29 May in Zveçan/Zvečan, which did not systematically 
and fully adhere to the legal requirements, are of concern.  

To find a way out of the cycle of crises, the Parties are expected to meet the requests of EU, as 
per the statements by the High Representative on behalf of the EU from 3 June 202319 and 19 
September20  related  to  de-escalation  on  the  situation  on  the  ground,  enabling  new  early 
elections  with  unconditional  participation  of  Kosovo  Serbs  and  return  to  the  Dialogue  and 
implementation of all Agreements. The European Council expressed on 26 October 2023 that 
failure to de-escalate the tensions will have consequences21. 

5. EUROPEAN STANDARDS 

CLUSTER 2: INTERNAL MARKET 

This cluster covers: the free movement of goods (Chapter 1); freedom of movement for workers 
(Chapter 2); right of establishment and freedom to provide services (Chapter 3); free movement 
of  capital  (Chapter  4);  company  law  (Chapter  6);  intellectual  property  law  (Chapter  7); 
competition  policy  (Chapter  8);  financial  services  (Chapter  9),  and  consumer  and  health 
protection (Chapter 28).  

This cluster is key for Kosovo’s preparations for the requirements of the EU’s internal market 
and is of high relevance for accelerated integration and growth, including the development of 
the Common Regional Market. Kosovo has some level of preparation in most of the areas of 
the internal market, namely in the areas of the free movement of  workers, company law and 
competition.  It  is  in  between  some  and  moderate  level  of  preparation  in  the  area  of  free 
movement of goods. Kosovo is moderately prepared in the right of establishment and freedom 
to provide services, free movement of capital, intellectual property law and financial services. 

19 https://www.consilium.europa.eu/en/press/press-releases/2023/06/03/statement-by-the-high-representative-
on-behalf-of-the-eu-on-kosovo-and-latest-developments/ 
20 https://www.consilium.europa.eu/en/press/press-releases/2023/09/19/belgrade-pristina-dialogue-
statement-by-the-high-representative-on-behalf-of-the-european-union-on-expectations-from-serbia-and-
kosovo/  
21 https://www.consilium.europa.eu/media/67627/20241027-european-council-conclusions.pdf 

82 

 
 
 
 
It  is  at  an  early  stage  of  preparation  on  consumer  policy  and  health  protection.  During  the 
reporting period, Kosovo made some progress  in  all areas, except  on the free movement  of 
workers, company law, competition policy, financial services and consumer policy and health 
protection, where only limited progress was made.  

Chapter 1: Free movement of goods  

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

Kosovo  is  in  between  some  and  moderate  level  of  preparation  in  the  area  of  the  free 
movement of goods. Some progress was made with the adoption of the Law on general product 
safety and by further aligning Kosovo’s legislation with the EU acquis on market surveillance 
and on mutual recognition. Further alignment with the EU acquis is needed in this area and 
Kosovo must increase staff numbers and improve staff skills in the area of quality infrastructure 
(especially conformity assessment and market surveillance).  

As some recommendations of last year remain valid, Kosovo should, in particular: 

→  increase  the  enforcement  capacity  on  conformity  assessment  and  market  surveillance 

bodies;  

→  start  implementing  the  new  Law  on  general  product  safety  and  Law  on  inspections  and 

adopt relevant secondary legislation;  

→  start implementing requirements of the European Regulation on the registration, evaluation, 

authorisation and restriction of chemicals (REACH).  

General principles  

Kosovo  has  started  drafting  a  legal  framework  for  the  production,  distribution  and 
marketing  of  industrial  products.  It  adopted  the  Law  on  general  product  safety,  which 
harmonises rules in the area of market surveillance. It has also  adopted the Law on general 
inspections.  However,  this  only  partly  aligns  Kosovo  with  the  relevant  EU  acquis,  and  the 
relevant implementing legislation still needs to be adopted. 

Non-harmonised area  

Kosovo has started screening its legislation to comply with requirements to eliminate barriers 
to trade and to ensure alignment with the obligations under Articles 34-36 of the Treaty on the 
Functioning of the European Union (TFEU). Kosovo is working to further align legislation on 
the mutual recognition of goods. There is a specific Contact Point for Notification in place that 
monitors  ministries  and  other  bodies  on  their  obligation  to  notify.  Kosovo  still  requires 
products to be labelled with the flag of their country of origin, which is not in line with the EU 
acquis.  

Harmonised area: quality infrastructure  

The  Kosovo  Standardisation  Agency  is  still  not  a  member  of  any  of  the  European  or 
international  standardisation  organisations.  Its  application  for  affiliate  membership  with  the 
European  Committee  for  Standardisation  (CEN)  and  the  European  Committee  for  Electro-
technical  Standardisation  (CENELEC)  is  still  pending.  The  Kosovo  government’s  standard 
management  information  system  is  an  online  platform  partly  compatible  with  that  of 
CEN/CENELEC  and  other  international  standardisation  bodies.  This  system  needs  to  be 
developed to be compatible with the CEN/CENELEC system and allow Kosovo to adopt new 
standards more quickly, making it user-friendly for businesses.  

83 

 
 
The Accreditation Directorate of Kosovo (DAK) needs to adopt implementing legislation to 
help it to be more effective in its work. The Directorate completed accreditation for 9 testing 
laboratories  and  9  inspection  bodies  during  the  reporting  period.  At  present,  there  are  53 
accredited  conformity-assessment  bodies  in  Kosovo  (34  test  laboratories  and  19  inspection 
bodies). There is still a need to improve the technical capacity and skills-testing ability of these 
accredited conformity assessment bodies. 

The Kosovo Metrology Agency helps ensure further EU acquis alignment and to implement 
and develop quality-management systems and standards for calibration laboratories. Kosovo is 
currently pursuing associated membership of the European Association of National Metrology 
Institutes (EURAMET).  

On  market  surveillance,  the  Market  Inspectorate’s  responsibilities  have  increased  since 
inspection rules were harmonised in 2022. The reorganisation of the  Inspectorate and set-up 
of an e-inspection system is still ongoing.  Kosovo also started preparing a new Law on market 
surveillance and compliance of products that harmonises with the most recent EU acquis by 
adopting an action plan. The new Law on general product safety has been adopted in April 
2023 and is being implemented, taking into account the technical requirements for products 
and conformity assessment.  

During  the  reporting  period,  the  Market  Inspectorate  conducted  2  830  product  safety 
inspections, imposed 311 fines, processed 195 cases, and confiscated 5 705 pieces of harmful 
goods. 

Harmonised area: sectoral legislation 

On  the  ‘new  and  global  approach’  to  product  legislation,  Kosovo  adopted  legislation 
designed  to  be  aligned  with  the  EU  acquis  on  aerosol  dispensers,  pressure  equipment,  gas 
appliances,  personal  protective  equipment  and  construction  products.  Further  alignment  is 
needed on the other new legislative framework legislation.   

In the area of ‘old approach’ product legislation, Kosovo needs to start implementing its Law 
on chemicals designed to align with EU Regulation on registration, evaluation, authorisation 
and restriction of chemicals (REACH) and the EU Regulation on classification, labelling and 
packaging (CLP). Further alignment is necessary on fertilisers and detergents. Kosovo is not 
aligned  with  the  EU  acquis  on  motor  vehicles,  two  or  three  wheeled  vehicles,  tractors 
(agricultural, forestry) or non-road mobile machinery emissions. 

Kosovo  made  no  progress  on  procedural  measures  during  the  reporting  period.  Kosovo’s 
legislation remains partly aligned with the EU acquis in the areas of firearms, textile labelling, 
the pricing  of medical  products,  cultural objects unlawfully  removed  from  an EU  Member 
State and defence products.  

Inspectorates responsible for market surveillance and product safety are prone to corruption. 
Their  competences  should  be  clearly  identified  and  should  not  overlap.  Staffing  should  be 
sufficient in terms of number and quality.  

Chapter 2: Freedom of movement for workers 

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

84 

 
 
Kosovo has some level of preparation in the field of free movement for workers and made 
limited progress during the reporting period, notably on social security coordination. Kosovo 
is in ongoing negotiations on bilateral agreements on social security with Slovenia and started 
negotiations with Croatia in 2022.  

In the coming year, Kosovo should in particular: 

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

with EU Member States; 

→  start work to prepare for joining the European Network of Employment Services (EURES) 

upon accession. 

On the free movement of workers, EU nationals and their family members are not eligible to 
work in Kosovo without a work permit. During the reporting period, Kosovo’s Employment 
Agency issued 202 short-term work permits (in 2021, 209), of which 114 were for EU nationals 
(in 2021, 157). 

On  social  security  coordination,  Kosovo  has  already  in  place  bilateral  social  security 
agreements with Belgium and the Netherlands, as well as with Switzerland and Albania. These 
agreements ensure that periods of work in Kosovo by nationals of these countries (or periods 
of work in these countries by citizens of Kosovo) will be taken into account for entitlement to 
social-security  benefits.  Negotiations for a similar agreement are ongoing  with  Slovenia. In 
2022, Kosovo started negotiations on a similar deal with Croatia. 

There is no legislation in force to preserve the supplementary pension rights of mobile workers 
who have worked in other countries or EU Member States. 

Chapter 3: Right of establishment and freedom to provide services 

EU natural and legal persons have the right to establish themselves in any Member State and 
to provide cross-border services. For certain regulated professions, there are rules on mutual 
recognition of qualifications. EU rules on postal  services focus on improving the quality of 
universal  service,  gradual  market  opening  to  competition,  and  the  establishment  of  an 
independent regulator. 

Kosovo remains moderately prepared in this area and made some progress. Kosovo started 
implementing its five-year action plan to make its sectoral laws compliant with the EU Services 
Directive.  The  Point  of  Single  contact  is  not  fully  functional.  Kosovo’s  postal  market  has 
already been opened to competition in 2022 and the legal framework is being aligned with the 
EU postal acquis. More efforts are needed to align Kosovo with the EU acquis on recognition 
of professional qualifications.  

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

→  remove the identified barriers to the right of establishment and freedom to provide services 
and  implement  the  action  plan  to  make  sectoral  laws  compliant  with  the  EU  Services 
Directive; 

→  complete Kosovo’s alignment with the EU postal acquis as regards the Regulation on cross-
border parcel delivery services and strengthen institutional capacity to monitor and ensure 
compliance with the new rules in the postal market; 

85 

 
 
→  align with the EU acquis on mutual recognition of professional qualifications, including 
with the Directive on recognition of professional qualifications and with the Directive on a 
proportionality test before adoption of a new regulation of profession. 

On the right of establishment and freedom to provide services, Kosovo is partially aligned 
with the EU acquis on services. During the reporting period, the authorities set up a working 
group  to  monitor  and  coordinate  the  implementation  of  the  five-year  action  plan  to  make 
sectoral  legislation  compliant  with  the  EU  acquis  on  services.  The  working  group  adopted 
monitoring  guidelines,  discussed  progress,  and  organised  capacity  building  to  assess  the 
compliance  of  its  government  bodies  with  the  Law  on  Services.  A  tracking  mechanism  is 
needed to monitor the progress in this area. To ensure that its rules are harmonised with the 
standards  set  out  in  the  EU’s  Services  Directive,  Kosovo  should  increase  inter-institutional 
coordination between the legal departments of line ministries, agencies and other public and 
professional  bodies.  If  foreign  companies  wish  to  provide  services  in  Kosovo,  they  are 
currently obliged to  establish an office. This  impedes their freedom  to  provide services. To 
remedy this and other problems in this sector, the authorities have conducted an analysis of 
three service areas: legal, health and ICT to identify potential barriers to the freedom to provide 
services.  

Kosovo’s Point of Single Contact is responsible for licensing auditors and audit companies and 
has  now  started  to  expand  its  role  to  licensing  surveyors  and  accountants.  The  number  of 
professions registered via the Point of Single Contact should increase in the coming years and 
the  associated  online  platform  needs  to  be  transformed  into  a  user-service  delivery  point, 
including for company registration. Although businesses and the public can already access the 
Point of Single Contact platform online, they receive only general information on starting a 
business, with no interoperability options and therefore no real utility for the end user.   

In the area of postal services, Kosovo made good progress on the regulatory alignment  with 
the  Postal  Services  Directive,  as  the  reserved  area  to  the  universal  service  provider  was 
aboslished in 2022. Bylaws on implementing accounting separation and net cost calculation of 
the  universal  service  were  adopted,  in  line  with  the  Postal  Services  Directive.  There  is  one 
universal  service  provider  and  26  other  postal  operators  active  in  the  postal  market.  The 
national  regulatory  authority  is  legally  separated  and  operationally  independent  from  postal 
operators, but has limited resources and needs strengthening to monitor and ensure compliance 
with  the  new  rules  in  the  postal  market.  Kosovo  still  needs  to  align  its  legislation  with  the 
Regulation on cross-border parcel delivery services. 

The  Law  on  regulated  professions  broadly  lays  down  the  requirements,  conditions,  and 
criteria  for  the  exercise  of  a  regulated  profession.  The  Division  for  Regulated  Professions 
within  the  Ministry  of  Education  needs  to  be  strengthened  and  fully  staffed  to  become 
operational. Kosovo needs to start identifying all regulated professions in the country and draw 
up a detailed list of regulated professions. 

Chapter 4: Free movement of capital  

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

Kosovo is moderately prepared in the area of free movement of capital. During the reporting 
period,  Kosovo  made  some  progress  by  adopting  the  Law  on  implementation  of  targeted 
international  financial  sanctions  and  the  Law  on  the  state  bureau  for  verification  and 

86 

 
 
confiscation  of  unjustified  assets.  Some  of  the  recommendations  from  the  previous  report 
remain to be addressed.  

In the coming year, Kosovo should, in particular:  

→  increase efforts to further align its legal framework with the EU Payment Services Directive 

2; 

→  increase efforts to fight economic and financial crime, and align the Law on the prevention 

of money laundering and terrorist financing with the EU acquis; 

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

and strengthen the effectiveness of confiscations of assets and proceeds of crime. 

The  Central  Bank  of  Kosovo  has  licensed  one  electronic  money  institution.  However,  the 
execution of payments is predominantly carried out in cash, and money transfers are largely 
limited  to  traditional  financial  institutions.  More  work  could  be  done  in  this  area  to  reduce 
transaction costs and facilitate unbanked and underserved customers.  

On  payment  systems,  Kosovo  needs  to  further  align  its  legislation  with  the  EU  Payment 
Services Directive 2. The country’s current framework on e-commerce suffers from regulatory 
shortcomings, such as a weak system for electronic payments. This work of aligning with the 
EU  Payment  Services  Directive  2  should  be  backed  by  introducing  and  encouraging  new 
electronic  payment  methods  through  innovative  solutions  that  are  more  efficient  and  less 
costly. Kosovo is not a member of the International Telecommunication Union, and this could 
hinder the development of international payment systems in the country. 

The  law  on  the  prevention  of  money  laundering  and  combating  terrorism  financing 
(AML/CFT)  needs  to  be  further  aligned  with  the  fourth  and  fifth  Anti  Money  Laundering 
Directives. In 2022, the Assembly adopted the Law on implementation of targeted international 
financial sanctions, which addresses shortcomings identified by the 2018 Council of Europe 
Assessment Report on Anti-Money Laundering and Countering Terrorist Financing. The Law 
sets out measures to be taken and also identifies the competent authorities and procedures for 
proposal,  approval,  supervision  and  implementation  on  targeted  international  financial 
sanctions.  These  sanctions  relate  to  the  prevention  and  combating  of  terrorism;  terrorist 
financing; and the proliferation of weapons of mass destruction. The Law on the State Bureau 
for  verification  and  confiscation  of  unjustified  assets,  currently  in  the  Constitutional  Court, 
introduces penalties for illicit enrichment in the domestic legal system and provides for civil 
confiscation of certain assets without prior convictions. In view of increasing the transparency 
of legal persons and arrangements, in July 2022 the government adopted a concept document 
on regulating the beneficial ownership register and upgraded guidance is adopted by Kosovo’s 
Financial Intelligence Unit (FIU) on AML/CFT obligations of legal professionals.  

The number of suspicious transaction reports in Kosovo increased to 947 in 2022, up 3% from 
2021. Although Kosovo has made some progress in the fight against financial crime, there is 
still  a  need  to  strengthen  inter-institutional  cooperation  in  the  fight  against  economic  and 
financial crime (See also Chapter 24 - Justice, freedom and security). 

Chapter 6: Company law 

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

Kosovo has some level  of preparation in the field of company law. Kosovo made  limited 
progress in further aligning with the EU acquis on company law and is preparing a new law 
87 

 
 
on  business  organisations  to  align  more  broadly  with  the  EU  acquis.  Since  the  2022 
recommendations were only partially addressed, they remain largely valid. 

In the coming year, Kosovo should in particular: 

→  adopt  the  draft  law  on  business  organisations  to  further  align  with  the  EU  acquis  on 
company law including with the most recent EU acquis (the encouragement of long-term 
shareholder engagement, the Directive on the use of digital tools and processes in company 
and the Directive on company cross-border operations); 

→  further align with the EU acquis on company reporting and strengthen both the institutional 
audit-oversight  structures  and  the  professional  independence/objectivity  of  auditors  and 
audit firms as well as their sufficient and sustainable funding. 

On company law and corporate governance, Kosovo is preparing a new draft law on business 
organisations. This aims to further align the country’s legal framework with the EU company 
law acquis, particularly on minimum capital requirement, shareholders’ rights (including the 
encouragement  of  long-term  shareholder  engagement),  company  takeovers,  aspects  of 
disclosure of information about companies and their branches, Directive on the use of digital 
tools and Directive on cross-border operations (mergers, divisions, conversions), and Directive 
on gender equality on boards of directors.  The Kosovo Corporate Governance Code adopted 
in  June  2021  reflects  international  standards  set  out  in  the  OECD  Principles  on  Corporate 
Governance.  

Kosovo  completed  an  assessment  of  the  technical  infrastructure  required  to  ensure  the 
interoperability of the Kosovo Business Registration Agency with the EU Business Register 
Interconnection System (BRIS) and now needs to ensure that the conditions for this connection 
are met. Insufficient coordination and data sharing between the Kosovo Business Registration 
Agency and the Kosovo Council for Financial Reporting still affects the timely reporting and 
publication of accounting documents. The Agency does not publish information on companies 
in some legal situations (e.g. under insolvency proceedings) and there is still no legal obligation 
to publish accounting documents in the business register.  

On company reporting, the Law on accounting, financial reporting and audit is only partially 
aligned with the EU acquis. Kosovo will need to align with the most recent EU rules covering 
corporate  sustainability  reporting.  The  law  requires  statutory  audits  to  be  carried  out 
following  relevant  international  standards  on  auditing.  Large  companies  must  submit  and 
publish  their  audited  financial  statements  with  the  Kosovo  Council  for  Financial  Reporting 
(KCFR),  and  non-compliance  risks  legal  sanction.  All  submitted  financial  statements  are 
published on the Council’s website. Kosovo still needs to secure sufficient sustainable funding 
for the Public Audit Oversight Board which was appointed by the KCFR as its executive branch 
responsible  for  overseeing  this  sector.  This  has  prevented  it  from  fully  exercising    its 
supervisory powers and enforcement functions.  

Chapter 7: Intellectual property law 

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

Kosovo is moderately prepared on intellectual property rights. Some progress was made to 
align the domestic legal framework with the EU acquis. The new laws on: patents, trade marks, 
industrial design, topographies of semiconductor products and trade secrets entered into force. 
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The government adopted the new Law on copyright and related rights (and relevant legislation 
regarding  a  collective  rights  management  system  in  the  fields  of  copyright  for  literary  and 
visual works). This new law also aims to align with the Directive on certain online transmission 
of broadcasting organisations and retransmissions of television and radio programmes to cover 
online transmissions as well as with the Directive on copyright and related rights in the Single 
Market.  Kosovo also took steps to better enforce intellectual and industrial property rights by 
establishing the Commercial Court that is mandated to solve cases and disputes in this field. 
Last year’s recommendations were partially implemented. 

In the coming year, Kosovo should in particular: 

→  establish  a  functioning  collective  management  system  by  strengthening  the  existing 
collective  management  organisations  in  the  fields  of  music  and  audio-visual  and  by 
facilitating the creation of collective management organisation in the fields of literary and 
visual works; 

→  adopt  implementing  legislation  as  a  result  of  the  approval  of  industrial  property  laws 
(patents, trade marks, industrial design, topographies of semiconductor products and trade 
secrets). 

Kosovo has made some progress in terms of legislative alignment, so it can start to guarantee 
some level of protection of intellectual, industrial, and commercial property rights equivalent 
to that applied in the EU and in line with the SAA.  

In the area of copyright and related rights,  the draft law on Copyright and Related Rights, 
which aims to align Kosovo’s legislation  with the  Directives on collective management of 
copyright and related rights and  on copyright and related rights in the Digital Single Market 
has been adopted. Kosovo has not yet established a functioning collective management system 
in the fields of literary and artistic works. 

The main body responsible is the Office for Copyright and Related Rights (OCRR). It remains 
at a low level of administrative capacity, with only three officials. Kosovo’s national strategy 
to strengthen the copyright system (2019-2023) contained plans to create two divisions within 
the  Copyright  Office,  one  for  the  promotion  and  education  and  one  for  the  collective 
management  and  supervision  of  copyright.  Neither  of  these  bodies  have  been  set  up  yet  to 
support the enforcement of current rules and ensure the remuneration of right holders. 

On industrial property rights, Kosovo’s Industrial Property Agency needs restructuring and 
additional  staff.  Kosovo  had  legislation  in  place  since  2022  on  ‘topographies’  of  semi-
conductors,  patents,  designs,  trade  secrets  and  trade  marks.  During  the  reporting  period, 
Kosovo  also  adopted  relevant  implementing  legislation  for  the  registration  of  patents,  trade 
marks and industrial designs. In particular,  in July 2022, Kosovo adopted the Law on trade 
marks  and  seven  administrative  instructions.  Kosovo  has  not  yet  adopted  a  strategy  on 
industrial property for 2022-2026.  

The State Intellectual Property Council and the Task Force against Piracy are responsible for 
the  enforcement  of  intellectual  property  rights  in  Kosovo.  In  this  area,  Kosovo  needs  to 
improve  the  capacity  and  coordination  between  policy-making  institutions  and  law-
enforcement institutions to effectively enforce intellectual property rights. Lengthy procedures 
for the treatment of applications and the lack of enforcement of decisions taken, are a major 
constraint to effectively implement the IPR legal framework.  

In 2022, the Task Force confiscated around 800 pieces of pirated materials. At the initiative of 
the Market Inspectorate, 3 760 goods were confiscated. Also about 1 000 copies of materials 
that violated copyrights were seized, representing a 233% increase compared with the previous 
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year. A total of 4 062 textiles pieces and 63 machine tools were prevented from entering the 
market, as they did not have any commercial name and were evaluated as potentially intended 
and falsifiable for the internal market. The Industrial Property Agency issued 7 269 official 
documents that include decisions on registration of rights, invitations to make payments and 
other notices for applicants to complete their IPR applications.  

In 2022, Kosovo Custom’s IPR Unit initiated 612 investigation cases, seizing 968 980 pieces 
of fake goods for a total value of EUR 10.6 million, which represents an increase on last year.   

Kosovo established the Commercial Court specialised in commercial matters and the court is 
mandated to solve cases and disputes in the field of industrial property rights and copyright.   

Chapter 8: Competition policy 

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

Kosovo has some level of preparation in competition policy and made limited progress  in 
this chapter. It revised the legal framework on antitrust and mergers but made no progress on 
State aid. State aid control and enforcement is non-existent and put on hold as cases are neither 
handled nor enforced without the State Aid Commission’s approval, whose mandate expired 
in  March  2022.  The  urgent  establishment  of  a  functional  State  Aid  Commission  should  be 
prioritised. Further efforts are needed to align and enforce legislation in both the antitrust and 
mergers  and  State  aid  areas.  As  recommendations  from  the  previous  report  remain  largely 
valid, Kosovo should:  

→  urgently  fulfil  SAA  obligations,  including  by  establishing  a  functional  State  Aid 

Commission; 

→  further align the legislative framework on anti-trust, mergers and State aid and ensure its 

enforcement; 

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

Antitrust and mergers 

The legislative framework on antitrust and mergers is partly in line with the EU acquis. In 
2022,  Kosovo  adopted  the  new  Law  on  protection  of  competition;  however,  further 
amendments including to articles four and six are needed to ensure its alignment with the EU 
acquis. Implementing legislation needs to be aligned with the new law and with the EU acquis, 
as the present version is no longer valid and applicable. 

On the institutional framework, the Kosovo Competition Authority (KCA) is responsible for 
implementing the legal framework and the Kosovo Competition Commission (KCC) acts as 
the decision-making body. The KCC became functional again upon appointment in June 2022. 
The  cooperation  between  the  KCA  and  other  sector  regulators  was  strengthened,  and  a 
Memorandum  of  Understanding  was  signed  with  the  Public  Procurement  Regulatory 
Commission and the Procurement Review Body. 

In its capacity to enforce competition, the KCA acts as an independent agency accountable 
to the Assembly of Kosovo, adopts enforcement decisions and is composed of 18 members. 

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The KCC is also appointed by the Assembly, acts as a collegial body that manages the work of 
the KCA, is composed of five members with two positions vacant.  

On  implementation,  in  2022,  the  KCA  issued  10  decisions  in  the  sectors  of  software 
development, insurance, medical services, telecommunication and financial markets. The KCA 
launched  four  market  studies,  including  on  the  markets  for  wheat,  flour,  gas,  cooking  oil, 
gasoline, sugar, oil, transport products, cement and pellets.  

Kosovo  made  no  progress  in  enforcing  competition  rules  by  imposing  fines  or  remedies 
following decisions taken by the KCA. Case numbers remain low and to date, the KCA has not 
carried  out  any  dawn  raids  nor  has  the  leniency  programme  been  used.  Disruptions  to  the 
KCC’s functioning have led to a high number of unresolved cases.  

Training for Kosovo judges and prosecutors on essential aspects of competition law continued 
in 2022. Raising awareness among judges on the enforcement of competition law remains key, 
to avoid contradictory judgements by different court instances. 

State aid  

The legislative framework on State aid is broadly aligned with the EU acquis. However, no 
progress was made during the reporting period to amend it further. The draft Regulations on 
horizontal aid, including block exemptions and regional aid, although prepared, are yet to be 
adopted. Similarly, the draft Law on State aid although prepared in draft has not been adopted 
either. 

On the institutional framework, the State Aid Department, as part of the Ministry of Finance, 
is responsible for assessing proposals for State aid, drafting assessment reports for the State 
Aid Commission (SAC), and updating the State aid inventory. The SAC acts as a decision-
making body and is composed of five members.   

On  enforcement  capacity,  no  progress  can  be  reported  as  the  mandate  of  the  State  Aid 
Commission  expired  in  March  2022  and  no  new  Commission  has  been  established  by  the 
government, putting all control on State aid on hold.   

On implementation, the SAD began assessment of nine State support measures in 2022, of 
which only one was notified by the provider. As there is no State Aid Commission in place, no 
decisions were adopted in 2022. No annual report for the approval of State aid was submitted. 

Liberalisation   

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

Chapter 9: Financial services  

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

Kosovo is moderately prepared in the area of financial services. It made limited progress in 
implementing  last  year’s  recommendations  due  in  large  part  to  a  lack  of  capacity.  All  past 
recommendations not fully implemented remain valid. The country should make further efforts 
to align with the financial services acquis, focusing on the priorities identified. 

In the coming year, Kosovo should in particular: 

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→  strengthen the governance framework of the Central Bank by appointing the two deputy-

Governors of the Bank;  

→  step-up  its  efforts  to  implement  Solvency  II  measures  and  continue  with  enhanced 

supervisory role on the insurance sector; 

→  further advance in aligning with the revised versions of Capital Requirements Directive and 
Capital Requirements Regulation (CRR/CRD), Bank Recovery and Resolution Directive 
(BRRD) and Deposit Guarantee Scheme Directive (DGSD). 

On  banks  and  financial  conglomerates,  the  Central  Bank  continued  to  align  its  legal 
framework  with  Basel  III  requirements  on  capital  and  risk  management.  It  has  approved 
regulations in relation to liquidity coverage ratio, and bank liquidity risk assessment. Despite 
global economic challenges, the financial sector remains resilient due to the high capitalisation 
levels of the predominantly foreign-owned banking sector. Overall, banks’ capitalisation ratio 
remained stable and well above the required minimum capital adequacy ratio of 12%. Although 
credit risk remains contained, focus should be paid to evaluating risks from the  rapid credit 
expansion in the household segment in particular mortgage lending.  

In relation to governance issues, during the reporting period the Central Bank of Kosovo faced 
challenges in performing its tasks and responsibilities. . The position of Governor of the Central 
Bank  was  left  vacant  for  a  number  of  months  before  being  filled  in  July.  Two  positions  of 
Deputy Governors remain vacant. Principles of transparency and merit-based selection should 
be  upheld.  Any  political  influence  on  the  appointments  within  the  Bank  undermines  the 
confidence of the public in this service. Kosovo has not yet established an independent recovery 
and resolution authority. The Central Bank is working on updating regulations to harmonise 
them with the Bank Recovery and Resolution Directive (BRRD) I and II, with which Kosovo 
has not fully aligned. Amendments to the Law on banks, to assign the function of the recovery 
and resolution to the Central Bank, must ensure that the authority has functional independence. 
The Kosovo Deposit Insurance Fund (DIFK) has set up the working group to amend the Law 
on deposit guarantee. Amendments should seek to approximate the Deposit Guarantee Scheme 
Directive.  The  Central  Bank  must  ensure  that  consumers  are  protected  to  prevent  unfair 
banking practices. 

Regarding  Insurance  and  Occupational  Pensions,  Kosovo  continued  to  implement 
Solvency I  measures  and  started  gradual  implementation  of  Solvency II.  There  are 
improvements to be noted with regard to capital and liquidity adequacy levels of the insurance 
sector and the increased supervisory role of the Central Bank in the insurance industry. Despite 
the  opinion  presented  by  the  Kosovo  Competition  Authority,  the  prices  on  the  compulsory 
motor  liability  insurance  market  remain  fixed,  as  the  Motor  Third  Party  Liabilities  price 
liberalisation process has yet to start and the new risk-based model for adjusting car insurance 
tariffs has not been introduced.  

Despite  some  progress  on  the  uninsured  and  unregistered  vehicles,  Kosovo  continues  to 
remain outside the green card system. As a result, insurance is required for foreign-registered 
vehicles entering Kosovo and vehicles with Kosovo plates leaving Kosovo. This continues to 
represent a financial burden. 

During  the  reporting  period,  the  Governing  Board  of  the  Kosovo  Pension  Savings  Trust 
(KPST)  was  non-functional  for  five  months,  as  the  mandate  of  the  members  of  the  Board 
expired in February 2023, until new appointment of members was made in July 2023.  

Securities markets and investment services remain at the early stages of development, as 
most activity centres on the market for government bonds, auctioned by the Central Bank. The 

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Regulation  on  the  repurchase  of  securities  with  the  Central  Bank  enables  securities  trading 
between commercial banks on the secondary market. It aims to help eligible banks to manage 
their liquidity efficiently in the short term. In the reporting period, there were no developments 
as regards funds and asset management. 

On  digital  and  sustainable  finance,  Kosovo  should  conduct  further  work  to  incorporate 
sustainable considerations both in banking and non-banking strategic policies and objectives, 
and  to  implement  a  regulatory  financial  framework  supporting  private  investments  towards 
sustainable/green activities. The Kosovo Credit Guarantee Fund (KCGF) can guarantee up to 
80% of loan portfolios of financial institutions to MSMEs in areas such as energy efficiency 
and sustainable agriculture. The KCGF has issued up to EUR 303 million in guarantees as of 
July 2023.  

Chapter 28: Consumer and health protection 

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

for  upholding  patients’ 

rights 

Kosovo is at an early stage of preparation in this area. There was limited progress overall 
via the adoption of the Law on general product safety, however the law on consumer protection 
has not yet been adopted. Kosovo achieved compliance with the EU Digital COVID Certificate. 
As last year’s recommendations were not fully addressed, they remain largely valid.  

In the coming year, Kosovo should: 

→  adopt the law on consumer protection;  
→  increase human and financial resources and systems necessary to implement health sector 
reforms, especially by implementing the electronic public health information system, and 
improve access and health outcomes for those in the most vulnerable situations;  

→  ensure rigorous implementation of tobacco control, in line with the relevant EU acquis and 

international obligations. 

Consumer protection  

Kosovo’s legislative framework is partly aligned with the EU acquis. In October 2022, the 
government  approved  the  draft  law  on  Consumer  Protection,  which  amends  the  existing 
consumer law to the latest changes to EU consumer legislation introduced by Directive (EU) 
2019/2161.  However,  final  adoption  is  still  pending.  Enforcement  of  consumer  rights 
protection  remains  limited.  An  integrated  platform  to  harmonise  the  complaints  process 
remains to be created. The Central Bank has a division that handles most consumer complaints 
on financial services, in 2022 they have dealt with 644 complaints, lower compared with 2021.  

Regarding product safety, Kosovo adopted a new Law on general product safety designed to 
be  fully  aligned  with  the  EU  acquis.  During  the  reporting  period,  the  Market  Inspectorate 
conducted  2  830  product  safety  inspections,  imposed  311  fines,  processed  195  cases,  and 
confiscated 5 705 pieces of harmful goods. 

As regards non-safety issues, the law on consumer protection addresses consumers’ economic 
interests. The weakness of consumer rights organisations remains a challenge. 

Public Health  

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On public health policy, the quality of healthcare remains of concern. The draft law on health 
and  draft  law  on  health  insurance,  which  aim  to  steer  health  sector  reforms,  have  not  been 
amended.  The  new  2023-2030  Health  Sector  Strategy  has  been  drafted,  and  is  yet  to  be 
approved. Health expenditure amounts to around 3% of the GDP, which is second lowest in 
the  region  and  more  than  three  times  lower  than  the  EU  average  of  around  11%.  Kosovo 
allocated a record high  level  of health sector budget  in  2023 (around EUR 300 million), an 
increase  of  around  15.6%  compared  to  2022.  Health  financing  is  predominantly  based  on 
indicators.  Institutional 
historical  expenditure  and 
accountability  of  public  health  providers’  remains  low.  There  are  no  incentives  to  improve 
productivity, efficiency and quality in the sector. Despite a relatively strong network of primary 
healthcare  facilities  that provide  services  free  of  charge,  the  out-of-pocket  expenses  remain 
very  high.  Kosovo  has  an  e-health  information  system,  based  on  the  European  core  health 
indicators, 
that  enables  virtual  communication  between  users/patients  and  general 
practitioners,  provides  counselling  services,  and  captures  data  on  patient  admissions, 
discharges  and  transfers.  However,  it  is  not  used  by  all  health  institutions  and  further 
functionalities  (covering  pathology,  radiology,  blood  transfusion,  vaccination  and  other 
interventions) remain to be added. 

there  are  no  performance-based 

Life  expectancy  in  Kosovo  at  birth  remains  the  lowest  in  the  region;  non-communicable 
diseases are the leading cause of death, especially cardiovascular diseases and cancer. Some 
33%  causes  of  death  are  incorrectly  reported  or  are  not  diagnosed.  Health  promotion  and 
prevention  programmes  for  non-communicable  diseases  is  weak;  screening  for  chronic 
conditions (such as diabetes and hypertension) is not systematically performed. There has been 
no progress with the implementation of the health promotion action plan, or the strategic plans 
on  mother  and  child  healthcare.  Child  mortality  remains  a  serious  issue,  16  children  out  of 
1 000 live births die before they are five, three times higher than the EU average. In 2022, the 
government  made  efforts  to  improve  maternal  and  child  health.  It  expanded  home  visiting 
programmes to all municipalities and allocated additional resources to this (EUR 3.4 million). 
Although most indicators in the public health information system are aligned with the European 
Core  Indicators, it is  only  partly functional.  Its  utility  for policy development,  research and 
decision-making is therefore limited. 

On mental health, several clinical guidelines were approved. Mental health services continue 
to  be  integrated  services.  The  2013  Law  on  tobacco  control  is  not  being  comprehensively 
enforced and implemented, though there was a notable increase in inspections on smoking in 
public places in Pristina during Q2 of 2023.  

The legislation on blood, tissues, cells and organs is partly aligned with the EU acquis. Full 
alignment  with  the  EU  acquis  remains  a  challenge,  Kosovo  continues  to  lack  necessary 
administrative, infrastructure, financial and human resources capacities in this field. 

On  serious  communicable  diseases  and  serious  cross-border  threats  to  health,  Kosovo 
made some progress in strengthening its capacities for surveillance and reporting data to the 
World Health Organization. The Assembly adopted the law on communicable diseases in line 
with  ECDC recommendations and the EU  acquis in  August 2023. Routine immunisation is 
improving, however, coverage rates are still lower than pre-COVID-19 levels and currently 
stand between 87-89%. 

During the reporting period, health authorities in Kosovo continued to manage the COVID-19 
pandemic, and made further progress on surveillance, case investigation, contact tracing and 
case management.  In July 2022, Kosovo achieved compliance  with  the EU  Digital  COVID 
Certificate. The number of positive cases progressively declined, following the increase during 

94 

 
 
Q2 and Q3 2022. The rate of vaccination significantly declined during the reporting period. 
New cold-chain facilities and equipment to ensure proper storage of vaccines were finalised. 

Legislation on patients’ rights in cross-border healthcare is partially aligned with the EU 
acquis. For specialised health services that are not available in Kosovo, patients can benefit 
from  the  health  insurance  fund  for  health  services  abroad.  However,  the  Fund  is  currently 
serving only as a payment agent, instead of developing standardised approval and monitoring 
processes. It does not engage in any contract negotiation with hospitals abroad. Such passive 
position has generated significant financial risk to the health insurance fund.  

Kosovo  has  a  cancer  screening  programme.  However,  despite  some  progress,  cancer 
screening is not performed systematically. Main cancer diagnostic and treatment services are 
provided at the tertiary healthcare level at one clinical centre. 

Kosovo  has  not  made  any  progress  in  adopting  the  nutrition  action  plan  on  nutrition  and 
physical activity. Legislation on medicines for human use and medicines for veterinary 
use remain partially aligned with the EU acquis. The list of essential medicines, for which the 
costs are covered by the government, has still not been updated. The level of the coverage of 
costs for medicinal products from the essential list remains around 70%, and above 90% for 
consumables in primary healthcare. 

Health inequalities remain a serious issue. The continuous postponement of the introduction 
of  universal  health  insurance  scheme  and  out-of-pocket  payments  remain  very  high.  This 
influences the access to essential health services for those in vulnerable situations, such as those 
living  in  poverty,  in  rural  areas  and  persons  belonging  to  Roma,  Ashkali  and  Egyptian 
communities. It is estimated that almost a third of Kosovo population has only limited access 
to  health  care  services.  The  rate  of  routine  immunisation  of  Roma,  Ashkali  and  Egyptian 
children in Kosovo are only half that of other children.  

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH 

This  cluster  covers:  digital  transformation  and  media  (Chapter  10);  taxation  (Chapter  16); 
economic  and  monetary  policy  (Chapter  17);  social  policy  and  employment  (Chapter  19); 
industrial  policy  (Chapter  20),  science  and  research  (Chapter  25);  education  and  culture 
(Chapter 26); and the customs union (Chapter 29).   

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

Chapter 10: Digital transformation and media  

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

Kosovo  has  some  level  of  preparation  in  the  area  of  digital  transformation  and  media. 
Kosovo made limited progress by further aligning its legislative framework with the EU 
acquis, particularly with the adoption of the cybersecurity law. However, further alignment 
and  implementation  are  still  needed  in  the  area  of  audiovisual  policy  .  Kosovo  engaged 
constructively  in  high-level  regional  dialogue  on  digital  transformation  and  on  the 
implementation of the Regional Roaming Agreement. In September 2022, Kosovo hosted 

95 

 
 
the Western Balkans Digital Summit in Pristina. A sustainable solution for the funding of 
the public broadcaster and ensuring its editorial independence still needs to be found. The 
government  adopted the  Digital  Agenda 2030. The budgetary resources for cybersecurity 
remain insufficient. 

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

→  conclude  the  alignment  of  Kosovo’s  legislation  with  the  European  Electronic 
Communications Code, the EU Network and Information Security Directive (NIS 2) and 
the  EU’s  Toolbox  for  5G  cybersecurity;  revise  the  Law  on  the  Independent  Media 
Commission, in line with the Audio-visual Media Services Directive; 

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

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

competition. 

In the area of electronic communications and information and communication technologies 
(ICT), according to the Kosovo Agency for Statistics, in 2022, 97.9% of households had access 
to the Internet (compared to 96.1% in 2021). Kosovo’s broadband coverage is now 100%. In 
2022, the share of individuals purchasing or ordering goods and services online (within the last 
three  months)  was  51%,  compared  to  23.1%  in  2021.  Kosovo’s  legislative  framework  on 
broadband cost reduction is aligned with the EU acquis and implementation is advancing, with 
the  completion  of  the  broadband  atlas  and  the  single  information  point.  Further  efforts  are 
needed to align it with the European Electronic Communications Code to ensure freedom to 
provide electronic communications networks and services. Kosovo still needs to complete the 
drafting process of the Concept Document for the Electronic Communications Code.  

The Regulatory Authority of Electronic and Postal Communication approved the Frequency 
Release Plan, including all frequency bands with important economic value. In autumn of 2022, 
Kosovo  initiated  pilot  5G  access.  The  Regulatory  Authority  completed  the  process  of 
assignment of 800MHz and 3.5GHz bands to enable the deployment of 5G technology. Kosovo 
adopted the  regulation  for number portability for public electronic communications services 
subscribers. The existing resources of the Electronic and Postal Communications Regulatory 
Authority remain limited and not proportionate to their responsibilities. 

Alignment with the Digital Services Acts and Digital Markets Act needs to be stepped up, to 
provide predictability for the business community. 

Kosovo  made  some  progress  in  the  area  of  digital  transformation,  as  it  adopted  the  2030 
Digital Agenda. The Law on cybersecurity, which is partially aligned with the NIS Directive, 
has  been  adopted  on  2  February  2023.  The  strategy  and  action  plan  related  to  the  Law  on 
cybersecurity still need to be adopted. Kosovo developed basic capabilities in cybersecurity; it 
needs  to  step  up  efforts  to  ensure  proper  operational  mechanisms,  technical  capacities  and 
human resources to operate in the cyberspace context effectively. The e-government portal is 
operational:  the  platform  offers  over  150  fully  digitalised  services.  Kosovo  needs  to  make 
further efforts to finalise and adopt the e-Government Strategy. Kosovo still needs to align with 
the EU acquis on open data and the re-use of public sector information. Kosovo should also 
align with the European Interoperability Framework and the Interoperable Europe Act. 

On audiovisual  policy,  the  long-awaited  amendment  of  the  Law  on  Independent  Media 
Commission (IMC) has been further delayed. This process should be conducted in an inclusive 
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and transparent manner, with meaningful consultation with key stakeholders. The IMC failed 
to make any progress on the digital switchover to align with EU standards. Currently, the IMC 
still  lacks  adequate  human  and  financial  resources  to  exercise  its  powers  independently.  It 
should  also  ensure  it  is  transparent  and  inclusive  in  its  decision-making,  including  through 
more consistent public consultation. Due to the lack of information on media ownership and 
the  distribution  of  advertising  funds,  the  IMC  does  not  impose  effective  sanctions  on 
broadcasters, and no significant enforcement interventions were undertaken. The current Law 
of  the  IMC  provides  sufficient  regulatory,  enforcement,  and  monitoring  powers  to  ensure 
pluralism  and  competitiveness  in  the  market.  The  amendment,  currently  underway,  should 
further align the Law with the Audiovisual Media Services Directive to extend its powers to 
online audio-visual media. 

A review of the current Law on radio television of Kosovo (RTK) launched in 2019 has stalled. 
The draft law includes a funding model for RTK, whose editorial independence is weak, as it 
still relies on direct government funding, with the Assembly determining its budget annually. 
The  appointment  of  the  new  Director  General  through  an  open,  merit-based  process  is  a 
positive development. The Board should ensure that independent and professional individuals 
without links to political parties are appointed to managerial positions.  

Chapter 16: Taxation  

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

Kosovo has some level of preparation in the area of taxation. It made some progress with 
implementation  of  risk-based  tax  inspections  on  some  high-risk  sectors  and  service 
digitalisation. Increased compliance and formalisation measures have led to increased tax 
revenues.  

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

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

value added tax (VAT) with the EU acquis; 

→  ensure  more  systematic  implementation  of  risk-based  tax  audits  and  finalise  the  new 
strategy for combating the informal economy, money laundering, financing of terrorism 
and financial crime (2023-2026);   

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

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

Good progress was made during the period with regard to tax collection, enforcement and 
compliance. Between June 2022 and April 2023, the Tax Administration of Kosovo (TAK) 
collected revenues of 728.7 million EUR, 16.7% higher than the same period in the previous 
year.  During  the  reporting  period  TAK  also  stepped-up  activities  to  combat  the  informal 
economy, increasing the number of compliance visits, audits and investigations of suspected 
cases of fiscal evasion. These activities resulted in additional revenue of EUR 181.5 million 
for the period June 2022 – May 2023, 17% higher than the same period in the previous year. 

Regarding indirect taxation, the VAT system is broadly aligned with the EU acquis. Kosovo 
applies a standard 18% rate and a reduced 8% rate. The Law on VAT still needs to be further 
harmonised with the EU acquis. The legal framework and procedures on e-commerce taxation 

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need to be established. On direct taxation, Kosovo made no progress in amending the Law on 
personal income tax, or to remove contradictory provisions and further align it with EU acquis.  

On administrative cooperation and mutual assistance, Kosovo has not been able to join the 
inclusive framework of the OECD Base Erosion and Profit Shifting (BEPS) due to status issues. 
Kosovo has double taxation treaties in application with 11 EU member states (Austria, Croatia, 
Luxembourg, Hungary, Latvia, Malta, Slovenia, Germany, Finland and Belgium, and Ireland).  

On  operational  capacity  and  digitalisation,  the  Tax  Administration  made  progress  with 
regard to service quality, in particular with the use of e-services. This is also reflected in the 
2022  Tax  Administration  Diagnostic  Assessment  Tool  (TADAT  assessment).  In  terms  of 
streamlining  and  improving  its  service  delivery,  the  Tax  Administration  needs  to  further 
strengthen  professional  capacities,  especially  on  the  tax  inspection/audit,  and  improve  the 
effectiveness of tax audit functions. The Tax Administration is implementing its 2022-2026 
Strategy. It plans to increase revenue collection; strengthen voluntary compliance; strengthen 
approach and expertise in managing large taxpayers; build modern IT systems and tools; and 
strengthen  the  inspection  programme.  There  is  a  significant  seatback  regarding  the 
development of the new IT system for tax administration. The tax Administration intensified 
its  actions  on  risk-based  approach  regarding  tax  compliance.  Despite  higher  revenues 
registered from tax audit processes, Kosovo needs to strengthen enforcement of a risk-based 
approach. Data quality and exchange of data across different agencies for the administration of 
taxes remain a challenge.  

Chapter 17: Economic and monetary policy  

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

Kosovo is moderately prepared in the area of economic and monetary policy. Some progress 
was made with data collection and transmission to Eurostat; however, further efforts are needed 
to address the methodological inconsistencies on national accounts. The Central Bank has faced 
challenges in performing its tasks and responsibilities. After a vacancy of a few months, in July 
2023 the Assembly elected a new governor. The Assembly also adopted a Law on minimum 
wages,  decoupling  war  veterans’  pensions,  in  an  effort  to  ensure  compliance  with  the  legal 
ceiling applicable for spending on war veteran pensions. 

The  2022  recommendations  were  not  fully  addressed  and  therefore  remain  valid.  Kosovo 
should in particular:  

→  strengthen the Central Bank’s governance by completing the procedure for the selection of 

its Deputy Governors; 

→  increase  reporting  capacities  for  governmental  financial  statistics  according  to  the  ESA 

2010 and ensure regular monitoring of standards;  

→  improve the quality of macroeconomic forecasting in the budgetary process.  

Kosovo does not have an independent monetary policy and does not have standard monetary 
policy tools at its disposal, as it uses the euro as a legal tender, leaving fiscal policy as the main 
macroeconomic policy instrument. Kosovo’s use of the euro is fully distinct from membership 
of the euro area.  

The Central Bank of Kosovo (CBK) is the sole authority responsible to promote and maintain 
the stability of the financial system in Kosovo and to contribute to maintain price stability. The 
Law  on  the  Central  Bank  and  the  constitution  establish  its  functional  and  institutional 
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independence,  prohibits  its  decision-making  bodies  to  give  and  receive  instructions  from 
government authorities. The Law also prohibits monetary financing of the public sector and 
ensures that the latter does not have privileged access to financial institutions. 

The Central Bank of Kosovo is facing challenges in performing its tasks and responsibilities. 
The  mandate  of  the  Governor  ended  in  March  2023,  and  the  position  was  vacant  until  the 
Assembly appointed a new governor in July. Even though new staff were recruited, the Central 
Bank needs to ensure that its core functions, including banking supervision and maintaining 
financial  stability,  are  adequately  staffed.  The  Bank  still  needs  to  implement  reforms  with 
regard to its corporate governance structure in order to improve its accountability. 

On economic policy, Kosovo needs to further align with the requirements of the EU Directive 
on  budgetary  frameworks.  In  July,  the  Assembly  adopted  a  Law  on  minimum  wages, 
decoupling the level of war veterans’ pensions from the minimum wage in an effort to ensure 
compliance with existing legal spending limits. Although fiscal rules are well established in 
the legislation, further efforts are required to ensure their full compliance. 

During the reporting period, operational capacities of the Ministry of Finance improved. In 
particular, macro-fiscal modelling, planning and forecasting, as well as assessment of the fiscal 
impact of the government's new policy and legislative initiatives has improved.  Kosovo is at 
the early stages of introducing programme-based budgeting. Some steps have been taken to 
better  link  the  medium-term  policy  with  budgetary  planning  process.  Nonetheless,  strong 
political will and inter-institutional cooperation are necessary to transform the budget into a 
policy-planning tool and strengthen the medium-term budgetary framework. 

During the reporting period progress was made in the timeliness and completeness of annual 
national accounts data produced, according to the European System of Accounts (ESA) 2010 
methodology.  Some  progress  was  made  also  in  government  deficit  and  debt  statistics,  but 
further work is expected to fully adhere to the ESA 2010 methodology. Kosovo should make 
efforts  to  improve  the  coverage  and  timeliness  of  the  Excessive  Deficit  Procedure  (EDP) 
notification tables and to start completing the questionnaire relating to the EDP tables. After 
the tables for quarterly financial accounts for general government were transmitted to Eurostat 
for the first time in 2023, Kosovo now provides the currently full set of required Government 
Finance Statistics (GFS) tables. However, efforts are still needed to improve various qualitative 
aspects of the tables. 

The  2023-2025  Economic  Reform  Programme  (ERP)  was  submitted  on  time.  There  is  a 
significant  degree  of  uncertainty  surrounding  the  macroeconomic  and  fiscal  framework 
presented in the ERP. The ERP projects a robust acceleration of economic activity in 2023-
2025, which is above the historical trend. An expected strong rebound in public investment is 
seen as a key growth driver, but in order to realise this ambition, obstacles to public investment 
execution need to be effectively addressed. There are additional sizeable downside risks to this 
outlook notably linked to higher-than-expected energy and food prices following Russia’s war 
of aggression against Ukraine and the induced energy crisis.  The 2022 policy guidance has 
been  implemented  only  partially.  The  structural  reforms  presented  in  the  ERP  reflect  the 
government’s  plan  to  address  obstacles  to  competitiveness  and  inclusive  growth  in  the 
medium-term. However, implementation of the structural measures has often been delayed and 
improvements  have  not  materialized.  Similarly,  additional  efforts  are  necessary  to  improve 
macro-fiscal  projections  underpinning  the  budget  and  the  linkage  between  the  macro-fiscal 
framework and the planning of structural reforms. 

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Chapter 19: Social policy and employment  

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

Kosovo is at an early stage of preparation in this area. Some progress was made during the 
reporting  period,  in  particular  on  the  preparations  for  the  implementation  of  the  Youth 
Guarantee, in securing funds for social services and intensifying inspections in work sectors 
with higher risk. However, the rate of fatal occupational accidents remains high. 

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

→  continue  implementing  the  Youth  Guarantee  Implementation  Plan  to  prepare  for  the 
piloting of the scheme; adopt the amendments to the Law on Labour to align with recent 
EU acquis, particularly in relation to non-discrimination in employment and parental leave; 

→  continue  intensifying  inspections  in  work  sectors  with  higher  risk,  and  enforce  rules  on 

health and safety at work to ensure a decrease in workplace accidents; 

→  pursue  thorough  reforms  in  the  area  of  the  social  assistance  schemes  to  ensure  better 
targeting and impact, and improve access to social services, in particular for children. 

Kosovo has postponed amendments to the legislation on labour and on health and safety at 
work, which are necessary to further align with the EU acquis, including with the EU Directive 
on work life balance. The 2014 Law on health insurance, providing for the right and obligation 
to have mandatory basic package health insurance for all citizens, has not been implemented. 
The Labour Inspectorate has intensified inspections, but with limited impact on prevention of 
accidents. During 2022, there were 349 workplace accidents, of which 15 resulted in fatalities. 
The  Labour  Inspectorate  is  increasing:  in  2022, 12  new  inspectors  were  recruited.  The  Tax 
Administration  Inspectorate  took  actions  to  formalise  jobs,  and  together  with  Labour 
Inspectorate and International Labour Organization, launched a campaign to promote labour 
rights.  

On social dialogue, tripartite and bipartite dialogue remain limited. During 2022, the Social 
Economic  Council  mandated  its  Commission  to  negotiate  the  new  General  Collective 
Agreement. The social partners have approved the work plan for 2022 and 2023. On 14 June 
2022, the Assembly approved in the first reading an increase in the minimum wage at EUR 
264  (from  EUR  170)  per  month,  but  the  final  adoption  is  pending.  The  capacity  of  social 
partners remains limited.  

On employment policy, Kosovo has continued drafting a new employment and labour market 
strategy 2023-2028, a new employment policy 2022-2024, and a concept document regulating 
the field of employment. The last sectoral strategy (2018-2020), albeit with modest targets, had 
a very low implementation rate. 

The overall activity rate stood at 38.6% in 2022, a slight decrease compared to 39.3% in 2021. 
Unemployment  rates  in  2022  were  12.6%  (20.7%  in  2021).  The  rates  are  higher  among 
women, 16.5% (25% in 2021), than among men, 11% (19% in 2021). The indicators that still 
give  rise  to  most  concerns  are  the  high  inactivity  rate,  61.4%  (60.8%  in  2021)  and  youth 
unemployment 21.4% (38% in 2021). Unemployment is even higher (over 90%) in the Roma 
and Ashkali communities. Members of these communities usually work in the informal sector, 
holding insecure, low-skilled and low-status jobs.  

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Youth  unemployment  remains  high  (21.4%  in  2021),  particularly  among  women  (27%).  
Demographic pressures, joblessness growth pattern, a propensity towards emigration and poor 
education are key factors in the precarious position of young people. A recent mapping shows 
that  since  2018  there  have  been  remarkable  shifts  in  the  categories  of  young  people  not  in 
employment, education or training. The rates for those with primary education had levelled at 
below 30%, the rates of secondary educated youth increased, at a moderate pace, to just over 
40%, while the rates for university educated young people increased from around 30% to over 
50%. Kosovo has continued the preparations for the implementation the Youth Guarantee, in 
line  with  the  implementation  plan  adopted  in  November  2022.  As  of  2023,  authorities  are 
working to ensure conditions for piloting the Youth Guarantee in two municipalities, and in 
amending relevant legislation, restructuring the key delivery mechanisms (public employment 
services), and fast-tracking some long-due reforms in vocational education training. 

Kosovo  is  restructuring  the  Employment  Agency  so  as  to  deliver  on  the  Youth  Guarantee 
implementation plan. Management and operational procedures, and data management are still 
weak.  The  labour  market  information  system  to  support  evidence-based  policy  making  and 
planning  is  outdated  and  lacks  operational  capacity  in  critical  areas.  The  lack  of  human 
resources in public employment services is the greatest concern. 

There were no developments on the preparation of the European Social Fund. (See Chapter 
22  -  Regional  policy  and  coordination  of  structural  instruments).On  social  inclusion  and 
protection, Kosovo’s spending on social assistance scheme amounts to 6% of GDP, but less 
than 0.5% of GDP is allocated to the most deprived as most of the amount is spent on war 
veterans’ pensions. On 4 April 2023, the Assembly has ratified an agreement with the World 
Bank to conduct thorough reforms in the social assistance system. Kosovo made no progress 
to provide funding allocation for social services. The draft law on local government finances 
is not part of the 2023 legislative plan raising concerns as to the sustainability of financing for 
social services. For 2023 the government fund dedicated for licensed NGOs to provide social 
services increased by 50% (from EUR 1 million to 1.5 million); this does not address fully the 
funding situation for the provision of quality social services at the local level. Municipalities 
should make effort to improve service planning and delivery, data collection and integrated 
care. Care for the elderly remains a serious issue. Around 18% of Kosovo's population lives 
below the poverty line (EUR 45 per month, with 5.1% percent of the population living below 
the extreme poverty line). Children from poor households, and those with special needs, lack 
equal access to vital and quality health and education services. Children represent half of those 
benefiting from social assistance, but less than 10% of them are with special needs. Children 
with disabilities lack adequate health and rehabilitation services, social services and assistive 
equipment  from  state  institutions.  Most  of  them  lack  proper  access  to  education  facilities. 
Around  9%  of  children  are  involved  in  work,  of  whom  5.6%  working  under  hazardous 
conditions, an issue being particularly evident among the Roma and Ashkali communities.  

Kosovo has to intensify efforts to address discrimination against women in employment and 
social policy, particularly during hiring procedures, promotion and pay. The unequal share of 
responsibilities present in the maternity, paternity and parental leave between women and men 
hinders  women’s  employment.  Women  face  discrimination  also  when  they  are  pregnant  or 
wish to have children; therefore, it is important to treat the termination of a probationary period 
due to pregnancy as direct discrimination. Trainings are needed for both labour inspectors and 
judges to better address the issue of gender-based discrimination. In 2022, the employment rate 
for the population aged 15-64 was 18.4% for women and 49.4% for men, resulting in a very 
high gender employment gap of 31 percentage points. Limited access to childcare and flexible 
working  arrangements,  as  well as regulations that  discourage the recruitment of women are 

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important barriers. Other challenges faced by women, especially in rural areas, are the lack of 
care for the elderly, discrimination in the access to property, and gender-based violence. 

Chapter 20: Enterprise and industrial policy 

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

Kosovo is moderately prepared in the area of enterprise and industrial policy. It made good 
progress, as the government approved the Strategy for industrial development and business 
support 2030, the first of its kind. The Assembly passed the Law on sustainable investment and 
the  Law  on  technological  and  industrial  parks  in  first  reading.  The  laws  provide  for  the 
establishment of two new agencies dedicated to investment and export promotion and business 
support and entrepreneurship. The operational performance of the existing Kosovo Investment 
and Enterprise Support Agency (KIESA) also improved during the period. .  

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

→  Implement  the  strategy  for  industrial  development  and  business,  and  the  sustainable 

economic growth pillar of the national development strategy 2021-2030; 

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

→  complete  the  restructuring  of  the  Kosovo  Investment  and  Enterprise  Support  Agency 
(KIESA) into separate investment promotion and SME support agencies, as well as ensure 
both are sufficiently resourced. 

As regards enterprise and industrial policy, the Ministry of Industry Entrepreneurship and 
Trade (MIET) prepared an ambitious strategy for industry development and business support 
2030. It aims to improve the business environment in Kosovo, promote industrial development, 
address the trade deficit, create jobs, as well as to ensure both resource efficiency and a more 
circular economy. The Ministry prepared a comprehensive analysis of the main subsectors in 
the manufacturing sector to use for refining its policies and actions. In view of the expansion 
of  solar  energy  in  the  carbon  emissions  policy,  incentives  for  the  use  of  renewable  energy 
sources in industry are planned; their approval is expected in 2023.  

The  Assembly  has  adopted  in  first  reading  two  laws  to  promote  investment  and  encourage 
private  sector  development:  a  Law  on  Technological  and  Industrial  Parks  and  a  Law  on 
Sustainable  Investment.  The  latter  anticipates  restructuring  of  the  Kosovo  Investment  and 
Enterprise Support Agency (KIESA) into an Agency for Support to the Enterprises within the 
MIET,  and  of  the  Agency  for  Investment  and  Export  (AIE)  under  the  remit  of  the  Prime 
Minister’s Office. With clear delineation of responsibilities, the two agencies could be more 
efficient  in  providing support to  active companies and attracting new investors. KIESA has 
long struggled with limited capacities to implement its broad mandate. Despite this, KIESA 
has strongly improved its performance in 2022, increasing foreign direct investments (FDI) by 
43.6% over the period January to September 2022 and increasing participation of Kosovo firms 
in international trade fairs.  

A concept document for public enterprises adopted in 2023 envisages the revision of the Law 
on  public  enterprises  and  implementing  legislation.  The  Ministry  of  Economy  has  initiated 
policy  changes  covering  publicly  owned  enterprises  to  align  with  the  new  legislation  on 
Sovereign Fund. In June 2023, the government adopted the Law on the Sovereign Fund. 

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In the area of policy instruments, the KIESA organised a high number of activities despite 
capacity  deficiencies.  The  Agency  had  difficulties  fulfilling  its  objectives,  in  particular 
enabling the implementation of before- and after-care services and programmes and promoting 
links between multinational enterprises and SMEs. 

Kosovo has no streamlined process to handle investors’ grievances and retain investments. 
Having such a process would implement the principles of the systemic investment response 
mechanism,  as  proposed  by  the  World  Bank.  The  fragmented  and  inefficient  flow  of 
information  between  state  institutions  remains  a  challenge,  it  in  turn  presents  obstacles  for 
SMEs to access the available business support services and obtain permits and licenses. When 
applying  for  government  support,  SMEs  are  required  to  submit  excessive  paperwork  and 
information, which extends the application time. 

The Law establishing  the legal  framework for a  Commercial Court was passed in  February 
2022 and the court became fully operational and began hearing cases in August 2022. Although 
since  2022  the  legislation  on  foreign  investment  includes  equal  treatment  of  national  and 
foreign nationals and companies, foreign nationals and companies still encounter challenges in 
practice, for instance when registering property rights.  

Kosovo  has  significantly  increased  the  number  of  services  available  on  its  e-government 
platform and has begun preparations to simplify and digitalise permits and licenses on the e-
government  platform.  Business  licensing  procedures  are  clear  and  centralized.  Kosovo 
continues reforms to reduce the administrative burden on businesses. Self-employed workers 
face a low tax burden and the incorporated SMEs benefit from corporate income tax incentives. 
The tax administration simplification and the development of digital services have decreased 
tax compliance costs for SMEs. 

The lack of easily accessible and affordable credit serves is a substantial barrier to the growth 
of SMEs. In addition, SMEs and corporations suffer from a low capacity to prepare bankable 
projects  due  to  informality  in  accounting  practices,  weak  corporate  governance,  and 
management quality,  in  addition  to  integrity issues. By 2022, the Kosovo Credit Guarantee 
Fund (KCGF) expanded; it now enables loans worth EUR 270 million to 8 871 micro-small 
and medium-sized enterprises (MSMEs) in the sectors of production, services agriculture, and 
trade, including start-up firms and female owned businesses. On 11 May 2023, Kosovo signed 
the Association Agreement for the participation in the EU “Single Market Programme” (SMP).   

Chapter 25: Science and research 

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

Kosovo is at an early stage of preparation in the area of science and research. Some progress 
was made during the reporting period: Kosovo substantially improved its performance in the 
EU’s framework programme on research and innovation. 

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

→  fully  implement  the  national  science  programme,  including  prioritise  and  promote 
scientific research and innovation, ensure higher spending on research and innovation, and 
seek to stimulate investment from the private sector by completing a smart specialisation 
strategy;  

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

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→  use the newly established current research information system to provide reliable data on 
numbers of researchers, on percentage of GDP spent on research and innovation, and on 
performance related to the European Research Area priorities. 

Despite some progress on research and innovation policy, Kosovo lacks a strategic approach 
to  develop,  prioritise and promote research activities. There has been some progress in  this 
respect since the National Science Council developed the national science programme as the 
main strategic document on science and research. It identifies priority fields for the economic 
and  social  development  for  the  next  six-year  period.  In  addition,  it  includes  new  funding 
models and the creation of a fund for innovations.  

The  smart  specialisation  strategy  should  be  completed  as  a  priority.  The  current  research 
information system has been developed and should be put into use. It systematically collects 
research, science and innovation data, that should be used to support evidence-based decision 
making. The bundling of competencies for science, education, technology, and innovation in a 
single  ministry  is  a  welcome  development.  This  should  foster  the  coordination  and 
administrative capacities to plan, implement, monitor, and evaluate research and innovation 
policies. 

The  research  and  innovation  sector  is  severely  underfunded,  with  public  research  spending 
amounting to only 0.1% of GDP despite a 0.7% of GDP target mandated by law. The financing 
of scientific research through the allocation of the budget for higher education institutions is 
unclear since the budget for scientific research and innovation is not separated from the budget 
for  universities.  The  quality  of  programmes  preparing  postgraduates  for  research  careers 
remains unsatisfactory. Funding of innovation support measures is urgently needed to support 
the economic recovery. Kosovo is encouraged to take up the opportunities made available by 
the European Institute of Innovation and Technology. 

Kosovo was for the first time fully associated to Horizon Europe in 2021. After a slow start, 
preliminary figures for 2022 show a substantial performance increase from the research and 
innovation community with five projects receiving a total EU funding of EUR 0.8 million. 

Chapter 26: Education and culture 

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

Kosovo  has  some  level  of  preparation  in  the  field  of  education  and  culture.  During  the 
reporting period there has been some progress, notably with the Kosovo Accreditation Agency 
becoming an affiliated member of the European Association for Quality Assurance in Higher 
Education and the European Quality Assurance Register for Higher Education, and with the 
adoption of the Law on  the Kosovo Accreditation Agency and the Law  on early childhood 
education.  However,  the  quality  of  education  still  needs  improvement  in  terms  of  teachers’ 
qualifications and training and learning outcomes. The Assembly should adopt key legislation 
on higher education. 

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

→  develop  a  roadmap  for  the  implementation  of  key  reforms  of  the  education  system, 

including the recommendations under the ETF Rapid Education Diagnosis;  

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→  finalise the implementation of the new curricular framework for basic education, complete 
the  revision  of  the  existing  textbooks  and  provide  sustainable  training  to  teachers; 
systematically apply quality assurance mechanisms at all education levels; 

→  enhance the VET governance and increase the quality of vocational education and training 

for professions in demand in view of the Youth Guarantee. 

Kosovo’s  public  spending  on  education  in  2022  stood  at  4.1%  of  GDP  (13.3%  of  the  total 
budget).  Although  the  amount  as  a  percentage  of  GDP  is  comparable  to  EU  countries,  per 
capita spending is considerably lower. Thus, Kosovo should increase the funds for students 
per capita and for investment in quality education. The funding formula used to allocate pre-
university budget to each municipality is under revision, as the current one is not sufficiently 
accurate. During 2022, almost two thirds of schools in rural areas (63%) operated in multiple 
shifts. In consequence, pupils receive an insufficient number of teaching hours.  

In recent years, Kosovo has made considerable progress in increasing access to pre-primary 
and primary education. It should nevertheless do more to equitably increase coverage of pre-
school  and  secondary  education.  In  the  2021/2022  school  year,  224 429  pupils  attended 
primary and lower secondary education: a decline of 18% compared to the 273 649 pupils in 
2014/2015. On average, (gross) enrolment rates in primary and secondary education are very 
similar  to  those  in  the  region,  and  relatively  high:  88.1%  of  children  attend  pre-primary 
education but for no more than 2 to 2.5 hours/ day in public institutions. In private institutions, 
the duration is 7 to 8 hours/ day. In 2020/2021, the inclusion rate in primary education was 
101.2%. Participation of children in pre-school education and care remains low, at 6.7%, well 
below the average in the region and the OECD average (over 36%). Only 46.2% of pre-school 
children are girls, while the number of Roma, Ashkali and Egyptian children included in the 
early childhood education system is low. The new Law on pre-school education was adopted 
by the Assembly on 10 July 2023; the primary curriculum for Early Childhood Education is 
being developed. Higher education gross enrolment rate continues decreasing and is currently 
at 49.4%, almost 30% lower than five years ago, but low graduation rates remain of concern. 

Kosovo adopted a new education strategy 2022-2026, which includes plans for digitalisation 
of schools, focusing on digital learning, platforms, content, teachers upskilling and support, 
connectivity,  devices,  and  institutional  support.  For  the  successful  implementation,  the 
Ministry of Education, Science and Technology (MESTI) needs to ensure the necessary human 
and financial resources. The restructuring of the MESTI is still pending. The restructuring of 
the MESTI is still pending. 

The quality of education remains poor, as evidenced by the last two OECD Programme for 
International  Student  Assessment  (PISA)  evaluations,  with  Kosovo  ranking  respectively 
second  and  third  from  bottom.  Kosovo  participated  in  the  2019  Trends  in  International 
Mathematics  and  Science  Study  (TIMSS),  in  the  2021  Progress  in  International  Reading 
Literacy Study (PIRLS) and PISA 2022. In TIMSS 2019, Kosovo was among the ten poorest 
performers.  However,  Kosovo  has  joined  the  ICILS  2023  (International  Computer  and 
Information  Literacy  Study)  which  can  help  monitor  targets  regarding  students’  digital 
competences and also monitor progress toward the UN Sustainable Development Goals. 

Kosovo  is  participating  in  the  European  Education  Area  working  groups  2021-2025.  These 
working groups fosters collaboration among European Union Member States, as well as with 
candidate  countries,  in  order  to  build  more  resilient  and  inclusive  national  education  and 
training systems and prepare their youth for the green and digital transition. 

Reforms are still lagging behind due to the lack of suitable textbooks, teaching materials and 

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sustainable  professional  development  schemes  for  teachers.  Another  issue  is  the  mismatch 
between education outcome and skill requirements. The law on the education inspectorate is 
not properly enforced due to the insufficient number of inspectors. 

Higher  education  institutions  (HEIs)  should  invest  more  in  the  implementation  of  their 
strategic  documents  and  action  plans.  Academic  integrity  remains  an  issue.  The  Ministry 
adopted a decision on the compatibility of scientific works and publications of the academic 
staff with ethics in research, obliging programme holders to upload their research in indexed 
platforms ahead of accreditation of their programmes. It also has developed the new Kosovo 
Research Information System (KRIS) platform that requires the registration of all researchers. 
During the reporting period, MESTI developed a roadmap on the performance-based funding 
of the public HEIs. All public HEIs have fully aligned with the accreditation standards. Apart 
from the University of Pristina, all public universities depend financially on the state budget. 
Kosovo should adopt the new law on higher education that would strengthen the autonomy and 
academic integrity of higher education institutions, governance matters and improve quality 
assurance.  The  limited  involvement  of  the  students  in  the  decision-making  processes  at  the 
university level remains an issue. The newly adopted Kosovo education strategy 2022-2026 is 
expected to address the above-mentioned issues. In 2022, the Kosovo Accreditation Agency 
(KAA) became  an affiliated member of the European Association  for Quality  Assurance in 
Higher Education and the European Quality Assurance Register for Higher Education. Kosovo 
adopted  the  Law  on  the  Accreditation  Agency  which  aims  at  increasing  its  operational 
independence and transparency of appointments of the KAA management.  

Over half of upper secondary schools students  enrol in  vocational  education and training 
(VET).  The  statistics  for  the  2022/2023  academic  year  show  that  out  of  67 373  students 
enrolled in upper secondary education,  35 568 students are enrolled in vocational education 
schools,  compared  to  31 805  students  enrolled  in  gymnasiums.  VET  profiles  offered  by 
vocational schools are not based on occupational standards and are often not well aligned with 
the labour market demands. Funding for vocational education has not increased over the last 
few years. Only 9.6% of the total education budget is allocated to VET.  

Work-based  learning,  integrated  in  the  current  VET  curriculum,  is  not  systematically 
delivered.  The  currently  used  subject-based  curricula  are  not  geared  towards  developing 
vocational  skills. Schools generally lack the conditions,  teacher skills,  equipment,  materials 
and  structured  cooperation  with  businesses  to  develop  learners’  practical  skills.  During  the 
reporting  period,  Kosovo  adopted  the  Youth  Guarantee  implementation  plan,  making  the 
introduction of the necessary reforms in VET even more urgent. It includes both preventative 
measures to make education and VET more relevant and measures to expand offers for young 
people that are not in employment education or training (NEET).  

Kosovo needs to increase the access of students with disabilities to education. It is estimated 
that 38 000 children with disabilities do not attend school. Key problems include the lack of 
suitable definitions of various forms of disability, barrier-free access to schools and adequate 
support, and the low number of suitably qualified teachers and assistants. Despite the positive 
development  with  the  decision  of  the  government  to  increase  the  number  of  assistants  for 
children with special needs to 100 per year, at least until 2024, the quality of education for 
children with disabilities is low. The dropout rate remains higher among Roma and Ashkali 
children though statistics are unreliable. During the reporting period, trainings were organised 
on inclusive education, human and minority rights and on Kosovo respective policies and legal 
framework for 25 municipal officers (14 women and 11 men) from 22 municipalities. 

With the cooperation of the Kosovo government, the European Training Foundation carried 
out  an  evidence-based  rapid  education  diagnosis  of  the  entire  education  system  addressing 
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three main thematic areas: inequality, financing and governance. The analysis aimed to identify 
key issues and actions to improve the quality and delivery of education services overall. The 
Foundation drew up a set of recommendations for the Kosovo authorities to consider. These 
recommendations include: (i) setting up adequate monitoring and evaluation mechanisms; (ii) 
improving cross-ministerial cooperation; (iii) boosting institutional capacity, particularly for 
financial management; and (iv) setting priorities in the Education Strategy. 

Kosovo benefits from the international dimension of the 2021-2027 Erasmus+ programme. In 
2022, around 480 higher education staff members and 650 students from Kosovo were selected 
to  undertake  a  mobility  period  in  EU  Member  States  and  associated  third  countries  to  the 
programme,  while  Kosovo’s  higher  education  institutions  are  expected  to  host  375  staff 
members and 225 students from Europe.   

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

The  Ministry  of  Culture,  Youth  and  Sport  (MCYS)  has  the  responsibility  to  prepare  and 
implement public policies, drafts legal acts, and adopts implementing legislation in the field of 
culture, youth,  sports,  copyright and related rights.  MCYS  is  at  an  early  stage to  develop  a 
culture  strategy.  MCYS  needs  to  increase  its  efforts  to  improve  the  status  of  the  artistic 
community,  governance  and  budget  issues  of  public  cultural  institutions.  During  reporting 
period, the Ministry allocated EUR 500 000 for construction of the Jewish Cultural Centre that 
will serve to organise exhibitions on the history of the Jewish community. MCYS can increase 
its  commitment  towards  further  development  of  technical  capacities  in  the  specific  cultural 
heritage  skills  by  ensuring  further  education  of  the  students  in  this  area  and  providing 
professional training.  

Kosovo currently participates in the Creative Europe programme. More efforts are needed to 
increase the number of culture beneficiaries in  Culture strand calls with  European partners. 
Kosovo still has to increase efforts to align on the short term its legislation with EU Audiovisual 
Media Services Directive, in order to participate as well in MEDIA strand. 

Chapter 29: Customs Union 

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

Kosovo is moderately prepared in the area of customs. During the reporting period, it made 
some progress as it reduced fees charged to exporters/importers at inland customs terminals, 
opened a customs office at the Port of Durrës (Albania) increased the number of authorised 
economic  operators  and  enforced  customs  measures,  for  example  for  the  protection  of 
intellectual property rights (IPRs). Kosovo Customs has continued the fight against narcotics 
and  other  smuggling  activities.  As  not  all  the  recommendations  from  the  previous  report 
have been addressed, in the coming year Kosovo should in particular: 

→  continue  to  align  with  the  Union  Customs  Code  and  the  excise  acquis,  including 

approving a new Customs and Excise Code; 

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→  Kosovo Customs should strengthen its administrative and professional capacity, and to 
that  end,  ensure  merit-based  and  transparent  selection  processes,  transfers  and 
promotions; 

→  abolish all fees charged to exporters/importers at both public and private inland customs 

terminals.  

In  the  area  of  customs  legislation,  the  newly  drafted  Customs  and  Excise  Code,  which  is 
aligned with that of the Union Customs Code, is still to be adopted by the government. 

Due  to  recognition  issues,  there  was  no  progress  on  Kosovo’s  application  to  become  an 
observer  under  the  Common  Transit  Convention.  Regarding  the  rules  of  origin,  Kosovo 
continues  to  apply  the  Pan-Euro  Mediterranean  (PEM)  Convention.  The  Kosovo  Customs 
continues  to  systematically  exchange  data  on  the  cross-border  movement  of  goods  among 
Western  Balkan  economies.  Kosovo  is  participating  in  ‘Customs’,  the  EU  programme  for 
cooperation in the field of customs.  

The legislation on customs measures governing IPR and export controls for cultural goods is 
aligned with the EU acquis. 

Kosovo Customs continued to make good progress on trade facilitation. Kosovo Customs has 
granted an additional five certificates for Authorized Economic Operators, bringing the total 
number to ten Authorized Economic Operators.  

There is some progress with regard to reducing fees for exporters/importers at inland customs 
terminals. Import fees have been entirely abolished at the Peja customs terminal, while the 
Trepca terminal applies a reduced fee. All other customs terminals apply a full fee.  

Kosovo  Customs  should  still  strengthen  its  administrative  and  operational  capacity,  by 
ensuring  merit-based  and  transparent  transfers,  promotions  and  selection  processes.  In  this 
regard,  it  should  update  its  secondary  legislation  job  descriptions.  Kosovo  Customs  should 
continue to implement its medium-term strategic plan (2019-2023).  

During the reporting period, Kosovo Customs jointly with Kosovo Police detected and seized 
substantial amounts of narcotics valued at several million euro. Kosovo Customs conducted 42 
field  inspections.  Kosovo  Customs,  other  law  enforcement  authorities  and  line  institutions, 
cooperate well to fight against the informal economy and customs fraud.  

Kosovo Customs initiated three cases involving four customs officers suspected of corruption 
of  which  12  officers  have  been  dismissed,  and  one  arrested.  The  legal  framework  for 
investigation of asset declarations checks filled by customs officials is still not developed. 

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY 

This  cluster  covers:  transport  (Chapter  14);  energy  (Chapter  15);  trans-European  networks 
(Chapter 21); and environment and climate change (Chapter 27).  

Kosovo is at an early stage or has some level of preparation in areas related to the Green Agenda 
and  sustainable  connectivity.  Kosovo  continues  to  actively  participate  in  the  Transport 
Community and Energy Community meetings. During the reporting period, some progress was 
made in the energy sector. Kosovo adopted an ambitious energy strategy, which includes an 
increased  share  in  renewable  energy  sources,  and  launched  the  first  solar  auction  Kosovo 
remains heavily reliant on coal. Limited progress was made in the transport sector with the 
adoption of the multimodal transport strategy, whereas limited progress was made in the areas 
of environment and climate change.  

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Kosovo needs to significantly increase its ambition and administrative capacities to properly 
implement EU standards on transport, energy and environment. Strategies, action plans and 
legislation  in  these  sectors  need  to  be  more  consistent  and  in  line  with  the  principles  and 
objectives of the Green Agenda for the Western Balkans and the Economic and Investment 
Plan.  

Chapter 14: Transport policy 

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

Kosovo is in an early stage of preparation in this area. It made limited progress, notably with 
the adoption of the multimodal transport strategy.  

As most of the last year’s recommendations have not been addressed, they remain valid; Kosovo 
should: 

→  invest  in  road  maintenance  and  inspections, organise prevention campaigns and establish 
a  systematic  monitoring  mechanism  for  the  collection  of  crash  data  and  continue  the 
alignment  with  the  EU  rail  market  acquis,  and  in  particular,  the  Law  on  safety  and 
interoperability;  

→  adopt  and  roll  out  the  action  plan  2023-2025  of  the  multimodal  transport  strategy;  align 
Kosovo’s aviation regulation with the European Common Aviation Area Agreement; 

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

On transport matters, Kosovo proactively participated in Transport Community activities. In 
January 2023, the government approved the Multimodal Transport Strategy; the adoption of the 
action plan is still pending. Further efforts are needed to align and implement the EU acquis in 
all  areas of the sector,  with  a focus on  safety  and  incorporating  elements  of the Smart and 
Sustainable  Mobility  Strategy.  Kosovo  needs  to  take  concrete  measures  to  speed  up  the 
implementation to meet the deadlines set in the five Transport Community Action Plans (rail, 
road, road safety, waterborne transport and multimodality). Kosovo made limited progress on 
the  implementation  of  Annex  1  of  the  Transport  Community  Treaty.  The  operational  and 
administrative  capacities  of  the  enforcement  bodies  remain  insufficient.  Kosovo  needs  to 
upgrade  the  existing  capacities  to  improve  coordination  to  ensure  proper,  timely  and 
professional  implementation  of  all  infrastructure  projects.  Kosovo  should  begin  to  enhance 
transport climate resilience and the use of alternative  fuels,  in  line  with  the  Green  Agenda 
and  the  Smart  Sustainable Mobility Strategy for the Western Balkans.  For larger transport 
agglomerations,  sustainable  urban  mobility  plans  which  respect  environmental  and  social 
standards should be developed following EU practice. 

On road transport, Kosovo should make further efforts to align with the EU acquis. For the 
first time, Kosovo has allocated a budget for 2022-2024 to set up the Road Asset Management 
System.  Kosovo  should  implement  the  recommendations  on  establishing  a  Road  Safety 
Agency, including developing the national system for continuous road crash data collection. 
The current road crash data collection system is not compliant with Common Accident Data 
Set (CADaS) and the improvement of the system is not yet foreseen. Kosovo should continue 
raising awareness to achieve better results in line with the United Nations (UN) and EU's goal 
to halve the number of road deaths and injuries by 2030. Kosovo should also still implement 

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the  report  recommendations  of  Technical  Assistance  to  Connectivity  project  in  the  Western 
Balkans - CONNECTA - to improve the quality of the road network and implement actions as 
set out in the road safety Transport Community Treaty regional action plan. The draft bylaw on 
aligning the Directive 2008/69/EC on road infrastructure safety management and the bylaw on 
periodic  technical  inspections  on  roads  should  be  finalised  without  any  further  delays. 
Establishing  a  system/model  to  increase  the  capacity  of  road  safety  inspectors  and  auditors 
should be a priority. 

Kosovo  has  made  some  progress  on  the  implementation  of  rail  transport  acquis,  with  the 
partial  implementation  of  the  Transport  Community  action  plan  on  rail.  The  market  for  rail 
transport services is open and functional. However, the railway legislation still needs be fully 
aligned with the market and technical pillars of the fourth Railway Package. Kosovo drafted a 
multiannual maintenance contract; final approval is pending. Although the 2021 agreement on 
joint  rail  border  crossing  is  in  place  for  more  than  2  years,  the  joint  rail  station  with  North 
Macedonia is not yet operational. Kosovo should still ensure the outstanding finalisation of the 
2020-2024 financial agreement between the infrastructure manager, Infrakos, and the relevant 
authorities.  

On air transport, Kosovo is part of the European Common Aviation Area (ECAA)) and is also 
covered by the single European sky arrangements. The sector continues to face a number of 
challenges  arising  from  Kosovo's  non-membership  in  several  international  civil  aviation 
organisations.  KFOR/NATO  still  manages  and  coordinates  upper  Kosovo  airspace.  The 
institutional  shortcomings  of  the  Air  Navigation  Service  Agency  and  the  Civil  Aviation 
Authority, as well as the lack of revenue from upper airspace management, remain an issue. 
The ongoing staff-management issues in the Civil Aviation Authority remain unsolved and may 
have a negative impact on the functioning of the Authority. Its upcoming reorganisation and 
administrative  reforms  should  reflect  public  administration  reform  principles,  as  well  as  the 
aviation sector's specific circumstances and requirements. More efforts are needed to continue 
the alignment with the remaining ECAA first-phase items. Kosovo made some progress with 
the second phase of ECAA requirements, on aviation safety matters. 

On  combined  transport,  the  approval  of  the  Multimodal  Transport  Strategy  sets  out  the 
objective for a well-functioning transport infrastructure which is integrated into TEN-T network 
and  enables 
the  3-year 
the  provision  of  multimodal 
implementation program of the Strategy is yet to be adopted. 

transport  services.  However, 

Kosovo should increase its efforts to implement EU passenger rights acquis in all mode of 
transport.  While  it  has  made  limited  progress  in  implementing  certain  aspects  of  the  EU 
Regulation  on  rail  passenger  rights,  further  efforts  are  required  to  achieve  comprehensive 
compliance. 

Chapter 15:  Energy 

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

Kosovo has some level of preparation in the area of energy. Kosovo has made some progress, 
notably with the adoption of an ambitious new Energy Strategy in March 2023, the launch of 
the first solar auction in  May 2023, and with further investments in the energy  efficiency of 
public and residential buildings in line with the Energy Support Package action plan. Kosovo 
remains  heavily  reliant  on  coal,  which  in  addition  to  being  a  dominant  source  of greenhouse 
gases,  causes  serious  health  and  environmental  hazards.    The  targets  set  in  the  new  Energy 
Strategy and in the National Energy and Climate Plan (NECP) will need to be aligned with the 

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2030 Energy Community energy and climate targets.  This plan (NECP) needs to be adopted by 
the  end  of  June  2024,  in  line  with  the  Energy  Community  2030  energy  and  climate  targets, 
taking due account of recommendations issued by the Energy Community Secretariat.  Kosovo 
needs  to  align  its  legislation  with  the  Energy  Community  Electricity  Integration  Package. 
Implementation  and  enforcement  of  legislation  on  energy  efficiency  need  to  be  enhanced. 
Kosovo  has  to  fulfil  its  obligations  under  the  connection  agreement  with  ENTSO-E  without 
delay.  

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

→  continue the environmental upgrade of the Kosovo B thermal power plant and the works for 

decommissioning of the non-working parts of Kosovo A thermal power plant; 

→  continue  the  rollout  of  the  energy  efficiency  fund  and  implement  support  to  residential 

buildings and small and medium-sized enterprises; and 

→  adopt the Law on renewable energy sources and sign a direct agreement with the service 
provider to use the national electronic register for the issuance, cancellation, and trade of 
guarantees of origin. 

Kosovo made some progress  on the security of supply. Electricity market  integration with 
Albania  advanced  with  the  launch  of  the  Albanian  Power  Exchange  (ALPEX)  and  the 
successful  inauguration  of  the  day-ahead  market  in  Albania.  ALPEX  obtained  a  license  to 
operate the day-ahead market in Kosovo, and the launch was expected by September 2023. 
Market coupling between Albania and Kosovo is envisaged to take place in parallel with the 
launch of the day-ahead market in Kosovo. Kosovo still made no progress in restructuring the 
existing Bulk Supply Agreement between Kosovo Electricity Supply Company (KESCO) and 
the Kosovo Electricity Corporation (KEK). The phase out of the bulk supply agreement would 
contribute to  unlocking competition  and liquidity in  the market  for the  benefit of Kosovo’s 
energy consumers. 

Kosovo  Transmission  Operator  (KOSTT)  continued  withdrawing  electricity  from  the 
European network to balance demand in an unauthorised manner. KOSTT lacks the financial 
resources required to cover for the losses to which unpaid electricity bills in the north of Kosovo 
contribute. Electricity supplies for the North of Kosovo are provided through deviations that 
breach  the  Connection  Agreement  with  ENTSO-E.  KOSTT  should  address  the  problem  of 
frequency deviations in the control area of Kosovo as a matter of urgency, as the transmission 
system  operator  TSO  is  responsible  for  fulfilling  the  obligations  under  the  Connection 
Agreement with ENTSO-E.  

Although Elektrosever received a supply license in June 2022, following the adoption of the 
Energy  Roadmap  as  part  of  the  EU-facilitated  Dialogue,  the  conclusion  of  a  commercial 
contract  between  the  distribution  company  KEDS  and  Elektrosever  remains  pending. 
Following the separation of the Kosovo transmission system operator KOSTT from the Serbia 
control block, the Serbian electricity transmission system operator EMS did not determine net 
transmission capacities and capacity allocation at the interconnection with Kosovo. 

In  March  2023,  Kosovo  adopted  an  ambitious  Energy  Strategy  setting  a  clear  vision  for 
decarbonisation  and  foreseeing  a  substantial  increase  of  renewable  energy  sources  in  the 
electricity  mix  and    approved  its  implementation  program  in  September.  Kosovo  needs  to 
ensure a time-efficient and dynamic implementation  of various energy strategy components 
and reach ambitious targets. Kosovo is dependent on outdated, unreliable, and highly polluting 
lignite-fired  thermal  power  plants,  which  are  greenhouse  gas  emission  sources  and  cause 

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serious health and environmental hazards. Kosovo should work on decommissioning the non-
working parts of Kosovo A thermal power plant. In 2024, it is expected that Kosovo starts the 
works to enhance the environmental performance of the Kosovo B thermal power plant and to 
bring dust and nitrogen oxide emission levels in line with the EU standards. Kosovo is already 
in breach of the Energy Community requirements for reducing greenhouse gas emissions; the 
legal framework also needs to be aligned with the EU Directives on large combustion plants 
and industrial emissions.  

Kosovo’s new energy strategy does not envisage the development of gas infrastructure. The 
feasibility study for the Kosovo-North Macedonia pipeline and the gas master plan have been 
completed but there is no investment decision on gas infrastructure. 

Concerning the internal energy market, there is no progress with the further opening of the 
retail market. In practice, all customers except those on high voltage continued to be supplied 
at  a  regulated  price.  To  ensure  compliance  with  the  Third  Energy  Package  and  the  latest 
Electricity  Integration  Package  requirements  of  the  Energy  Community,  Kosovo’s  Energy 
Regulatory Office (ERO) still needs to  implement the liberalisation of the retail  electricity 
market in Kosovo. On 30 March 2023, the Board of ERO approved the maximum allowed 
revenues  for  regulated  operators  and  increased  the  new  electricity  tariffs  for  all  consumer 
categories by 15.4%. The government  is  defining  energy-poor  consumers according to  the 
World Bank recommendations, so not only social assistance beneficiaries will benefit but also 
other consumers in vulnerable situations; the latter will also benefit from the EU’s Energy 
Support Package. Kosovo submitted its draft National Energy and Climate Plan to the Energy 
Community Secretariat on 10 July 2022. The final plan is to be adopted by end of June 2024.     

On  renewable  sources,  by  the  end  of  2022,  Kosovo  registered  276.2  MW  of  renewable 
electricity generation, 128 MW of small hydropower, 137 MW of wind, 10 MW of solar and 
1.2 MW of biomass. Kosovo needs to mobilize new investments in renewable energy sources 
to achieve the targets of the Energy Strategy and the Green Agenda for the Western Balkans. 
Kosovo also needs to make more efforts to adopt the legal framework on Renewables. In May 
2023,  Kosovo  launched  the  auction  for  the  first  solar  energy  park  of  100  MW.  Permitting 
procedures need to be simplified and streamlined to enable faster deployment of renewables. 
Kosovo should sign a direct agreement with the service provider to use the national electronic 
register for the issuance, cancellation, and trade of guarantees of origin, as provided in the 
regional project for guarantees of origin implemented in the Energy Community and in line 
with EU standards. 

The  biomass/woodchips  supply  chain,  critical  for  the  operation  of  the  installed  heating  and 
cogeneration plant in Gjakova/Đakovica, is not yet established. To ensure the supply chain for 
woodchips,  Kosovo  needs  an  improved  forest  management  plan  and  dedicated  subsidy  for 
sanitation of the forestry. Due to concerns over their environmental impact, the development 
of  small  hydropower  plants  continued  to  face  strong  public  resistance.  In  line  with  the 
acquis on concessions and the environment, developing new hydropower plants should always 
be  accompanied  with  proper  environmental  and  social  impact  assessments. Kosovo’s  new 
energy strategy does not foresee the development of new hydro power capacities.   

Good progress can be noted on the implementation of the energy efficiency fund. Kosovo has 
put  in  place  the  operational  procedures  for  subsidising  energy  efficiency  measures  in  the 
residential  sector,  including  social  housing.  The  financial  model  for  investments  in  the 
residential sector on a revolving basis is under development. To increase the energy efficiency 
as foreseen in the Energy Strategy, Kosovo needs to mobilise more financing and to strengthen 
the institutions’ capacity to implement and monitor the savings. The Law on energy efficiency 
and the Law on energy performance of the buildings have to be aligned with the new directives 
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as required by the Energy Community Treaty. Kosovo needs to immediately implement the 
energy  performance  certification  of  the  buildings  and  adopt  both  the  Building  Renovation 
Strategy and the Plan for nearly zero energy buildings.  

The capacities of the Nuclear Safety and Radiation Protection Agency remain weak, Kosovo 
has  still  not  found  a  solution  for  the  treatment  and  interim  storage  of  radioactive  waste  in 
accordance with EU standards. 

Chapter 21: Trans-European Networks 

The  EU  promotes 
transport, 
telecommunications and energy to strengthen the internal market and contribute to growth 
and employment. 

trans-European  networks  (TENs) 

the  areas  of 

in 

In the area of trans-European networks (TENs), Kosovo has some level of preparation.  Kosovo 
made limited progress in developing transport and energy networks, with the implementation 
of the Transport Community action plans on road, road safety, rail, and transport facilitation, 
and the operationalisation of a common power exchange with Albania.  

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

→  implement the pending connectivity projects and strengthen institutional and administrative 

capacities for the implementation of strategic infrastructure projects; 

→  improve the capacity of the regulatory authority of electronic and postal communications to 

enforce telecommunications market regulations. 

Progress on the trans-European Transport Network (TEN-T) is limited due to the lack of inter-
institutional  capacities  to  implement  infrastructure  projects.  All  transport  infrastructure 
investments need to be based on realistic cost/benefit analyses, and comply with EU standards 
on  public  procurement,  state  aid  and  environmental  impact  assessments.  A  revision  of  the 
indicative  TEN-T  core  and  comprehensive  network  took  place.  A  relevant  high-level 
agreement on indicative maps for TEN-T in the Western Balkans was signed in July 2023. The 
amended maps for the new European Western Balkans corridor will be part of the revised TEN-
T Regulation, which is currently under negotiation between the EU co-legislators. 

In 2022, the government submitted the loan request to EBRD and EIB for the segment of the 
“Peace Highway” (part of Route 7). However, negotiations have not yet been concluded. The 
railway  works  on  the  Orient/East-Med  Corridor  (rail  route  10)  connecting  Fushë 
Kosovë/Kosovo Polje and Mitrovicë/Mitrovica to North Macedonia continued at a slow pace. 
The works on the second segment are progressing, while the tendering for the related signalling 
and  telecom  is  delayed.  Kosovo  and  Albania  will  conduct  a  feasibility  study  for  a  railway 
connection between Durres and Pristina.  

Kosovo achieved some progress on rail market opening. Obstacles remain, such as the mutual 
recognition of operating train driver licenses, institutional framework, and recognition of safety 
certificates and vehicle authorisations. Kosovo needs to further revise the railway law and to 
finalise the new rail safety and interoperability law by incorporating the market and technical 
pillars deriving from the fourth railway package. 

On energy  networks,  the  Feasibility  Study  for  Kosovo-North  Macedonia  gas/hydrogen 
pipeline and the Gas Master Plan for Kosovo are completed. The government does not foresee 
to develop gas infrastructure in Kosovo. In the new Energy Strategy, the government plans to 
consider joint  investments  in  natural  gas  power plants with  Albania, North  Macedonia, and 

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Greece. Progress was made towards advancing electricity market integration with Albania. The 
Albanian Power Exchange (ALPEX), including Kosovo, was launched in April 2023.  

On telecommunications  networks,  the  institutional  capacity  of  the  electronic  and  postal 
communications regulatory authority still needs to be reinforced. 

Chapter 27: Environment and climate change 

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

In the area of environmental protection and climate change, Kosovo is at an early stage of 
preparation.  During  the  reporting  period,  Kosovo  made  limited  progress  with  the 
adoption, in  March 2023, of the Law on  Integrated Prevention and Control of Pollution. 
Kosovo needs to increase its political commitment and administrative capacity to address 
the issues related to environmental degradation and climate change as well as to improve 
the implementation and enforcement of its legislation. These efforts should be aligned with 
the goals  of the Green  Agenda for the  Western  Balkans. The recommendations from  the 
previous report have not been implemented.  

In the coming year, Kosovo should, in particular: 

→  increase the waste collection coverage, apply widely reduction, separation,  recycling 
and reuse of waste; address effectively the issue of illegal dumpsites; introduce circular 
economy  measures  to  reduce  waste,  develop  and  approve  inter-municipal  integrated 
waste  management  plans;  and  establish  the  extended  producers  responsibility 
system;
intensify  the  work  for  reduction  of  industrial  pollution  through  the 
implementation  and  enforcement  of  the  law  on  integrated  pollution  prevention  and 
control;  

→  harmonise  with  and  start  implementing  legal  provisions  on  environmental  liability, 
damage and crime; implement the polluter pays principle and raise public awareness on 
environmental protection; 

→  implement the climate change strategy and the action plan on climate change; prepare a 
roadmap for alignment with the Green Agenda for the Western Balkans and the acquis 
on  climate;  adopt  the  national  energy  and  climate  plan,  in  line  with  the  Energy 
Community  requirements,  and  finalise  the  drafting  the  long-term  de-carbonisation 
strategy, and prepare for alignment with the EU Emissions Trading System (ETS). 

Environment 

As regards horizontal issues, Kosovo needs to take ownership and all the necessary measures 
in  the  environmental  sector  and  to  that  end,  increase  the  capacities  of  the  environmental 
authorities  at  the  central  and  local  level,  implement  structural  reforms  and  ensure  inter-
institutional cooperation. Further efforts are needed to revise and adopt strategies, action plans, 
and  relevant  legislation  to  ensure  coherence  with  the  objectives  of  the  Green  Agenda.  The 
adoption of the Strategy for Environmental Protection and Sustainable Development 2022-2030 
is still delayed. There are challenges to implement the strategic framework due to the lack of 
sufficient  funding, low  administrative and technical  capacities,  and heavy reliance on donor 
support. Kosovo needs to align its environmental protection with the environmental liability 
Directive.  Kosovo  adopted  the  legislation  on  inspections,  but  inspection  capacities  and 
implementation  needs  to  improve.  Kosovo  recently  adopted  the  Environmental  and  Social 

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Impact Assessment Law; however, it needs to amend the Law on Strategic Impact Assessment. 
Kosovo needs to meaningfully consult civil society in this policy area, as well as to raise the 
public and its institutions' awareness of the importance of environmental protection.   

Air  quality, notably  pollution,  continues  to  be  a  major  health  threat.  Although  detailed 
identification  of  sources  of  air  pollution  has  been  completed,  Kosovo  needs  to  implement 
adequate  measures  to  remedy  and  curb  air  pollution.  Kosovo  does  not  comply  with  the 
emission  ceilings  established  under  its  national  Emissions  reduction  plan,  the  adoption  of 
which  is  delayed.  Kosovo  needs  to  start  the  preparation  of  the  implementation  of  the  new 
National Emissions Ceiling Directive. Measures for banning the use of coal for heating need 
to be effectively enforced. Kosovo introduced subsidies for investments in more efficient and 
less polluting sources for the first time. The air quality plans for zones where pollutant levels 
exceed  limit  values  need  to  be  adopted.  The  real  time  monitoring,  identification  of  air 
pollution sources and air quality reporting have slightly improved.   

There is some progress in aligning the waste management legislation with the EU acquis, 
but the unsustainability of the system still needs to be addressed. While the legal framework 
is partially aligned with the EU acquis, it needs to include the extended producer responsibility 
and the polluter pays principle. In August 2022, Kosovo adopted the Law on Waste, aligning 
with  the  Waste  Framework  Directive.  The  implementation  and  enforcement  of  waste 
management  legislation  is  lagging  behind,  with  the  only  noticeable  progress  being  on 
management of organic waste with 18 of 38 municipalities having initiated home-composting 
systems  and  some  municipalities  having  implemented  pilot  measures  for  the  separation  of 
fractious collection waste and the reduction of organic waste. Most of the waste still ends up 
in landfills, which are not properly managed or categorised as illegal dumpsites.  However, 
the number of illegal dumpsites has steadily decreased (from 1489 in 2020, 1 189 in 2021 to 
763  in  2022).  Kosovo  needs  to  increase  capacities  and  set  realistic  recycling  targets  to 
implement  its  integrated  waste  management  and  circular  economy.  In  March  2023,  the 
Ministry of Environment, Spatial Planning, and Infrastructure launched the Circular Economy 
Roadmap; however, the overall grasp of the concept is still at an early stage. The capacity of 
the central and local institutions, including inspections, to fulfil their responsibilities needs to 
be strengthened. The coal ash deposit lake operated by the Kosovo Electricity Company and 
the Mirash landfill in Obiliq/Obilić remain open, despite their negative environmental impact. 
The  government  selected  locations  for  the  new  landfill  for  Pristina  regional  waste 
management  and  hazardous  waste  storage;  yet,  it  needs  to  conduct  the  environmental  and 
social impact assessments procedures.  

Kosovo  made  limited  progress  to  align  the water legislation  with  the  EU  acquis.  The 
monitoring mechanism of the 2017-2036 Water Strategy and the implementation of the Law 
on Waters need further improvement. Kosovo needs to urgently set up the monitoring systems 
with data available to the public. Water protection zones still need to be enhanced. The river 
basin district authorities need to become operational as a matter of urgency. The management 
plan for the White Drin basin has to be adopted, and the preparation of the other river basin 
management plans should accelerate. Any small hydroelectric power plants need to be built 
in  full  respect  of  the  environmental  legislation  and  undergo  appropriate  environmental 
assessments. Flood risk and hazard maps preparation progressed well. Untreated sewage and 
discharge remain the primary sources of water pollution, particularly in rivers. The planning 
and  construction  of  wastewater  treatment  plants  in  bigger  cities  are  progressing,  but 
identifying agglomerations and sensitive areas in line with the Urban Waste Water Treatment 
Directive remains weak. Reduction of water losses and traffic collection should intensify.  

Kosovo  made  no  progress  on nature  protection.  The  Strategy  for  Environment  and 

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Sustainable Development 2022-2031 has not yet been adopted. Detailed regulatory plans for 
the  two  national  parks  have  been  re-drafted  into  partial  plans  covering  smaller  areas.  The 
2016-2020 action plan for biodiversity needs to be fully implemented. The designated areas 
continue  to  be  polluted  and  poorly  maintained,  and  illegal  activities  such  as  construction, 
hunting, and logging still, need to be addressed. Effective measures are necessary to ensure 
the  protection  of  critically  endangered  species.  Although  Kosovo  has  taken  steps  to  start 
inventories of natural habitats and species, the designation of potential Natura 2000 sites is at 
a  very  early  stage.  Kosovo  made  some  progress  on  forestry,  mainly  in  planning  and 
management, as it adopted relevant secondary legislation. The forest Strategy and the forestry 
Law  are  yet  to  be  adopted.  Deforestation  and  illegal  logging  remain  matters  of  serious 
concern. 

Kosovo made limited progress in aligning with the acquis on industrial pollution and risk 
management. In March 2023, the Assembly adopted the Law on Integrated Prevention and 
Control of Pollution. Progress in implementation the legislation on pollution prevention and 
control and polluter accountability is very slow. Hazardous mine waste, industrial discharge 
into rivers, and industrial dumpsites continue to pose serious threats to soil, water, and health. 
Significant efforts are needed to align with the EU acquis and to implement it, particularly 
concerning  the  Industrial  Emissions  Directive  and  Seveso  III.  This  process  requires  a 
strengthened capacity to enforce the legislation on the central and local levels. In addition, 
public awareness campaigns, training of the affected industry, and issuing integrated permits 
for reducing harmful industrial emissions are necessary. 

There was no progress on chemicals; here, alignment with the EU acquis and implementation 
of legislation remains at a low level. Kosovo is not a party to the Rotterdam Convention. It 
still  needs  to  implement  the  regulatory  framework  on  the  export  and  import  of  hazardous 
chemicals. Kosovo made some progress in providing information to stakeholders; yet, more 
efforts are needed to develop a centre for the control of chemical poisoning. 

There was no progress in noise regulation in the reporting period. 

Kosovo  is  not  part  of the  Union Civil  Protection Mechanism  but  can  benefit  from  certain 
Union Civil Protection Mechanism activities available to the beneficiaries of the Instrument 
for Pre-Accession Assistance (IPA) and benefits from regional civil protection programmes 
under the same Instrument. Kosovo is encouraged to participate in the Mechanism activities, 
such as training, exchange of experts, prevention and preparedness projects, exercises, peer 
reviews,  and  advisory  missions.  In  improving  its  disaster  management  capacities,  Kosovo 
should  develop  legislation,  governance,  and  financial  framework  related  to  preparedness, 
develop  a  comprehensive  investment  plan  for  preparedness  and  response,  improve 
coordination  among  responsible  authorities  in  large-scale  disasters,  and  strengthen 
governance and procedures related to developing national risk assessment. The coordination 
between the central level and local level should improve. Kosovo made no progress regarding 
disaster  risk  needs  assessment;  it  did  not  develop  a  recovery  strategy  or  prepare  disaster 
response plans. Kosovo should start the process of installing the Trans European Services for 
Telematics between Administrations (TESTA) as a prerequisite for installing the Common 
Emergency Communication and Information system (CECIS). 

Climate change 

Implementing the 2019-2028 climate change strategy and the action plan for 2021-2023 is very 
limited.  Kosovo  has  still  not  adopted  the  law  on  climate  change.  The  national  energy  and 
climate plan, needs  to  be adopted at  the  end of  June 2024  (See Chapter  15  – Energy). The 
government  should  start  drafting  a  Decarbonisation  Strategy,  including  actions  related  to 

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energy, agriculture, forestry, and overall economic development. The re-established National 
Climate Change Council took concrete measures to mainstream climate action and raise public 
awareness. The greenhouse gas emissions inventory reporting for 2020 is not yet available. The 
strategic and legislative framework needs to be aligned with the EU strategic goals stemming 
from the Green Agenda for the Western Balkans. Kosovo needs to get prepared for alignment 
with the climate acquis as per the important modifications brought in by the Fit for 55 package. 
Kosovo  needs  to  take  the  necessary  steps  for  the  establishment  of  a  mechanism  on  carbon 
pricing,  aligned  with  the  EU  ETS,  to  advance  the  implementation  of  the  EU  acquis  and 
adequately prepare for the EU Carbon Border Adjustment Mechanism, that enters into force in 
its transitional phase as of 1 October 2023.  Administrative and inspection capacities in the 
sector need to be significantly strengthened and structural reforms need to be implemented. 
Awareness  raising  need  to  be  enhanced.  Kosovo  is  not  a  UN  member,  and  de  facto  not  a 
signatory to the UN Framework Convention on Climate Change; therefore, it does not have a 
nationally determined contribution under the 2015 Paris Agreement. Full implementation of its 
climate change strategy should serve as a guide to achieving the Agreement's objectives. 

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION 

This cluster covers: agriculture and rural development (Chapter 11); food safety, veterinary and 
phytosanitary policy (Chapter 12); fisheries and aquaculture (Chapter 13); regional policy and 
coordination  of  structural  instruments  (Chapter  22);  and  financial  and  budgetary  provisions 
(Chapter 33).  

The system for the implementation of the agricultural and rural development policy is being 
developed. Kosovo has some level of preparation in this area. In March 2023, the Assembly 
adopted  the  Law  on  agriculture  and  rural  development  as  well  as  the  Law  on  forestry. 
Legislation on genetically modified organisms and plants protection needs to be aligned with 
the EU acquis. On chapter 12, Kosovo made limited progress. Kosovo developed surveillance 
and eradication programmes for animal diseases, as well as prepared secondary legislation; yet, 
more  progress  is  needed.  Kosovo  should  adopt  the  agriculture  and  rural  development 
programme 2022-2027 and the Law on agriculture land. Administrative capacity of the ministry 
and  agencies  need  to  be  strengthened  significantly  with  adequate  human  and  financial 
resources. A policy dialogue with the EU on the strategic orientation of Kosovo’s agriculture 
need  to  be  launched  as  soon  as  possible.  The  measures  encouraging  land  consolidation  are 
insufficient. Kosovo needs to make more efforts to implement the relevant acquis on fisheries 
and aquaculture.  

Chapter 11:  Agriculture and rural development 

The EU’s common agricultural policy supports farmers and ensures Europe’s food security. It 
helps tackle climate change and the sustainable management of national resources; maintains 
rural areas and landscapes across the EU; and keeps the rural economy alive by promoting 
jobs in farming, agri-food industries and associated sectors. This requires strong management 
and control systems. There are also common EU rules for marketing standards, quality policy 
and organic farming. 

Kosovo has some level of preparation on agriculture and rural development. There was limited 
progress  with  the  adoption  of  the  Law  on  agriculture  and  rural  development,  while  the 
agriculture and rural development programme 2022-2027 remains to be adopted. The Law on 
Forestry was also adopted.  

Some of the Commission’s recommendations from last year were not fully implemented and , 
therefore remain valid. In the coming year, Kosovo should in particular: 

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→ perform a qualitative assessment of the direct payments and rural development programmes 
provided under the financial framework 2014-2020; adopt the Law on agricultural land and 
the programme for agricultural and rural development 2022-2027; 

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

legislation on spatial planning; 

→  take effective action towards developing its organic farming and quality policy sectors. 

On horizontal issues, in 2022, the budget for direct payments and  rural development  increased 
to EUR 58.1 million, 59% higher than  in  2021. In 2022, the agriculture  and rural  development 
programme  prioritized  investments  in  rural  diversification;  it  also  provided  support  to 
agricultural  primary  production  and  to  the  processing  and  trading  of  agricultural  products. 
Support measures need to be brought in line with the EU acquis. 

Kosovo is still in the process of establishing agricultural  system which include the integrated 
administration  and  control  system  (IACS),  a  farm  accountancy  data  network  (FADN)  and  
agricultural market information system. 

A law on the common market organisation (CMO) remains to be adopted. 

On rural development, a Law on Agriculture and Rural Development was adopted in March 
2023.  However,  the  agriculture  and  rural  development  programme  2022-  2027  is  yet  to  be 
adopted. 

On quality policy, Kosovo recorded some progress with the first registration of a geographical 
indication.  

Organic  farming  certification  and control operations are carried out   by  f our  international 
organisations.  

An action plan for protection of agricultural land, involving the Ministry of Agriculture and 
Rural Development, the Ministry of Environment, Spatial Planning and Infrastructure and local 
authorities, to address the steady loss and degradation of farmland has not yet been adopted. 

Chapter 12: Food safety, veterinary and phytosanitary policy 

EU hygiene rules for food production ensure a high level of food safety. Animal health and 
welfare and the safety of food of animal origin are safeguarded together with the quality of 
seeds,  plant  protection  material,  the  protection  against  harmful  organisms  and  animal 
nutrition.  

Kosovo is  in between some and moderate level  of preparation  in  the  area of  food safety, 
veterinary  and  phytosanitary  policy.  During  the  reporting  period,  Kosovo  made  limited 
progress, as it prepared and adopted the necessary secondary legislation as well as developed 
surveillance and eradication programmes concerning animal diseases and control programmes 
concerning  stray  dogs.  The  food  control  and  traceability  management  system  as  well  as  the 
laboratory information management system for the food safety and veterinary laboratories were 
put in place .  

The  Commission’s  recommendations  from  last  year  were  only  partially  met  and  therefore 
remain valid. In the coming year, Kosovo should in particular: 

→  timely secure the means and resources required for effectively operating the food control 
and  traceability  management  system  and  the  laboratory  information  management  system 
developed with EU support as they are instrumental in securing compliance of the foodstuff 
produced or marketed by Kosovo with food safety, animal health, animal welfare, and plant 

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health standards, a prerequisite for a competitive agri-food sector; 

→ take a decision on a model for operating the rendering plant and animal by-product collection 

system and start operation of the rendering plant; 

→ strengthen surveillance and control of the animal diseases through improved implementation 
of disease control and surveillance programmes, including by taking over the responsibility 
of financing  fully  oral  rabies vaccination  campaigns to  be carried out  from  autumn 2023 
onwards. 

Kosovo further progressed in the field of food control and traceability as well as the laboratory 
information management system managed by the Food and Veterinary Agency. Furthermore, 
it prepared a gap analysis regarding the legislation covering the areas of animal health, animal 
welfare, food safety and phytosanitary, as well as the strategy and action plan for drafting the 
missing  legislation.  Notwithstanding  the  transfer  of  75  inspectors  from  municipalities,  the 
financial and human resources of Kosovo’s Food and Veterinary Agency remains insufficient 
to fully implement the EU acquis in this area. While food and veterinary laboratory continued 
testing and participated in proficiency testing with EU reference  laboratories, there is still no 
progress in obtaining international accreditation. 

Limited  progress  was  made  on  the  veterinary  policy.  Kosovo  developed  surveillance  and 
eradication programs for animal diseases and in October 2022 approved the Stray Dog Control 
Programme and Action Plan. The Food and Veterinary Agency has still not developed or begun 
implementing  a  comprehensive  disease  monitoring  and  control  system,  in  line  with  EU 
legislation and World Organisation for Animal Health requirements.  

The long-term planning and implementation of programmes to eradicate endemic diseases in 
Kosovo still requires improvement. The same applies to animal health controls at farm level, 
the transport of animals, and livestock markets.  The lack of necessary resources, both human 
and financial, as well as the lack of in-service training and education programmes hampered 
the adequate implementation of programmes in these areas.  

No progress was made regarding animal health. While the multi-annual animal disease control 
and  surveillance  programme  still  needs  to  be  adopted  and  implemented,  Kosovo  continued 
rabies  eradication  vaccination  campaigns.  Taking  full  ownership  of  these  campaigns  from 
autumn 2023, and continue with the vaccination campaigns twice a year, is still necessary to be 
in line with the obligations stemming from the EU acquis. 

Kosovo made no progress on the system for collection and disposal of animal by-products. 
This is not yet functional despite the existence of a new and equipped rendering plant.  Kosovo 
still  has  not  decided  on  the  operating  model  and  procedures  for  the  rendering  plant and  the 
collection system, as well as on the timeline for its operationalisation. 

Some progress was made on animal identification and registration, through a microchipping 
campaign for dogs with owners. The under-reporting of animal movements remains a challenge. 
The Food and Veterinary Agency has yet to adopt measures to enforce the relevant regulation 
at the level of livestock markets, slaughterhouses and transport. Kosovo made no progress in 
identifying basic cross-compliance measures in the areas of food safety, animal health and 
welfare. 

On the placing of food, feed and animal by-products on the market, some progress was 
made during the reporting period. Moreover, the National Residue Monitoring Plan (NRMP) 
for  the  year  2022  was  completed  and  submitted  to  the  Commission  for  evaluation  and  the 
comments/corrections were addressed accordingly. 

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Kosovo made some progress on phytosanitary policy. Standard operating procedures and the 
necessary accompanying documentation required for the monitoring of 18 high priority pests 
(quarantine organisms) were prepared. Alignment is yet to be ensured for novel food and for 
genetically modified organisms.  

Chapter 13: Fisheries and aquaculture 

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

Kosovo remains at an early stage of preparation in this chapter and it made no progress in this 
area. As none of the recommendations of the previous reports were implemented, in the coming 
year Kosovo should: 

→ adopt a multi-annual strategy dedicated to aquaculture; 

→ further align market policy with the acquis; 

→ establish an inventory of fish species. 

Kosovo does not have a coastline, it has inland fishing and aquaculture, therefore the acquis on 
catch  quotas,  inspection  and  control  is  only  partially  applicable.  The  fisheries  acquis  also 
covers inland fisheries and aquaculture operations.  

The adoption of a multi-annual strategy dedicated to aquaculture and legislation on aquaculture 
with the acquis is pending. 

Kosovo should focus on establishing a market policy and data collection in line with the EU 
acquis  as  well  as  an  inventory  of  fish  species.  It  should  also  significantly  reinforce 
administrative capacity for policy management, inspection and control. 

Chapter 22: Regional policy and coordination of structural instruments 

Regional  policy  is  the  EU’s  main  tool  for  reducing  regional  disparities  and  investing  in 
sustainable  and  inclusive  socio-economic  growth.  It  is  operating  through  “shared 
management”  between  the  Commission  and  EU  Member  States.  The  implementation  of 
cohesion policy programmes requires appropriate administrative capacity on programme and 
project level, the establishment of systems of sound financial management and control and also 
the  fulfilment  of  other  EU  acquis  elements  such  as  environmental  or  public  procurement 
legislation. 

  Kosovo remains at early stage of preparation regarding regional policy and coordination of 
structural instruments. During the reporting period, Kosovo made some progress in this area, 
when it adopted the Law on Balanced Regional Development.  

In the coming year, Kosovo should:    

→ adopt the Regional Development Action Plan 2023-2025;   

→ improve the administrative and technical capacity across the IPA operating structures;    

→ further develop activities stemming from the law as a step towards the principles of the EU 
regional  and  cohesion  policy;  ensure  the  implementation  of  the  legal  and  strategic 
framework  for  regional  development,  upgrade  the  local  and  regional  program,  project 
planning and implementation capacity.   

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Kosovo has made some progress to align its existing strategic and legislative framework on 
the public financial management and control framework with the EU acquis. The legal basis, 
namely the Law on Balanced Regional Development, adopted in July 2023, and the Action 
Plan for the implementation of the Strategy on Regional Development 2020-2030, adopted in 
June 2023, improve regional development policy.  

The Agency of Statistics in cooperation with EUROSTAT has not yet harmonised statistical 
regions with economic ones. The budget for regional development in 2022 amounts to EUR 
4.2 million.  

The institutional framework for the management of EU funds is not yet in place. At the same 
time, structures for the management of national regional development programs and projects 
are functional. Regarding administrative capacities, significant efforts are required to allocate 
more  human  resources  and  to  increase  their  capacities,  particularly  on  planning  and 
management  of  EU  funds.  Concerning  the  financial  management,  control  and  audit, 
Ministries  established  functional  internal  services.  The  national  audit  authority  performs 
central financial management and audit. 

 Programming is focused on national regional development projects and future IPA assistance. 
Currently,  there  are  no  IPA  financed  projects  on  regional  development.  In  the  area  of 
monitoring and evaluation, regular activities continued in the field of regional development 
programs and projects.  

 During the reporting period, Kosovo implemented cross-border cooperation programs with 
Albania, North Macedonia and Montenegro. Regarding trans-national cooperation programs, 
Due to status issues, Kosovo does not participate in transnational and interregional cooperation 
programmes that cover the Western Balkans.  

CLUSTER 6: EXTERNAL RELATIONS 

In the area of trade, Kosovo is at an early stage of preparation.  Limited progress was made 
during the reporting  period.  Improvement was achieved in  reducing Kosovo’s trade deficit, 
however Kosovo has not yet adopted a comprehensive trade policy, nor ratified the CEFTA 
Additional Protocols on trade facilitation and trade in services.  

Chapter 30: External relations 

The EU has a common commercial policy towards third countries, based on multilateral and 
bilateral  agreements  and  autonomous  measures.  There  are  also  EU  rules  in  the  field  of 
humanitarian aid and development policy. 

Kosovo is at an early stage of preparation in the area of external relations. Limited progress 
was  made  during  the  reporting  period.  Kosovo  has  made  progress  in  implementation  of 
Common  Regional  Market  action  plan,  notably  by  ratifying  the  three  “Berlin  process 
agreements”  on  free  movement  and  mutual  recognition  of  qualifications.  Kosovo  should 
abstain  from  taking  further  unilateral  trade  measures  without  justification  and  prior 
consultation with the Commission, in line with its SAA commitments. Disagreements relating 
to the representation of Kosovo have led the government to block decision-making mechanisms 
in CEFTA. Kosovo has yet to establish a humanitarian and development policy.  

As  not  all  recommendations  from  the  previous  report  were  implemented,  part  of  the 
recommendations remain valid. In the coming year, Kosovo should, in particular:  

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→  implement  commitments  under  the  Common  Regional  Market  Action  Plan  2021-2024; 
ratify and implement  CEFTA Additional  Protocol  5 on trade facilitation and Additional 
Protocol 6 on trade in services; and finalise the negotiations on, and adopt, the Additional 
Protocol 7 on dispute settlement; 

→  approve the Regulation on the establishment of the Trade Facilitation Enquiry Point; 

→  start the process to establish a development and humanitarian aid policy.  

On the common commercial policy, Kosovo has not yet adopted a comprehensive trade policy 
or ratify the CEFTA Additional Protocols on trade facilitation and trade in services.  

On 8 November 2022, the Assembly adopted the Law on temporary measures of basic products 
in special cases of market destabilisation, which provided the government with the authority to 
impose trade restrictions, price controls and rationing measures in cases of emergency. The 
implementation  of  this  new  law  is  suspended  as  opposition  parties  referred  it  to  the 
Constitutional Court, on grounds that it is a breach of constitutional provisions on free market. 
The Court has yet to make a decision. 

The government supports the Common Regional Market (CRM) as a basis for a regional free 
trade agreement. Kosovo continues to make progress in implementing technical measures of 
the  CRM  action  plan  2021-2024,  notably  regarding  the  green  lanes.  During  the  reporting 
period, Kosovo has adopted three important laws on the CRM: on ratification of the Agreement 
on the recognition of professional qualifications for medical doctors, dentists and architects; 
on  ratification  of  the  Western  Balkans  Agreement  on  the  recognition  of  higher  education 
qualifications;  and  on  ratification  of  the  Agreement  on  freedom  of  movement  with  identity 
cards in the Western Balkans. 

However, disagreements relating to the representation and denomination of Kosovo in CEFTA 
are  hampering  progress  in  other  areas,  notably  the  free  movement  of  workers.  These 
disagreements have also led the government to block decision-making mechanisms in CEFTA, 
with the adoption of the budget and the appointment of a new director still pending due to this 
lack of consensus. Kosovo, along with all participants in the CRM, should play a constructive 
role  and  deliver  on  joint  commitments  set  out  in  the  action  plan.  In  June  2023,  Kosovo’s 
Ministry  for  Internal  Affairs  (MoI)  issued  a  “temporary  operational  security  measure” 
blocking the entry into Kosovo of Serbian goods and postal parcels. This measure appears not 
to  be  in  line  with  Kosovo’s  commitments  under  CEFTA  and  goes  against  the  spirit  of  the 
Stabilisation and Association Agreement.  This measure was imposed by Kosovo following 
the arrest of three Kosovo Police officers by the Serbian authorities in mid-June. The officers 
were eventually released at the end of June. 

There  is  a  need  to  enhance  the  capacity  of  the  trade  department.  The  needs  are  both  in  the 
number of staff and in increasing their capacities to deal with the complex tasks. Delays in 
access to the Kosovo Customs trade databases and to the statistics by the Kosovo Agency of 
Statistics negatively affected the efficiency of the trade department.  

Kosovo’s law on dual-use goods remains aligned with EU regulations. Kosovo updated its list 
of dual-use goods in line with the delegated Regulation of the EU Commission 2023/66 of 21 
October 2022. 

As  regards  bilateral  agreements  with  third  countries  on  economic/trade/technical 
cooperation, Kosovo has a number of Free-Trade Agreements (FTAs) with enlargement and 
third countries. Kosovo has reached a trade partnership and cooperation agreement with the 
United Kingdom, and a first meeting of the Partnership Council took place in December 2022. 

122 

 
 
In June 2022, EFTA states and Kosovo officially launched free trade negotiations. Between 
August and December 2022, there were two rounds of negotiations, with good progress made 
in all areas.  

There were few developments in the areas of development policy and humanitarian aid. As 
Kosovo is a recipient of aid programmes, it does not provide humanitarian aid to third countries 
in a systematic manner. It has no development aid agency. Kosovo is encouraged to start the 
process of establishing a legal framework covering international cooperation and development 
policy as well as humanitarian aid, in accordance with EU policies and principles, and to build 
dedicated  administrative  structures.  In  the  context  of  Russia’s  war  of  aggression  against 
Ukraine, Kosovo pledged to host up to 5,000 refugees and 20 journalists from Ukraine. Kosovo 
also pledged assistance to Türkiye and Syria after the earthquake in February 2023.  

123 

 
 
 
 
ANNEX I – RELATIONS BETWEEN THE EU AND KOSOVO  

The EU-Kosovo Stabilisation and Association Agreement (SAA) entered into force in April 
2016. This comprehensive agreement provides a framework for political dialogue and covers 
cooperation  in  variety  of  sectors.  Since  2016,  five  Stabilisation  and  Association  Council 
meetings and seven cycles of subcommittee meetings took place. Kosovo  participates in the 
ministerial dialogue between the economic and finance ministers of the EU, and the candidate 
countries and potential candidates, aiming to help the latter to gradually meet the economic 
accession  criteria  and  be  better  prepared  for  economic  reforms,  competitiveness  and  job 
creation.  

On  31  March  2023,  the  government  approved  the  National  Programme  for  European 
Integration 2023-2027, subsequently endorsed by the Assembly on 15 June 2023. To further 
guide the implementation of reforms under the SAA, in November 2016, the Commission and 
Kosovo adopted the European Reform Agenda (ERA). It outlines priority actions in the fields 
of  good  governance,  rule  of  law,  competitiveness,  investment,  sustainable  development, 
employment,  education  and  health.  In  2021,  Kosovo  adopted  the  second  phase  of  the  ERA 
(ERA  II)  through  a  dedicated  action  plan.  Kosovo  should  have  implemented  the  priorities 
identified of ERA II within a two-year period, until mid-2023.  

The government submitted its application for EU membership on 15 December 2022.  

Regarding visa liberalisation for Kosovo, the relevant Regulation was adopted on 9 March by 
the Council and on 18 April 2023 by the European Parliament. The Regulation allows Kosovo 
biometric passport holders to travel to the EU without a visa for a period of 90 days within any 
180-day period, starting on 1 January 2024.  

The bilateral EU support for Kosovo under the Instrument for Pre-accession Assistance II 
(IPA  II)  in  2014-2020  amounted  to  EUR  562  million,  and  included,  among  others,  budget 
support operations on public administration reform, public financial management and on socio-
economic recovery.  

The EU’s COVID related assistance to Kosovo amounted to EUR 68 million. As part of the 
wider COVID-19 response, the EU made available a Macro Financial Assistance scheme of 
EUR 100 million in highly favourable loans in order to underpin the local economy.  
The  IPA  III  Regulation  for  the  2021-2027  financial  period22  continues  to  provide  financial 
support to the region and will also finance the Economic Investment Plan (EIP) for the Western 
Balkans.  The  IPA  2021,  2022  and  2023  annual  programmes  include  an  EU  contribution 
amounting to around EUR 201 million. Under the EIP, Kosovo benefits from EUR 312 million, 
generating mobilised investments of EUR 940 million.    

At the EU-WB Summit in Tirana in December 2022, the Commission put forward an Energy 
Support Package of EUR 1 billion for the Western Balkans to address immediate, short-term, 
and medium-term needs in the region in the context of the energy crisis and of Russian war of 
aggression against Ukraine. Kosovo will benefit with EUR 75 million in IPA 2023 funding 
under this package.  

Kosovo  continues  to  benefit  from  support  under  the  IPA  multi-country  and  regional 
three  cross-border  cooperation 
programmes.  Additionally,  Kosovo  participates 
programmes,  and  benefits,  with  IPA  support,  from  participation  in  some  EU  programmes. 
Since  2018,  Kosovo  joined  the  following  EU  programmes:  Erasmus+,  Single  Market 

in 

22 Official Journal L 330, 20.9.2021 

124 

 
 
 
Programme,  Citizens,  Equality,  Rights  and  Values  Programme,  Creative  Europe,  Customs, 
Fiscalis  and  Horizon  Europe.  To  facilitate  progress  on  permitting  procedures,  Kosovo  is 
participating as observer in a pilot project under the Technical Support Instrument. 

Kosovo and Europol have enhanced their cooperation. Following the signing of the framework 
Working  Arrangement  in  July  2020,  there  are  three  additional  agreements/protocols:  the 
Memorandum  of  Understanding  on  Secure  Communication  Line  through  SIENA,  the 
Arrangement on secondment of Liaison Officers, and the Arrangement on the exchange and 
protection  of  classified  information.  The  SIENA  connection  is  fully  operational.  As  of  15 
March 2023, Kosovo Police has the first liaison officer to Europol in the Hague.  

Since  2008,  the  European  Rule  of  Law  Mission  in  Kosovo  (EULEX)  has  been  assisting 
Kosovo authorities in establishing sustainable and independent rule of law institutions. Under 
its current mandate extended until 14 June 2025, the Mission continues to undertake monitoring 
activities and has limited executive functions.  

Frontex is deploying its officers to several border-crossing points in Kosovo based on mutually 
agreed  operational  plans.  Additionally,  the  agency  provides  with  other  border  management 
related support e.g. guidance in the process to establish a National Coordination Centre (NCC).  

To date, according to the government, Kosovo has been recognised by 117 countries, including 
22 EU Member States.  

Following  Russia’s  war  of  aggression  against  Ukraine,  Kosovo  has  continued  to  adopt 
packages of sanctions against Russia and Belarus by replicating the ones imposed by the EU 
and the US. Among the measures taken was a suspension of broadcasting activities of Russian 
media channels in Kosovo and introducing a visa requirement for Russian citizens. As regards 
Kosovo support to Ukraine, the government allocated EUR 100 000 in humanitarian aid and 
dedicated  funds  to  shelter  20  journalists  from  Ukraine.  The  Assembly  passed  a  resolution 
expressing a willingness to receive up to 5 000 Ukrainian refugees. 

In relation to the escalation in the north of Kosovo in May 2023, the EU urged both Kosovo 
and Serbia to immediately and unconditionally take measures to de-escalate the situation and 
to return to the process of normalisation of relations. Due to lack of decisive steps to de-escalate 
by Kosovo, and in line with the 3 June Statement, the EU decided to take a number of measures. 

The  work  of  the  Stabilisation  and  Association  Agreement  bodies  has  been  put  on  hold. 
Programming of funds for Kosovo under the IPA 2024 programming exercise has so far been 
put  on  hold.  The  proposals  submitted  by  Kosovo  under  the  Western  Balkans  Investment 
Framework  (WBIF)  were  not  submitted  for  consideration  by  the  WBIF  Board.  As  regards 
ongoing  support,  procurement  procedures  and  signing  of  new  contracts  were  suspended. 
Kosovo was also not be invited to high-level events and bilateral visits were suspended, other 
than those focused on addressing the crisis in the north of Kosovo and those related to Western 
Balkans regional integration.  

These measures are temporary and reversible depending on the credible, decisive and timely 
steps  taken  by  Kosovo  authorities  to  de-escalate  the  situation,  return  to  the  Dialogue  and 
implement the commitments made in this context. 

125 

 
 
STATISTICAL DATA (as of 31/08/2023) 
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 (%) 
Gross fixed capital formation by the general government sector, as a percentage of GDP (%) 

Note 

1) 

Note 

2010 
2 208 s 
10 908 w 

2017 
1 784 s 
10 905 w 

2018 
1 799 s 
10 905 w 

2019 
1 796 s 
10 905 w 

2020 
1 782 s 
10 905 w 

2021 
1 798 s 
10 905 w 

2010 
4 031 
1 826 s 
: 
: 
4.9 
: 
: 

: 
: 
: 

11.5 
23.5 
9.3 
55.6 s 
105.7 
31.0 
2.1 
21.7 
60.5 
: 

2017 
6 357 
3 564 s 
: 
: 
4.8 
 c 
 c 

 c 
 c 
: 

9.2 
24.1 
10.1 
56.5 s 
91.1 
30.0 
4.7 
27.3 
53.1 
: 

2018 
6 672 
3 709 s 
: 
: 
3.4 
 c 
 c 

 c 
 c 
: 

8.1 
24.2 
10.4 
57.2 s 
91.9 
31.7 
4.6 
29.1 
57.3 
: 

2019 
7 056 
3 930 s 
: 
: 
4.8 
 c 
 c 

 c 
 c 
: 

9.0 
23.4 
10.1 
57.5 s 
92.6 
31.0 
3.5 
29.3 
56.4 
: 

2020 
6 772 
3 800 s 
: 
: 
-  5.3 
: 
: 

: 
: 
: 

8.9 
24.1 
9.3 
57.7 s 
98.8 
29.7 
3.7 
21.7 
53.9 
: 

2021 
7 958 
4 426 s 
: 
: 
10.7 
: 
: 

: 
: 
: 

8.6 
23.6 
10.6 
57.2 s 
95.9 
32.9 
3.1 
33.4 
65.2 
: 

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 (%) 

Note 

2010 
: 
29 710 pw 
13.9 pw 

2017 
: 
34 355 w 
8.7 w 

2018 
: 
31 028 pw 
4.8 pw 

2019 
: 
34 615 w 
: 

2020 
: 
40 056 w 
: 

2021 
: 
45 468 w 
: 

5.3 w 

4.2 w 

3.7 pw 

4.2 w 

2.6 w 

: 

126 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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) 

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) 

Balance of payments 
Balance of payments: current account total (million euro) 
Balance of payments current account: trade balance (million euro) 
Balance of payments current account: net services (million euro) 
Balance of payments current account: net balance for primary income (million euro) 
Balance of payments current account: net balance for secondary income (million euro) 
Net balance for primary and secondary income: of which government transfers (million euro) 
**3 year backward moving average of the current account balance relative to GDP (%) 
**Five year change in share of world exports of goods and services (%) 
Net balance (inward - outward) of foreign direct investment (FDI) (million euro) 
Foreign direct investment (FDI) abroad (million euro) 
of which FDI of the reporting economy in the EU-27 countries (million euro) 
Foreign direct investment (FDI) in the reporting economy (million euro) 
of which FDI of the EU-27 countries in the reporting economy (million euro) 
**Net international investment position, relative to GDP (%) 
Year on year rate of change in gross inflow of remittances (in national currency) from migrant 
workers (%) 

Public finance 
General government deficit / surplus, relative to GDP (%) 
General government gross debt relative to GDP (%) 
Total  government revenues, as a percentage of GDP (%) 
Total government expenditure, as a percentage of GDP (%) 

Financial indicators 
Gross external debt of the whole economy, relative to GDP (%) 
Gross external debt of the whole economy, relative to total exports (%) 
Money supply: M1 (banknotes, coins, overnight deposits, million euro) 
Money supply: M2 (M1 plus deposits with maturity up to two years, million euro) 
Money supply: M3 (M2 plus marketable instruments, million euro) 

Note 

Note 

Note 

Note 

: 

: 
: 

2010 
: 
: 

2010 
-  516.1 
- 1 741.6 
176.0 
67.0 
982.5 
319.5 
: 
: 
331.1 w 
37.4 w 
: 
368.5 w 
: 
9.2 w 
14.5 sw 

2010 
: 
5.9 ew 
26.8 w 
28.9 w 

2010 
34.0 sw 
157.0 w 
: 
: 
: 

78.8 sw 

78.4 psw 

9.6 sw 

8.6 sw 

7.7 sw 

: 
: 

2017 
1.5 d 
: 

2017 
-  348.6 
- 2 464.2 
827.3 
127.4 
1 161.0 
199.7 
-  7.6 
28.3 
212.0 w 
43.4 w 
14.1 w 
255.4 w 
86.1 w 
-  1.8 w 
11.9 s 

2017 
-  0.8 w 
16.6 ew 
30.2 w 
28.9 w 

2017 
32.9 sw 
120.2 w 
: 
: 
: 

: 
: 

2018 
1.1 d 
: 

2018 
-  508.8 
- 2 737.7 
855.8 
113.1 
1 260.0 
226.1 
-  7.1 
37.6 
225.8 w 
46.3 w 
13.0 
272.1 w 
58.7 
-  6.1 w 
12.0 s 

2018 
-  1.0 w 
17.1 ew 
30.1 w 
29.6 w 

2018 
30.5 sw 
105.0 w 
: 
: 
: 

: 
: 

2019 
2.7 d 
: 

2019 
-  399.5 
- 2 840.2 
926.0 
160.6 
1 354.1 
236.6 
-  6.3 
37.0 
188.4 w 
66.2 w 
6.1 
254.6 w 
158.6 
-  5.8 w 
12.1 s 

2019 
-  0.5 w 
17.5 w 
31.5 w 
30.5 w 

2019 
31.2 sw 
106.4 w 
: 
: 
: 

: 
: 

2020 
0.2 d 
: 

2020 
-  472.2 
- 2 573.2 
391.6 
164.0 
1 545.4 
276.6 
-  6.8 
14.9 
286.6 w 
59.1 w 
16.5 
345.7 w 
152.1 
-  12.3 w 
14.5 s 

2020 
-  5.2 w 
21.8 w 
32.6 w 
34.4 w 

2020 
37.2 sw 
171.2 w 
: 
: 
: 

: 
: 

2021 
3.4 d 
: 

2021 
-  694.6 
- 3 567.0 
1 034.9 
150.9 
1 686.2 
233.7 
-  7.1 
49.4 
320.4 w 
100.3 w 
26.5 
420.7 w 
215.6 
-  11.6 w 
14.5 s 

2021 
: 
: 
: 
: 

2021 
37.4 sw 
111.9 w 
: 
: 
: 

127 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total credit by monetary financial institutions to residents (consolidated) (million euro) 
**Annual change in financial sector liabilities (%) 
**Private credit flow, consolidated, relative to GDP (%) 
**Private debt, consolidated, relative to GDP (%) 
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) 
Value of reserve assets (including gold) (million euro) 

External trade in goods 
Value of imports: all goods, all partners (million euro) 
Value of exports: all goods, all partners (million euro) 
Trade balance: all goods, all partners (million euro) 
Terms of trade (export price index / import price index * 100) (number) 
Share of exports to EU-27 countries in value of total exports (%) 
Share of imports from EU-27 countries in value of total imports (%) 

Demography 
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) 

Labour market 
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 (%) 

2) 
2) 

Note 

Note 

Note 

1 458.7 w 
: 
: 
: 
: 
14.63 w 
3.70 w 
1 w 
: 
: 

2 629.5 w 
: 
: 
: 
: 
6.83 w 
1.04 w 
1 w 
: 
: 

2 939.2 w 
: 
: 
: 
: 
6.65 w 
1.31 w 
1 w 
: 
: 

: 
: 
: 
: 
: 
6.51 w 
1.46 w 
1 w 
: 
: 

: 
: 
: 
: 
: 
6.21 w 
1.49 w 
1 w 
: 
: 

: 
: 
: 
: 
: 
5.96 w 
1.33 w 
1 w 
: 
: 

612.5 w 

683.4 w 

769.3 w 

863.7 w 

900.8 w 

1 100.3 w 

2010 
2 158 
296 
- 1 862 
100.0 sw 
45.2 s 
40.4 s 

2010 
13.3 b 

8.8 
: 
: 

2010 
: 

: 

: 
: 
: 

: 
: 

2017 
3 047 
378 
- 2 669 
93.0 sw 
22.0 s 
42.3 s 

2017 
8.2 e 

9.7 
: 
: 

2018 
3 347 
368 
- 2 980 
91.0 sw 
27.5 s 
42.7 s 

2018 
7.7 

10.6 
: 
: 

2019 
3 497 
384 
- 3 114 
94.2 sw 
33.2 s 
49.1 s 

2019 
6.9 

8.7 
: 
: 

2020 
3 297 
475 
- 2 822 
92.6 sw 
34.5 s 
45.8 s 

2020 
7.4 ep 

: 
: 
: 

2021 
4 684 
756 
- 3 929 
101.4 sw 
31.5 s 
44.3 s 

2021 
: 

: 
: 
: 

2017 
49.0 w 

2018 
46.6 w 

2019 
45.2 w 

2020 
42.9 w 

2021 
43.9 w 

34.4 w 

33.2 w 

34.2 w 

32.3 w 

35.1 w 

54.0 w 
14.6 w 
32.7 w 

52.6 w 
14.1 w 
31.5 w 

53.0 w 
15.6 w 
32.2 w 

48.8 w 
16.0 w 
30.9 w 

51.9 w 
18.5 w 
32.1 w 

4.4 w 
17.4 w 

3.5 w 
14.3 w 

5.2 w 
15.1 w 

4.8 w 
16.3 w 

2.8 w 
14.8 w 

128 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction (%) 
Services (%) 
People employed in the public sector as a share of total employment, persons aged 20–64 
(%) 
People employed in the private sector as a share of total employment, persons aged 20–64 
(%) 
Unemployment rate: proportion of the labour force that is unemployed (%) 
Male unemployment rate (%) 
Female unemployment rate (%) 
Youth unemployment rate: proportion of the labour force aged 15–24 that is unemployed (%) 
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) (%) 

: 
: 
: 

: 

: 
: 
: 
: 
: 

: 

: 

12.9 w 
65.3 w 
28.4 w 

11.9 w 
70.3 w 
30.8 w 

12.6 w 
67.1 w 
27.6 w 

11.1 w 
67.9 w 
28.7 w 

10.5 w 
71.9 w 
28.3 w 

71.6 w 

69.2 w 

72.4 w 

71.3 w 

71.7 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 

20.6 w 
18.9 w 
24.9 w 
38.0 w 
14.5 w 

32.5 w 

35.8 w 

28.3 w 

30.2 w 

27.6 w 

23.4 w 

16.8 w 

18.0 w 

17.0 w 

13.7 w 

Social cohesion 
Average nominal monthly wages and salaries (national currency) 
Index of real wages and salaries (index of nominal wages and salaries divided by the 
inflation index) (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 (%) 

Note 

2010 
: 
: 

: 
: 
: 

2017 
431 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 
: 

45 w 
46.6 w 
7.8 w 

2021 
484 w 
: 

: 
: 
7.0 w 

Standard of living 
Number of passenger cars relative to population size (number per thousand population) 
Number of mobile phone subscriptions relative to population size (number per thousand 
population) 
Mobile broadband penetration (per 100 inhabitants) 
Fixed broadband penetration (per 100 inhabitants) 

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

Length of motorways (kilometres) 

Innovation and research 
Public expenditure on education relative to GDP (%) 
*Gross domestic expenditure on R&D relative to GDP (%) 

Note 

2010 
90.6 sw 
: 

2017 
153.6 sw 
1 200.7 ew 

2018 
155.9 sw 
1 281.1 ew 

2019 
162.2 sw 
1 266.4 ew 

2020 
164.4 sw 
1 095.0 ew 

2021 
: 
1 072.0 ew 

Note 
1) 

Note 

: 
: 

2010 
30.3 sw 

 w 

2010 
: 
: 

65.4 ew 
15 ew 

2017 
30.5 sw 

108 w 

2017 
4.4 sw 
: 

73.9 ew 
18 ew 

2018 
30.5 sw 

119 w 

2018 
4.5 sw 
: 

78.4 ew 
20 ew 

2019 
30.5 sw 

137 w 

2019 
4.6 sw 
: 

84.5 ew 
21 ew 

2020 
30.5 sw 

137 w 

2020 
4.6 sw 
: 

88.4 ew 
22 ew 

2021 
30.5 sw 

137 w 

2021 
4.3 sw 
: 

129 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government budget appropriations or outlays on R&D (GBAORD), as a percentage of GDP 
(%) 
Percentage of households who have internet access at home (%) 

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) 

Agriculture 
Agricultural production volume index of goods and services (at producer prices) (2010 = 100) 
Utilised agricultural area (thousand hectares) 
Livestock numbers: live bovine animals (thousand heads, end of period) 
Livestock numbers: live swine (thousand heads, end of period) 
Livestock numbers: live sheep and live goats (thousand heads, end of period) 
Raw milk available on farms (thousand tonnes) 
Harvested crop production: cereals (including rice) (thousand tonnes) 
Harvested crop production: sugar beet (thousand tonnes) 
Harvested crop production: vegetables (thousand tonnes) 

Source: Eurostat and/or the statistical authorities in Kosovo 

Note 

Note 

Note 

: 

: 

2010 
: 
553.1 

1.4 
: 

2010 
1 861 
0 
1 612 
0 
619 s 
2 517 
5 168 

2010 
100.0 w 
406.9 e 
: 
: 
: 
: 
430.5 
: 
158.5 

: 

: 

: 

: 

88.8 

93.2 

93.2 

96.4 

2017 
: 
409.0 

3.6 
: 

2017 
1 793 
0 
1 412 
0 
769 s 
2 569 
5 918 

2017 
112.4 w 
417.0 
259.7 
41.1 
210.7 s 
365.1 
477.9 
: 
147.8 

2018 
: 
398.1 

4.2 
: 

2018 
1 822 
0 
1 428 
0 
757 s 
2 585 
5 915 

2018 
108.3 w 
419.5 
259.7 
40.2 
209.8 s 
334.3 
441.8 
: 
155.3 

2019 
: 
392.3 

5.2 
: 

2019 
1 849 
0 
1 503 
0 
815 s 
2 669 
6 351 

2019 
119.0 w 
421.0 
257.7 
40.5 
216.3 s 
: 
459.4 
: 
177.8 

2020 
: 
413.9 

5.3 
: 

2020 
1 901 
0 
1 562 
0 
787 s 
2 665 
6 711 

2020 
100.0 w 
421.1 
261.4 
45.4 
241.7 s 
: 
529.1 
: 
169.4 

: 

: 

2021 
: 
405.0 

5.4 
: 

2021 
1 937 
0 
1 591 
0 
942 s 
2 888 
6 892 

2021 
95.7 w 
421.2 
260.5 
47.4 
241.4 s 
: 
504.4 
: 
165.0 

: = not available 
  b =  break in series 

c =  confidential value 

  d =  definition differs 
  e = estimated value 
  n = not significant value 
  p = provisional 

s = Eurostat estimate 

130 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  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. 

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