COMMISSION STAFF WORKING DOCUMENT KosovoFMT:Style_footnote reference,Superscript,Style>* 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. 2024 Report Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF REGIONS 2024 Communication on EU enlargement policy
Date: 2024-10-30
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, 30.10.2024  SWD(2024) 692 final  COMMISSION STAFF WORKING DOCUMENT Kosovo* 2024 Report Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF REGIONS 2024 Communication on EU enlargement policy {COM(2024) 690 final} - {SWD(2024) 690 final} - {SWD(2024) 691 final} - {SWD(2024) 693 final} - {SWD(2024) 694 final} - {SWD(2024) 695 final} - {SWD(2024) 696 final} - {SWD(2024) 697 final} - {SWD(2024) 698 final} - {SWD(2024) 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.  
 
 
Contents 

1. Introduction ............................................................................................................................................................... 3 

1.1 Context ................................................................................................................................................................ 3 

1.2 Main findings of the report .................................................................................................................................. 3 

2.   The fundamentals of the accession process ........................................................................................................ 21 

2.1. 

Functioning of democratic institutions and public administration reform .................................................. 21 

2.1.1  Democracy ............................................................................................................................................. 21 

2.1.2 Public administration reform ..................................................................................................................... 23 

2.2. Rule of law and fundamental rights.................................................................................................................. 26 

2.2.1  Chapter 23: Judiciary and fundamental rights ....................................................................................... 26 

2.2.2 Chapter 24: Justice, freedom and security ................................................................................................. 39 

2.3. Economic development and competitiveness ................................................................................................... 47 

2.3.1. The existence of a functioning market economy ....................................................................................... 47 

2.3.2. The capacity to cope with competitive pressure and market forces in the EU .......................................... 52 

2.4. Public procurement, statistics, financial control ............................................................................................... 54 

Chapter 5 – Public procurement.......................................................................................................................... 54 

Chapter 18 – Statistics ........................................................................................................................................ 55 

Chapter 32 – Financial control ............................................................................................................................ 56 

3. Good neighbourly relations and regional cooperation ............................................................................................. 58 

4. Normalisation of relations between Kosovo and Serbia .......................................................................................... 59 

5. European standards .................................................................................................................................................. 62 

Cluster 2: Internal Market ....................................................................................................................................... 62 

Chapter 1 – Free movement of goods ................................................................................................................. 62 

Chapter 2 – Freedom of movement for workers ................................................................................................. 63 

Chapter 3 – Right of establishment and freedom to provide services ................................................................. 63 

Chapter 4 – Free movement of capital ................................................................................................................ 64 

Chapter 6 – Company law ................................................................................................................................... 65 

Chapter 7 – Intellectual property law .................................................................................................................. 65 

Chapter 8 – Competition policy .......................................................................................................................... 66 

Chapter 9 – Financial services ............................................................................................................................ 67 

Chapter 28 – Consumer and health protection .................................................................................................... 68 

Cluster 3: Competitiveness and inclusive growth ................................................................................................... 70 

Chapter 10 – Digital transformation and media .................................................................................................. 70 

Chapter 16 – Taxation ......................................................................................................................................... 71 

Chapter 17 – Economic and monetary policy ..................................................................................................... 71 

Chapter 19 – Social policy and employment ...................................................................................................... 72 

Chapter 20 – Enterprise and industrial policy ..................................................................................................... 74 

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Chapter 25 – Science and research ..................................................................................................................... 75 

Chapter 26 – Education and culture .................................................................................................................... 75 

Chapter 29 – Customs union ............................................................................................................................... 77 

Cluster 4: The Green agenda and sustainable connectivity ..................................................................................... 78 

Chapter 14 – Transport policy ............................................................................................................................. 78 

Chapter 15 – Energy ............................................................................................................................................ 79 

Chapter 21 – Trans-European Networks ............................................................................................................. 81 

Chapter 27 – Environment and climate change .................................................................................................. 82 

Cluster 5: Resources, agriculture and cohesion ....................................................................................................... 84 

Chapter 11 – Agriculture ..................................................................................................................................... 84 

Chapter 12 – Food safety, veterinary and phytosanitary policy .......................................................................... 84 

Chapter 13 – Fisheries and aquaculture .............................................................................................................. 85 

Chapter 22 – Regional policy and coordination of structural instruments .......................................................... 86 

Chapter 30 – External relations ........................................................................................................................... 87 

ANNEX I – RELATIONS BETWEEN THE EU AND KOSOVO ........................................................................................... 88 

Annex II - Statistical data ............................................................................................................................................ 90 

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1. INTRODUCTION1 

1.1 CONTEXT 

The  EU-Kosovo  Stabilisation  and  Association  Agreement  has  been  in  force  since  April  2016.  Kosovo 
submitted  an  application  for  EU  membership  in  December  2022.  The  authorities  remain  committed  to 
Kosovo’s European path.  

In  the  reporting  period,  the  EU-facilitated  Dialogue  on  normalisation  of  relations  between  Kosovo  and 
Serbia continued. Both Parties committed to fully implement all of their respective obligations stemming 
from  the  Agreement  on  the  Path  to  Normalisation  and  its  Implementation  Annex  reached  in  2023. 
Constructive engagement in the normalisation of their relations is also a requirement under the Reform 
and  Growth  Facility  for  the  Western  Balkans.  In  line  with  the  3 June 2023  statement  by  the  High 
Representative on behalf of the EU, the EU has been implementing reversible measures vis-à-vis Kosovo. 
The High Representative has recommended the lifting of those measures. 

Since 1 January 2024, holders of Kosovo passports enjoy visa-free travel to the EU.  

Kosovo has actively engaged in implementing the new Growth Plan for the Western Balkans across the 
four  pillars  of:  (i)  gradual  integration  with  the  European  Union’s  single  market:  (ii)  regional  economic 
integration;  (iii)  fundamental  reforms;  and  (iv)  enhanced  financial  support.  On  9  October,  Kosovo 
adopted  its  Reform  Agenda  as  envisaged  under  the  Reform  and  Growth  Facility2  (Growth  Plan  for 
Western Balkans). The Reform Agenda covers reform milestones in the areas of: (i) governance, public 
administration  reform  and  public  financial  management;  (ii)  green  and  digital  transition;  (iii)  private 
sector development; (iv) human capital development and retention; and (v) fundamentals and the rule of 
law.  

1.2 MAIN FINDINGS OF THE REPORT3 

THE FUNDAMENTALS OF THE ACCESSION PROCESS 

Democracy  

The framework for elections is conducive to the organisation of democratic elections. Kosovo continued 
to  consolidate  its  new  electoral legal framework.  On 21 April 2024,  Kosovo  held  a mayoral  recall  vote 
that aimed to pave the way for new local elections in the north of Kosovo. Despite some challenges, the 
vote was generally well organised. However, it failed due to an extremely low voter turnout following the 
decision of political parties representing Kosovo Serbs in the north to withdraw from the process and call 
for  a  boycott.  It  is  critical  that  inclusive  local  elections,  in  which  Kosovo  Serbs  participate  without 
preconditions, are held in all four municipalities in the north. 

1 The 2024 report is presented in a renewed format and structure. Main findings of the report (previously grey assessment boxes), 
together with the recommendations are brought together at the beginning of the report. Furthermore, under the fundamentals, for 
better readability and comparability across all reports, certain data is provided (also) in the form of graphs. 
2 OJ L, 2024/1449, 24.5.2024. 
3 This report covers the period from 15 June 2023 to 1 September 2024. It is based on input from a variety of sources, including 
contributions from the government of Kosovo, 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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The Assembly faces a number of challenges in the exercise of its powers.  The government still holds a 
solid majority in the Assembly, but disagreements and lack of cooperation within the majority and with 
opposition  parties  hindered  the  Assembly’s  ability  to  adopt  legislation,  to  appoint  members  of  public 
bodies and to provide effective oversight. Srpska Lista members boycotted the Assembly’s work during 
the  reporting  period.  Strengthening  consensus-building,  transparency  and  oversight  could  improve  the 
Assembly’s  performance  and  help  bring  about  a  more  stable  and  efficient  legislative  process.  The 
Assembly needs to improve its internal management, adopt work plans, and introduce an electronic voting 
and presence recording system. 

The  institutions  in  charge  of  the  integration  process  are  broadly  in  place.  While  Kosovo  demonstrated 
strong  commitment  to  its  EU  agenda,  divisive  domestic  politics  hampered  implementation.  The 
government  should  work  to  forge  cross-party  political  support  to  pursue  EU-related  reforms  more 
effectively.  It  should  also  include  line  ministries  in  decisions  related  to  EU-related  policies  under  their 
responsibility and increase interministerial coordination.  

As regards governance, initiatives to change responsibilities of certain ministries were met with criticism 
over  the  lack  of  public  consultations  and  disregard  for  potential  risks  associated  with  these  reforms. 
Kosovo made tangible progress in improving gender equality at central and local level. Challenges in the 
relationship between municipalities and central institutions persisted.  

Civil  society  organisations  (CSOs)  in  Kosovo  operate  in  a  largely  enabling  environment.  Civil  society 
remained active and diverse, playing a meaningful role in designing, implementing and overseeing EU-
related  reforms.  Kosovo  has  taken  specific  action  to  increase  the  transparency  and  accountability  of 
public funding for CSOs, but challenges remain on the  reporting and assessment of the effectiveness of 
allocated funds.  

Public administration reform  

Kosovo  has  some  level  of  preparation  and  made  limited  progress  in  implementing  last  year’s 
recommendations.  Kosovo  advanced  in  reducing  administrative  burden  by  simplifying  procedures 
through  implementing  the  related  programme  for  2022-2027.  However,  the  General  Law  on 
administrative  procedure  remains  insufficiently  implemented  to  ensure  legal  certainty.  In  general,  the 
sector  continues  to  face  several  challenges  in  ensuring  a  well-functioning  civil  service  recruitment  and 
remuneration  system  that  can  retain  and  attract  qualified  staff.  Delayed  reforms  to  restructure 
inefficient  organisation  of  administration,  with  blurred 
subordinated  agencies  perpetuate 
accountability lines. 

the 

The  Commission’s  recommendations  from  last  year  were  not  implemented  and  remain  valid.  In  the 
coming year, Kosovo should, in particular: 

→  improve  the  merit-based  civil  service  system  by  amending  the  Law  on  public  officials  in  line  with 
merit  principles  and  the  Law  on  the  independent  oversight  board  of  civil  service  in  line  with  the 
relevant Constitutional Court ruling; 

→  improve the efficiency of the civil service by: (i) reducing the number of vacant positions and those of 
acting senior management officials and putting in place effective annual planning and monitoring of 
human-resource management; (ii) finalising the process of job classification and systematisation; and 
(iii) finalising the review of the internal organisation of public bodies at central level; 

→  improve  the  accountability  and  legal  certainty  of  the  public  administration  by:  (i)  speeding  up  the 
process of rationalisation of independent agencies; and (ii) continuing the reduction of administrative 
burden and digitalisation of services; 

→  revise  the  legislation  on  public  financial  management  to  align  it  with  international  standards,  by 
particularly introducing a formal requirement to regularly prepare and publish a fiscal risk statement 

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as  part  of  the  budget  documentation;  and  ensuring  that  the  public  investment    methodology  is 
integrated into the revised legislation. 

Chapter 23: Judiciary and fundamental rights 

Kosovo is between an early stage of preparation and having some level of preparation to apply the 
EU  acquis  and  European  standards  on  the  judiciary  and  fundamental  rights.  Kosovo  made  limited 
progress  by  improving  the  functioning  of  the  judiciary,  stepping  up  the  fight  against  corruption  and 
strengthening the protection of fundamental rights. 

Functioning of the judiciary  

Kosovo  is  at  an  early  stage  of  preparation  on  the  functioning  of  the  judiciary  and  made  limited 
progress.  Kosovo  achieved  a  higher  clearance  rate  and  managed  to  reduce  the  backlog  in  civil  cases. 
Continuous  improvements  were  made  on  the  use  of  the  Case  Management  Information  System.  The 
functioning of the Kosovo Judicial Council (KJC) improved in terms of communication and transparency, 
while  the  Assembly  finally  elected  all  three  lay  members  of  the  Kosovo  Prosecutorial  Council  (KPC). 
However,  the  delays  and  struggle  to  jointly  design  justice  reforms  in  line  with  the  March  2023  joint 
commitment  statement  indicates  a  recurring  lack  of  willingness  to  strengthen  the  justice  system. 
Consultations on these reforms and on amendments to the law on the KPC were rushed and did not ensure 
a  meaningful  review.  Despite  strong  EU  advice,  the  Venice  Commission  was  not  consulted  by  the 
government and Assembly on the final amendments to the law on the KPC and on the other key reforms. 
This  negatively  affected  the  quality  of  legislation  and  its  alignment  with  European  standards.  Work 
continued on handling gender-based violence cases, but faster progress is needed. 

The Commission’s recommendations from last year were partially implemented and remain largely valid. 
In the coming year, Kosovo needs, in particular, to: 

→  ensure  that  legislation  concerning  integrity  and  accountability  of  the  judiciary  are  aligned  with 
European  standards  and  relevant  Venice  Commission  recommendations,  and  step  up  the  use  of 
existing  mechanisms  on  the  accountability,  integrity  and  efficiency  of  the  justice  system,  with  a 
particular focus on the roles and responsibilities of the KPC and KJC regarding implementation and 
monitoring of legislation and policies;  

→  further  reform  the  court  administration  and  strengthen  the  management  capacity  of  the  prosecution 
service and the judiciary to achieve strategic goals effectively, including further reducing the backlog 
of  cases  based  on  a  clear  action  plan  with  audits  and  internal  control,  and  implementing  the  IT 
strategy; 

→  ensure solid criminal investigations, improve the quality of indictments and ensure effective criminal 
procedures,  including  cases  of  gender-based  violence.  To  this  end,  strengthen  the  cooperation 
between prosecutors and police as well as the prosecutors’ leading role in investigations. 

Fight against corruption  

Kosovo  is  between  an  early  stage  of  preparation and  having  some level  of  preparation in  fighting 
corruption,  and  made  limited  progress  overall.  Additional  institutions  adopted  integrity  plans.  The 
Assembly  adopted  the  Law  on  the  special  prosecution  office  (SPO)  to  strengthen  the  criminal  justice 
response to high-level corruption cases. There was some progress in adjudicating corruption cases, which 
resulted in a greater number of final court decisions and convictions. Nevertheless, results are affected by 
a shortage of resources and capacity and by a lack of impartiality and accountability in the prosecution 
service  and  the  judiciary.  Stronger  commitment  to  establish  a  solid  track  record  in  fighting  high-level 
corruption  remains  necessary,  including  by  strengthening  the  use  of  anti-corruption  tools  such  as  asset 
declarations and public institutions’ integrity plans.   

5 

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

→  further  strengthen  the  capacity  of  the Agency  for  the  Prevention  of  Corruption  (APC),  in  terms  of 

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

→  further  implement  existing  anti-corruption  legislation;  adopt  a  national  strategy  and  action  plan 

against corruption for 2024-2027 in line with European best practices and standards; 

→  strengthen the quality of investigation in high-level corruption cases, by increasing the capacity of the 

Special Investigative Unit of the police and ensuring its effective cooperation with the SPO. 

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 appointed a national coordinator and set up a 
central  secretariat  for  combating  gender-based  violence.  Some  progress  was  made  in  implementing  the 
Law on the rights of the child. The government adopted the Strategy for the protection and promotion of 
the rights of communities. Kosovo also finally implemented the judgment of the Constitutional Court on 
Dečani Monastery land ownership. Some progress was achieved on the verification process of diplomas 
from the university in North Mitrovica. However, legislation implementation needs further strengthening. 
Several government measures undermined the rights of non-majority communities. Adoption of the Civil 
Code remains pending. 

The Commission’s recommendations from last year were partially implemented and remain valid. In the 
coming year, Kosovo needs, in particular, to: 

→  address  shortcomings  related  to  protecting  the  rights  of  persons  with  disabilities,  in  particular  by 
adopting the Law on status recognition, services and benefits, and improving their access to rights in 
practice; 

→  strengthen implementation of the Law on gender equality and the Strategy on gender-based violence; 
appoint  a  new  head  of  the  Agency  for  Gender  Equality;  and  enhance  gender  mainstreaming  of 
legislation, regulations and policies; 

→  safeguard existing mechanisms protecting the rights of non-majority communities and improve their 

implementation. 

Freedom of expression  

Kosovo  has  some  level  of  preparation  and  made  limited  progress.  Some  improvement  was  made  on 
freedom of media, including access to public documents. However, this was coupled with developments 
perceived  as  attempts  by  the  government  to  exercise  control  over  the  media.  A  new  law  on  the  media 
regulator  was  adopted.  It  contributes  to  enhancing  media  regulation,  but  the  Assembly’s  amendments 
failed to reflect most recommendations from the EU and other international partners. The functioning of 
the Independent Media Commission improved. The public broadcaster faced instability with a number of 
resignations among top management and board members. It needs to swiftly address concerns related to 
editorial  accountability  and  independence.  The  media  in  Kosovo  is  pluralistic,  but  the  sector  still  lacks 
transparency and financial sustainability. Data on the audiovisual market remains insufficient, including 
on media ownership and financing. Attacks against journalists are given due attention by the police and 
the  judiciary,  but  some  level  of  impunity  remains,  including  because  of  the  difficulty  to  investigate 
complex  cases  which  occurred  in  the  north.  The  environment  in  the  north  of  Kosovo  is  restrictive  and 
conducive to self-censorship for the public, the media and CSOs.  

6 

 
 
 
The  Commission’s  recommendations  from  last  year  were  not  implemented  and  remain  valid.  In  the 
coming year, Kosovo should, in particular: 

→  improve  the  capacity  of  the  prosecutorial,  judicial  and  law-enforcement  authorities  to  handle  cases 

related to the freedom of expression; 

→  develop protocols and training on the protection and safety of journalists, including early-warning and 
rapid-response  mechanisms; improve the  working conditions  of  journalists and media  workers;  and 
strengthen professional reporting; 

→  ensure  implementation  of  the  new  Law  on  the  Independent  Media  Commission  by  ensuring  full 
alignment with the EU acquis and European standards; and review the Law on the Radio -Television 
of Kosovo to ensure sustainable funding, preserving its independence. 

Chapter 24: Justice, freedom and security  

Kosovo  has some level of preparation and made  some progress. The reaction to the September 2023 
attack in Banjska/Banjskë showed the high level of professionalism of the Kosovo Police. The Kosovo 
Police  recruited  two  new  generations  of  Kosovo  Serb  officers;  the  Special  Prosecutor’s  Office  (SPO) 
recruited  nine  additional  special  prosecutors.  The  number  of  indictments  in  organised-crime  cases  has 
steadily increased. The new Law on the SPO makes it possible to set up  multidisciplinary investigation 
teams  in  complex  cases  and  provides  a  legal  basis  for  the  Special  Investigation  Unit  of  the  police  to 
handle high-level corruption cases. Kosovo adopted a new drugs strategy; the National Drug Observatory 
became operational. Kosovo improved migration governance and conducted an information campaign on 
visa-free travel to the EU which entered into force on 1 January 2024. Also, Kosovo adopted a new law 
on the Civil Registry Agency.  

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

→  amend  the  Law  on  money  laundering  and  terrorism  financing  to  fully  harmonise  it  with  the 
corresponding EU directives; and increase the number of final convictions for money laundering; set 
up a national centre for countering terrorism and violent extremism; 

→  continue  to  implement  the  EU  Action  Plan  on  Western  Balkans  for  migration;  implement  an 
integrated  border  management  system  in  line  with  the  current  legislation  and  the  European  best 
practices  ;  amend  the  Law  on  foreigners  in  line  with  EU  standards;  and  progressively  align  its 
legislation with EU visa policy;  

→  maintain its communication campaign on rights and obligations associated with visa free travel to the 
EU, improve screenings at departures and engage with the most affected EU Member States to avoid 
unfunded asylum applications. 

Fight against organised crime 

Kosovo is between an early stage of preparation and having some level of preparation in the fight 
against organised crime and made some progress. The cooperation with Europol advanced, with Kosovo 
participating  in  joint  operations  and  a  Kosovo  liaison  officer  deployment  in  Europol.  The  amount  of 
information exchanged via the Secure Information Exchange Network Application (SIENA) significantly 
increased.  The  reorganisation  of  the  police  advanced  and  is  pending  final  phases  of  the  recruitment 
processes. As per recommendations, the Kosovo Police is directing its activities according to intelligence-
led policing principles, and assigned officers implement the community policing approach. The police is 

7 

 
 
conducting financial investigations more systematically. Some progress was achieved in the area of asset 
confiscation,  while  systemic  improvement  remains  needed.  The  Ministry  of  Interior  and  its  executive 
agencies  adopted  integrity  plans.  There  was  some  progress  in  the  fields  of  cybercrime,  combating 
trafficking in human beings, and small arms and light weapons (SALW) control.  

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

→  find  ways  to  ensure  that  police  composition  reflects  the  ethnic  composition  of  Kosovo’s 

municipalities; 

→  adopt  a  new  organised-crime  strategy;  further  improve  the  investigation  and  prosecution  of  high-
profile  organised  crime,  including  money  laundering;  and  proactively  and  jointly  target  and  map 
organised criminal groups and networks; further strengthen the efficiency of the criminal confiscation 
regime, by establishing a confiscation fund and increasing use of confiscation tools by the prosecution 
and police; 

→  strengthen efforts to prevent and combat migrant smuggling and trafficking in human beings. 

ECONOMIC DEVELOPMENT AND COMPETITIVENESS 

The existence of a functioning market economy 

Kosovo  has  some  level  of  preparation  and  made  good  progress  in  developing  a  functioning  market 
economy.  Robust,  albeit  slower  economic  growth  and  a  strong  revenue  performance  underpinned  a 
further decline in the budget deficit in 2023. Nevertheless, fiscal challenges persist given the narrow tax 
base,  weaknesses  in  public  investment  management,  and  poor  financial  oversight  and  accountability  of 
publicly-owned enterprises (POEs). Despite some progress, the labour market outcomes remained weak. 
The banking sector continues to be well capitalised and stable. Some progress was made in improving the 
business environment and reducing informality.  

The Commission’s recommendations from last year were partially implemented and remain largely valid. 
In order to improve the functioning of the market economy, Kosovo should, in particular:  

→  improve the quality of public spending by addressing weaknesses in public investment management; 

→  strengthen the revenue base by reducing loopholes and exemptions by amending tax legislation;  

→  reduce fiscal risks by improving financial oversight and accountability of POEs. 

The capacity to cope with competitive pressure and market forces in the EU 

Kosovo is at an early stage of preparation and 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 
provide the necessary skills and it is not adequately aligned with labour market needs. Some progress was 
made  in  promoting  renewable  energy  sources  and  digitalising  the  economy.  The  latter  remains  highly 
reliant  on  small  and  micro  firms,  which  cannot  compete  internationally.  Trade  openness  increased 
significantly compared with 2019. 

The Commission’s recommendations from last year were partially implemented and remain largely valid. 

To improve competitiveness and sustain long-term growth, Kosovo should, in particular:  

→  align education with labour market needs through close cooperation with the business community and 
by revising the legal framework on vocational education and training (VET) and adult education; 

→  develop transparent and competitive procedures for deployment of renewable energy; 

8 

 
 
→  facilitate  private-sector  investments  and  improve  mechanisms  to  attract  FDI  in  strategic  sectors 

promoting adoption of higher value-added products and services and innovation. 

Chapter 5 – Public procurement 

Kosovo is between having some level of preparation and a moderate level of preparation and made 
limited  progress  in  the  area  of  public  procurement.  Kosovo  started  to  increase  cooperation  between 
public procurement institutions and contracting authorities by setting up a joint coordination secretariat. 
Despite  some  regulatory  initiatives  by  the  Public  Procurement  Regulatory  Commission  (PPRC),  public 
procurement remains prone to irregularities and vulnerable to corruption.  

The Commission’s recommendations from last year were partially implemented and remain largely 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  proper  implementation  of  this 
legislation; 

→  ensure  that  the  Procurement  Review  Body  (PRB)  is  fully  operational  and  remains  functionally 
independent,  with  a  strengthened  capacity  to  ensure  that  its  review  process  is  timely,  effective  and 
transparent; 

→  upgrade its e-procurement platform in line with the new Law on public procurement and improve its 

efficiency, including interconnection with other relevant government IT systems. 

Chapter 18 – Statistics  

Kosovo has some level of preparation in the area. Kosovo made some progress with the dissemination 
of new statistical products and improved the frequency of data transmission to Eurostat. The population 
and housing census was conducted and preliminary results were released in July 2024.  

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

→  ensure  better  access  to  and  use  of  available  administrative  data  sources,  with  a  particular  focus  on 

improving access to data from the Tax Authorities and Customs; 

→  continue to increase the number of statistical products and their dissemination by Eurostat; 

→  fill existing vacancies and strengthen the capacity of the Kosovo Agency of Statistics (KAS).  

Chapter 32 – Financial control  

Kosovo has some level of preparation in this area and made limited progress. The implementation of 
the 2022-2026 public finance management strategy and its action plan related to public internal financial 
control (PIFC) remained slow. Implementation of internal audit recommendations and quality assurance 
remain  low,  and  capacities  of  internal  audit  units  and  external  audit  remain  weak.  The  parliamentary 
oversight of the management of public funds continued to be inefficient. 

The Commission’s recommendations from last year were partially implemented and remain largely valid. 
In the coming year, Kosovo should:  

→  draft  and  adopt  a  new  law  on  public  financial  management  and  accountability  based  on  EU  best 
practice and international standards; and harmonise the PIFC law with the new law on public finance 
management;  

9 

 
 
→  improve the managerial accountability of budget users at both central and local levels by ensuring that 

managers are empowered and held accountable based on clear performance criteria;  

→  improve cooperation between the National Audit Office (NAO) and the Assembly by improving the 
parliamentary  scrutiny  of  budget  execution  and  by  continuously  and  efficiently  implementing  and 
following up on NAO audit recommendations. 

CLUSTER 2: INTERNAL MARKET 

Chapter 1 – Free movement of goods   

Kosovo is between having some level of preparation and a moderate level of preparation in this area. 
Limited  progress  was  made  in  implementing  the  Law  on  general  product  safety  and  the  Law  on 
inspections.  

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

→  make progress on market surveillance and mutual recognition in line with the EU acquis and increase 

the enforcement capacity of the conformity assessment and market surveillance bodies;  

→  continue the implementation of the new Law on general product safety and Law on inspections and 

adopt relevant secondary legislation; 

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

authorisation and restriction of chemicals (REACH). 

Chapter 2 – Freedom of movement for workers  

Kosovo  has  some  level  of  preparation  in  the  field  of  free  movement  for  workers  and  made  limited 
progress. Negotiations on bilateral agreements on social security with Slovenia, Croatia and Austria are 
ongoing. 

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

→  progress  on  negotiations  on  new  bilateral  agreements  on  social  security,  in  particular  with  EU 

Member States; 

→  start work to prepare for joining the European network of employment services (EURES); 

→  start to work on legislation to preserve the supplementary pension rights of mobile workers who have 

worked abroad, including in EU Member States. 

Chapter 3 – Right of establishment and freedom to provide services  

Kosovo  remains  moderately  prepared  and  made  limited  progress.  Kosovo’s  postal  market  is  fully 
liberalised and the legal framework is in line with the EU Postal Services Directive. However, sectoral 
laws are still not compliant with the EU Services Directive and the related action plan expired with no 
satisfactory implementation. The point of single contact is not fully functional. Kosovo needs to align its 
legal framework with the EU acquis on recognition of professional qualifications.  

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

10 

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

→  align  with  the  Regulation  on  cross-border  parcel  delivery  service,  and  strengthen  the  institutional 

capacity to monitor and ensure compliance with the new rules in the postal market; 

→  align  its  legal  framework  with  the  EU  acquis  on  mutual  recognition  of  professional  qualifications, 
including  the  Directive  on  recognition  of  professional  qualifications  and  the  Directive  on  a 
proportionality test before adopting new regulation of professions. 

Chapter 4 – Free movement of capital 

Kosovo  is  moderately  prepared  and  made  limited  progress,  with  improvements  in  the  exchange  of 
information and supervisory capacities in the fight against money laundering and terrorism financing.  

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

→  further align its legal framework with the EU Payment Services Directive 2; 

→  step up action to fight economic and financial crime; and align the Law on the prevention of money 

laundering and terrorist financing with the EU acquis; 

→  continue to strengthen interinstitutional cooperation in the fight against economic and financial crime; 

and boost the effectiveness of confiscation of assets and proceeds of crime. 

Chapter 6 – Company law  

Kosovo has some level of preparation, with no progress made in further aligning its legal framework 
with the EU acquis on company law.  

The Commission’s recommendations from last year were not implemented and remain largely valid. In 
the coming year, Kosovo should, in particular:  

→  finalise and adopt the draft law on business organisations to further align its legal framework with the 

EU acquis on company law,  

→  further align with the most recent acquis on the use of digital tools and processes in company law and 

on cross-border conversions, mergers and divisions; 

→  further  align  its  legal  framework  with  the  EU  acquis  on  company  reporting,  country  by  country 
reporting,  corporate  sustainability  reporting  and  transparency,  as  well  as  strengthen  both  the 
institutional audit oversight structures and the professional independence/objectivity of auditors and 
audit firms; and ensure that these structures are sufficiently and sustainably funded. 

Chapter 7 – Intellectual property law  

Kosovo is moderately prepared in the area of intellectual property rights. Some progress was achieved 
by adopting the new Law on copyright and related rights. The Commercial Court, which is mandated to 
solve cases and disputes in this field, has commenced its work efficiently. Kosovo should strengthen its 
capacity and resources to better implement and enforce the legal framework on IPR.  

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

11 

 
 
→  improve implementation of adopted legislation in terms of strategy and sufficient capacity; 

→  adopt implementing legislation of industrial property laws (topographies of semiconductor products 

and trade secrets). 

→  strengthen collaboration with the European Union Intellectual Property Office, taking advantage of its 

expertise, networks and specialised databases. 

Chapter 8 – Competition policy  

Kosovo has some level of preparation and made limited progress in this area. While Kosovo continued 
to revise the legal competition framework, it did not progress much in the area of State aid.  

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

→  set up a functional State aid commission, in line with SAA obligations; 

→  align the legislative framework in the area of State aid with the EU acquis; and ensure enforcement of 

competition and State aid legislation; 

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

Chapter 9 – Financial services  

Kosovo is moderately prepared and made some progress on the governance of the central bank. 

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

→  align  its  legal  framework  with  the  Solvency  II  Directive;  and  ensure  the  implementation  of  the 

relevant legislation; 

→  continue efforts to align with the EU acquis related to the regulation of securities markets, investment 

funds, investment services, financial markets infrastructures and digital finance; 

→  align its legal framework with the revised versions of the EU Capital Requirements Directive, Capital 
Requirements Regulation, Bank Recovery and Resolution Directive and Deposit Guarantee Scheme 
Directive.  

Chapter 28 – Consumer and health protection 

Kosovo  is  at  an  early  stage  of  preparation  in  this  area.  There  was  limited  progress  except  for  the 
adoption  of  the  Law  on  prevention  and  control  of  communicable  diseases  and  the  Law  on  pricing  of 
pharmaceutical products.  

The Commission’s recommendations from last year were partially implemented and remain largely valid. 
In the coming year, Kosovo should: 

→  adopt the law on consumer protection and fully implement the Law on general product safety; 

→  introduce appropriate health financing reforms to ensure progress towards universal health coverage; 

and improve the efficiency and quality of health services; 

12 

 
 
→  introduce measures to reduce the risk factors for non-communicable diseases / chronic conditions in 

order to protect human capital and ensure future economic growth.  

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH  

Chapter 10: Digital transformation and media 

Kosovo has some level of preparation in the area of digital transformation and media. Kosovo made 
limited progress in preparing to align its legislation with the EU acquis by further strengthening its 
legal  and  strategic  framework,  particularly  with  the  adoption  of  the  e-government  strategy  and  the 
cybersecurity  strategy  and  accompanying  action  plan.  Kosovo  signed  and  ratified  the  Association 
Agreement with the European Commission to join the EU-funded Digital Europe Programme.  

The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  largely 
valid. In the coming year, Kosovo should: 

→  align  its  legislation  with  the  European  Electronic  Communications  Code,  the  EU  Network  and 
Information  Security  Directive  (NIS2),  the  EU  Toolbox  for  5G  cybersecurity,  and  the  Digital 
Services Act and the Digital Markets Act;  

→  ensure that telecommunication and media regulators are given appropriate resources to fulfil their 
mandates  independently;  and  develop a  solution to  ensure  that the  public service  broadcaster is 
sustainably funded; 

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

competition. 

Chapter 16 – Taxation 

Kosovo has some level of preparation in this area and made some progress in implementing risk-based 
audits  and  service  digitalisation.  Compliance  audits  and  formalisation  measures  led  to  higher  tax 
revenues.  

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

→  initiate a tax policy revision, including personal income tax, corporate income tax, value added tax 

and excise duties; and further align its tax legislation with the EU acquis; 

→  approve  the  new  strategy  for  combating  the  informal  economy,  money  laundering,  financing  of 

terrorism and financial crime (2023-2026); 

→  strengthen the administrative and professional capacity of the Tax Administration of Kosovo (TAK) 
by  setting  out clear  rules  on  jobs, recruitment, performance evaluation, merit-based  promotion,  and 
transfers. 

Chapter 17 – Economic and monetary policy  

Kosovo  is  moderately  prepared  and  some  progress  was  made  in  this  area.  A  normalisation  of  the 
operations of the central bank took place following the appointment of the three deputy governors and the 
functional reorganisation of the central bank. Some progress was made in collecting data and transmitting 
it to Eurostat. However, methodological inconsistencies persisted in some areas.  

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

13 

 
 
→  increase  its  capacity  to  report  on  government  financial  statistics  according  to  the  ESA  2010;  and 

ensure regular monitoring of standards; 

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

Chapter 19 – Social policy and employment 

Kosovo is between an early stage of preparation and having some level of preparation in this area. 
There was good progress, in particular by finalising the new employment strategy, drafting of the new 
Law  on  employment,  intensifying  inspections  in  work  sectors  with  higher  risks,  launching  of  a  Youth 
Guarantee Scheme pilot in two municipalities, and launching of a thorough reform on social assistance. 
The rate of fatal occupational accidents declined compared with previous years.  

The Commission’s recommendations from last year were partially implemented and remain largely valid. 
In the coming period, Kosovo should, in particular: 

→  prepare  for  a  full  roll-out  of  the Youth  Guarantee  scheme,  based  on  lessons  learnt  during  the  pilot 
phase;  adopt  the  Law  on  employment  and  amendments  to  the  Law  on  labour  to  align  its  legal 
framework with the recent EU acquis, notably in relation to non-discrimination in employment and 
parental leave; 

→  intensify  inspections  in  work  sectors  with  higher  risks;  adopt  the  new  Law  on  health  and  safety  at 
work  and  a  corresponding  strategy;  enforce  rules  and  standards  on  health  and  safety  at  work;  and 
strengthen social dialogue; 

→  continue to reform social assistance schemes to make it pro-poor; improve access to social services, 
in particular for children and persons with disabilities; and improve the capacity of municipalities, in 
particular regarding social budget execution, outsourcing of services, and quality assurance.  

Chapter 20 – Enterprise and industrial policy 

Kosovo is moderately prepared in the area, and the government made some progress by continuing to 
implement the 2030 strategy for industrial development and business support.  

The Commission’s recommendations from last year were partially implemented and remain largely valid. 
In the coming period, Kosovo should, in particular: 

→  move  forward  with  the  implementation  of  the  strategy  for  industrial  development  and  business 
support for 2030, and the sustainable economic growth pillar of the national development strategy for 
2021-2030; 

→  urgently improve the capacity of the Ministry of Industry, Entrepreneurship and Trade; 

→  complete the establishment of the two separate investment promotion and SME support agencies; and 

ensure that both are sufficiently resourced. 

Chapter 25 – Science and research   

Kosovo  is  at  an  early  stage  of  preparation.  Kosovo  made  limited  progress  by  taking  further  steps 
towards a strategic approach to research, for instance by approving the National Science Programme for 
2023-2028. Kosovo could not maintain its performance in the EU’s framework  programme on research 
and innovation. 

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

14 

 
 
→  devise and implement a gender strategy for research at national level, as well as for full integration 
and  promotion  of  women  and  girls  in  research  and  in  science,  technology,  engineering  and 
mathematics; 

→  intensify measures to  establish  a  positive  trend in the  Horizon  Europe  participation  and  advance in 

developing a Smart Specialisation Strategy; 

→  establish a system to reliably provide research, science and technology, and innovation statistics. 

Chapter 26 – Education and culture  

Kosovo has some level of preparation in the field of education and culture. There was limited progress 
during  the  reporting  period.  The  implementation  of  the  new  Law  on  early  childhood  education 
commenced  with  the  piloting  of  new  curricula  for  the  2023/2024  academic  year.  A  reform  on  the 
recruitment of staff in the education sector, including inspectors, was approved. Despite these measures, 
results  are  not  yet  visible,  and  the  quality  of  education  still  needs  major  improvement.  Kosovo’s 
participation in Erasmus+ is improving, confirming the positive trend of the past year. While the Law on 
art and culture was adopted, a culture strategy is still pending.  

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

→  implement  the  roadmap  outlined  in  Kosovo’s  education  strategy  for  2022-2026;  and  continue  to 
follow  up  on  the  recommendations  under  the  European  Training  Foundation  Rapid  Education 
Diagnosis, such as on VET governance and quality assessment of teachers and schools; 

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

→  continue  work  to  strengthen  VET  governance  and  increase  the  quality  of  VET  for  professions  in 

demand in view of the Youth Guarantee.  

Chapter 29 – Customs union 

Kosovo  is  moderately  prepared  and  made  good  progress  by  adopting  the  new  Customs  and  Excise 
Code,  expanding  the  use  of  publicly  operated  customs  terminals,  and  significantly  reducing  customs 
terminal fees. The number of authorised economic operators increased. Significant steps were initiated to 
strengthen the administrative and professional capacity of Kosovo customs. 

The  Commission’s  recommendations  from  last  year  were  implemented.  In  the  coming  year,  Kosovo 
should, in particular: 

→  draft and approve the implementing legislation for the new Customs and Excise Code; 

→  continue  to  strengthen the administrative  and  professional capacity of its  customs  by finalising and 
implementing  the  new  Administrative  Instruction,  and  by  implementing  the  Customs  and  Excise 
Code rules on jobs, performance evaluation, merit-based promotion and transfers;  

→  abolish all fees charged to exporters/importers at public, publicly operated and private inland customs 

terminals. 

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY  

15 

 
 
 
Chapter 14 – Transport policy 

Kosovo is at an early stage of preparation in the area and made some progress by adopting the action 
plan  for  the  implementation  of  the  multimodal  transport  strategy,  approving  the  strategy  on  an 
intelligent  transport  system,  and  opening  new  air  corridors  with  Albania.  More  action  is  needed  to 
implement the EU acquis. Last year’s recommendations remain partly valid. 

The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  largely 
valid. In the coming year, Kosovo should: 

→  adopt  the  new  Law  on  roads;  invest  in  road  maintenance  and  inspections;  continue  prevention 

campaigns; and set up a systematic monitoring mechanism for collecting crash data;  

→  align its legal framework with the EU rail acquis, particularly the 4th railway package for both the 

market and technical pillar;  

→  adopt the action plan for the intelligent transport system strategy and ensure sufficient capacity and 
resources are made available for its implementation; and harmonise the legislative framework with 
the EU passenger rights acquis across all modes of transport. 

Chapter 15 – Energy 

Kosovo has some level of preparation in the area of energy. Kosovo made some progress in this area 
by  adopting  the  Law  on  renewable  energy  sources,  launching  of  the  day-ahead  market  coupling  with 
Albania,  successfully  concluded  the  first  solar  auction  and  making  further  investments  in  increasing 
energy  efficiency  in  public  and  residential  buildings.  However,  Kosovo  remains  heavily  reliant  on 
outdated coal-fired power plants and needs to accelerate the deployment of renewable energy sources in 
line  with  its  new  energy  strategy.  The  Kosovo  transmission  system  operator,  KOSTT,  should  ensure 
compliance with its obligation under the Connection Agreement with ENTSO-E, with no deviation from 
the grid. Kosovo needs to adopt as soon as possible its national energy and climate plan (NECP), in line 
with the Energy Community Secretariat recommendations.  

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

→  adopt  the  amended  package  of  energy  laws  to  ensure  alignment  with  the  Electricity  Integration 

Package and Clean Energy Package; and launch the first wind auction;  

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

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

→  improve  the  implementation  of  energy  efficiency  legislation  including  in  the  area  of  energy 
performance of buildings; and continue the roll-out of energy efficiency investments in public and 
residential buildings. 

Chapter 21 – Trans-European Networks 

Kosovo  has  some  level  of  preparation  in  the  area.  Limited  progress  in  this  area  was  made  by 
continuing  works  on  Rail  Route  10  and  initiating  the  day-ahead  electricity  market  coupling  with 
Albania.  The  Commission’s  recommendations  from  last  year  were  partially  addressed  and  remain 
largely valid. In the coming year, Kosovo should: 

→  implement  the  pending  connectivity  projects;  and  strengthen  its  institutional  and  administrative 

capacity to implement strategic infrastructure projects; 

16 

 
 
→  proceed with the signalling works; and complete the first phase of Rail Route 10; 

→  improve the capacity of the regulatory authority for electronic and postal communications to enforce 

telecommunications market regulations. 

Chapter 27 – Environment and climate change 

Kosovo is at an early stage of preparation in the area and made limited progress, with the adoption of 
the Law on climate change in December 2023 being the only significant development. Administrative 
and human-resource capacities in the whole sector are at a critically low level and represent a significant 
obstacle to its proper and progressive development.  

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

→  demonstrate political commitment by significantly strengthening the administrative capacity of the 

environment and climate sectors at both local and central levels;  

→  amend  the  Law  and  the  integrated  strategy  on  waste  management;  and  ensure  that  appropriate 
measures are taken for the de facto prevention of pollution of protected areas and the management 
of protected areas;  

→  adopt the NECP as soon as possible, and implement the Law on climate change, in particular the 
framework  for  the  monitoring,  reporting,  verification  and  accreditation  of  greenhouse  gas 
emissions,  with  a  view  to  introducing  carbon  pricing  to  align  the  legal  framework  with  the  EU 
emissions trading system. 

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION  

Chapter 11 – Agriculture  

Kosovo  has  some  level  of  preparation  in  agriculture  and  rural  development.  Kosovo  made  some 
progress in this area with the adoption of the Law on market organisation for agricultural products, the 
national  programme  for  agriculture  and  rural  development  for  2023-2027,  the  strategic  plan  of  the 
Kosovo  advisory  system  for  agriculture  and  rural  development  for  2023-2027  and  the  national  organic 
action plan for 2023-2026.   

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

→  strengthen  the  administrative  and  technical  capacity  of  both  the  Department  of  Rural  Development 

Policy (managing authority) and the Agency for Agricultural Development (paying agency); 

→  adopt  the  Law  on  agriculture  and  rural  development  advisory  services  and  the  implementing 

legislation on the market organisation for agricultural products; 

→  amend or repeal the Law on agricultural land; and take urgent and effective measures to stop the loss 

of agricultural land. 

Chapter 12 – Food safety, veterinary and phytosanitary policy  

Kosovo is between having some level of preparation and a moderate level of preparation in this area. 
Good progress was made. In particular, Kosovo took over the responsibility of fully financing the oral 

17 

 
 
 
rabies vaccination campaigns and finalised the laboratory information management system and the food 
control and traceability management system, which is a prerequisite for a competitive agri-food sector. 

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

→  ensure the sustainability of the food control and traceability management system and of the laboratory 
information  management  system;  and  strengthen  the  administrative  capacity  of  the  implementing 
bodies by increasing the number and expertise of the staff; 

→  adopt the draft law on animal health; approve the 5-year development plan for disease monitoring and 

control; and ensure appropriate financial and human resources for their implementation; 

→  start work on the harmonisation and adoption of legislation in the area of phytosanitary policy, in line 

with the EU acquis. 

Chapter 13 – Fisheries and aquaculture 

Kosovo remains at an early stage of preparation in this chapter and made no progress.  

The  Commission’s  recommendations  from  last  year  were  not  implemented  and  remain  valid.  In  the 
coming year, Kosovo should, in particular: 

→  adopt a multiannual strategy dedicated to aquaculture; and strengthen the administrative capacity of 

the implementing bodies by increasing the number and expertise of the staff; 

→  draft a law on fisheries and aquaculture and further align its market policy with the acquis; 

→  create an inventory of fish species covering the entire territory of Kosovo. 

Chapter 22 – Regional policy and coordination of structural instruments 

Kosovo remains at an  early stage of preparation  in the area of regional policy and coordination of 
structural instruments. Some progress was made by improving the legislative and strategic framework, 
programming and monitoring. 

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

→  further  improve  the  administrative  capacity  for  programming,  management,  monitoring  and 

evaluation of EU funds, particularly in line ministries; 

→  strengthen public investment management as a matter of urgency by adopting: (i) updated single 
and sector project pipelines, based on sound, transparent and inclusive public investment selection; 
and (ii) a methodology for effective and transparent management of the government expenditures 
for public infrastructure; 

→  create  a  structured  and  inclusive  sector-based  policy  dialogue  to  improve  and  guide  the 

programming of EU funds and the coordination of donor support. 

CLUSTER 6: EXTERNAL RELATIONS  

Chapter 30 – External relations 

18 

 
 
 
Kosovo is at an early stage of preparation in the area of external relations, with limited progress made. 
Despite  progress  in  implementing  the  Common  Regional  Market  (CRM)  Action  Plan  for  2021-2024, 
Kosovo has still not ratified the Central European Free Trade Agreement (CEFTA) additional protocols 
on  trade  facilitation  and  trade  in  services.  Kosovo  should  abstain  from  taking  further  unilateral  trade 
measures  without  justification  and  prior  consultation  with  the  Commission,  in  line  with  its  SAA 
commitments. Kosovo showed a constructive attitude in the process to unblock CEFTA decision making 
which has led to 12 agreements being adopted. While there was an increase in exports, the trade deficit 
remained high, and Kosovo has yet to adopt a comprehensive trade policy. 

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

→  continue  to  implement  commitments  under  the  CRM  Action  Plan  for  2021-2024  and  implement 
actions  under  the  new  action  plan  for  2025-2028,  ratify  and  implement  the  CEFTA  Additional 
Protocol  (AP)  5  on  trade  facilitation,    AP  6  on  trade  in  services  and  take  the  necessary  steps  to 
implement and finalise AP 7 on dispute settlement; 

→  approve the Regulation on the establishment of the trade facilitation enquiry point; 

→  start the process of establishing a development and humanitarian aid policy. 

* * * 

19 

 
 
 
 
2.   THE FUNDAMENTALS OF THE ACCESSION PROCESS 

2.1.  FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM 

2.1.1  Democracy  

The functioning of democratic institutions is affected by some challenges.  The government still holds a 
solid majority in the Assembly, but disagreements and lack of cooperation within the majority and with 
opposition  parties continue  to  prevent  significant progress  on  EU-related  reforms.  These  disagreements 
hinder  the  Assembly’s  ability to  adopt legislation, to appoint members  of public  bodies  and to  provide 
effective oversight. Additionally, Srpska Lista members of the Assembly boycotted the Assembly’s work 
during  the  reporting  period.  Lastly,  the  centralisation  of  executive  decision-making  and  lack  of 
interministerial coordination also negatively affected the delivery of reforms.  

Elections  

There were no general or regular local elections during the reporting period. Kosovo held a recall vote for 
mayors in the municipalities of Mitrovica North, Zvecan, Leposavic and Zubin Potok. The organisation of 
the  recall  vote  was  not  free  from  challenges  (including,  for  the  first  time,  the  installation  of  security 
cameras in polling stations). On 7 April 2024, Srpska Lista decided to withdraw from the process and call 
for  a  boycott  of  the  recall  vote.  This  resulted  in  a  series  of  difficulties,  including  some  polling  station 
committees  being  set  up  without  any  Kosovo  Serb  members.  Additionally,  directors  of  Serbian-
curriculum  schools  in  the  north  of  Kosovo  decided  not  to  allow  the  use  of  schools  as  polling  stations, 
which created serious challenges for the Central Election Commission (CEC). As this decision was made 
only a few days before the voting day, the CEC faced difficulties in providing the public with accurate 
information about the new location of polling stations. Voter turnout was extremely low (approximately 
0.5%), making the recall vote unsuccessful.  

Kosovo continued to consolidate its new electoral legal framework adopted in 2023, which implements 
recommendations  from  successive  EU  election  observation  missions.  The  CEC  needs  to:  ensure  that 
secondary  legislation,  decisions  and  procedures  are  aligned  with  the  new  Law  on  general  elections; 
guarantee  secret  voting;  regulate  out-of-country  voting;  and  lay  down  rules  for  election  campaigns.  In 
January  2024,  the  CEC  approved  an 
internal regulation regarding political 
party  finances  for  which  a  dedicated 
budget should be allocated.  

still 

While 
under-represented, 
women  play  an  increasing  role  in 
decision-making.  The  electoral  legal 
framework  mandates  a  gender  quota 
of  at  least  30%  for  the  Assembly, 
while the equal representation rule of 
the Law on gender equality provides 
for a 50% quota. The Ombudsperson 
sent  the  new  election  law  to  the 
Constitutional  Court  to  clarify  this 

discrepancy.  

Parliament 

The  Assembly  struggled  to  maintain  decision-making  quorum,  resulting  in  delays  and  significant 
backlogs.  Of  129  draft  laws,  80  were adopted,  including  25 international agreements that  were ratified. 
Several  laws  and  a  dozen  international  agreements  are  being  carried  over  from  one  session  to  another. 

20 

 
 
 
The  majority  frequently  opted  for  extraordinary  sessions  and  fast-track  procedures  to  adopt  key 
legislation.  The  Assembly  disregarded  procedural  deadlines  for  the  adoption  of  18  laws  and  missed 
deadlines  set  by  the  Constitutional  Court  to  revise  laws.  Members  of  Parliament  from  Srpska  Lista 
continued to boycott the work of the Assembly, further reducing its ability to pass legislation and adopt 
constitutional amendments.  

The  refusal  of  the  government  to  respond  to  parliamentary  questions  significantly  weakened  the 
Assembly’s  oversight  role.  The  Assembly  remained  slow  in  reviewing  annual  reports  of  independent 
agencies; a dozen of them have been under review since 2022. This hindered the Assembly’s ability to 
hold  agencies  accountable  and  to  evaluate  their  performance.  At  the  initiative  of  the  opposition,  the 
Assembly set up several parliamentary inquiry committees. However, the Assembly was unable to make 
effective use of them. 

the  Assembly’s 
Strengthening  consensus-building, 
performance and help bring about a more stable and efficient legislative process. The Assembly needs to 
improve  its  internal  management,  adopt  work  plans  for  its  two  sessions,  and  introduce  an  electronic 
voting and presence recording system. 

transparency  and  oversight  could 

improve 

EU integration 

Despite  a  strong  commitment  to  its  European  path,  divisive  domestic  politics  hampered  the 
implementation  of  Kosovo’s  EU  agenda.  Responsibility  for  the  overall  EU  agenda  lies  with  the  First 
Deputy Prime Minister, which underlines how important this agenda is for the government. However, this 
level of centralisation also limits political ownership in line ministries and slows down coordination and 
decision-making. The absence of permanent interministerial coordination bodies at expert level is another 
challenge. EU integration activities were also negatively affected by weak administrative capacity and the 
fact that a number of key positions in the public administration are held by officials who are serving in an 
acting capacity.  

In  April  2024,  the  government  approved  the  2024-2028  National  Programme  for  European  Integration 
(NPEI).  Kosovo  regularly  published  reports  on  implementation  of  the  NPEI  and  the  European  Reform 
Agenda and discussed progress in the Assembly.  

In  line  with  the  3 June 2023  statement  by  the  High  Representative  on  behalf  of  the  EU,  the  EU  is 
implementing  reversible  measures  vis-à-vis  Kosovo.  This  includes  putting  on  hold  the  work  of  the 
Stabilisation and Association Agreement bodies.  

Governance 

There  has  been  no  major  change  to  the  governance  structure,  but  certain  ministries  and  departments’ 
responsibilities have been streamlined.  

Municipalities made progress in strengthening their operations and service delivery. Despite their reliance 
on government grants, municipal budgets increased with the overall budget growth. In 2024, municipal 
funding increased by 12% compared with 2023. The relationship between municipalities (mostly led by 
opposition mayors) and central institutions did not improve.  

Kosovo made progress in improving gender equality at local level, as 16 municipalities developed sector-
specific  gender  analyses  and  operationalised  a  gender-inclusive  mid-term  budget  framework  and  16 
action plans. 

Civil society 

Civil  society  remains  active  and  diverse,  playing  a  meaningful  role  in  designing,  implementing  and 
overseeing  EU-related  reforms.  Mechanisms for  involving  civil  society  in  decision-making are  in  place 
and  most  proposals,  including  draft  laws,  strategies  and  concept  documents,  were  accessible  for  public 
consultation on an online platform. Nonetheless, consultations with civil society fall short of the relevant 

21 

 
 
regulation.  The  government  needs  to  comply  with  the  consultation  period,  provide  full  information  to 
enable  participation,  provide  feedback,  and  publish  all  updated  draft  proposals  and  final  reports. 
Participation of persons with disabilities and their representative organisations should be systematically 
facilitated  and  consultations  at  local  level  and  in  rural  areas  should  be  improved.  Greater  consultation 
with CSOs advocating for women’s rights would be beneficial.  

The  Regulation  on  public  funding  for  CSOs  is  being  implemented,  but  comprehensive,  accurate  and 
timely reports on public funding are lacking, as is the evaluation of the effectiveness of allocated funds.  

2.1.2 Public administration reform  

Strategic framework for public administration reform (PAR) 

The  strategic  framework  for  public  administration  is  in  place,  but  not  efficiently  implemented.  The 
strategy  remains  not  well  coordinated  with  other  strategies  relevant  to  the  PAR  agenda,  such  as  the 
Administrative Burden Prevention and Reduction Programme and the e-government strategy. The related 
governance  structure  on  PAR,  such  as  the  Ministerial  Council,  needs  to  ensure  effective  coordination 
between  the  political  and  technical  levels  across  key  bodies.  The  Ministry  of  Internal Affairs  needs  to 
increase  its  capacity  to  manage  and  monitor  cross-  cutting  and  politically  sensitive  reforms. The  PAR-
monitoring platform is functional. However, there are delays in uploading reliable and quality data. The 
annual monitoring report on PAR for 2023 was adopted in June 2024. The financial sustainability of the 
action plan on public administration remains uncertain. 
Policy development and coordination 

On the policy-making system, Kosovo authorities need to develop a harmonised and credible medium-
term and annual policy planning that effectively integrates the policy and budget planning processes. In 
May  2024,  the  government  adopted  new  rules  on  government  procedures,  that  clarify  and  reinforce 
different  aspects  of  policy  development  and  coordination.  However,  different  instruction  and  guidance 
manuals still need to be developed for the policy-making system to become more effective. The annual 
and  medium-term  policy  and  budgeting  processes  remain  not  well-integrated  and  inter-institutional 
coordination remains a challenge. Therefore, the alignment of the new government rules of procedure and 
the  ongoing  improvement  of  the  new  Law  on  public  finance  management  needs  to  be  ensured.  The 
capacity  of  the  Strategic  Planning  Office  in  the  Office  of  the  Prime  Minister  to  conduct  planning, 
monitoring,  reporting,  and  ex-ante  impact  assessments  improved.  However,  coordination  between  the 
Strategic  Planning  Office  and  the  Ministry  of  Finance  needs  to  be  strengthened.  The  monitoring  and 
reporting  on  sectoral  strategies  as  well  as  the  medium-term  expenditure  framework  remain  weakly 
interlinked in the administration and the planning on costing unrealistic. The timely implementation of the 
NPEI commitments needs to be improved. There was no progress on incorporating gender considerations 
into all policies, or inclusive and evidence-based policy and legislative development.  

The effective use of regulatory impact assessments (RIA) and public consultations as tools of evidence-
based  policymaking  remains  a  challenge.  Legal  minimum  requirements  for  organising  the  public 
consultation process with civil society or regular feedback are not complied within practice.  

Public financial management 

Public financial management (PFM) is broadly in place but needs to be further improved. The Ministry 
of Finance, Labour and Transfers adopted the 2023 monitoring report on the implementation of the PFM 
strategy.  Gender-responsive  budgeting  rules  required  by  budget-related  circular  letters  are  not 
incorporated into legislation and are not publicly available. In the area of public investment, the design 
and  the  implementation  of  investment  projects  continue  to  lack  consistent  feasibility  studies  and 
assessments of costs and benefits. Kosovo still needs to improve the quality of project information in the 
public  investment  programme  system  and  this  system’s  links  with  the  Kosovo  Financial  Management 
Information System. High levels of tax arrears continue to pose a challenge. Some progress was made in 

22 

 
 
preparing fiscal risk statements. However, fiscal risk assessment provisions need to be incorporated into 
the  new  Law  on  PFM.  On  public  procurement,  contract  management  and  commitment  controls  remain 
weak.  On  budget  transparency,  information  booklets  for  the  public  or  reader-friendly  budgets  and 
budget  implementation  reports  are  systematically  published.  In-year  budget  reports,  published  monthly 
and quarterly, provide information for both aggregate and individual first-level budget users (see chapters 
on public procurement, taxation, customs and financial control). 

Public service and human-resource management 

The  public  service  and  human-resource  management  system  needs  to  be  improved.  The  Law  on 
public  officials  entered  into  force  in  September  2023.  In  March  2024,  the  government  proposed 
amendments to the Law on public officials to address the Constitutional Court ruling finding some of its 
articles unconstitutional, which is pending approval in assembly. 

Merit-based recruitment, promotion and dismissal of civil servants remained inefficient. The quality 
of  management  in  the  institutions  continued  to  be  undermined  by  delays  in  effectively  filling  regular 
vacancies  and  a  high  number  of  senior  management  positions  filled  by  acting  officials.  Slow 
implementation of the regulation on job classification and the delayed review of the internal organisation 
of  public  bodies  is  still  pending.  Such  delays  risk  undermining  the  transparency  of  data  on  human-
resource needs. In this regard, a credible and realistic annual recruitment plan for the civil service and a 
related annual monitoring report still need to be developed. The civil service has attracted a low number 
of  outside  candidates,  which  is  also  visible  in  the  increased  number  of  failed  senior  management 
recruitments. The new Law on public officials and the related secondary legislation risk undermining the 
professionalisation and stability of the civil service. The law introduces fixed tenures and mandates for 
managers  at  all  levels,  undermining  stability  in  the  civil  service,  which  is  needed  to  build  professional 
experience.  The  law  does  not  provide  stable  career  prospects  as  promotions  are  not  possible  and 
competitions  for  acceding  to  managerial  positions  are  all  to  be  open  on  equal  footing  to  internal  and 
external candidates. The system for effective performance management is not ensured, as the law does not 
clearly  specify  the  performance-based  criteria  for  demotion  or  extension  of  terms.  Recruitment 
procedures  do  not  ensure  a  ranking  based  on  objective  criteria.  The  law  is  silent  on  the  professional 
qualifications required of members of admission committees, which makes it hard to assess their quality 
and  independence.  Representation  of  non-majority  communities  in  the  central  administration  and  the 
number of women in senior positions are unsatisfactory.  

The  current  system  of  remuneration  of  public  officials  is  unified  under  the  new  Law  on  salaries. 
However, assessment of salary levels is not yet based on clear job requirements. Due to unclear linkages 
between job evaluation and payment its wider effects are unclear. The Constitutional Court ruling on the 
Law  on  salaries  has  not  been  fully  addressed  yet.  Instead,  sub-legal  acts  were  adopted  to  clarify  and 
amend some of the coefficients introduced, the fiscal impact of which is yet unknown. 

The capacity of the Ministry of Internal Affairs in terms of human-resource management (HRM) policy 
remains limited. Increased training, transfer of knowledge and dissemination of methodological tools are 
needed across HRM units. The Human Resource Management Information System needs to be updated 
for better data reliability. This system is not linked to the payroll system.  

Professional development of civil servants is not efficient. Despite development of personnel plans on 
training,  professional  development,  is  largely  dependent  on  donors’  support  and ineffective  due to  also 
limited budgetary and staffing capacities of  the Kosovo Institute of Public Administration (KIPA). The 
Independent  Civil  Service  Oversight  Board  (IOBCS)  has  insufficient  capacity  to  manage,  decide  and 
report on appeals of civil servants. The proposed government amendments to the Law on the IOBCS were 
called  unconstitutional.  Once  such  amendments  are  invalidated,  the  effective  oversight  of  civil  service 
and preserving the right of all civil servants to appeal will be guaranteed again. The Constitutional Court 
ruling of June 2024 considers these amendments unconstitutional and requests that they are withdrawn. 
Integrity in the public service remains a challenge (see Chapter 23 – Judiciary and fundamental rights).  

23 

 
 
Accountability of the administration  

The  accountability  of  the  public  sector  is  insufficient.  The  government  embarked  on  a  new  sectoral 
approach  to  rationalise  agencies  by  developing  proposals  for  the  set-up,  merger  and  dissolution  of 
agencies, and the first action plan covering two sectors was adopted in September 2024. Accountability 
lines between supervisory and  subordinated  bodies remain  weak.  Despite  improvements in approving a 
higher number of performance plans for sub-ordinated agencies than in the previous year, a performance 
management system according to the newly adopted rules in 2023, needs to be put in place effectively. 
The  efficient  implementation  of  the  Law  on  access  to  public  documents  remains  a  challenge.  A  new 
Law  on  administrative  disputes  was  adopted  in  January  2024  to  improve  the  administrative  justice 
framework and increase the level of protection of the rights of individuals. The legal framework on the 
right to seek compensation is not coherent and its implementation is not effective. 

Service delivery to the public and businesses 

Service  delivery  to  the  public  and  businesses  is  gradually  improving  but  not  yet  efficient.  Some 
progress  was  made  in  implementing  the  Administrative  Burden  Prevention  and  Reduction  Programme 
(2022-2030), with continuous progress on simplified services at central and local level. Implementation of 
the  Law  on  general  administrative  procedures  is  still  insufficient.  The  government’s  e-Kosovo  portal 
further  improved  the  online  delivery  of  services  to  the  public,  as  it  increased  the  number  of  services 
available  in  the  e-catalogue.  Service  delivery  to  those  in  vulnerable  situations,  including  persons  with 
disabilities, remains inefficient. The government adopted an e-government strategy that covers the digital 
transformation of public administration, with a special focus on redesigning service delivery, aligning it 
with people’s needs.  

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 respect of fundamental rights in law and in practice. 

Functioning of the judiciary  

Strategic documents 

Kosovo  has  a  strategy  on  rule  of  law  for  2021-2026,  but  the  action  plan  for  2024-2026  is  overdue. 
Implementation  and  monitoring  of  strategic  documents  need  improvement.  The  Kosovo  Prosecutorial 
Council (KPC) adopted the Communication Strategy for 2024-2027. The Kosovo Judicial Council (KJC) 
adopted the IT Strategic Plan for 2024-2029 for the implementation of the European Commission for the 
Efficiency of Justice (CEPEJ) digital justice tools. The implementation of the strategic plans of the KJC 
and  the  KPC  needs  to  further  improve,  including  by  setting  up  stronger  monitoring  mechanisms.  The 
implementation  of  the  Joint  Commitment  Statement,  signed  by  heads  of  justice  system  institutions  in 
March 2023, experienced serious obstacles and delays. The drafting process of these key reform laws did 
not ensure a meaningful consultation of relevant national and international stakeholders. Despite strong 
EU  advice,  the  Venice  Commission  was  not  consulted  by  the  government  on  the  legislative  reform 
package.  This  negatively  affected  their  quality  and  alignment  with  European  standards.  Such  key 
legislation  requires  assessment  by  the  Venice  Commission.  Notably  the  proposed  draft  law  on 
performance  evaluation,  integrity  control,  and  status  of  judges  and  prosecutors  lacks  in  clarity  and 
concerns remain that their scope is not in line with European standards. 

Management bodies 

24 

 
 
 
The functioning of the KJC and the KPC is  adequate, but their full composition should be consistently 
ensured. The KPC and the KJC appointed new Deputy Chairpersons, both women. Planning of activities 
and appropriate use of resources must be improved. Overall management practices need to be improved, 
especially  within  the  KPC,  by  improving  decision-making  and  communication  and  increasing 
consistency.  

The  KJC  increased  transparency  and  improved  communication  with  the  public.  The  Assembly  finally 
elected the three lay members within the KPC. In July 2024, Parliament adopted a new Law on the KPC 
with  an  aim  to  reduce  corporatism  within  the  KPC.  The  law  failed  to  ensure  alignment  with  European 
standards and the authorities failed to consult the Venice Commission on the latest draft, despite repeated 
advice by the EU. The KPC must swiftly repeat the process for the selection of the Chief State Prosecutor, 
respecting the principles of transparency and meritocracy.  

Independence and impartiality 

4

Graph 2: Kosovo - Requests for protection 
from undue influence

Independence  and  impartiality  of  the  judiciary  and  the  prosecution  service  are  guaranteed  by  the 
Constitution  and the law, yet  their  implementation requires improvement.  Government  officials tend to 
criticise  decisions  in  individual  cases  or  even 
target specific judges or prosecutors, which is of 
concern. Further training is needed for judges to 
conduct  trials  in  a  professional  and  impartial 
manner.  The  Constitutional  Court  issued  a 
decision  on  the  Law  on  public  salaries,  raising 
issues  over  the  independence  of  the  judiciary 
and  constitutionally  independent  bodies;  the 
Assembly is yet to address this decision. A small 
number  of  requests  for  close  protection  were 
filed with the police. 

Prosecution office

Courts

2022

2023

2022

2023

1

0

1

0

2

0

3

1

0

3

1

0

2

0

0

0

0

0

Requests received
Outcome of decisions  Validation
Outcome of decisions  Rejection
Outcome of decisions  Pending

The 
Case  Management 
the 
Information  System 
(CMIS)  enables 
random  assignment  of  cases  to  judges  and 
prosecutors,  with  limited  exceptions  laid  down 
in  the  relevant  regulations.  Although  the  Law  on  the  National  Centralised  Criminal  Records  System 
provides full access to the Ministry of Justice, appropriate use respecting the separation of powers needs 
to be ensured in practice. Work should continue on digitalising the justice system.  

Source:  Kosovo Police

established 

Accountability 

The  accountability  of the  judiciary  needs  to  be improved. 
Codes of ethics for judges, prosecutors and attorneys are in 
place. The KJC and the KPC have set up ethics committees 
serving  as  advisory  bodies.  The  KJC  and  the  KPC  have 
functioning systems for disciplinary proceedings, but their 
efficiency  and  quality  should  be  improved,  including  by 
revising the legislative framework. The current legislative 
amendments  should  be  aligned  with  European  Standards, 
in  particular  concerning  the  competencies  to  decide  on 
initiating or rejecting disciplinary proceedings. Judges and 
prosecutors  declare 
their  assets  annually.  Further 
improvements  are  necessary,  particularly  to  ensure  the 
the  asset 
regular  and  effective  full  verification  of 
declarations  of  judges  and  prosecutors,  strengthen  the 
legislative framework and provide training programmes on 

15

10

5

0

25 

Graph 3: Kosovo - Disciplinary 
procedures - outcome of procedures 
- 2023

10

10

6

8

5

5

Judges

Prosecutors

Initiated

Completed

Sanctions pronounced

Source: CEPEJ

 
 
judicial ethics. 

The  introduction  of  an  outstanding  process  of  integrity  checks  for  senior  officials  in  the  judiciary  and 
prosecution is pending adoption by the Assembly, as the proposal failed to gather the majority required 
for constitutional amendments. 

Quality of justice 

0

32

58

144

160

334

424

500

of 

22,9

24,1

the 

but 

The 

quality 

Graph 4: Kosovo - Number of justice professionals - 2023

The 
justice 
improved 
remains 
steady 
insufficient. 
recruitment of new judges and 
prosecutors  has  the  potential 
level  of 
to 
increase 
and 
professionalism 
judges  and 
competence  of 
prosecutors.  However, 
the 
indictments  and 
quality  of 
in  criminal 
judgments 
law 
insufficient.  The 
remains 
creation  of 
the  specialised 
Commercial  Court  continued 
to help improve the quality of 
cases  adjudicated,  reducing 
the  number  of  referrals  and  the  disposition  time  (the  time  a  judicial  system  takes  to  resolve  a  case). 
Collaboration between the police, the prosecution service and the judiciary to ensure efficient handling of 
cases,  in  particular  high-level  cases  of  corruption  and  organised  crime,  should  be  strengthened.  The 
Supreme Court plays a key role in achieving uniformity of court practice; this can be improved through 
consistent and timely publication of judgments by the KJC. Despite an increasing trend, the budget of the 
judiciary  remains  insufficient.  Poor  performance  by  defence  lawyers  should  be  addressed  by  the  Bar 
Association and by the KJC, including by better implementing the Criminal Procedure Code. 

2nd instance
Total
Per 100 000 inhabitants - EU27 (2022)
Source: CEPEJ

1st instance
Supreme Court
Per 100 000 inhabitants - Kosovo

Prosecutors

Judges

11,1

9,1

8

8

Courts  struggle  to  comply with  the  requirement  of  the  Law  on  languages  to  publish  judgments  in  both 
official  languages  due  to  a  lack  of  Serbian  translators.  The  availability  and  quality  of  interpretation  in 
court proceedings remains a challenge. 

in 

The  status  and  functioning  of  the  Kosovo  Justice 
Academy  are  generally 
line  with  European 
standards.  However,  amendments  to  the  law  on  the 
Academy  are  currently  pending  and  full  alignment 
with  European  Standards  must  be  ensured.  The 
Academy  suffers  from  insufficient  resources.  The 
KJC  and  the  KPC  continued  to  organise  recruitment 
of  judges  and  prosecutors  based  on  merit-based 
criteria.  Recruitment  from  non-majority  communities 
remains a challenge, with only few applications. 

The  performance  evaluation  system  for  judges  and 
prosecutors  should  be  further  improved  to  ensure  a 
process based on objective criteria – with due weight 
given to qualitative indicators – and effective follow-
up.  

7000
6000
5000
4000
3000
2000
1000
0

Efficiency 

26 

Graph 5: Kosovo - Alternative dispute 
resolution - 2023

6037

5204

126

Settlement
agreements

Finalised court-
related
mediations

Mediators

Mediation cases

Source: Kosovo Judicial Council 

 
 
The  efficiency  of justice  needs  to  be  improved.  While  there  was  progress  on  the  clearance rate in civil 
cases, the ability of the judiciary and the prosecution service to handle cases in a timely manner remains 
limited, particularly in high-level corruption cases. Trials continue to be delayed by frequent adjournment 
of hearings, often due to unjustified reasons and inefficient case management. Although the KJC and the 
Supreme Court introduced a mechanism to minimise the number of retrials, this practice continued and 
the  number  of retrials even  increased.  This  increased  the  backlog of  cases  and often lengthens pre-trial 
detention. Trial panels need to make better use of tools to penalise parties for unjustified absence from 
hearings. Swift adoption of the Civil Code and Civil Procedure Code is essential to improve the efficiency 
of  civil  justice.  The  Assembly  adopted the  new  Law  on  administrative  disputes,  aiming  to improve  the 
administrative  justice  framework  and  citizens’  rights  protection.  The  Law  on  the  administrative  court, 
which is pending adoption, also has the potential to reduce backlog. It needs to be assessed by the Venice 
Commission. 

The  resignation  of  Kosovo  Serb  judges,  prosecutors  and  administrative  staff  in  the  north  of  Kosovo  in 
November 2022 continued to cause delays, despite reassignments and transfers of cases. The number of 
Kosovo Serb judges and prosecutors remains insufficient. 

Significant improvements were made on the sustainability and accuracy of data fed into the CMIS. The 
National  Centralised  Criminal  Records  System  is  operational.  However,  the  two  systems  are  yet  to  be 
made fully interoperable. 

Graph 6.1: Kosovo - Efficiency of courts 
(%) 

Graph 6.2: Kosovo - Efficiency of courts 
(days)

120

100

80

60

40

20

0

100

87

95

82

101

61

n/a

n/a

n/a

n/a

n/a

n/a

1511

692

152

967

591

366

n/a

n/a

n/a

n/a

n/a

n/a

1600
1400
1200
1000
800
600
400
200
0

1st
instance

2nd
instance

1st
instance

2nd
instance

1st
instance

2nd
instance

1st
instance

2nd
instance

1st
instance

2nd
instance

1st
instance

2nd
instance

Criminal cases

Civil and
commercial
litigous cases

Administrative
cases

Clearance rate in 2022 % Clearance rate in 2023 %

n/a: not available

Source:CEPEJ

n/a: not available

Domestic handling of war crime cases and missing persons 

Criminal cases

Civil and
commercial
litigous cases

Administrative
cases

Disposition time 2022 (days)
Disposition time 2023 (days)

Source:CEPEJ

The legal framework on handling war crimes is satisfactory, but its implementation is hampered by the 
limited capacity of the prosecution service. The Special Prosecution Office (SPO) filed several war crime 
indictments in absentia. Kosovo also achieved progress in investigating and prosecuting sexual violence 
crimes.  The  new  war  crime  strategy  is  pending  adoption.  The  number  of  prosecutors  assigned  to  the 
SPO’s war crimes department was increased, but the department still struggles to process the significant 
case  backlog.  War  crime  processing  remains  hindered  by  a  lack  of  mutual  legal  assistance  between 
Kosovo and Serbia. 

The unresolved fate of missing persons remains a challenge. There are still 1 612 missing persons. Only 
ten cases were solved between June 2023 and June 2024. The Transitional Justice Strategy was adopted in 
June. Its adoption is a positive step. Nevertheless, the strategy fails to be fully inclusive and to incorporate 

27 

 
 
    
 
important reconciliation aspects. Kosovo needs to address these shortcomings in the next review of the 
Action Plan. A new Institute for Crimes Committed During the War in Kosovo became operational. Civil 
society is actively engaged in truth-seeking, reconciliation and memorialisation initiatives. 

Fight against corruption  

Track record   

The track record in fighting corruption improved, in particular regarding the number of final judgements 
and final convictions, including in high-level corruption cases. 

Criminal asset confiscation increased in total value, but more systemic progress is needed (see chapter 24 
on asset confiscation and recovery). 

In  2023,  the  Agency  for  the  Prevention  of  Corruption  (APC)  handled  66  cases  under  preliminary 
investigation for suspicion  of  corruption-related  offences,  of  which  59  were referred  to the  prosecution 
and  7  cases  terminated.  4 698  of  the  4 709  officials  (99.8%)  submitted  regular  annual  declarations  of 
assets. The APC handled 216 cases of suspicion of conflict of interest. 

Institutional framework  

The  institutional  framework  on  the  fight  against  corruption  is  in  place  and  is  partially  satisfactory. 
Implementation and monitoring of the framework need to be further improved. The APC carried out an 
important  project  to  identify  the  areas  most  vulnerable  to  corruption.  It  is  essential  to  strengthen  the 
budget,  staffing,  and  expertise  capacity  of  the  APC  to  match  the  increase  in  the  number  of  subjects 
required to declare their assets. The Assembly has not yet endorsed the 2023 annual report of the APC. 

Kosovo’s specialised institutions to fight corruption are functional. The Special Investigation Unit of the 
Kosovo  Police  was  previously  operating  without  a  clear  legal  mandate.  The  new  Law  on  the  Special 
Prosecution  Office  (SPO)  fills  this  gap.  However,  a  sub-legal  act  is  needed  to  set  out  organisational 
arrangements and arrangements for cooperation with the SPO. Both the SPO and the Special Investigation 
Unit  should  ensure  effective  cooperation  and  maintain  sufficient  investigation  capacity  to  fulfil  their 
functions effectively.  

Strategic documents 

The  necessary  strategic  framework  is  not  in  place.  The  national  strategy  and  action  plan  against 
corruption for 2024-2027 are pending. It is essential that they meet EU best practice and standards. The 
KPC, the KJC and the SPO should continue to prioritise the handling of corruption and organised-crime 
cases in their annual plans.  

Legal framework  

The legal framework on the fight against corruption is in place and is satisfactory, yet its implementation 
needs  improvement.  Kosovo  is  not  a  party  to  international  anti-corruption  conventions.  Nevertheless, 

28 

 
 
 
Kosovo’s  legislation  is  generally  aligned  with  these  instruments  and  in  line  with  relevant  European 
standards. The Criminal Code appropriately criminalises corruption-related offences.  

In November 2023, the Assembly adopted the Law on the SPO, which clarifies its jurisdiction by more 
clearly defining what amounts to high-level corruption. 

Fundamental rights  

General framework 

The general framework for fundamental rights is broadly  satisfactory. Legislation is in place, but major 
challenges with its effective implementation remain.  

International human rights instruments  

Kosovo is not yet a member of a number of international organisations, but the Constitution incorporates 
the main international human rights instruments. The incorporation of the UN Convention on the Rights 
of  Persons  with  Disabilities  is  pending.  Kosovo’s  application  for  Council  of  Europe  membership  is 
pending a decision by its Committee of Ministers.  

Promotion and enforcement of human rights  

500

836

553

604

646

2000

1500

1660

1595

1000

Graph 9: Kosovo - Promotion and enforcement of human rights

Kosovo  continued  to  improve  interinstitutional  coordination  on  human  rights.  The  Ombudsperson 
Institution  (OI)  and  the  Office  of  Good  Governance  of  the  Office  of  Prime  Minister  intensified  their 
cooperation. 
Nonetheless, 
key 
institutions’  human 
financial 
and 
remain 
resources 
limited. 
The  OI 
continued  to  play  a 
in 
key 
role 
and 
promoting 
human 
enforcing 
rights; 
remains 
it 
essential to safeguard 
its  independence,  in 
line  with  the  Paris 
and 
Venice 
Principles.  The  OI’s 
for 
annual 
2023 showed a small 
the 
increase 
implementation 
of 
recommendations,  but  the  rate  remains  very  low,  particularly  regarding  equality/discrimination.  The 
Assembly  should  address  this  issue  by  improving  its  oversight  role.  The  government  should  ensure 
rights 
timely 

Complaints
Decisions
Recommendations to the authorities
Implementation of recommendations to authorities (% of total)

Ombudsperson/National Human Rights
Institution

Main themes: Ombudsperson - right to fair trial, legal remedies; Equality body - discrimination linked to ethnicity, gender, age. 

Source: Ombudsperson / NHRI / Equality bodies 

Equality bodies

report 

n/a: not available

36,63

23,00

28,00

2022

2023

2024

2022

2023

2024

by 

1,79

of 

in 

546

314

143

112

75

90

38

89

84

28

25

n/a

n/a

n/a

0

continuation 
policies 
follow-up to policy documents.  

human 
preparing 

Prevention  of 
treatment 

torture 

and 

ill 

Kosovo 
show 
authorities 
commitment  to  the  prevention  of 
treatment.  The 
torture  and 

ill 

29 

 
 
National Preventive Mechanism operates under the umbrella of the OI. In 2023, it received 59 complaints 
on  excessive  use  of  force by  the  police;  25  were  deemed  admissible  and  were  investigated further.  No 
cases of ill treatment of prisoners were identified. The prison system broadly complies with UN Standard 
Minimum Rules, but further action is needed to safeguard the rights of prisoners, especially women, girls, 
non-majority community members and mentally ill prisoners. No overcrowding was reported, but the OI 
has recommended to improve the conditions in some correctional centres. The Kosovo Probation Service 
supervised an increasing number of alternative measures and punishments. From January to June 2024, 
1 438 persons were supervised under alternative measures and sanctions, along with 532 individuals on 
conditional release. 

Execution of criminal sanctions  

80,00
60,00
40,00
20,00
0,00

Graph 11: Kosovo - Prisons

58,00

64,00

Occupancy rate (%)

2022

2023

n/a

n/a

Average duration of pre-
trial detention (months)

n/a: not available 

Source: Ministry of Justice /Kosovo Correctional Service

Protection of personal data  

The  legislation  is  generally  in  line  with  EU 
acquis. Two implementing acts are still pending 
approval to implement the Law on the Kosovo 
Correctional Service (KCS) and the Law on the 
execution  of  criminal  sanctions.  The  KCS 
adopted  an  organisational  strategy  for  2023-
2027.  An  agreement  to  incarcerate  prisoners 
from  Denmark  (non-Danish  citizens  with  an 
expulsion order) in Kosovo was ratified by the 
Assembly.  Danish  legislation  on  execution  of 
criminal sanctions will apply. 

200

172

250

213

178

145

150

Graph 12: Kosovo - 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  adopted  sub-
legal  acts  and  increased  its 
staffing  capacity.  The  Agency 
is  processing  complaints  on 
access  to  public  documents 
and  on  data  protection  in  an 
independent 
efficient 
manner. The responsiveness of 
public  and  private  institutions 
to  the  Agency’s  decisions  improved,  including  thanks  to  awareness  raising.  The  Agency  is  not 
systematically consulted on the drafting of legislation with an impact on personal data protection. 

Declarations of
data breaches

Administrative
sanctions

Source: Privacy and Information Agency

Complaints
received

Inspections

Decisions

and 

2022

2023

100

121

50

81

0

8

0

1

4

Freedom of religion or belief  

The Constitution guarantees freedom of thought, conscience and religion. The Law on freedom of religion 
is  pending  adoption.  Several  events  raised  concerns  about  freedom  of  religion.  The  Kosovo  Police 
deported a Serbian Orthodox Church (SOC) monk who served as an abbot for 13 years, quoting ‘reasons 
of national security’. Acts of desecration against the SOC and attempts to misappropriate and undermine 
the identity of religious sites took place. Finally, the authorities failed to use the SOC’s full constitutional 
name in public statements.  

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

30 

 
 
Freedom of expression  

Protection of journalists 

In 2023, the Association of Journalists of Kosovo (AJK) reported a total of 72 cases of attacks and threats 
against journalists, media workers and media organisations, which denotes a significant increase. Almost 
half of cases occurred in May/June 2023, against Albanian-speaking journalists covering protests in the 
north of Kosovo. Up to September, the AJK has reported 36 cases of attacks against journalist. In 2023, 
the  police  registered  32  cases  where  complainants  were  journalists  and  registered  27  criminal  cases. 
Women  journalists  are  more  often  targeted  by  attacks  than  male  journalists.  Civil  society  reported  on 
cases  of  strategic  lawsuits  against  public  participation  (SLAPP)  but  systematic  research  on  the  issue  is 
lacking. 

Legislative environment  

Legislation is generally in line with international standards, but requires improvement, including to ensure 
media ownership transparency. The law on the IMC was adopted by the Assembly in July. It contributes 
to  enhancing  media  regulation  and  the  IMC’s  performance.  Nonetheless,  the  Assembly’s  amendments 
failed to reflect a majority of the EU and other international partners’ recommendations. Concerns remain 
over the independence, powers and financing of the IMC and over the lack of clarity and proportionality 
of the law.  The  opposition  referred  the  Law to the  Constitutional  Court for  review.  The  Law  on  Radio 
Television  of  Kosovo  (RTK)  and  the  Law  on  the  protection  of  journalists’  sources  are  still  pending. 
Access  to  public  information  is  guaranteed  by  legislation.  The  Agency  for  Information  and  Privacy 
improved  its  performance,  but  in  practice,  journalists  still  face  regular  delays  or  denials  when  asking 
public  institutions  for  access  to  documents.  Serbian-language  media  continue  to  face  challenges  in 
accessing information because public institutions fail to comply with the requirements of the Law on the 
use of languages. 

Implementation of legislation/institutions  

Overall,  the  functioning  and  transparency  of  the  IMC  significantly  improved.  Its  independence  in 
decision-making  needs  to  be  strictly  ensured,  including  by  political  stakeholders.  The  IMC  Media 
Appeals Board was largely dysfunctional due to a lack of quorum. 

Public service broadcaster  

There was no progress in finding a long-term, sustainable and independent financing model for the public 
service broadcaster RTK. In July 2024, the General Director of RTK resigned, citing political interference 
and disagreement with the Board. It is crucial that the next director be appointed through a merit-based 
process, in order to ensure institutional autonomy and editorial independence. Later in the year the RTK 
came under wide public criticism for publishing a foreign article targeting two Kosovo news portals. This 
led  to  the  resignation  of  the  board  chairperson  and  another  two  board  members.  It  is  essential  that  the 
board quickly becomes operational again. The RTK needs to swiftly address concerns related to editorial 
accountability  and  independence.  Three  complaints  were  lodged  against  the  management  for  gender 
discrimination; these are still pending. 

Several court decisions played a role in safeguarding freedom of the media. The Basic Court of  Pristina 
annulled a controversial decision by the IMC from 2021. The Commercial Court annulled a governmental 
decision  suspending  Klan  Kosova’s  business  certificate,  which  had  raised  concerns  about  media 
independence.  

Economic factors 

The media sector continues to suffer from a lack of transparency of ownership and financing, and a lack 
of  financial  sustainability,  making  it  vulnerable  to  political  influence  and  financial  pressure.  The 

31 

 
 
government does not advertise in private media, but public companies and local government authorities 
do. 

Internet  

There is no restrictive legislation on the functioning of the online media nor on the freedom of expression 
online, and no restriction was noted during the reporting period.  

Professional organisations and working conditions 

The Press Council remains functional but requires broader financial and professional support to perform 
its  duties  effectively.  The public  broadcaster is  the  only  media  that  has  a  trade union.  Overall  working 
conditions of journalists remain poor: journalists are often working with insufficient salaries, short-term 
contracts or unclear legal status, undermining editorial independence. 

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

Freedom of assembly and association  

The  Constitution  and  laws  guarantee  freedom  of  assembly  and  association;  their  implementation  is 
satisfactory. In June 2024, the LGBTIQ Pride Parade held in Pristina encountered no recorded incidents. 
The  Law  on  freedom  of  association  and  its  implementing  legislation  overall  meet  international  human 
rights law standards. Amendments to the law set up a new Appeals Commission for decisions related to 
freedom  of  association  in  non-governmental  organisations;  it  is  essential  to  ensure  the  Appeals 
Commission’s independence from executive power. 

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

Property rights  

Kosovo  adopted  the  Law  on  public  property  and  the  Law  on  the  cadastre  of  immovable  property  to 
strengthen the cadastral system and ensure reliability of property registration. In March 2024, the Kosovo 
Cadastral  Agency  fully  implemented  the  Constitutional  Court  judgment  on  Deçani  Monastery  land 
ownership,  by  registering  the  Monastery  as  the  owner.  Concerns  were  triggered  by  the  government’s 
decision to carry out expropriation processes without following legal procedures, affecting non-majority 
communities  in  several  municipalities.  Several  court  rulings  have  ruled  in  favour  of  Kosovo  Serb 
complainants, finding among other things that the government failed to provide justification in the form 
of a legitimate public purpose. The new draft law on expropriation needs to reflect the principles deriving 
from the Ahtisaari plan. 

The government continued affirmative measures for registration of joint property ownership by spouses in 
the  property  rights  registry,  aiming  to  increase  the  number  of  women  property  owners.  However,  the 
proportion of women property owners remains quite low (19.82% of registered properties). 

Non-discrimination  

The  legislation  on  protection  from  discrimination  is  broadly  in  line  with  European  and  international 
standards, yet implementation is limited due to weak institutional capacity. Discrimination predominantly 
affects rights related to employment, education and access to social services and healthcare, and the right 
to use an official language. Several OI reports highlighted the occurrence of discrimination based on age 
and disability, including widespread issues related to access to public buildings and services, as well as 
hate speech in public discourse. Collecting judicial statistics on discrimination cases remains a challenge 
due to inappropriate identification and categorisation. 

Overall,  legislation  on  hate  crimes and  hate  speech  is  in line  with  the  EU  acquis.  In  2023,  the  Kosovo 
Police recorded 31 cases of hate crime and hate speech with potential ethnic motivation, and three cases 
of hate crime and hate speech based on sexual orientation, an increase from 2022. Of particular concern 

32 

 
 
are social media posts with denigrating and threatening language by public figures, including members of 
Parliament. 

Gender equality  

2639

1000

Graph 13: Kosovo - Violence against women 
(including domestic and sexual violence)
2764

The legal framework on gender equality is generally in line with international texts and the EU  acquis. 
The  appointment  of  a  director  for  the  Agency  for  Gender  Equality  has  been  pending  since  April  2023. 
The Agency’s capacity to adopt and monitor policies is insufficient; no action plan was adopted for 2023-
2024.  Timely  monitoring  and  evaluation  of  the  2020-2024  Programme  needs  to  be  ensured.  Kosovo 
should also adopt a new Program and a new Action Plan implementing the UNSCR 1325 resolution on 
Women,  Peace  and  Security.  Gender  mainstreaming  in  laws  and  policy  documents  is  inconsistent. 
Coordination between the Agency and 
gender equality officers improved, but 
their  ability  to  influence  policies  is 
uneven.  The  President  of  Kosovo 
continued 
to  give  high  political 
visibility to gender equality, women’s 
rights  and  the  rights  of  victims  of 
sexual violence, including through the 
second  Women,  Peace  and  Security 
Forum.  Women 
rights’  CSOs 
continued  to  play  a  critical  role  in 
advancing  gender  equality.  Women 
from  minorities  –  especially  Roma4, 
Ashkali  and  Egyptian  communities  – 
discrimination, 
suffer 
especially in relation to education, employment, and access to health. Early marriage mostly affects girls 
from these communities. 

Source: Kosovo police, Kosovo Judicial Council

Final criminal
convictions

Violence against women

Police reports

multiple 

Femicides

1004

2023

2022

100

925

10

1

4

3

Domestic  violence  remains  the  most  prominent  form  of  gender-based  violence.  The  legal,  policy  and 
institutional  framework  is  in  line  with  European  standards,  but  its  implementation  remains  uneven. 
Kosovo  is  yet  to  adopt  implementing  legislation  envisaged  by  the  Law  on  domestic  violence,  violence 
against  women  and  gender-based  violence.  Implementation  of  the  Strategy  for  2022-2026  progressed 
well. The Minister of Justice was appointed National Coordinator against Domestic Violence. Kosovo put 
in  place  a  new  programme  for  the  rehabilitation  of  perpetrators,  and  adopted  amendments  to  criminal 
legislation increasing punishment and introducing safeguards for law application. In accordance with the 
Istanbul Convention, Kosovo set up a central secretariat for combating gender-based violence; sufficient 
funding and staffing should be ensured. In 2024, the government increased the funds allocated to shelters 
for  victims  of  domestic  violence  and  trafficking  in  human  beings  and  ensured  timely  disbursement  of 
these funds.  

Despite  institutional  efforts,  the  system  still  fails  to  ensure  appropriate  prevention  and  combating  of 
domestic violence, as well as protection and reintegration of victims. Cases of femicide and rape caused 
public  outrage.  Reporting  of  domestic  violence  declined  in  2023.  Judges  and  prosecutors  still  do  not 
handle  cases  appropriately,  often  failing  to  properly  apply the  law.  Discriminatory language  and  verbal 
attacks continued, including against women in public life such as Assembly members.  

Rights of the child  

4 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. 

33 

 
 
 
 
Kosovo’s legal framework on the rights of the child is largely in line with EU  acquis and international 
standards, but implementation remains limited. Progress was made in the adoption of sub-legal acts on the 
Law  on  the  rights  of  the  child,  although  one  remains  pending.  Work  on  implementing  the  Law  should 
continue. Kosovo has yet to set up the helpline and the protection houses envisaged by the Law on child 
protection. An integrated child protection system remains lacking. Centres for Social Welfare are still not 
equipped with appropriate professional, infrastructural and financial resources.  Kosovo lacks capacity to 
provide  appropriate  foster  care  for  children  without  parental  care;  the  government  should  prioritize 
reducing the number of children residing in residential care. Children with disabilities face discrimination 
in  access  to  preschool  institutions  and  few  attend  the  school  system.  There  is  a  need  for  systemic 
improvements in Kosovo's juvenile justice system, in particular over the execution of diversion measures 
by juvenile prosecutors. Early marriage remains prevalent, affecting the lives and education of children in 
Kosovo, particularly in Roma, Ashkali and Egyptian communities. 

Persons with disabilities  

There remains a clear lack of harmonisation of legislation and policies with international texts and the EU 
acquis on the rights of persons with disabilities. Persons with disabilities face discrimination and barriers 
to  accessing  healthcare,  rehabilitation,  social  services,  education  and  assistive  equipment  and  physical 
infrastructure. The adoption of the Law on the rights, evaluation, treatment and status recognition of and 
services  and  benefits  for  persons  with  disabilities  is  overdue.  A  new  regulation  adopted  in  July  is 
expected  to  improve  the  accountability  of  the  Commission  for  the  Evaluation  and  Recognition  of  the 
Status  and  Rights  of  Paraplegic  and  Tetraplegic  Persons  and  to  exclude  unnecessary  re-evaluation  of 
disability.  Health services for  persons  with  disabilities  need to  improve in  general and  in  particular  for 
women and girls. More than 88% of children with disabilities remain outside the education process; those 
who attend school lack appropriate conditions and services. According to legislation, only persons with 
mental  disabilities can  be placed in  care  institutions. In  practice,  there  are  no  such institutions.  Kosovo 
needs  to  ensure implementation  of the  provisions  of  the  UN  Convention  on  the Rights  of  Persons  with 
Disabilities. 

LGBTIQ persons  

The  Constitution  and  laws  are  mostly  in  line  with  international  and  European  standards.  In  practice, 
lesbian,  gay,  bisexual,  trans,  non-binary,  intersex  and  queer  (LGBTIQ)  persons  continue  to  face 
discrimination  and  have  limited  access  to  services,  including  health,  psychosocial  and  legal  services. 
Kosovo has not adopted a strategy and action plan on the rights of LGBTIQ persons, nor conducted any 
awareness-raising  campaigns.  The  government  showed  public  support  to  the  Pride  Week  and  the  Pride 
Parade. The institutional response to online hate speech and homophobia is inconsistent. The Civil Code, 
which  may  open  the  possibility  of  legislation  on  same-sex  unions,  is  pending  adoption.  Parliamentary 
debates around the subject triggered discriminatory language and hate speech. No progress was made in 
setting up a planned shelter for LGBTIQ victims of family violence. The Law on civil status opening the 
possibility of legal gender recognition is pending adoption.  

Procedural rights and victims’ rights  

The Constitution and the law set out the procedural rights of persons suspected of crime and the rights of 
victims of crime. Amendments to the Criminal Procedure Code addressed some shortcomings related to 
compliance with procedural deadlines and defence representation. Remaining issues of concern include: 
(i) delayed and excessively prolonged court proceedings; (ii) lack  of professional interpreters/translators 
and  consequences  on  the  rights  of  victims  of  crime;  (iii)  excessive  use  of  pre-trial  detention;  and 
(iv) insufficient consideration of alternative measures. Despite the extension of free legal aid to all women 
victims of gender-based violence, very few are represented in court proceedings. The Ministry of Justice 
initiated an information campaign to inform stakeholders about the new Law on compensation for victims 
of crime. The budget for 2024 increased significantly, in response to the growing number of requests. 

34 

 
 
Protection of minorities 

On the protection of minorities, the legal and institutional framework for the protection of non-majority 
communities is in place and mostly aligned with the EU acquis, yet legal safeguards are not sufficiently 
respected. The government took some decisions advancing the rights of non-majority communities, but 
other decisions seriously affected their rights and living conditions. 

The government adopted the Strategy for the protection and promotion of the rights of communities and 
their  members  for  2023-2027.  The  government  extended  the  mandate  of  the  Commission  for  the 
Verification of Diplomas issued by the Serbia financed University in North Mitrovica to include Serbian-
curriculum  high-school  diplomas  issued  in  Kosovo.  A  steady  increase  in  the  number  of  university 
diplomas presented for verification could be noted.  

The position of the Director of the Office for Community Affairs has been vacant since February 2021. 
Institutional  compliance  with  obligations  deriving  from  the  Law  on  the  use  of  languages  remains 
insufficient.  Study  programmes  in  Bosnian,  Turkish  and  Serbian  languages  offered  by  public  higher 
education institutions continue to face challenges in ensuring re-accreditation due to a lack of professors. 
The  number  of  qualified  translators  and  interpreters  in  government  and  municipal-level  institutions 
remains very low, further limiting these institutions’ capacity to apply legal provisions.  

Relations between the government and the Kosovo Serb community remain difficult. The adoption of the 
central bank’s regulation on cash operations, while aiming to enhance the transparency of financial flows, 
to ensure financial stability and to combat money laundering and counterfeiting, negatively affected the 
possibility  for  the  Kosovo  Serb  population  and  other  non-majority  communities  throughout  Kosovo  to 
access  salaries,  pensions  and  social  assistance  received  from  Serbia,  thus  severely  constraining  their 
income.  The  absence  of  prior  consultations  on  the  regulation  and  the  lack  of  appropriate  information 
campaigns and a proper transition period posed further challenges. Access to illegally occupied property 
of non-majority communities remains widely unaddressed. The authorities launched construction works 
on  the  properties  of  non-majority  communities  without  following  expropriation  procedures  in  four 
municipalities.  The  participation  of  non-majority  communities  in  the  census  was  extremely  low, 
negatively affected by their underrepresentation among administrators conducting the census, and by the 
boycott  of  most  Kosovo  Serb  political  representatives  in  the  four  northern  Kosovo  municipalities. 
Participation  of  Kosovo  Roma,  Kosovo  Ashkali,  and  Kosovo  Egyptian  communities  varied,  with  some 
areas  seeing  higher  participation  due  to  NGO  support  while  others  faced  challenges  due  to  ineffective 
information campaigns and fear of retribution in case of participation. 

In  the  north  of  Kosovo,  the  government  removed  various  community  symbols,  flags,  and  road  signs 
(some bilingual signs were put in place). Special police conducted operations to close a community centre 
run  by  a  Kosovo  Serb  non-governmental  organisation  in  Pristina  as  well  as  offices  of  institutions 
supported  by  Serbia  providing  assistance  to  non-majority communities in  other  municipalities.  The  ban 
on  the  import  of  goods  of  Serbian  origin,  due  to  a  ‘temporary  operational  security  measure’  issued  by 
Kosovo’s Ministry of Internal Affairs in June 2023, disproportionally affected businesses in the Kosovo 
Serb community. 

Reported  security  incidents  affecting  non-majority  communities  gradually  declined  but  remain 
concerning. Accounts of excessive use of force were reported by civil society following the deployment 
of specialised police units, composed mainly of Kosovo Albanian officers, in the north of Kosovo. 

Roma, Ashkali and Egyptians 

Two  municipalities  with  Romani  as  a  language  in  official  use  made  further  progress  in  promoting  the 
rights  of  Roma  and  Ashkali.  The  government  showed  commitment  by  creating  an  interinstitutional 
working group on the prevention of early marriage in the Roma, Ashkali and Egyptian communities and 
organising a donor conference to address housing issues. Almost all municipalities have set up municipal 
action committees but only eight have approved local action plans. Access to quality education, school 

35 

 
 
dropout,  early marriage,  data collection, and  access to  employment remain the main  concerns affecting 
these  communities.  The  implementation  of  the  Poznan  commitments  requires  improvement.  The  anti-
discrimination  law  remains  largely  ineffective  in  combating  anti-gypsyism;  its  implementation  requires 
improvement. 

Cultural rights 

The Kosovo Cadastral Agency registered land belonging to the Dečani Monastery, finally implementing 
the 2016 Constitutional Court decision. Nonetheless, relations between the Serbian Orthodox Church and 
the  government  remain  poor.  The  Implementation  and  Monitoring  Council,  which  facilitates  the 
resolution of disputes about the implementation of the Law on Special Protective Zones, has convened for 
the first time since 2020, in an extraordinary meeting. It is important that regular meetings resume shortly 
as  well.  The  agreement  on  the  management  of  the  Special  Protective  Zone  of  Dečani  remains 
unimplemented. The Law on cultural heritage is still pending. 

2.2.2 Chapter 24: Justice, freedom and security  

The  EU  has  common  rules  for  border  control,  visas,  external  migration  and  asylum.  Schengen 
cooperation  entails  the  lifting  of  border  controls  inside  the  EU.  There  is  also  cooperation  in  the  fight 
against  organised  crime  and  terrorism,  and  judicial,  police  and  customs  cooperation,  ,    all  with  the 
support of the EU Justice and Home Affairs agencies. 

Fight against organised crime 

Kosovo continued to work on aligning its legal framework on organised crime with the EU acquis. 

Institutional set-up and legal alignment 

The  legal  framework  on  the  fight  against  organised  crime  is  broadly  aligned  with  the  EU  acquis. 
Kosovo further aligned its strategic framework with the EU acquis on fighting organised crime. To this 
end, in March 2024, the government adopted the strategy and action plan on control of Small Arms Light 
Weapons  (SALW)  and  explosives  (in  line  with  the  Western  Balkans  Regional  Roadmap  on  SALW 
Control and in June 2024 the national strategy and action plan against drugs. Kosovo still needs to amend 
the  Law  on  firearms  and  the  Law  on  civil  use  of  explosives.  The  Financial  Intelligence  Unit  and  the 
Kosovo Police have developed guidance on terrorist financing typologies, but the amendment to the Law 
on  money  laundering  and  terrorism  financing  to  fully  harmonise  it  with  the  relevant  EU  directives  is 
pending adoption. The Law on registering beneficial ownership was adopted in November 2023, but no 
register has been set up yet.  

The Law on extended powers of confiscation gives additional means to prosecutors to confiscate assets 
acquired  through  criminal  activity.  Legislation  also  provides  for  sufficient  prevention  tools  but  the 
authorities  need  to  step  up  efforts.  The  Law  on  the  State  Bureau  for  Verification  and  Confiscation  of 
Unjustified Assets, which aimed to introduce a civil (non-conviction-based) model of confiscation, was 
rejected  by  the  Constitutional  Court  in  July.  A  new  draft-law  was  subsequently  adopted  by  the 
government,  unfortunately  without  a  public  consultation  process.  Consultations  need  to  be  ensured  by 
Parliament before adoption to ensure alignment with EU acquis and European standards. The Agency for 
the Management of Sequestrated and Confiscated Assets lacks capacity, including human resources and 
management capacity, to appropriately exercise its powers. 

Legislation  on  cybercrime  is  in  line  with  the  EU  acquis.  In  December  2023,  the  Assembly  adopted 
amendments to the Criminal Code and Criminal Procedure Code, implementing the Budapest Convention 
and  its  First  Protocol.  In  addition,  the  Second  Additional  Protocol  is  addressed  in  the  cybersecurity 
strategy.  The  Directorate  for  Cybercrimes  continued  to  tackle  child  abuse,  initiating  12  cases.  The 
legislation  on  trafficking  in  human  beings  is  broadly  aligned  with  the  relevant  EU  acquis  and  its 
implementation improved, although continued action is needed.  

36 

 
 
The  Kosovo  Police  has  478  police  officers  per  100 000  inhabitants  (compared  with  an  EU  average  of 
341): 85% of officers are men, while 15% are women, and 91% are Kosovo Albanians, while 9% belong 
to other communities. In a call to recruit non-majority officers following the resignation of Kosovo Serb 
officers  in  November  2022,  150  officers  from  non-majority  communities,  including  75  Kosovo  Serbs, 
joined  the  Kosovo  Police.  The  Kosovo  Police  needs  to  ensure  that  police  composition  reflects 
municipalities’ ethnic composition. The Kosovo Police made progress in its reorganisation.  

The SPO was reinforced with nine additional prosecutors. The new Law on the SPO, adopted in October 
2023,  includes  a  provision  on  multiagency  investigation  teams.  An  Asset  Recovery  Office  within  the 
Office  of  the  Chief  Prosecutor  was  set  up,  replacing  the  previous  office  within  the  Kosovo  Police.  In 
January  2024,  Kosovo  adopted  the  Law  on  the  Civil  Registry  Agency  transferring  the  Agency’s 
inspectorate to the Ministry of Interior, strengthening its oversight. Despite the good legal framework in 
the  area  of  IT  infrastructure,  the  interoperability  of  the  central  registry  with  other  databases  is  weak. 
Challenges related to the recognition of civil status documents and authentication of personal documents 
in  the  northern  municipalities  of  Kosovo  remain,  due  to  absence  of  cooperation  between  Kosovo  and 
Serbia. 

Implementation and enforcement capacity  

4

n/a

62

29

491

425

569

528

525

497

155

426

up 

1141

1270

1125

action 

organised 

1400
1200
1000
800
600
400
200
0

Graph 14: Kosovo - Serious* and organised crime cases

The number of organised-crime indictments and sentences has been steadily growing, but the prosecution 
service  and  the  police  need  to 
to 
their 
step 
proactively and jointly map and 
target 
criminal 
groups  and  networks.  The 
Kosovo  Police’s  operational 
capacity 
increased 
has 
reorganisation 
the 
following 
and 
the 
of 
upgrade 
an 
Department of Intelligence and 
amount  of 
Analysis.  The 
has 
collected 
significantly 
is 
essential  to  continue  training 
analysts to improve the  quality 
of 
products. 
assigned  police 
Regionally 
the 
officers  continued  with 
community  policing  activities, 
i.e.  conducting  a  considerable 
number 
outreach, 
of 
awareness-raising and preventive campaigns and leading the local public safety committees. The police’s 
operational  independence  must  be  preserved.  The  Ministry  of  Internal  Affairs  and  its  agencies  adopted 
integrity  plans  for  2024-2026.  During  2023,  the  police  inspectorate  investigated  156  officers,  which 
resulted in the suspension of 71 police officers and in 74 criminal charges.  

Number of individuals / legal entities under Investigation
Individuals / legal entities indicted
Final court decision
Final convictions

*Data  on  serious  crime  cases  stem  from  the  aggregation  of  cases  of  money  laundering,  cybercrime,  production  and 
trafficking of drugs, firearms related offenses, terrorism, trafficking in human beings and smuggling of persons. Corruption 
cases are showcased in Chapter 23. 

Source: National data collected via the organised
crime and corruption track record (OCCTR) e-platform

intelligence 
increased; 

Organised
crimes

Organised
crimes

Organised
crimes

Serious
crimes

Serious
crimes

Serious
crimes

analytical 

n/a: not available 

2021

2022

2023

322

100

555

it 

96

52

74

21

n/a

4

The  Kosovo  Police  continued  to  fight  organised  crime.  The  security  situation  in  the  northern 
municipalities  required  considerable  resources  from  the  Kosovo  Police.  The  investigation  of  the 
Banjska/Banjskë attack is the largest in the history of the Kosovo Police, with more than 300 000 pieces 
of evidence and numerous confiscated vehicles, properties and weapons. The police intensified the  fight 
against  smuggling  and  organised  crime  in  the  north.  Financial  investigations  have  improved  and  are 
largely performed in accordance with the standard operating procedure, which is to centralise all aspects 
of financial investigations. The Law on the SPO laid the legal basis for the Special Investigation Unit of 

37 

 
 
the  Kosovo  Police.  A  better  understanding  of  stand-alone  money  laundering  without  identifying  a 
predicate offence is needed.  

Criminal asset confiscation has increased in total value but the number of cases remained similar despite 
a fairly advanced legal system, requiring further systemic progress. During 2023, the total value of assets 
confiscated by prosecution offices was EUR 23 594 636, representing a significant increase comparing to 
EUR 670 000 in 2022. Nevertheless, the increase is attributable to a small number of cases and does not 
indicate  systematic  use  of  confiscation  tools.  While  the  Law  on  extended  powers  of  confiscation  is  in 
force,  it  is  not  consistently  applied.  In  February  2024,  the  KPC  established  the  Asset  Recovery  Office 
with a view to improve coordination of law enforcement agencies.  A better understanding of the use of 
confiscation without a conviction e.g., when confiscating unexplained wealth is necessary.  

The cooperation with Europol has advanced since a Kosovo liaison officer was deployed to Europol in 
March 2023. The Kosovo Police expanded the access points to SIENA and the information exchanged has 
increased considerably. In particular, cooperation was developed in the field of high-risk criminal groups 
and  organised  property  crime,  through  EMPACT,  the  European  Multidisciplinary  Platform  Against 
Criminal Threats. The police has 104 international police cooperation agreements, including with 11 EU 
Member States and five EU agencies. The Kosovo Police mutually exchanges liaison officers with seven 
countries.  

Kosovo  progressed  in  its  efforts  to  combat  trafficking  of  SALW.  Kosovo  has  a  high  level  of 
harmonisation with the rules of the UN Firearms Protocol; the Firearm Focal Point is well equipped in 
terms  of  operationality  and  digitalisation.  Kosovo  is  active  in  tracing  weapons  through  international 
police  cooperation  (EMPACT).  Confiscation  and  destruction  of  illicit  SALW  continued.  The  police’s 
upgraded cybercrime directorate continued to increase its human resources and its capacity.  

Victims  of  trafficking  in  human  beings  are  being  transported  from,  through  and  to  Kosovo,  for  both 
sexual and labour exploitation. The number of indictments and the number of identified victims slowly 
increased.  Victims  are  referred  to  services  in  accordance  with  the  standard  operating  procedure.  Low 
sentencing for related crimes remains an issue.  

Cooperation in the field of drugs 

Cooperation in the field of drugs needs to be improved. 

Institutional set-up and legal alignment 

The legal framework in the field of drugs is outdated and should be amended. 

Graph 15: Kosovo - Cases related to production and trafficking of 
drugs

1200

1000

800

600

400

200

0

330

300

184

Number of
individuals / legal
entities under
Investigation

1117

1038

1050

522

412

440

517

439

404

Individuals / legal
entities indicted

Final court decision

Final convictions

2021

2022

2023

Source: National data collected via the organised
crime and corruption track record (OCCTR) e-platform

38 

June 

2024, 

In 
the 
government  adopted  the 
national drug strategy for 
It  outlines 
2024-2028. 
measures 
increase 
to 
Kosovo’s  capabilities  to 
investigate  and  combat 
to 
drug  crimes,  and 
provide 
for 
treatment 
people  who  use  drugs. 
There  is  a  need  for  a 
to 
comprehensive 
drug 
combat 
and 
production 
trafficking  aligned  with 
European 
recent 

illicit 

law 

 
 
standards.  The  appointment  of  a  dedicated  officer  as  a  National  Drug  Observatory  (NDO)  within  the 
Ministry  of  Internal  Affairs  strengthened  cooperation  on  related  matters.  There  was  progress  on  drug-
related data collection, largely attributed to the newly appointed NDO. The early-warning system on new 
psychoactive substances has not yet been set up. 

Implementation and enforcement capacity 

Kosovo is a nexus for trafficking routes, primarily for cannabis and heroin, with lesser but still notable 
activity  involving  cocaine  and  synthetic  drugs.  During  2023,  there  was  a  shift  in  the  trend  of  drug 
seizures, with a decline in heroin confiscations and an uptick in cocaine seizures. In the first quarter of 
2024, the seizure of heroin saw a resurgence. Through four operations, the Kosovo Police seized around 
30 kg of heroin and conducted operations against drug laboratories. The Directorate of Narcotics of the 
Kosovo  Police  was  reinforced.  The  analytical  work  conducted  by  the  new  Department  for  Intelligence 
and Analysis resulted in better understanding of the local drug market. This is expected to further improve 
with the recruitment of additional analysts.  

Fight against terrorism 

While  the  legal  framework  needs  further  alignment,  Kosovo  continues  to  implement  the  bilateral 
implementing arrangement with the EU on counter terrorism. 

Institutional set-up and legal alignment 

Kosovo’s  legal  framework  on  anti-terrorism  is  partly  aligned  with  the  EU  acquis  and  international 
instruments.  Legislation  on  critical  infrastructure  protection,  as  well  as  on  anti-money  laundering  and 
countering  the  financing  of  terrorism  is  yet  to  be  aligned  with  the  EU acquis.  Kosovo  adopted  and  is 
implementing  its  new  strategy  and  action  plan  against  terrorism  and  violent  extremism  (2023-2028), 
which  is  in  line  with  the  EU’s  counter-terrorism  strategy.  The  authorities  continue  to  implement  the 
bilateral  implementing  arrangement  with  the  EU  for  the  joint  action  plan  on  counterterrorism  for  the 
Western Balkans. The Kosovo Police is in process of finalising a Terrorism Situation and Trend Report.  

The Minister for Internal Affairs is the National Coordinator for the Prevention of Violent Extremism and 
the  Fight  against  Terrorism,  but  given  the  nature  of  the  Minister’s  other  tasks,  the  focus  on 
interinstitutional  coordination  remains  limited.  Despite  policy  support  provided  through  the  EU 
Radicalisation Awareness Network to set up a national centre for countering terrorism and countering and 
preventing violent extremism and radicalisation, the process has stalled. However, joint threat assessment 
by the security institutions has become a regular practice.  

Implementation and enforcement capacity 

A  total  of  11  inmates  are  serving  prison  sentences  for  terrorism-related  crimes.  The  Correctional  and 
Probation  Service’s  work  on  disengagement  and  rehabilitation  should  be  intensified.  A  number  of 
incidents show that the threat of militant Salafist ideology has not ceased to exist, and the ethnonational 
and  far-right  movements  are  of  growing  concern.  Continuous  work  is  needed  on  implementing 
preventive, rehabilitation and reintegration measures. 

Kosovo  needs  to  stay  alert  to  new  threats  and  developments  and  revise  the  existing  programmes  and 
strategic documents accordingly. Authorities took a leading role in the rehabilitation and reintegration of 
returnees from foreign conflicts. There were no further repatriations of individuals from the region due to 
logistical  challenges.  The  authorities  need  to  focus  on  education,  training  and  preparedness  of  local 
practitioners dealing with returnees. After piloting the local multidisciplinary mechanism in 2023, it was 
further  expanded  to  cover  four  more  municipalities.  The  authorities  should  improve  their  capacity  to 
address terrorist content online and to develop effective counter-narratives and strategic communication 
to counter disinformation.  

Judicial cooperation in civil and criminal matters 

39 

 
 
and 

The  legal  framework  on  judicial 
cooperation  in  civil  and  criminal 
matters is fully aligned with the EU 
acquis 
international 
conventions, yet cooperation needs 
to  be  improved.  The  cooperation 
between  Kosovo  and  Eurojust  is 
good  and  joint  investigation  teams 
have  been  set  up  between  Kosovo 
and  other  partners  within 
this 
framework.  Three  new  bilateral 
treaties 
judicial 
cooperation  entered  into  force.  In 
July  2024,  Kosovo  received  a 
request  for  mutual  legal  assistance 
from Serbia related to the attack in 
Banjska/Banjskë.  

related 

to 

Graph 16: Kosovo - Requests for mutual assistance in 
civil and criminal matters

692

641

566

459

233

372

269

338

228

365

329

237

507

426

295

92

142

131

800
700
600
500
400
300
200
100
0

2021

2022

Civil

2023

2021

2022

2023

Criminal

Incoming requests

Outgoing requests

Total

Source: Ministry of Justice

Legal and irregular migration 

The management of legal and irregular migration is satisfactory. 

Institutional set-up and legal alignment  

The institutional structure and legal framework are largely in line with the EU acquis. Relevant strategic 
and legal documents are implemented effectively. The new Law on foreigners is pending adoption by the 
Assembly.  The  law  should  ensure  judicial  overview  of  detention  of  migrants  decided  by  police 
authorities.  The  current  fragmented  policy  approach  should  be  replaced  by  a  cross-sectoral  migration 
strategy covering all relevant policy areas.  

Concerning  institutional  set-up, the  Government  Authority  on  Migration  is  an advisory mechanism  in 
the  field  of  migration.  The  institutions  have  steadily  improved  their  capacity  to  regulate  and  manage 
migration  (budget,  training  and  coordination);  however,  there  is  room  for  improvement  in  capacity 
development, collection and analysis of data, and training/recruitment of staff.  

Kosovo has readmission agreements with 24 countries, including 20 EU Member States and Schengen 
members. The readmission agreements are implemented satisfactorily. There is currently no readmission 
agreement in place with the EU. Negotiations of a readmission agreement were concluded with Lithuania, 
and continued with Latvia, Portugal, Poland, Ireland, the UK, Pakistan, Côte d’Ivoire, the United States, 
Jordan, Egypt, Libya, Chad and Australia.  

Implementation and enforcement capacity 

10000

1000

100

10

1

Graph 17: Kosovo - Number of irregular movements

708

214

114

1405

381 251

939

634

208 177

47

14

h
s
e
d
a
g
n
a
B

l

a
i
r
y
S

o
c
c
o
r
o
M

h
s
e
d
a
g
n
a
B

l

l

a
t
o
T

a
i
r
y
S

o
c
c
o
r
o
M

2021

2022

l

a
t
o
T

a
i
r
y
S

l

a
t
o
T

o
c
c
o
r
o
M

e
n
i
t
s
e
a
P

l

40 

2023

Source: Kosovo Police

In  2023, 
the  number  of  new 
to 
migrant 
decline  (by  31.6%  compared  with 
2022).  

continued 

arrivals 

The  number  of  Kosovo  migrants 
returned  by  force  continued  to 
decline. 

There  are  two  reception  centres, 
with  a  total  capacity  of  up  to  350 
beds  [Magure  (100)  and  Vranidoll 
(250)]. Meanwhile, preparations for 

 
 
the construction of a new facility are ongoing to accommodate 70 additional migrants by the end of 2024. 
There  has  been  an  increase  in  the  emigration  of  citizens  of  Kosovo,  predominantly  for  economic 
purposes. This, in turn, has resulted in an increase in the immigration of foreigners to Kosovo to fill the 
gaps in the labour market.  

Asylum 

The management of asylum is satisfactory. 

Institutional set-up and legal alignment  

Kosovo’s  legal  and  institutional  framework  is  mostly  in  line  with  the  EU  acquis.  The  EU  Agency  for 
Asylum and Kosovo continued to implement a bilateral roadmap for cooperation to strengthen the asylum 
system.  The  administrative  capacity  of  the  Department  for  Citizenship,  Asylum  and  Migration  of  the 
Ministry of Internal Affairs as well as the quality of the refugee status determination procedure should be 
strengthened. 

Implementation and enforcement capacity 

700
600
500
400
300
200
100
0

In  2023,  the  number  of  applicants  for 
international  protection  declined  by 
67%  compared  with  2022.  These 
applicants  were  accommodated  at  the 
temporary reception centre for migrants 
and  provided  with  certificates  and 
identity  cards.  In  2023,  a  total  of  221 
final decisions were made, a decline of 
58% compared with 2022. A total of 49 
international 
people  were  granted 
protection,  representing  an 
increase 
compared  with  2022,  resulting  in  a 
higher recognition rate (close to 25% in 
2023).  Limited  capacity  in  terms  of 
biometric  devices  and  a  lack  of  data 
interoperability  affect  the  efficiency  of 
the  registration  and  further  processing 
of asylum claims. 

Graph 18: Kosovo - Asylum applications 

578

550

179 147

186 175

a
i
r
y
S

o
c
c
o
r
o
M

34

n
a
t
s
i
n
a
h
g
f
A

a
i
r
y
S

l

a
t
o
T

o
c
c
o
r
o
M

179

l

a
t
o
T

56

a
i
r
y
S

l

a
t
o
T

46

n
a
t
s
i
n
a
h
g
f
A

20

o
c
c
o
r
o
M

5

n
a
t
s
i
n
a
h
g
f
A

2021

2022

2023

Source: Department for Citizenship, Asylum and Migration 

A  total  of  2 174  Ukrainians  transited  through  Kosovo  in  2023.  Kosovo  hosts  24  Ukrainians,  15  with 
temporary protection (13 journalists and two children) and nine with subsidiary protection. 

Appropriate  reception  conditions  were  maintained  through  the  functioning  of  the  temporary  reception 
centre for migrants. Registration is still carried out outside the centre, lacking appropriate profiling and 
referrals.  The  quality  of  the  refugee  status  determination  procedure  needs  to  be  further  improved,  in 
particular  regarding  the  country-of-origin  information.  Free  legal  aid  is  available  to  refugees,  stateless 
persons and asylum seekers, subject to availability of translation. 

The authorities continue supporting those granted international protection. In 2024, the budget for support 
increased  by  35.4%.  Frontex  will  assist  Kosovo  in  developing  and  upgrading  IT  and  communication 
infrastructure for the identification and registration of mixed migration flows. Kosovo should demonstrate 
political commitment by aligning its legislation with the EU  acquis  and making preparations for future 
integration into the EURODAC system. 

Visa policy 

Kosovo’s visa regime is still to be aligned with that of the EU. Kosovo grants visa-free travel for 90 days 
within a 6-month period to 110 countries, 16 of which do not have a visa-free regime with the Schengen 

41 

 
 
area. In August 2024, Kosovo terminated three of its visa free regime with countries that are visa-bound 
in the EU. Kosovo should continue to terminate visa free regimes that are not in line with the EU acquis 
with  at  least  one  country  per  year  between  2025  and  2027.  Since  1 January 2024,  holders  of  Kosovo 
passports enjoy visa-free travel to the EU. Kosovo rolled out an information campaign on the rights and 
obligations  connected  to  visa-free  travel.  The  European  Parliament  and  the  Council  adopted  an 
amendment to the Visa Regulation in April 2024 exempting holders of passports issued by the Serbian 
Coordination Directorate (the amendment entered into force on 13 October 2024). It allows all Western 
Balkan citizens to travel visa-free to the EU.  

According to Eurostat, 3 045 nationals of Kosovo applied for asylum in the EU27 in 2023 (slight decrease 
of 4% compared to 3 185 in 2022). Since the entry into force of the visa free regime for Kosovo passport 
holders on 1 January 2024, 1 960 asylum applications have been lodged in EU27 in the first four months 
of 2024 (+68% compared to the same period of 2023). Kosovo authorities have shown responsiveness in 
monitoring  and  addressing  this  trend.  This  effort  should  continue  by  maintaining  the  communication 
campaign  on  rights  and  obligations,  improved  screenings  at  departures  and  engaging  with  the  most 
affected EU Member States.  

Schengen and external borders  

The legislative framework for the management of external borders is largely aligned with the EU acquis.  

Institutional set-up and legal alignment 

The  Kosovo  Border  Police  has  approximately  1 400  staff.  The  gaps  in  staffing  should  be  addressed. 
Overall,  the  National  Centre  for  Border  Management  is  functioning  well.  Kosovo  needs  to  set  up  a 
national coordination centre in accordance with the Frontex Regulation.  

Amendments  drafted  to  the  Law  on  state  border  control  and  surveillance  aim  to  further  improve  the 
legislative framework which is largely in line with the EU acquis and international standards. The Law on 
the cooperation between the authorities involved in the integrated border management is in force and well 
implemented.  Currently,  the  legislative  framework  and  its  implementation  is  at  a  level  that  meets  the 
EU’s  minimum  requirements  for  border  control.  The  strategy  and  action  plan  for  the  integrated  border 
management  were  updated  and  are  pending  adoption.  Kosovo  signed  the  draft  of  the  updated  working 
arrangement with Frontex in spring 2023. It has yet to be ratified by Frontex. 

Implementation and enforcement capacity 

The  Kosovo  Police  is  able  to  fulfil  its  border  security  tasks  mostly  in  accordance  with  European 
standards. The interagency task force created by the integrated border management institutions to combat 
cross-border crime improved interinstitutional cooperation. A database update of the border management 
system is ongoing. Kosovo’s border infrastructure, as well as the size and quality of the equipment used, 
need  strengthening.  Kosovo  needs  to  improve  the  multiannual  planning  procedure  including  life  cycle 
management, the maintenance and the overall planning of the border security system.  

Kosovo’s  cooperation  with  EU  agencies  is  effective.  Frontex  deploys  experts  to  the  border-crossing 
points.  In  addition  to  the  national  point  of  contact,  three  local  coordinators  are  employed  at  Kosovo’s 
biggest  border-crossing  points  to  facilitate  cooperation  with  Frontex.  The  authorities  participate  in 
implementing the contingency planning in accordance with the Frontex Regulation. Kosovo participates 
in  the  Western  Balkans  risk  analysis  network  and  in  other  regional  initiatives.  Cooperation  with  all 
neighbours  is  good,  except  with  Serbia.  The  border  police  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.  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).  

Counterfeiting of the euro (criminal law aspects) 

42 

 
 
Kosovo  has  competent  authorities  and  procedures  in place  to deal  with  counterfeit money.  Kosovo  has 
also taken part in Pericles activities. The Criminal Code needs to be further aligned with the EU Directive 
on the protection of the euro and other currencies against counterfeiting.  

2.3. ECONOMIC DEVELOPMENT AND COMPETITIVENESS 

2.3.1. The existence of a functioning market economy 

Economic governance 

Overall,  Kosovo’s  economic  policies  remained  prudent.  In  2023,  fiscal  consolidation  continued, 
despite  one-off  transfers  to  basic  pension  and  child  allowance5  beneficiaries,  totalling  around  0.7%  of 
GDP,  and  significantly  increased  public  capital  spending.  The  government  took  a  fiscally  prudent 
decision  by  adopting,  in  July  2023,  the  law  that  decouples  war  veterans’  pensions  from  the  minimum 
wage.  The  law  came  into  force  in  August  2024,  following  a  review  by  the  Constitutional  Court.  The 
public wage bill did not exceed its legal ceiling for the year as a whole. The implementation of the Stand-
By-Arrangement  (SBA)  with  the  International  Monetary  Fund  (IMF)  advanced  well,  and  progress  was 
also made in implementing Kosovo’s green agenda, supported by the IMF’s Resilience and Sustainability 
Facility. 

The  policy  guidance  set  out  in  the  conclusions  of  the  Economic  and  Financial  Dialogue  of 
16 May 2023 has been partially implemented. The measures to mitigate the impact of the energy crisis 
on  vulnerable  households and  businesses  were  mostly  well  targeted.  Tax  revenue  grew  strongly,  partly 
due to some formalisation gains. Nevertheless, the tax base continues to be weakened by numerous tax 

5 In July 2024, the government decided to allocate an additional amount of EUR 50 million, reaching a total of EUR 100 million 
annually for child allowance. 

43 

Table 4.1:202120222023Kosovo - Key economic figuresGDP per capita (% of EU-27 in PPS)22242425Real GDP growth 3.210.74.33.3Activity rate of the population aged 15-64 (%), total39.839.338.640.7      female19.522.022.024.2      male59.956.655.557.8Unemployment rate of the population aged 15-64 (%), total28.720.712.610.9      female34.225.016.518.2      male23.019.011.07.7Employment of the population aged 15-64 (annual growth %)1.410.45.45.4Nominal wages (annual growth %)2.53.97.6Consumer price index (annual growth %)0.93.311.64.9Exchange rate against EUR*1.01.01.01.0Current account balance (% of GDP)-7.1-8.7-10.2-7.6Net foreign direct investment, FDI (% of GDP)3.64.06.36.8General government balance (% of GDP)-2.9-1.2-0.5-0.2General government debt (% of GDP)16.821.520.017.5* The euro is used as a de facto domestic currencySource: Kosovo Agency of Statistics, World Bank and IMF2015-20 average 
 
 
 
 
 
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. Financial 
oversight of POEs improved but work to set up a fiscal oversight body has not advanced. For 2024-2026, 
Kosovo’s Economic Reform Programme (ERP) aims to maintain stable public finances and comply with 
fiscal rules, while supporting economic growth mainly through higher capital spending. 

Macroeconomic stability 

Kosovo’s economic growth moderated in 2023, mainly due to weaker external demand.  Real GDP 
growth  eased  to  a still  buoyant  3.3%  (down  from  4.3%  in  2022), marginally  above  the  average rate  of 
3.2%  of  GDP  growth  in  2015-2020.  The  key 
factor  behind  the  economic  slowdown  was  the 
negative  contribution  of  net  exports  to  growth, 
mainly  due  to  a  notable  deceleration  in  real 
exports growth. Economic growth was driven by a 
pick-up  in  household  consumption  growth  on  the 
back of rising real  wages, higher  bank lending  as 
well as a slight increase in remittances as a share 
of  GDP.  Further  support  came  from  the  recovery 
of gross fixed capital formation, reflecting a strong 
increase in public investment, as well as from the 
acceleration in public consumption growth, largely 
due to higher public-sector wages. Economic activity picked-up notably in the first quarter of 2024, with 
real GDP growth accelerating to 5.6% year-on-year, up from 4% in the preceding quarter. Kosovo’s per 
capita  GDP  remains  the  lowest  in  the  Western  Balkans  region,  standing  at  25%  of  the  EU  average  in 
2023, only slightly higher than the average of 22% in 2015-2020. 

In  2023,  Kosovo  witnessed  a  significant  improvement  in  its  external  position.  The  current  account 
deficit fell to 7.6% of GDP, down from 10.3% in 2022. The key drivers were the lower merchandise trade 
deficit thanks to a better energy balance, combined with the continued rebound of services exports. This 
resulted in a decrease in the overall trade deficit to 
a still very sizeable 30.8% of GDP from 32.8% a 
year  before.  Remittances  slightly  increased  to 
nearly  14%  of  GDP  in  2023,  while  the  primary 
income  surplus  rose  to  1.9%  of  GDP.  Further 
unofficial  services  exports  and  remittances  were 
reflected  by  large  errors  and  omissions  in  the 
balance of payments (equivalent to 2.9% of GDP) 
in  2023.  In  the  first  quarter  of  2024,  the  current 
account  deficit  deteriorated,  with  its  rolling  4-
quarter total widening to 8.5% of GDP. In 2023, , 
the current account deficit was mainly financed by 
net foreign direct investment (FDI) inflows, which 
increased by 0.5 percentage points (pps) to 6.8% of GDP, with the bulk directed to real estate as well as 
financial  and  insurance  activities.  In  the  same  period,  official  reserve  assets  amounted  to  2  months  of 
imports of goods and services. 

In  2023,  inflation  fell  significantly,  after  peaking  in  2022.  Consumer  price  inflation  decelerated 
significantly  to  4.9%  on  average  in  2023,  markedly  lower  than  the  11.6%  rate  registered  in  2022,  and 
declined  further to  2.1%  year-on-year  in the first  eight  months  of  2024.  The main  disinflationary force 
was lower global commodity prices. In 2023, the government continued to support vulnerable households 
and  firms  by  subsidising  electricity  bills  to  alleviate  the  impact  of  tariff  increases.  It  also  subsidised 
monthly  electricity  bills  of  around  200 000  households  that  consumed  less  energy  compared  with  the 

44 

-12-9-6-30369-40-30-20-100102020192020202120222023Graph 4.2: Kosovo -Current account selected components and FDIGoods and services trade balance Workers' remittances balanceCurrent account balance (rhs)Net FDI (rhs)% of GDPSource: IMF and Central Bank of Kosovo -9-6-3036912201820192020202120222023Graph 4.1: Kosovo -Real GDP growth and contributionsPriv. cons.Gov. cons.GFCFStocksNet exportsReal GDP growthSource: The Vienna Institute for International Economic Studies (WiiW)% y-o-y 
 
same period a year before. 

Fiscal consolidation continued in 2023 with a further reduction in the headline deficit on the back 
of high revenue growth and despite a surge in public capital spending.  The headline budget deficit 
fell to 0.2% of GDP in 2023, down from 0.5% in 2022, which corresponds to a surplus of 0.5% of GDP 
under  the  fiscal  rule’s  definition6.  The  fall  in  the 
government  deficit  resulted  primarily  from  a 
strong increase in revenues (14.5% year-on-year), 
partly  due  to  improved  tax  compliance.  Public 
expenditure  grew  by  13.3%  year-on-year.  The 
largest  increase  (32%)  took  place  in  capital 
spending, even if only reaching around 68% of the 
budget allocation, reflecting overoptimistic targets 
and  remaining  weaknesses  in  implementation 
capacity.  Roughly  in  line  with  the  budget  plan, 
current  expenditure  grew  by  9.3%  year-on-year, 
mainly  on  the  back  of  increased  spending  on 
goods and services (18%) and wages (17.5%). This increased spending on wages was due to the new Law 
on  salaries  in  the  public  sector,  which  has  been  implemented  since  February  2023.  Transfers  and 
subsidies  grew  by  only  1.3%  year-on-year,  reflecting  the  gradual  withdrawal  of  energy  crisis-related 
support. Government deposits fell to 2.4% of GDP, down from 3.2% in 2022. 

On the back of a robust fiscal performance and high nominal GDP growth in 2023, the public debt-
to-GDP  ratio  declined,  but  the  domestic  investor  base  for  government  debt  remains  narrow.  The 
public debt ratio fell to 17.5% of GDP at end-2023 from a revised 20% a year earlier and further to 15.8% 
of  GDP  in  June  2024.  These  figures  do  not  include  the  state’s  liability  for  COVID-19-related  tax-free 
withdrawals  of  10%  of  pension  savings  from  the  Kosovo  Pension  Savings  Trust  (KPST),  which  the 
government  started  reimbursing  in  20237.  In  2023,  domestic  debt,  which  is  held  by  a  narrow  investor 
base, declined significantly by almost 13% year-on-year, partly due to the lack of an operating Board at 
the KPST in the first half of the year. In June 2024, the share of domestic debt held by the KPST stood at 
48%, while the Central Bank of Kosovo and commercial banks held a further 21% and 22%, respectively. 
Foreign debt, owed mostly to international donors, rose by around 8% in 2023. This includes loans from 
the  International  Monetary  Fund,  the  World  Bank,  and  the  European  Investment  Bank.  In  April  2024, 
Kosovo  obtained  a  sovereign  credit  rating  for  the  first  time,  ‘BB-’,  with  a  stable  outlook,  from  Fitch 
Ratings. This could help Kosovo access international bond markets in near future. 

There has been some progress in addressing fiscal risks and improving transparency.  Government 
initiatives to improve project implementation resulted in a significant increase in public capital spending 
in 2023. However, the recurring under-execution of the capital budget points to still weak planning and 
implementation capacity. The spending overrun on war veteran pensions has not been resolved due to the 
absence  of  a  reclassification  of  beneficiaries.  The  2024  budget  includes  significantly  lower  blanket 
allocations  compared  with  the  previous  year’s  one,  improving  fiscal  transparency.  A  stand-alone  fiscal 
risk analysis of POEs, limited to high-risk POEs, was published in November 2023. In December 2023, 
the distribution company KEDS and the company Elektrosever signed a commercial contract. This was a 

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 2026, provided 
the public debt ratio remains below 30% of GDP. A further rule provides that the increase in the public wage bill cannot exceed 
nominal GDP growth. Government deposits used as fiscal buffers are legally required to stay at 4.5% of GDP  as long as the 
government uses privatisation proceeds. The debt rule requires 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. 

45 

0510152025-8-6-4-2024201820192020202120222023Graph 4.3: Kosovo -Fiscal developmentsPrimary balance (lhs)Interest (lhs)GG balance (lhs)Public debt (rhs)Source: IMF and MoF% ofGDP 
 
 
major milestone in the implementation of the Energy Roadmap agreed in June 2022 between Kosovo and 
Serbia under the EU-facilitated Dialogue. The conclusion of this contract enabled the start of supply and 
billing in four municipalities in the north of Kosovo, thus reducing fiscal risks. 

Three years of substantial fiscal consolidation created space for a planned strong fiscal impulse in 
2024.  The  2024  budget  expects  the  headline  deficit  to  rise  to  2.7%  of  GDP,  implying  a  strong  fiscal 
stimulus mainly through a very ambitious surge in public investment. However, the deficit (according to 
the  fiscal  rule  definition) would  not  exceed  the  prescribed  ceiling  of  2%  of  GDP,  which  is  appropriate 
given the need to maintain the credibility of Kosovo’s well-functioning set of fiscal rules.  

Functioning of product markets 

Business environment 

Some progress was made in improving the business environment. In November 2023, the government 
approved the Law on the Register of Beneficial Owners, which is pending adoption by the Assembly. The 
law lays down the obligations of natural persons and entities recording beneficial ownership information 
in the Register of Beneficial Owners and specifies penalties for non-compliance. There were also positive 
developments in settling commercial disputes. By March 2024, 2 126 first-instance judgments and 3 027 
second-instance  judgments  of  the  Commercial  Court,  which  became  operational  in  August  2022,  had 
been  published.  In  August  2024,  the  new  Law  on  sustainable  investment  came  into  force,  following  a 
review by the Constitutional Court. The purpose of the Law is to create a comprehensive legal framework 
on protection, promotion and encouragement of sustainable investments in Kosovo.  

The authorities intensified efforts to reduce the informal sector. In July 2023, the Tax Administration 
of Kosovo adopted a new annual action plan to reduce the informal economy, with a focus on addressing 
incorrect  or  non-declaration  and  non-payment  of  personal  income  tax  and  identifying  high-income 
taxpayers  who  do  not  file  or  incorrectly  file  personal  income  tax  declarations.  In  December  2023,  the 
Assembly  adopted  the  Law  on  the  administration  of  tax  procedures,  which  amended  the  legal 
requirements  related  to  a  number  of  issues  impacting  the  formalisation  of  economic  activities  or 
undeclared work. It also regulated information gathering and information sharing with third parties, such 
as  commercial  banks  and  partner  countries.  Other  amendments  include  a  EUR 300  limit  for  cash 
transactions. According to Transparency International’s corruption perceptions index, Kosovo improved 
its score in 2023, ranking 83rd, one position higher than in 2022. 

State influence on product markets 

Kosovo  needs  to  further  align  its  State  aid  policy  framework  with  EU  rules  and  principles.  The 
current framework  lacks  a coherent approach to  State  aid  or  a comprehensive strategy  and cost-benefit 
evaluations  for  aid  and  subsidies  granted,  while  the  Assembly  has  still  not  appointed  the  State  Aid 
Commission.  

Privatisation and restructuring 

Kosovo took further steps to set up a sovereign fund.  In mid-December 2023, the Assembly adopted 
the Law on the establishment of a sovereign fund, but it is being reviewed by the Constitutional Court, 
following  a  request  by  two  opposition  parties.  The  fund  is  expected  to  take  over  socially  owned 
enterprises8 and assets managed by the Privatisation Agency of Kosovo as well as some POEs managed 
by the Ministry of Economy, after they improve their financial performance. However, setting up the fund 
will  not  be  sufficient  to  address  the  long-standing  issues  of  POEs’  poor  financial  performance  and 
management.  During  the  reporting  period,  a  comprehensive  review  of  the  assets  of  the  Privatisation 
Agency of Kosovo was initiated, identifying properties suitable for the sovereign fund.  

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

46 

 
 
 
Functioning of the financial market 

The  banking  sector  remained  resilient  and  continued  to  expand  at  a  robust  pace.  The  banking 
sector’s profitability slightly declined, with the average return-on-equity ratio falling to 19.7% in 2023, 
down from 20.6% in 2022, and further to 19.3% in July 2024. At the end of 2023, the non-performing 
loans ratio stood at a historically low level of 2%, while it edged up to 2.1% at end-July 2024.Still, asset 
quality should be monitored closely against the background of higher interest rates and tighter liquidity. 
The ratio of banks’ regulatory capital to risk-weighted assets increased to 15.8% in 2023 and further to 
15.9%  in  July  2024,  comfortably  exceeding  the  regulatory  minimum  of  12%.  Real  credit  growth 
accelerated to an average of 9.2% in 2023, from 5.8% in 2022, and further to 10.6% year-on-year in the 
first half of 2024, with lending to households growing at a much faster rate than lending to businesses. 
Deposits’  growth  in  real  terms  averaged  9%  in  2023,  compared  to  a  decrease  of  around  1%  in  2022, 
before  slowing  to  6%  year-on-year  in  the  first  half  of  2024.  Despite  expansion  and  portfolio 
diversification of the Kosovo Credit Guarantee Fund, the lack of easily accessible and affordable credit 
remains a barrier to small to medium-sized enterprise (SME) growth.  

Functioning of the labour market 

in 

34% 

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 refers to 2023 as a 
whole. In line with buoyant economic activity, the 
employment  rate  increased  to  36.3%,  up  from 
nearly 
the 
unemployment  rate  declined 
to  10.9%  from 
12.6%, and despite the increase in the labour force 
participation  rate  to  40.7%  from  38.6%  in  the 
same  period.  The  gender  employment  gap  (rates 
are  53.4%  for  men  and  19.8%  for  women) 
widened. In 2023, the share of young people (aged 
15-24)  not  in  employment,  education  or  training 
(NEET)  increased slightly to  33.4%,  from  33%% 
in  2022,  which  is  however  the  highest  in  the  Western  Balkans  region.  To  improve  the  situation,  the 
government launched the piloting phase of the Youth Guarantee scheme in two municipalities, while also 
reforming  public  employment  services.  Weak  labour  market  outcomes  contribute  to  continuously  high 
emigration rates. Supported by a World Bank loan and technical assistance, the authorities announced, in 
May 2024, the start of a pilot means-tested social assistance scheme to thoroughly reform the system and 
make it better targeted over a 5-year period. 

2022.  Meanwhile, 

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

Education and innovation 

Improving  the  quality  of  education  and  aligning  it  with  labour  market  needs  remains  a  key 
challenge. To address the insufficient participation in early childhood education, the Assembly, in July 
2023, approved Kosovo’s first Law on early childhood education. The quality and relevance of education 
are  undermined  by  an  absence  of  quality  learning  materials  in  schools,  a  lack  of  initial  training  and 
continuous professional development for teachers, and an insufficient number of inspectors for teachers’ 
assessment. This is evidenced by Kosovo ranking 81st and last in the 2022 cycle of the Programme for 
International  Student  Assessment  (PISA)  of  the  Organisation  for  Economic  Co-operation  and 
Development  (OECD)  and  the  still  high  unemployment  among  tertiary  education  graduates.  At  end-
March 2024, the Ministry of Internal Affairs approved the Regulation for the selection procedures and the 
appointment  of  staff  in  public  educational  and  training  institutions  of  pre-university  education.  To 

47 

1020304050201820192020202120222023Graph 4.4: Kosovo -Labour market trends(15-64 age group)Participation rateUnemployment rateEmployment rateSource: Kosovo Agency of Statistics 
 
facilitate the transition from school to the labour market, Kosovo started implementing the dual education 
approach in the 2023/2024 school year.  

Kosovo’s research and innovation performance is lagging. In 2024, the budget allocated for research 
and  development  amounts to  EUR 15  million  (0.1% of  GDP),  far  below  the  0.7%  of  GDP  required  by 
law.  There  was  some  progress  in  implementing  the  Horizon  Europe  programme  for  research  and 
innovation, with a total of 35 project proposals submitted in 2023, and six of them receiving a total EU 
funding  of  around  EUR 0.7  million.  In  July  2023,  the  government  approved  the  National  Science 
Programme for 2023-2028, which is the main strategic document on science and research.   

Physical capital and quality of infrastructure 

Kosovo made limited progress in improving road and railway infrastructure.  During the reporting 
period,  there  has  been  no  progress  on  the  Pristina  –  Merdare  motorway  or  the  ‘Peace  Highway’.  The 
rehabilitation works for Rail Route 10 continued at a slow pace. The tendering of signalling systems and 
telecommunications, which is of utmost priority, is still delayed, due to lack of financing. The transport 
system still faces several challenges in terms of safety, insufficient maintenance, and weak administrative 
capacity of regulatory institutions. 

Despite recent efforts to diversify the energy supply, the energy sector remains a key bottleneck for 
Kosovo’s economic development. The lack of energy security, due to the unreliability of the old lignite-
fired  units,  gives  rise  to  significant  costs  for  business  and  represents  one  of  the  biggest  obstacles  to 
attracting high-quality FDI. Energy demand and consumption continue to grow quickly and have doubled 
since  2000.  Kosovo  also  suffers  from  major  technical  and  commercial  losses  in  the  distribution  and 
transmission grids due to poor infrastructure (more than 20% in total). In December 2023, the Assembly 
adopted  the  Law  on  renewable  energy  sources,  which  provides  for  a  competitive  bidding  process  to 
support  renewable  energy  projects,  replacing  the  previous  system  of  feed-in  tariffs.  In  March  2024, 
Kosovo successfully concluded its first solar auction.  

The digital transformation of the economy is advancing, but the digitalisation of public services is 
still  at  an  early  stage.  According  to  the  OECD9  (2024),  Kosovo  is  the  leader  in  the  Western  Balkans 
region with 98.6% of households having some form of internet access in 2023, surpassing the EU average 
of  93.08%.  However,  fixed  broadband  uptake  falls  below  the  regional  average,  due  to  lower-quality 
infrastructure, unavailability of networks in some regions, affordability and low demand.  More needs to 
be done to train skilled workers in the rapidly growing information and communication technology (ICT) 
sector, where demand for employees outstrips supply. The Digital Agenda 2030, in place since June 2023, 
provides  a  comprehensive  framework  for  digital  transformation,  including  5G  technologies  and  the 
digitalisation of businesses and public services. The digitalisation of the latter is still at an early stage as 
only 10% of all public services are offered online, and most of them are informative (OECD, 2024). 

Sectoral and enterprise structure 

The services sector continued to dominate economic activity in 2023, providing 46% of gross value 
added  (GVA).  The  sectoral  structure  of  GVA  shows  a  gradual  increase  in  the  share  of  wholesale  and 
retail trade, to 14.2% in 2023, up from less than 13% in 2019, while the share of construction remained 
unchanged at 8.2% compared with 5 years before. These contributions partly reflect investment, which, 
despite being high over the last decade, has not supported the growth of the domestic production base or 
the tradable sector (OECD10, 2021). The share of agriculture in GVA slightly grew to 7.8% in 2023, up 
from 7.2% in 2019. At the same time, the share of real estate activities fell by 1.1 pps to 5.9% compared 
with 2019, followed by shrinking contributions from public administration and education.  

9 OECD (2024), Western Balkans Competitiveness Outlook 2024. 
10 OECD (2021), Competitiveness in South East Europe: A Policy Outlook. 

48 

 
 
 
SMEs represent over 99% of registered businesses and have difficult access to finance. SMEs and 
family-run businesses account for 80.4% of employment in non-financial businesses and generate 81% of 
Kosovo’s  total  value  added.  According  to  the  OECD11  (2022),  Kosovo  has  made  progress  in 
implementing  the  Small  Business  Act,  with  main  achievements  in  support  services  for  SMEs, 
internationalisation  of  SMEs,  public  procurement,  and  standards  and  technical  regulations.  Access  to 
finance remains an obstacle to growth due to banks’ stringent loan requirements, affecting mostly smaller 
businesses.  In  almost  8  years,  the  Kosovo  Credit  Guarantee  Fund  portfolio  has  reached  a  cumulative 
value of approved loans of around EUR 664 million (7% of GDP), while the value guaranteed by the fund 
has reached EUR 348 million, distributed in over 15 000 loans.  

Economic integration with the EU and price competitiveness 

The EU remained Kosovo’s largest trading partner and services exports have expanded rapidly. In 
2023, the EU accounted for 42.4% of Kosovo’s total imports of goods, lower than in 2019 (49.1%), while 
the  CEFTA  partners’  share  increased  by  almost  2  pps  to  16.3%.  Imports  of  Serbian  goods  have  been 
prohibited  since  mid-June  2023,  excluding  raw  materials,  semi-finished  products,  mineral  fertilisers, 
animal  feed,  machinery  and  equipment.  The  EU’s  share  in  Kosovo’s  merchandise  exports  declined  to 
32.3% in 2023, down from 33.2% in 2019, while the CEFTA countries’ share fell to nearly 40%, down 
from  43% in 2019.  Trade openness (i.e. the total  value  of  exports and imports)  remained  at  110.2%  of 
GDP in 2023, significantly higher than in 2019 (85.8%) thanks to a much higher value of both goods and 
services trade. Services exports are significantly larger than goods exports. They are dominated by fast 
growing  travel  services  (mainly  related  to  diaspora  tourism  from  Western  Europe),  followed  by  ICT 
service exports, which have risen even faster in recent years.  

EU  Member  States  remain  the  main  investors  in  Kosovo.  Net  FDI  inflows  rose  by  around  18%  in 
2023,  mainly  on  the  back  of  significant  diaspora  investment  in  real  estate,  followed  by  financial  and 
insurance  activities.  Heavy  concentration  in  these  sectors  (82%  of  FDI  inflows)  does  little  to  improve 
Kosovo’s export capacity. The EU’s share in Kosovo’s net FDI stock reached 42.4% in 2023, up from 
34.2%  in  2019.  The  shares  of  Germany  and  Switzerland  (two  countries  with  large  diasporas  from 
Kosovo) increased to 18.6% and 18.2%, respectively, in 2023, up from 12.8% and 12.1% in 2019. 

2.4. PUBLIC PROCUREMENT, STATISTICS, FINANCIAL CONTROL  

Chapter 5 – Public procurement 

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

11 OECD (2022), SME Policy Index: Western Balkans and Turkey 2022. 

49 

02040608020162017201820192020202120222023Graph 4.5a: Kosovo -Exports of goodsEUCEFTAOther% ofGDPSource: The Vienna Institute for International Economic Studies (WiiW)02040608020162017201820192020202120222023Graph 4.5b: Kosovo -Imports of goodsEUCEFTAOther% ofGDPSource: The Vienna Institute for International Economic Studies (WiiW) 
 
 
 
 
Institutional set-up and legal alignment 

The legal framework on public procurement remains partially aligned with the EU public procurement 
acquis. A new draft law on public procurement has been pending approval by the Ministry of Finance, 
Labour and Transfers for three years. Implementing legislation of the new law has not been drafted yet. A 
new Law on public-private partnerships and concessions is still pending adoption. 

The functional independence of the Procurement Review Body (PRB) underlined by the EU acquis needs 
to be reflected in the new Law on public procurement. The review body should be operational, increase 
its capacity and manage the review process in a timely, effective and transparent manner.  

Cooperation  between  the  Public  Procurement  Regulatory  Commission  (PPRC),  the  PRB,  the  Kosovo 
National Audit Office, the Agency for Prevention of Corruption and the Kosovo Competition Authority 
has  been  strengthened  and  formalised  to  reduce  risks  in  this  area.  However,  the  PPRC  continues  to 
operate with insufficient technical and human capacities. In 2023, the Commission started its preventive 
ex ante  monitoring  activities  on  procurement  procedures,  identifying  cases  of  legal  violations  and 
discriminatory criteria. As of January 2024, this risk-based monitoring has been automatised and rolled 
out via the e-procurement platform with no discretion of the contracting authority.  

Implementation and enforcement capacity 

Kosovo’s public procurement market was estimated at 8.23% of GDP in 2023, compared with 6.5% in 
2022. In 2023, 10 183 public contracts were signed, compared with 10 290 in 2022. In terms of value, the 
contracts signed in 2023 were worth EUR 810 million, up from EUR 559 million in 2022. 

In  2023,  the  total  value  of  contracts  signed  using  the  best  price-quality  ratio  amounted  to 
EUR 114 million,  or  14.19%  (up  from  5.66%  in  2022  and  1%  in  2021).  The  use  of  this  criterion  is 
encouraged  and  supported  through  training  by  the  PPRC.  The  lowest  price  criterion  remains  dominant 
representing 85.81% of public contracts awarded, as compared with 94.34% in 2022. A good average of 
3.5 economic operators per tender submitted bids in 2023. 

Kosovo should improve its planning and reduce the use of negotiated procurement procedures. To reduce 
the  risks  of  misuse  and  fraud,  it  is  important  to  ensure  full  transparency,  provide  robust  reasoning 
explaining  the  award  decision,  and  maintain  audit  trails.  In  2023,  the  negotiated  procedures  without 
publishing a contract notice stood at 13.5%, with a majority of contracts concluded by the Kosovo Energy 
Cooperation.  Interconnection  between  the  e-procurement  system  and  other  relevant  government  IT 
systems, such as the Kosovo Financial Management and Information System is not operational. 

The capacity of the contracting authorities to manage public procurement processes varies. In 2023, 
training was organised for 136 officials from 62 contracting authorities on market research and the use of 
the best price-quality ratio and needs to continue on contract planning and implementation.  

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. However, Kosovo needs 
to ensure that the PRB remains functionally independent to manage the complaints in a timely, effective 
and transparent manner. The use of short-term external expertise is only recommended to review specific 
cases and should be replaced with long-term qualified legal review experts, that ensure timely and quality 
decisions on complaints. The PRB board is still incomplete. 

Chapter 18 – Statistics  

European  statistics  are  developed,  produced  and  disseminated  by  EU  Member  States,  guided  by  the 
principles and quality criteria elaborated in the Regulation on European statistics, such as  professional 
independence, impartiality, reliability, transparency, and confidentiality. Common rules are in place for 

50 

 
 
the methodology, production and dissemination of statistical information, which are further specified in 
sectoral legislation that constitute the EU acquis on statistics.  

On  statistical  infrastructure,  the  implementation  of  the  legal  framework  still  needs  to  intensify.  The 
Kosovo Agency of Statistics (KAS) should strengthen its role as the main official statistics body, improve 
statistical  governance  and  coordination  between  the  institutions  of  the  national  statistical  system,  and 
ensure  better  access  to  administrative  data  sources.  KAS  office  infrastructure  and  capacities  are  in 
constant  need  of  upgrade,  and  its  internal  systems,  processes  and  delegated  management  remain  a 
challenge.  Data  transmission  to  Eurostat  continues  to  improve.  KAS  launched  its  new  website  in  July 
2023, which should be further improved with more content.  

On  classifications  and  registers,  Kosovo  continues  to  use  the  European  classification  of  economic 
activities (NACE Rev. 2). The agriculture, business and household registers are updated regularly, but the 
population register remains outdated. 

On macroeconomic statistics, the reporting period saw some improvements with publishing, for the first 
time, GDP by the income approach for 2021-2022 and regional GDP by statistical regions in Kosovo for 
2018-2021 in December 2023. Methodological inconsistencies remain. Quarterly sector accounts are not 
regularly compiled. The number of European System of Accounts 2010 (ESA 2010) transmission tables 
sent to Eurostat has continued to increase and data has improved. As regards government finance statistics 
and the excessive deficit procedure, further work is needed to fully comply with ESA 2010, including by 
improving  the  coverage  and  timeliness  of  the  excessive  deficit  procedure  tables  and  completing  the 
questionnaire.  Qualitative  aspects  of  the  government  finance  statistics  tables  provided  to  Eurostat  still 
need to improve. Monthly statistics for international trade in goods are submitted to Eurostat.  

Structural  business  statistics  are  limited in  availability  and lack distinction between  public  and private 
investments or by sectors. Tourism and transport statistics are not aligned with the acquis. ICT statistics 
for  households  are  published  regularly.  The  2022  ICT  statistics  for  enterprises  were  published  in 
November  2023.  HICP  is  compliant  with  transmission  deadlines.  Some  national  short-term  business 
statistics exist, but are not compliant with European Business Statistics requirements. 

On social statistics, the population and housing census was conducted between 5 April and 24 May 2024. 
KAS  received  some  criticism  for  delays  in  the  preparation  and  concerns  about  an  insufficient  public 
awareness  and  communication  campaign,  particularly  in  relation  to  non-majority  communities. 
Communities  in  the  four  municipalities  in  the  north  boycotted  the  census  again,  while  minority 
populations  in  other  parts  of  Kosovo  took  part.  The  census  drew  heavily  on  KAS’  human  resources, 
leading to delays in other areas of work. The latest statistics on income and living conditions for the year 
2022  were  published  in  December  2023.  Social  welfare  statistics  are  produced  on  a  monthly  basis 
whereas labour market statistics are only partially produced. Kosovo still does not publish statistics on the 
labour cost index, the structure of earnings data or job vacancies. Education statistics are aligned with the 
international standard education classification. Public health and crime statistics are not yet in line with 
EU standards. KAS should improve the collection and compilation of data disaggregated by sex. Kosovo 
does not have a Gender Equality Index. 

Regarding agricultural statistics, the preparation of the agricultural holding survey was done in line with 
the  EU  acquis,  despite  delays.  There  were  no  changes  regarding  the  production  of  agricultural  price 
indices and economic accounts for agriculture, the production of supply balance sheets and the agriculture 
labour index, and the transmission of agriculture statistics to Eurostat. 

Energy  and  environment  statistics  remain  partially  in  line  with  the  acquis.  Energy  consumption 
statistics are collected and published regularly. The lack of energy efficiency indicators is an obstacle to 
reporting on energy savings. Kosovo regularly submits data concerning municipal waste. There has been 
progress on air emission accounts and environmental taxes, though not yet meeting the requirements for 
compliance. 

51 

 
 
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. 

Public internal financial control  

Kosovo continues to have a public internal financial control (PIFC) policy framework integrated in the 
PFM  strategy  for  2022-2026.  However,  the  implementation  rate  of  PIFC  activities  has  remained  slow. 
The  work  on  the  development  of  a  new  Law  on  public  finance  management  is  ongoing  and  the  PIFC 
legislation should be harmonised to the new Law on PFM once adopted and to the government rules of 
procedures  and  other  relevant  legislation  on  public  administration.  The  central  harmonisation  unit 
develops  a  PIFC  report  annually  but  its  timely  publication  and  adoption  remains  a  challenge.  Efficient 
implementation of  managerial accountability remains a challenge for budget users at both central and 
local level. The lines of delegation and accountability need to be better embedded in the administrative 
practices and culture of the public administration.  

The legal framework on internal control continues to be insufficiently implemented and capacities of the 
central harmonisation unit remain weak. An administrative Instruction for the National Training Program 
for the Certification of the Internal Auditors in the Public Sector is adopted. Ensuring adequate number of 
staff  in  internal  audit  units  remains  a  challenge,  either  due  to  non-  regular  filling  of  vacancies  or 
retirement of officials. Despite adoption of a monitoring methodology for ensuring the quality of internal 
audit  in  public  sector  entities,  the  quality  assurance  scheme  remains  ineffective  due  to  weak  staff 
capacities and expertise in internal audit units. The implementation of internal audit recommendations by 
budgetary  organisations  needs  to  be  improved.  Reporting  of  irregularities  continues  to  not  be  properly 
used  as  a  management  tool  and  as  the  rules  for  reporting  cases  of  potential  fraud  require.  Despite 
implementation  of  commitment  control,  its  functioning  remains  ineffective,  as  many  public  institutions 
continue to have payment arrears (see Section 2.1.2). 

External audit  

In 2023, the NAO developed a new Law on the Auditor General, in line with the INTOSAI principles to 
enable  NAO  to  operate  more  effectively  and  independently.  However,  its  adoption  remains  pending. 
NAO  functioning  should  be  ensured  in  practice  and  strengthened  for  all  budget  users.  Additionally, 
administrative  capacities  of  NAO  remain  weak.  Quality  management  practices  remain  ineffectively 
implemented. NAO still needs to increase the number of and improve practices on performance audit, as 
well  as  improve  the monitoring  and follow-up systems.  The  implementation  of  NAO  recommendations 
remains to be improved. Additionally, NAO adopted the 2023-2026 Communication Strategy to improve 
its outreach, but citizens’ awareness on its audit work remains low. 

Protection of the EU’s financial interests  

The establishment of an anti-fraud coordination service (AFCOS) unit and an AFCOS network remains 
pending.  As  per  a  decision  of  the  Office  of  the  Prime  Minister,  AFCOS  is  planned  to  become  a 
coordination body with no investigative powers under the Treasury at the Ministry of Finance. There is no 
further progress undertaken in the implementation of the relevant legislation. 

Protection of the euro against counterfeiting  

There  is  partial  alignment  with  the  EU  acquis  concerning  the  system  for  the  fight  against  the 
counterfeiting of the euro through the Law on the Central Bank of Kosovo (CBK) and the Criminal Code. 
The CBK adopted a Regulation on cash operations with the stated aim to consolidate the payment system 
in order for the CBK to become a member of the Single Euro Payments Area and to have access to Target 
Instant  Payment  Settlement  (see  ‘Normalisation  of  relations  between  Kosovo  and  Serbia’).  The  CBK 

52 

 
 
made  some  progress  with  stopping  the  circulation  of  counterfeit  and  tackling  the  increased  number  of 
euro  coins  confirmed  as  counterfeit.  Further  efforts  are  needed  in  strengthening  the  coordination  and 
timely  exchange  of  data  among  key  institutions,  and  in  strengthening  the  capacities  of  the  Agency  for 
Forensics under the Ministry of Internal Affairs and Public Administration. 

3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION 

Good  neighbourly  relations  and  regional  cooperation  form  an  essential  part  of  Kosovo’s  European 
integration  process.  They  help  bring  about  stability,  reconciliation  and  a  climate  conducive  to 
constructively addressing open bilateral issues and 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, and the Regional Cooperation Council.  

The fourth annual EU-Western Balkans Summit took place in Brussels in December 2023, reaffirming the 
EU membership perspective of the Western Balkans and exploring measures to further advance gradual 
integration. 

Kosovo  has  actively  engaged  in  the  regional  dimension  of  the  Growth  Plan  for  the  Western  Balkans, 
actively participating in both ministerial and leaders’ meetings.  

On the Common Regional Market, in October 2023, the Berlin Process Summit took place for the first 
time  in  the  region,  in  Tirana.  An  additional  agreement  was  adopted  on  the  recognition  of  professional 
qualifications  for  nurses,  veterinary  surgeons,  pharmacists  and  midwives.  The  roadmap  for  roaming 
between the Western Balkans and the EU entered the first phase of implementation. Kosovo has ratified 
all  four  mobility  agreements  and  has  deposited  the  related  notification  instruments.  Twelve  major 
decisions  were  agreed  at  the  CEFTA  Joint  Committee    in  October  2024.  The  ban  on  goods  of  Serbian 
origin, introduced in June 2023, was lifted in October 2024 and is replaced by a system of manual checks. 

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. Kosovo authorities resolved ten cases between June 2023 and 
June 2024. As of September 2024, there were still 1 612 missing persons as a result of the conflict.  

During the reporting period, the combined work of the European Union Rule of Law Mission in Kosovo 
(EULEX) and local forensic experts resulted in 64 field operations, 11 exhumations, and collection of 32 
sets  of  human  remains.  In  August  2023,  forensic  experts  from  Serbia  participated  in  a  joint  forensic 
inspection of four cases at the Institute of Forensic Medicine in Pristina, which is a positive development.  

Since April 2021, there has been no session of the Belgrade-Pristina Working Group on Missing Persons, 
which is led by the International Committee of the Red Cross, as the Kosovo Delegation is refusing to 
hold meetings until Serbia changes its Head of Delegation. On 31 January 2024, an ad hoc meeting of the 
Working  Group  at  the  level  of  Deputy  Heads  of  Delegation  was  held  in  Geneva.  Despite  this  positive 
the  Working  Group  was  again  hampered  by 
development,  Kosovo-Serbia  cooperation  under 
unconstructive behaviour of both Parties. 

Implementation of the Declaration on Missing Persons endorsed at the high-level EU-facilitated Dialogue 
meeting  of  2 May 2023  has  not  started  as  the  Parties  are  still  negotiating  –  under  the  EU-facilitated 
Dialogue  –  the  terms  of  reference  for  the  Joint  Commission,  which  is  envisaged  to  support  efforts  to 
resolve the fate of remaining Missing Persons. 

Kosovo has close relations with  Albania. Political consultations between the two Ministries of Foreign 
Affairs took place in April 2024, under the lead of the Deputy Foreign Ministers of both sides. During the 
reporting  period,  no  intergovernmental  meetings  were  held.  The  agreement  on  the  abolition  of  ID  and 
passport checks on the common border came into force in May 2024. 

53 

 
 
 
Kosovo  has  good  neighbourly  relations  with  Montenegro.  The  two  Ministries  of  Foreign  Affairs  held 
political  consultations  in March  2024.  Also in  March  2024,  Kosovo and  Montenegro  signed  a  bilateral 
agreement for the Instrument for Pre-accession Assistance (IPA) III cross-border cooperation programme 
for 2021-2027.  

Kosovo maintains overall good relations with North Macedonia. Several high-level meetings took place 
during the reporting period. Ahead of the presidential and parliamentary elections in North Macedonia in 
May 2024, Prime Minister Kurti engaged with representatives of opposition parties.  

There  are  no  official  relations  with  Bosnia  and  Herzegovina,  which  does  not  recognise  Kosovo’s 
independence and the two maintain a strict visa regime. Bilateral meetings took place occasionally in the 
margins  of  regional  and  multilateral  summits.  Kosovo  advocated  that  Bosnia  and  Herzegovina  should 
ratify the regional mobility agreement to allow free travel with ID cards. 

Kosovo  continues  to  maintain  cordial  relations  with  Türkiye,  including  in  the  political,  defence, 
economic  and  cultural  sectors.  Kosovo’s  President  visited  Türkiye  to  attend  the  Antalya  Diplomatic 
Forum  on  2 March 2024  and  met  with  President  Recep  Tayyip  Erdoğan.  Türkiye  and  Kosovo  signed  a 
military cooperation agreement in January 2024. 

Georgia, Republic of Moldova and Ukraine do not recognise Kosovo’s independence. 

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 Dialogue meetings. The latest High-level Meeting between the leaders 
took place on 26 June 2024. 

Following  the  Chief  Negotiators’  meeting  on  17  September  2024,  both  Parties  officially  pledged  to 
engage constructively and to quickly take forward the normalisation process. In this context both Kosovo 
and Serbia committed to fully implement all of their respective obligations stemming from the Agreement 
on the Path to Normalisation and its Implementation Annex, as well as all past Dialogue agreements.  

This  follows  earlier  progress  in  the  normalisation  of  relations  between  Kosovo  and  Serbia,  with  the 
milestone  Agreement  on the  Path  to  Normalisation  reached  in  Brussels  on 27  February  2023  and its 
Implementation Annex agreed in Ohrid on 18 March 2023, preparatory steps towards establishing the 
Association/Community of Serb-majority Municipalities in Kosovo; advancements on the implementation 
of the Energy Roadmap; mutual recognition of licence plates and commitments to addressing the missing 
persons  issue.  In  line  with  the  Implementation  Annex,  the  Agreement  has  formally  become  part  of  the 
respective EU accession processes of Kosovo and Serbia. 

Both  Kosovo  and  Serbia  are  expected  to  implement  their  respective  obligations  stemming  from  the 
Agreement on the Path to Normalisation. 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. 
Serbia is expected to start delivering on its obligations from the Agreement in parallel by initiating the 
recognition of Kosovo’s documents, symbols and institutions. The Agreement is valid and legally binding 
for the parties and any formalities, including related to its adoption or “formalisation”, should not stand in 
the way of making progress in its implementation. The Parties also have an obligation to fully implement 
all past Dialogue Agreements. The constructiveness of the Parties will be assessed based solely on their 
own  implementation  performance.  Normalisation  of  relations  remains  an  essential  condition  on  the 
European path of both Parties and both risk losing important opportunities in the absence of progress. 

During the reporting period, tensions in the north of Kosovo remained high. Kosovo repeatedly conducted 
activities  contrary  to  its  obligations  under  the  Dialogue,  including  police  operations  against  Serbia-

54 

 
 
 
supported offices and services in the north, the adoption of a regulation by the Central Bank of Kosovo on 
cash operations banning transactions in any currency other than Euro as of 1 February 2024, as well as the 
closure of the offices of the Serbian Postal Bank and the Serbian Post in the north of Kosovo. The EU 
repeatedly  expressed  concerns  about  the  recurrent  lack  of  coordination  by  Kosovo  and  the  negative 
impact on people on the ground, while reiterating that the actions might lead to further escalation of an 
already  volatile  situation  –  most  recently  in  its  statement  of  30  August  2024.  The  decision  on  cash 
operations  effectively  prohibits  transfers  of  funds  from  the  Serbian  government  to  Kosovo  Serbs  and 
other  communities,  as  well  as  Serbia-supported  offices  in  Kosovo.  Regrettably,  a  mutually  agreeable 
temporary solution for the people most affected by this regulation could not be found. The normalisation 
process continues to be impacted by insufficient steps by Serbia to ensure accountability for the violent 
attack by armed Kosovo Serb assailants against Kosovo Police on 24 September 2023 in Banjska, which 
constituted the gravest escalation in recent years. 

When it comes to the state of play on implementation of all 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  with  the  April  2013  “First  agreement  of 
principles governing the normalisation of relations” and direct violation of  the Justice Agreement of 
2015. The 23 April 2024 vote to recall the four Kosovo Albanian mayors of the Kosovo Serb-majority 
municipalities in the north, which were elected in 2023, could have opened an avenue for the return of 
Kosovo  Serbs  to  Kosovo  institutions.  However,  the  recall  vote  was  boycotted  by  the  Kosovo  Serb 
electorate – inter alia due to the threshold of 50% of all registered voters - the current mayors remain 
in  office  for  the  time  being.  The  return  of  Kosovo  Serb  officials  to  Kosovo  Institutions  and  the 
holding of local elections in the north of Kosovo, called for by Serbia on 13 September 2024, has to 
be done in accordance with past Dialogue agreements and Kosovo law.   

-  There has still been no further progress on the implementation of the August 2015 Agreement, which 
laid down the principles for establishing the A/CSM. While the EU welcomed the presentation of a 
first draft statute of the A/CSM to the High-level Dialogue in May 2023 by the Management Team, 
the draft was not in line with the relevant Dialogue Agreements. Therefore, a European proposal for 
the  establishment  of  the A/CSM  in  Kosovo  was  presented  to  the  Parties  on  21  October  2023. This 
proposal  is  based  on  European  standards  and  best  practices  and  fully  in  line  with  the  Kosovo 
constitutional  framework.  Kosovo  and  Serbia  are  now  urged  to  engage  constructively  on  the 
establishment of the A/CSM with no further delay. This obligation forms a part of the implementation 
of  the  Agreement  on  the  Path  to  Normalisation  of  Relations,  which  the  Parties  are  expected  to 
advance  on,  as  recalled  by  the  European  Council  in  October  2023.  The  issue  of  Serbia-supported 
structures  in  Kosovo  needs  to  be  addressed  in  this  same  context  and  not  through  unilateral  and 
uncoordinated measures.  

-  Kosovo and Serbia are expected to engage constructively on the opening of the Mitrovica bridge for 
vehicle traffic. During August 2024, Kosovo has insisted on the immediate full opening of the bridge. 
The  position  of  the  EU  remains  that  any  decision  or  action  on  its  opening  has  to  be  agreed  and 
coordinated in the context of the Dialogue and with security partners.  

- 

In  December  2023,  the  companies  KEDS  and  Elektrosever  signed  the  commercial  agreement 
necessary for Elektrosever to begin supplying electricity in the four northern Kosovo Serb-majority 
municipalities. The conclusion of this agreement unblocked the implementation of the  2022 Energy 
Roadmap detailing the implementation of the 2013 and 2015 Energy agreements. Billing and energy 
supply officially started in January 2024. The Parties are encouraged to agree on a transition period to 
enable  a  broader  coverage  of  energy  billing  and  payments,  as  well  as  necessary  infrastructure 
upgrades.  

55 

 
 
-  As  regards  the  technical  Dialogue  agreements  (2011-2012),  many  are  not  or  only  partially 
implemented.  Until  sustainable  solutions  are  found,  both  Parties  need  to  remain  committed  to  the 
continued  implementation  of  the  Arrangements  on  Regional  Representation  and  Cooperation, 
which  enables  Kosovo’s  participation  in  regional  forums.  Neither  Party  should  block  the  work  of 
regional  forums  over  bilateral  disputes.  The  implementation  of  the  Agreements  on  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. 

-  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  should  allow  the  resumption  of  the  EU-facilitated  joint  IBM  meetings  at  all  levels 
(local, regional and central). 

-  On  freedom  of  movement,  the  EU  welcomes  the  phasing  out  of  plates  with  Kosovo  cities’ 
denomination  issued  by  Serbia  and  the  mutual  recognition  of  licence  plates,  which  took  place  in 
December 2023 and January 2024. The full implementation of the Freedom of Movement agreements 
still requires additional steps. 

-  Both  Parties  need  to  fully  respect  the  Telecoms  Agreement  and  not  put  its  hitherto  successful 
implementation  at  risk  in any  way. The  Parties  are also  expected to  engage  constructively and find 
sustainable solutions to the remaining issues such as  frequency harmonisation and postal services 
through the Dialogue.    

-  The  processing  of  mutual  legal  assistance  requests  has  been  initially  stopped  by  Serbia.  Most 
recently, Kosovo has rejected a request for assistance in the Banjska case. Both Parties should act in 
accordance  with  the  relevant  Dialogue  Agreement.  Serbia  needs  to  resume  the  processing 
immediately and address also pending requests. 

-  Both Parties need to respect the  Arrangements for Official Visits more consistently. Both Kosovo 
and Serbia need to allow the visits of their respective Chief Negotiator and other government officials 
when they are announced and conducted in line with the Arrangements, which has not always been 
the case during the reporting period.  

-  No  progress  has been made  in  the implementation of  the  political  Declaration  on  Missing  Persons 
adopted  in  May  2023.  The  Parties  are  encouraged  to  refrain  from  politisation  of  this  humanitarian 
issue and start implementing the declaration immediately by, as the first step, agreeing to the Terms of 
Reference for the Joint Commission that is to be established as per the Declaration.  

Overall, Kosovo and Serbia have participated in the Dialogue, but they need to demonstrate more serious 
and constructive commitment to advance the normalisation process. Moving forward, Kosovo and Serbia 
also need to make further substantial efforts to avoid actions that undermine stability and rhetoric that is 
not conducive to dialogue and reconciliation. 

56 

 
 
 
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). 

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 rules from creating unjustified barriers to trade. 

General principles 

Regarding  the  production,  distribution  and  marketing  of  industrial  products,  the  relevant 
implementing legislation for the Law on general product safety (which is designed to be aligned to the 
relevant  EU  acquis)  is  gradually  being  adopted.  The  Law  on  the  Central  Inspectorate  of  Market 
Surveillance is pending adoption. 

Non-harmonised areas 

The  screening  of  Kosovo’s  legislation  to  eliminate  trade  barriers  and  to  ensure  alignment  with  the 
obligations  under  Articles  34-36  of  the  Treaty  on  the  Functioning  of  the  European  Union  (TFEU)  is 
progressing  slowly  due  to  limited  capacity  and  human  resources.  The  contact  point  for  notification 
monitors the obligation to notify.  

Harmonised area: quality infrastructure  

The  Standardisation  Agency  is  not  a  member  of  the  European  and  International  organisations 
(Committee  for  Standardisation  (CEN)/European  Committee  for  Electro-technical  Standardisation 
(CENELEC)) due to the status of Kosovo. Its online e-standard system is partly compatible with that of 
CEN/CENELEC  and  other  international  standardisation  bodies  and  alternative  solutions  are  needed  to 
adopt standards more quickly. The agency set up an info centre on standards.  

The Accreditation Directorate of Kosovo (DAK) needs to ensure its independence and clear managerial 
roles and functions. There are 58 conformity assessment bodies in Kosovo.  

The  Kosovo  Metrology  Agency  is  still  not  an  associated  member  of  the  European  Association  of 
National  Metrology  Institutes  (EURAMET).  During  the  reporting  period,  the  market  surveillance 
Inspectorate ensured 3 079 product safety inspections, imposed 280 fines, sent 108 cases to court, and set 
up  a  notification  mechanism  to  alert  cases  of  unsafe  products  identified  via  market  surveillance.  The 
standardisation, accreditation, metrology, and market surveillance bodies do not have sufficient capacity 
or staff. Inspections in the field of metrology are now conducted by the Central Inspectorate for Market 
Surveillance.  

Harmonised area: sectoral legislation 

There was no progress on alignment with the EU ‘new and global approach’ product acquis.  

There was also no progress on alignment with the ‘old approach’ product acquis, including on REACH 
and  on  chemical  labelling  (CLP),  or  procedural  measures  during  the  reporting  period.  Inspectorates 
responsible  for  market  surveillance  and  product  safety  checks  are  prone  to  corruption.  Their  powers 
should be clearly identified and not overlap. Staffing should be sufficient in terms of number and quality.  

57 

 
 
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. 

Regarding the  access  to  the  labour market,  work  permits  are still required for EU  nationals  and  their 
family members to be eligible to work in Kosovo. Kosovo’s Employment Agency issued 202 short-term 
work permits in 2023, of which 114 were for EU nationals. 

On  coordination  of  social-security  systems,  Kosovo  has  already  in  place  bilateral  social-security 
agreements  with  Belgium, the  Netherlands,  Switzerland  and  Albania.  These agreements  ensure  that the 
periods of work in Kosovo by nationals of these countries (or periods of work in these countries by the 
people of Kosovo) will be taken into account for entitlement to social-security benefits. Negotiations on 
similar agreements are ongoing with Slovenia, Croatia and Austria. 

No progress was made in putting in place legislation to preserve the  supplementary pension rights of 
mobile workers who have worked abroad, including in 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. 

On the right of establishment and freedom to provide services, Kosovo remains partially aligned with 
the  EU  acquis  on  services.  A  new  three-year  action  plan  (2024-2027)  to  make  sectoral  legislation 
compliant with the EU acquis on services has been adopted, after that the previous one expired without 
satisfactory implementation. To ensure that its rules are aligned with the EU’s Services Directive, Kosovo 
should further increase interinstitutional coordination. The requirement for foreign companies to set up an 
office in Kosovo has not been abolished yet and impedes their freedom to provide services.  

No notable progress was made in expanding the number of professions registered in the point of single 
contact  or  in  transforming  it  into  a  user-friendly  online  service  delivery  point.  Although  accessible  to 
businesses  and  the  public,  the  platform  only  provides  general  information  and  is  not  useful.  There  is  a 
lack of administrative capacity mainly of the Ministry for Industry, Entrepreneurship and Trade. 

In the area of postal services, Kosovo’s postal market has been opened to competition and the legislation 
is compliant with the Postal Services Directive. Kosovo needs to align its legislation with the Regulation 
on  cross-border  parcel  delivery  services.  There  is  one  universal  service  provider  and  28  other  postal 
operators  active  in  the  postal  market.  The  national  regulatory  authority  is  legally  separate  and 
operationally  independent  but  needs  strengthening  to  monitor  and  enforce  the  new  rules  in  the  postal 
market.  

The Law on regulated professions is not aligned with the EU acquis and does not include rules on the 
recognition of professional qualifications. Kosovo should adopt a new horizontal law for the recognition 
of  professional  qualifications  for  access  to  all  regulated  professions,  align  with  the  minimum  training 
requirements for sectoral professions, amend the existing sectoral laws that regulate professions and draw 
up  a  detailed list of regulated  professions. Moreover,  Kosovo should  align  with  the  proportionality  test 
before  adopting  a  new  regulation  of  professions.  The  Division  for  Regulated  Professions  within  the 
Ministry of Education is understaffed and needs to be strengthened. 

58 

 
 
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. 

The execution of payments continues to be predominantly carried out in cash despite efforts to promote 
financial  inclusion  by  expanding  access  to  payment  services.  Money  transfers  are  largely  limited  to 
traditional financial institutions. More work is needed to reduce transaction costs and facilitate unbanked 
and  underserved  customers.  Kosovo  adopted  a  regulation  that  extends  IBAN  standards  to  non-bank 
financial  institutions.  Kosovo  needs  to  further  align  its  legislation  with  the  EU  Payment  Services 
Directive 2 and address shortcomings in the e-commerce regulatory framework. This is crucial to create 
more efficient electronic payment services. 

Anti-money laundering / combating terrorist financing (AML/CTF) needs to be further aligned with 
the fourth and fifth Anti-Money Laundering Directives. The regime of targeted financial sanctions should 
be further strengthened with necessary enforceable implementing legislation and capacity building efforts, 
including  the  establishment  of  a  formal  coordination  mechanism  for  the  sanctions  framework  and 
sanctions on proliferation of weapons of mass destruction. The Law on the State Bureau for Verification 
and Confiscation of Unjustified Assets was declared unconstitutional by the Constitutional Court in June 
2024. The government adopted the draft law in September 2024 after amending it as per Constitutional 
Court recommendations. The draft law is now pending adoption by the Assembly. 

Exchange of information and supervisory capacities were improved in the fight against money laundering 
and  terrorist  financing,  through  the  signing  of  a  Memorandum  of  Understanding  between  Kosovo’s 
central  bank  and  Financial  Intelligence  Unit.  By  adopting  a  Manual  on  risk-based  supervision  for  the 
prevention of money laundering and combating the financing of terrorism, the central bank shifted from 
the rule-based to the risk-based supervision framework as required by international and FATF standards. 
The  establishment  of  mechanisms  for  effective  public-private  partnerships  aimed  at  jointly  tackling 
money laundering and terrorist financing risks is necessary.  

In 2023, the number of suspicious transaction reports in Kosovo amounted to 888, declining by 6.2% as 
compared with 2022. At the same time, Kosovo still needs to strengthen interinstitutional cooperation.  

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. 

On  company law  and corporate  governance,  the  preparation  of  a  new  law  on  business  organisations 
has been ongoing for several years. The law should regulate specific fields  required by the EU company 
law  acquis,  that  are  still  missing  in  Kosovo’s  legislation,  such  as  the  minimum  capital  requirement, 
shareholders’  rights  (including  the  encouragement  of  long-term  shareholder  engagement),  company 
takeovers and the disclosure of information about companies and their branches. It should also be aligned 
with  the  EU  Directive  on  the  use  of  digital  tools  and  the  EU  Directive  on  cross-border  operations 
(mergers, divisions, conversions).  

Based  on  external  expert  assessments,  the  Kosovo  Business  Registration  Agency  needs  to  improve  its 
technical infrastructure (database) and implement concrete plans to enable connection with the Business 
Register  Interconnection  System  (BRIS)  by  the  time  of  accession.  Insufficient  coordination  and  data 
sharing persists between the Kosovo Business Registration Agency and the Kosovo Council for Financial 
Reporting,  affecting  timely  reporting  and  the  publication  of  accounting  documents.  Reporting 
requirements do not include the publication of companies in certain legal situations (e.g. under insolvency 
proceedings)  and  there  is  still  no  legal  obligation  to  publish  financial  statements  and  audit  reports  of 
public and private limited liability companies in the business register. 

59 

 
 
On  company  reporting,  the  Law  on  accounting,  financial  reporting  and  audit  is  only  partially  in  line 
with the EU  acquis  as well as recent rules on  country-by-country reporting and corporate sustainability 
reporting.  Statutory  audits  follow  international  standards.  On  reporting,  large  companies  risk  legal 
sanctions  if  they  do  not  comply  and  submit  audited  financial  statements  to  the  Kosovo  Council  for 
Financial Reporting for approval and publication. However, given the lack of quorum in the Council this 
decision  is  not  applied  in  practice.  Kosovo  has  still  not  secured  sufficient  sustainable  funding  for  the 
recently  appointed  Public  Audit  Oversight  Board,  preventing  it  from  exercising  its  functions  of 
supervision and enforcement. 

Chapter 7 – Intellectual property law  

The EU has to a large extent harmonised rules for the legal protection and enforcement of intellectual 
property rights (IPR), covering notably patents, trademark and designs, biotechnological inventions and 
pharmaceuticals, trade secrets, (craft and industrial) geographical indications, supplementary protection 
certificates, copyright and related rights. 

Kosovo has made good progress in terms of legislative alignment. This should start guaranteeing some 
level of protection of intellectual, industrial and commercial property rights equivalent to that applied in 
the EU and in line with the Stabilisation and Association Agreement (SAA). 

In  the  area  of  copyright  and  related  rights,  the  new  Law  on  copyright  and related rights  entered into 
force. It aims at aligning Kosovo’s legislation with the EU Directives on the collective management of 
copyright and related rights and multi-territorial licensing of rights in musical works for online use in the 
internal market and on copyright and related rights in the Digital Single Market.  

On industrial property rights, Kosovo’s Industrial Property Agency needs restructuring and additional 
staff. Kosovo has legislation in place on topographies of semiconductors, patents, designs, trade secrets 
and  trademarks.  In  August  2023,  the  procedure  for  the  registration  of  trademarks  was  adopted.  The 
agency created an online registry on its website for trademarks, patents and industrial design. Kosovo has 
failed to adopt a strategy on industrial property for 2022-2026, now planned for 2024-2027. 

Some operations on enforcement of IPR in Kosovo were carried out in 2023. However, the responsible 
institutions, the State Intellectual Property Council and the Task Force against Piracy need more capacity 
and  better  coordination  tools  (e-platform)  to  effectively  enforce  intellectual,  industrial  and  commercial 
property rights and fight counterfeit goods and piracy. Lengthy procedures and decisions taken without 
any consequences are a major constraint to effectively applying the legislation on IPR. In 2023, the IPR 
Unit of Kosovo customs initiated 849 investigation cases, seizing 4 618 802 pieces of fake goods for a 
total value of MEUR 21 which represents a substantial increase from last year.  

The  Commercial  Court  specialised  in  commercial  matters  and  the  Court  mandated  to  solve  cases  and 
disputes  in  the  field  of  industrial  property  rights  and  copyright,  have  already  proven  to  be  efficient  in 
processing cases. 

Collaboration with the European Union Intellectual Property Office is not yet developed limiting potential 
progress and support from the agency. 

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. 

Antitrust and mergers 

60 

 
 
The  legislative  framework  on  antitrust  and  mergers  is  partly  in  line  with  the  EU  acquis  and  Kosovo 
made  progress  during  the  reporting  period  by  adopting  implementing  legislation  in  line  with  the  EU 
acquis.  

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.  

On the capacity to enforce competition, in 2023, the KCC became functional again with two pending 
appointments  made  in  October.  For  the  KCA,  a  new  General  Director,  Legal  Officer  and  five  new 
competition inspectors were recruited in 2024. Interinstitutional cooperation has been formalised between 
the  KCA  and  the  Independent  Media  Commission  and  between  the  KCA  and  the  Procurement  Review 
Body.  

On  implementation,  by  April  2024,  the  KCA  had  issued  27  decisions  on  prohibited  agreements, 
dominant positions and mergers in sectors such as media, transport, dairy products, medical services and 
telecommunications. Two professional opinions were issued, one of them on a high-profile case, currently 
under court appeal. 

There  was  little  progress  in  enforcing  competition  rules  by  imposing  fines  or  remedies  following 
decisions taken by the KCA. Despite a slight increase, case numbers remain low and the authority has not 
carried out any dawn raids and has not used the leniency programme to date. 

The  training  of  Kosovo  judges  and  prosecutors  on  the  essential  aspects  of  competition  law  continued 
during  the  reporting  period.  Raising  awareness  among  judges  on  the  enforcement  of  competition  law 
remains key. 

State aid  

The  legislative  framework  on  State  aid  is  broadly  aligned  with  the  EU  acquis,  without  progress 
regarding further amendment of the legislative framework during the reporting period. The draft law on 
State aid and other important implementing legislation on horizontal aid, including block exemptions and 
regional aid, still need to be adopted.  

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 and updating the State aid inventory. During the reporting period no progress was made to 
address the expired mandate of the State Aid Commission and no new commission has been set up by the 
government, putting all control on State aid on hold. 

On implementation, the State Aid Department started assessing two notified State aid measures in 2023, 
but  no  decisions  could  be  adopted  in  the  reporting  period  without  a  functional State  Aid  Commission. 
The  Annual  Reports  on  State  aid  have  not  been  submitted  to  the  Assembly  for  the  second  consecutive 
year. 

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 POEs. 

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. 

61 

 
 
On banks and financial conglomerates, work needs to be continued to align with the latest versions of 
the  Capital  Requirements  Regulation  and  the  Capital  Requirements  Directive.  Enforcement  of  the 
Regulation  on  liquidity  risk  management  enabled  Kosovo  to  advance  in  meeting  capital  and  risk 
management  requirements.  The  financial  sector  remains  resilient  with  high  capitalisation  levels  of  the 
predominantly  foreign-owned  banking  sector.  Although  credit  risk  remains  contained,  focus  should  be 
placed  on  evaluating  risks  from  the  rapid  credit  expansion  in  the  household  segment,  in  particular 
mortgage lending. 

Progress  was  achieved  in  relation  to  CBK’s  governance  issues  by  filling  all  governing  positions, 
adopting a five-year strategic plan, restructuring organisational set-up with a new department for banking 
recovery  and  resolution  which  reports  directly  to  the  Executive  Board  of  the  Bank.  The  draft  Law  on 
Banks introduces a recovery and resolution framework for credit institutions and investment firms, aiming 
to align with the EU acquis in this area. It also foresees the establishment of the department’s functions, 
including  the  functional  independence  of  the  recovery  and  resolution  authority.  The  Law  on  deposit 
guarantee is yet to be amended to align it further with the Deposit Guarantee Scheme Directive.  

Regarding Insurance and Occupational Pensions, Kosovo adopted a regulation governing the effective 
management  of  liquidity  risk  for  insurers  aimed  at  maintaining  sufficient  liquidity  buffers  to  meet 
insurers’ liabilities. The process of price liberalisation for the compulsory insurance on Motor Third Party 
Liabilities is yet to start, and the prices remain fixed, leaving the opinion presented by the KCA on the 
matter unaddressed. Similarly, the new risk-based model for adjusting car insurance tariffs has not been 
introduced. Due to status issues, Kosovo remains outside the green card system. As a result, insurance is 
required  for  foreign-registered  vehicles  entering  Kosovo  and  for  vehicles  with  Kosovo  plates  leaving 
Kosovo which continues to pose a financial burden. 

Securities markets and investment services remain at an early stage of development, as most activity 
centres on the market for government bonds, auctioned by the CBK.  No progress was made in terms of 
financial market infrastructures. The legislation is not in line with the EU  acquis on settlement finality, 
financial  collateral,  Securities  Financing  Transactions,  Central  Securities  Depositories  and  OTC 
derivatives, central counterparties and trade repositories (EMIR). 

On  digital  and  sustainable  finance,  Kosovo should  conduct  further  work to  incorporate  sustainability 
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.  In 
2023, the Central Bank of Kosovo (CBK) joined the Sustainable Banking and Finance Network (SBFN). 
The Kosovo Credit Guarantee Fund can guarantee up to 80% of loan portfolios of financial institutions to 
MSMEs  in  areas  such  as  energy  efficiency  and  sustainable  agriculture.  So  far,  the  fund  has  issued 
EUR 374 million in guarantees and EUR 718 million in guaranteed loans. Kosovo should continue efforts 
to align with the EU acquis on digital finance. 

Chapter 28 – Consumer and health protection 

EU rules protect consumers’ economic interests also ensure product safety, prevent dangerous imitations 
and establish liability for defective products. The EU also guarantees a high level of protection of public 
health  and  in  particular  also  ensures  high  common  standards  for  tobacco  control,  blood,  tissues,  cells 
and organs, and medicines for human and veterinary use. The EU also has rules for upholding patients’ 
rights  in  cross-border  healthcare  and  in  preparing  for  and  responding  to  cross-border  health  threats, 
including communicable diseases. 

Consumer protection 

On  horizontal  aspects,  Kosovo’s  legislative  framework  remains  partly  aligned  with  the  EU  acquis. 
Further alignment with the latest EU acquis is needed to address developments in this area. Enforcement 
of  the  protection  of  consumer  rights  and  private-sector  awareness  remain  limited,  and  an  integrated 

62 

 
 
platform  to  harmonise  the  consumer  complaints  process  not  yet  in  place.  While  the  Law  on  general 
product  safety  is  aligned  with  the  EU  acquis  it  is  not  yet  fully  implemented.  The  administrative 
capacities  in  the  area  of  market  surveillance  and  product  safety  need  to  be  further  increased    (see  also 
Chapter 1 on market surveillance). On non-safety issues, the weakness of consumer rights organisations 
remains a challenge.  

Public health  

On  public  health,  the  quality  of  healthcare  remains  a  concern.  Although  Kosovo  allocated  a  budget 
increase  to  healthcare  of  around  14.2%  in  2024  compared  with  2023,  health  expenditure  as  part  of  the 
overall GDP remains the second lowest in the region and significantly lower than the EU average. There 
is  no  strategic  purchasing,  resulting  in  significant  inefficiencies  and  weak  health  outcomes.  Life 
expectancy at birth in Kosovo remains the lowest in the region and child mortality rates are the highest in 
the region. Out-of-pocket expenses remain very high (estimated to range between 30%-40%). Kosovo has 
an existing e-health information system, but it is not used by all health institutions; in 2024, an ambitious 
action  plan  was  adopted  on  an  integrated  health  information  system  to  improve  data  availability  and 
evidence-based policymaking.  

The  legislation  on  blood,  tissues,  cells  and  organs  is  not  fully  aligned  with  the  EU  acquis.  Kosovo 
continues to lack the necessary resources in this field. The implementation of the current Law on tobacco 
control needs to be improved. Mental health services remain integrated services.  

On  serious  communicable  diseases  and  serious  cross-border  threats  to  health,  Kosovo  adopted  the 
Law on prevention and control of communicable diseases in line with the European Centre for Disease 
Prevention and Control (ECDC) recommendations and the EU acquis. To this end, Kosovo developed an 
ECDC surveillance and monitoring module.  

Legislation  on  patients’  rights  in  cross-border  healthcare  is  partially  aligned  with  the  EU  acquis. 
Kosovo  has  a  cancer  screening  programme,  but  cancer  screening  is  not  performed  systematically  and 
there is no functional cancer registry. Non-communicable diseases are the leading cause of death.   

Kosovo  has  not  made  any  progress  on  nutrition  and  physical  activity.  There  was  no  progress  on 
alignment on medicinal products for human use or on medicinal products for veterinary use, or on 
medical devices, which all remain partially aligned with the EU acquis. The legislation on prescriptions 
and sales of antibiotics should be enforced in order to stop the common practice of over-the-counter sales 
in pharmacies. The list of essential medicines has been updated. Following the call for interest to join the 
Critical Medicines Alliance, one entity from Kosovo is now participating.   

Health inequalities remain a serious concern. The lack of appropriate health financing arrangements has 
hampered the progress towards universal health coverage and has contributed to continuous high out-of-
pocket payments. The financial burden has been particularly heavy for the vulnerable and poor segments 
of Kosovo’s society including people with chronic conditions who need medications on a regular basis.  

On  anti-corruption,  the  Ministry  of  Health,  with  support  of  the  Kosovo  Anti-Corruption  Agency  and 
USAID, approved an institutional integrity plan with the aim of increasing institutional accountability and 
transparency. 

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). 

63 

 
 
 
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. 

In  the  area  of  electronic  communications,  98.6%  of  households  had  access  to  the  internet  in  2023 
(compared  with  97.9% in  2021).  In  2023,  Kosovo  achieved  100%  broadband  coverage.  In  June  2024, 
Kosovo signed an Association Agreement with the European Commission to join the EU-funded Digital 
Europe Programme, which aims to increase access to digitalisation for people, businesses and institutions. 

Challenges  remain  in  developing  high-speed  broadband  infrastructure,  including  limited  private-sector 
investment  capacities,  an  outdated  cable  network,  and  delays  in  5G  development.  While  the  legislative 
framework for broadband cost reduction is aligned with the EU acquis, administrative burdens related to 
construction works persist due to incomplete harmonisation of legacy legislation. Kosovo needs to align 
with the European Electronic Communications Code, finalise the new Law on electronic communications, 
and align with the EU Gigabit Infrastructure Act (revising the Broadband Cost Reduction Directive), the 
EU Connectivity Toolbox and the revised Guidelines on State aid for developing broadband networks. 

Regulations  to  simplify  5G  network  installations  are  still  pending.  The  resources  of  the  Electronic  and 
Postal  Communications  Regulatory  Authority  remain  unproportionally  limited.  Alignment  with  the 
Digital  Services  Acts  and  Digital  Markets  Act  needs  to  be  stepped  up  to  provide  predictability  for 
business and to accommodate the increasingly significant share of ICT exports in Kosovo’s economy. 

Kosovo  made  some  progress  in  the  area  of  digital  services.  The  e-government  strategy  for  2023-2027 
was  adopted.  However,  the  number  of  services  remains  low,  representing  only  10%  of  public  services 
available  online.  Kosovo still needs to align with  the  EU  acquis  on  open  data  and  the  reuse  of  public-
sector  information.  Kosovo  should  also  align  with  the  European  Interoperability  Framework  and  the 
Interoperable  Europe  Act.  Authorities  need  to  ensure  and  facilitate  equal  access  to  online  services  for 
everyone  and  to  step  up  action  to  align  the  legal  framework  with  the  Digital  Services  Act  (DSA)  and 
Digital Markets Act (DMA).  

Regarding  digital  trust  and  cybersecurity,  Kosovo  strengthened  its  legal  and  strategic  framework  for 
cybersecurity. The Law on cybersecurity is partially aligned with the NIS Directive and Kosovo needs to 
step up efforts to align with the NIS2 Directive. The government adopted the new cybersecurity strategy 
for  2023-2027  with  its  accompanying  action  plan.  The  authorities  need  to  develop  policies  for  a  safer 
internet  for  children,  including  effective  measures  to  detect  and  respond  to  online  child  sexual  abuse. 
Besides the progress made until now in aligning to eIDAS Regulation, Kosovo must align to the new EU 
Digital  Identity  Framework  and  roll  out  a  national  digital  identity  wallet.  The  deployment  of  the 
government’s national eID is progressing. 

On media, the Assembly adopted the long-awaited law on the Independent Media Commission (IMC) in 
July  2024.  The  law  triggered  concerns  over  media  freedom,  especially  on  the  online  media  regulation. 
The IMC requires additional human and financial resources to effectively exercise its powers. 

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  continued  to  demonstrate  good  performance  in  tax  collection,  enforcement  and  compliance. 
Between April 2023 and September 2024, the Tax Administration of Kosovo (TAK) collected revenues 
of  1,28  million  EUR,  14.1%  higher  than  the  same  period  in  the  previous  year.  During  the  reporting 
period, the TAK performed 2 939 compliance visits, audits, and investigations of suspected cases of fiscal 

64 

 
 
evasion.  These  activities  resulted  in  additional  revenue  of  EUR  112,7  million.  In  the  area  of  debt 
management, the TAK follows best international practices.  

Kosovo adopted the Law on tax administration and procedures, but no progress was made to revise the 
tax policy. The tax gap assessment still needs to be finalised for all years to date and performed regularly. 

On administrative cooperation and mutual assistance, due to status issues, Kosovo has not been able 
to join the inclusive framework of the OECD Base Erosion and Profit Shifting and the Council of Europe 
Convention  on  mutual  administrative  assistance  in  tax  matters.  The  TAK  made  progress  in  concluding 
bilateral  agreements  on  double  taxation,  totalling  22  agreements  to  date.  Kosovo  has  finalised  the  new 
strategy  for  combating  the  informal  economy,  money  laundering,  financing  of  terrorism  and  financial 
crime  (2023-2026),  however  its  approval  by  the  government  is  still  pending.  Between  April  2023  and 
August 2024, TAK conducted 1,173 activities targeting undeclared work. During this time, 51 businesses 
were inspected in collaboration with the labour inspectorate as part of joint efforts to combat undeclared 
work. Regarding the submission of criminal charges, 55 charges were filed. 

On  operational  capacity  and  digitalisation,  the  TAK  continued  to  make  progress  on  service 
digitalisation and service delivery, particularly on stepping up the fight against informal employment and 
non-declaration  of  taxes.  The  TAK  needs  to  further  strengthen  professional  capacities  and  improve  the 
effectiveness of tax audit functions. The TAK intensified its actions on a risk-based approach regarding 
tax compliance. The TAK increased its analytical capacity by updating all parameters of the risk analysis 
modules, resulting in a significant increase in risk-based audits (over 80% of all tax audits). As of July 
2024, the TAK started activities related to tax compliance audits for high-wealth individuals, with a focus 
on information collection. The IT infrastructure of the TAK remains obsolete.  

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. 

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

There  was  good  progress  in  improving  the  CBK’s  corporate  governance  structure.  Following  the 
appointment  of  the  new  governor  by  the  Assembly  in  July  2023,  an  acting  deputy  governor  was 
immediately appointed. In November 2023, the central bank’s new organisational structure was approved 
and in January 2024 two deputy governors were appointed, completing the Executive Board. The CBK’s 
new strategic plan for 2024-2028 was published at end-2023. 

On  economic  policy,  although  fiscal  rules  are  well-established  in  the  legislation,  further  efforts  are 
required  to  ensure  their  full  compliance,  while  there  is  a  need  for  Kosovo  to  further  align  with  the 
requirements of the EU Directive on budgetary frameworks.  

In  the  reporting  period,  the  Ministry  of  Finance,  Labour  and  Transfers  took  initiatives  to  improve  the 
macro-fiscal  modelling  and  forecasting  capacities  of  competent  staff  while  some  steps  were  taken  to 
better link the budgetary annual process with the medium-term policy. However, strong political will and 
interinstitutional  cooperation  are  necessary  to  transform  the  budget  into  a  policy-planning  tool  and 
strengthen the medium-term budgetary framework.  

Although Kosovo improved the timeliness and completeness of its national accounts data, efforts should 
continue towards a complete set of annual and quarterly national accounts. (See also chapter 18)  

The  2024-2026  Economic  Reform  Programme  (ERP)  was  submitted  on  time.  There  is  a  significant 
degree of uncertainty surrounding the macroeconomic and fiscal framework. The ERP projects a robust 

65 

 
 
acceleration  of  economic  activity  in  2024-2025  before  easing  in  2026,  mainly  on  the  back  of  a  strong 
increase in investment. However, this outlook faces significant  downside risks related to weaknesses in 
public  investment  management,  less  dynamic  growth  in  the  main  trading  partners,  commodity  price 
spikes,  tighter  financing  conditions  and  lower-than-expected  financial  inflows  from  the  diaspora.  The 
policy guidance set out in the conclusions of the Economic and Financial Dialogue of May 2023 has been 
partially implemented.  

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  has  yet  to  approve  the  amendments  to  the  legislation  on  labour  and  on  health  and  safety  at 
work,  and  to  further  align  with  the  EU  acquis,  including  the  EU  Directive  on  work  life  balance.  The 
government  has  allocated  funds  to  compensate  young  mothers  on  maternity  leave  and  has  devised  a 
strategy  for  health  and  safety  in  the  workplace.  The  2014  Law  on  health  insurance,  has  not  been 
implemented. The Labour Inspectorate has expanded its capacity and intensified inspections in high-risk 
sectors,  seeing  a  decline  in  fatal  accidents.  The  Tax  Administration  Inspectorate  and  the  Labour 
Inspectorate  continued  actions  to  counter  the  informal  economy,  while  amendments  to  the  Law  on  tax 
administration  have  helped  formalise  5 000  jobs  in  the  first  months  of  2024.  Government  measures 
supporting employers have contributed to a decline in unemployment rates over the past two years. 

Social  dialogue  remains  limited.  The  capacity  building  of  social  partners,  particularly  in  the  private 
sector,  needs  to  be  stepped  up.  The  mandate  of  the  Social  Economic  Council  expired  in  2023.  A  new 
council  has  not  been  appointed.  Kosovo  has  finally  in  force  a  new  Law  on  minimum  wage,  which 
increases the minimum wage from EUR 170 to EUR 264, the first increase since 2011. 

On  employment  policy,  Kosovo  has  adopted  and  published  a  new  employment  and  labour  market 
strategy for 2024-2028 and has drafted a new regulation on active labour market measures and a new law 
on  employment.  The  overall  activity  rate  stood  at  42.3%  in  Q4  2023,  a  slight  increase  compared  with 
2022 (38.6%). 

Regarding labour force participation and unemployment rate see the statistical annex and the section 
on the functioning of the labour market under 2.3. Economic criteria. 

After  adopting  the  Youth  Guarantee  implementation  plan,  Kosovo  launched  the  piloting  of  the  Youth 
Guarantee Scheme in two municipalities in January 2024 and presented a monitoring report in July 2024.  

The government finalised the restructuring plan for the Employment Agency and the new regulation is 
envisaged  to  be  adopted  this  year.  The  labour  market  information  system  supporting  evidence-based 
policymaking and planning is outdated and lacks operational capacity in critical areas.  

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, a new 
approach based on proxy means testing aimed at better targeting poverty is being piloted Kosovo-wide as 
of May 2024.  

The quality of the social services provided at the municipal level is limited. Currently, there is no legal 
basis to ensure the sustainability of financing of social services. The 50% increase in government funds 
dedicated to licensed NGOs providing social services in 2023 does not meet needs. Combined with a lack 
of stable multiannual funding and the low salaries for social workers, this limits the capacities of NGOs 
and social workers’ centres. The capacity of municipalities concerning service planning and delivery, data 
collection and integrated care is weak. Around 9% of children are involved in work, of whom 5.6% are 

66 

 
 
working under hazardous conditions, an issue being particularly prevalent among the Roma and Ashkali 
communities.  

56,6

70,0

40,0

50,0

60,0

59,9

55,5

Graph 19: Kosovo - Economic activity rate by gender  

Efforts to address discrimination against women in employment and social policy, particularly during 
hiring 
procedures, 
promotion  and  pay  are 
limited. There are gaps in 
implementation  of 
the 
legislation 
equal 
on 
opportunities. The lack of 
childcare  and  elderly  care 
facilities, unequal share of 
the 
responsibilities 
maternity,  paternity  and 
parental 
hinder 
leave 
employment. 
women’s 
termination  of  a 
The 
probationary period due to 
pregnancy  is  not  treated 
as  direct  discrimination. 
inspectors  and 
Labour 
judges lack the knowledge 
to better address the issue of gender-based discrimination.  

Economic activity rate of the population aged 15-64 (%)
Unemployment rate of the population aged 15-64 (%), total

Men Women Men Women Men Women Men Women

2015-2020 average

Source: ECFIN

2023

2021

2022

22,0

19,0

10,0

18,2

23,0

20,0

30,0

16,5

19,5

57,7

11,0

22,0

34,2

24,2

25,0

in 

7,7

0,0

Kosovo must continue its efforts to ensure equal access of persons with disabilities to institutions, quality 
services,  employment  and  education  The  scheme  for  families  with  children  with  permanent  disability 
recognises the entitlement to material compensation only for a narrowly defined category of children who 
have  permanent  and  severe  disabilities  and  excludes  children  with  milder  disabilities  whose  conditions 
could  potentially  improve  if  support  with  cash  benefits  and  with  medical  and  social  services  were 
available. 

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). 

As  regards  enterprise  and  industrial  policy,  the  strategy  for  industrial  development  and  business 
support,  adopted  in  June  2023,  is  ambitious,  aiming  to  improve  the  business  environment,  promote 
industrial  development,  address  the  trade  deficit,  create  jobs  and  ensure  both  resource  efficiency  and  a 
more  circular  economy.  However,  the  first  monitoring  report  of  the  strategy  showed  that  planned 
activities  were  only  partially  implemented.  Kosovo  needs  to  dedicate  additional  resources  and  close 
financing gaps for its successful implementation. Four comprehensive studies of the main subsectors in 
the manufacturing sector were published in 2023, which government plans to use to refine its policies and 
actions.  

Concerning  policy instruments, the Law on sustainable investment, adopted by the Assembly in 2023, 
sets  up  two  new  agencies:  the  Agency  for  Support  to  Enterprises  within  the  Ministry  of  Industry, 
Entrepreneurship  and  Trade,  and  the  Agency  for  Investment  and  Export  under  the  remit  of  the  Prime 
Minister’s Office. The two agencies will play an important role in assisting companies and attracting FDI, 
addressing  the  long-term  recommendation  to  restructure  the  Kosovo  Investment  and  Export  Support 
Agency  (KIESA).  The  Constitutional  Court  ruled  that  the  Law  on  sustainable  investments  does  not 
violate the Constitution, opening the way for the creation of the agencies. The government also took steps 

67 

 
 
towards improving the dialogue with the private sector by launching a formal platform for public-private 
dialogue.  

KIESA  continued  organising  business  fairs,  facilitating  participation  of  Kosovo  businesses  in 
international  trade  fairs  and  managing  grants  in  support  of  the  implementation  of  the  strategy  for 
industrial  development  and  business  support  2030.  Around  EUR 3 million  in  grants  was  allocated  to 
businesses  from  non-majority  communities.  The  agency  still  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. 

Weak institutions and the lack of timely and professional responses to legitimate requests by businesses 
remain a major challenge. Inadequate capacities and resources, prolonged administrative procedures and a 
lack  of  inter-ministerial  coordination  perpetuate  the  lack  of  a  functioning  filing  system/institutional 
memory within Kosovo’s authorities. Fragmented and inefficient flow of information between institutions 
remain an issue. This presents obstacles for SMEs to access business support services and obtain permits 
and  licences.  Excessive  paperwork  requirements  when  applying  for  government  support  extends  the 
application time.  

There  were  notable  developments  in  dispute  settlements.  The  Commercial  Court  reached  its  intended 
roster  of  18  appointed  judges.  Upon  its  operationalisation,  a  total  of  6 754  cases  were  relocated  to  the 
first-instance  chambers  of  the  Commercial  Court,  while  1 342  cases  were  transferred  to  the  second-
instance chamber. During the reporting period, the commercial court has resolved 6 945 cases in the first 
instance  and  1  702  in  the  second  instance.  The  court  services  have  received  a  generally  positive 
evaluation  from  users  but  there  is  room  for  improvement  in  the  efficiency  of  proceedings  as,  with  the 
increase  of  the  number  of  cases,  it  is  challenging  for  the  court  to  finish  cases  within  a  reasonable 
timeframe.  30  cases  were  transferred  to  mediation  by  Commercial  Court  in  2023.  No  new  cases  were 
transferred  in  2024.  Online  mediation  introduced  in  response  to  the  COVID-19  pandemic  remained  a 
viable tool for dispute resolution. 

Kosovo continued to extend services available on its e-government platform. Self-employed workers face 
a low tax burden and incorporated SMEs benefit from corporate income tax incentives. The simplification 
and digitalisation of services reduced tax compliance costs for SMEs. 

Access  to  finance  remains  a  barrier  for  the  growth  of  micro,  small  and  medium-sized  enterprises 
(MSMEs)  despite  expansion  and  portfolio  diversification  of  the  Kosovo  Credit  Guarantee  Fund.  By 
September  2024,  the  fund  had  expanded  enabling  loans  worth  EUR 731.8 million  to  MSMEs  in  the 
sectors  of  production,  service  agriculture  and  trade,  including  start-up  firms  and  women-owned 
businesses. The government should continue efforts to diversify financing sources.  

Kosovo participates in the SME Pillar of the Single Market Programme. 

Kosovo  has  committed  to  align  relevant  primary  and  secondary  legislation  with  the  EU  Late  Payment 
Directive in commercial transactions by June 2025. 

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. 

The  main  policy  document  for  research  and  innovation,  besides  the  2023-2025  ERP,  is  the  National 
Science Programme for 2023-2028, approved by the government in July 2023. The programme calls for a 
substantial increase of public funding in the research sector, which remained considerably underfunded as 
part of the government budget allocation for research and development. 

68 

 
 
The  financing  of  scientific  research  is  not  clearly  identified;  it  is  part  of  a  general  budget  for  higher 
education  institutions,  which  is  funding  scientific  research  and  innovation,  as  well  as  universities.  The 
quality  of  programmes  preparing  postgraduates  for  research  careers  remains  unsatisfactory.  Funding  of 
innovation support measures is urgently needed. Kosovo is encouraged to make use of the opportunities 
made available by the European Institute of Innovation and Technology. The research information system 
supplies data related to EU research initiatives such as European Cooperation in Science and Technology 
(COST).  

As regards Horizon Europe, Kosovo dramatically decreased its performance during the reporting period, 
(a drop by some 75%), with three projects with a total funding of EUR 237 125 in 2023.  

Although  there  is  no  clear  plan  to  adopt  a  gender  strategy,  the  Ministry  of  Education,  Science, 
Technology, and Innovation continues supporting female students wishing to study  science, technology, 
engineering and mathematics with a scholarship programme.  

Chapter 26 – Education and culture  

The  EU  supports  cooperation  in  education  and  culture  through  funding  programmes  and  the 
coordination  of  Member  State  policies  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’s public spending on education in 2023 was forecasted to be EUR 385 million. The provisional 
estimates  show  that  the  share  of  the  budget  allocation  for  the  education  sector  in  2023  dropped  as  a 
percentage of GDP (3%, while it was 4.1 % in 2022).   

In terms of the registration and attendance of pupils and student population, a general declining trend 
in gross enrolment rate is registered in earlier levels of education (pre-school, pre-primary and primary), 
while the trend is slightly increasing in lower secondary.  

The area of early childhood education and care saw some progress with the development of secondary 
legislation of the Law on early childhood education and the piloting of the new curricula for the academic 
year 2023/2024.    

Although  Kosovo  is  making  some  efforts  to  improve  the  quality  of  education,  there  is  still  little 
advancement  in  the  implementation  of  Kosovo’s  education  strategy  for  2022-2026.  Progress  is  not  yet 
tangible  in  terms  of  students’  performance  as  the  impact  of  the  steps  taken  will  be  visible  only  longer 
term. As reported by the OECD in December 2023, the average results of the Programme for International 
Student Assessment (PISA) tests taken in 2022 show a decline in the performance of Kosovo students in 
mathematics, reading and science, compared with the average results of the 2018 PISA results and a high 
proportion of students of 15-year-olds failing to demonstrate basic proficiency (level 2) in reading (83%), 
in maths (85%) and in science (79%). The latest Progress in International Reading Literacy Study (PIRLS 
2021) shows that Kosovo’s performance in reading is significantly below the international median.  

Kosovo made good progress with regards to the recognition of prior learning. The service of validation of 
non-formal and informal learning has been operationalised and is now being offered to citizens, including 
via  public  employment  services.  Digitalisation  and  digital  skills  form  a  core  element  of  the  2022-2025 
education strategy. 

Staff recruitment reforms in the education sector have progressed with the adoption of an implementing 
act  on  selection  procedures  and  appointments  in  pre-university  education.  This  reform  is  particularly 
relevant for improving the quality assessment of teachers. It is estimated that only 3% of teachers have 
undergone formal performance evaluation over the past decade. In 2023, two administrative instructions 
were  passed  regarding  teacher  assessment  and  licensing.  Currently,  there  are  about  21  education 
inspectors  with  expertise  on  pedagogy  assessment,  which  is  insufficient  to  conduct  performance 

69 

 
 
evaluation  of  over  23  000  teachers,  among  other  roles  and  responsibilities.  This  is  a  key  factor 
contributing to delays in the implementation of quality assurance mechanisms, consequently undermining 
the effective implementation of other policies/reforms.  

The draft law on textbooks, presented in 2022, is still pending final adoption in the Assembly. Technical 
improvements  of  the  draft  law  are  still  needed  to  meet  quality  standards  and  ensure  effective 
implementation.   

Dual education in VET has expanded with the piloting of eight additional profiles in 2023/2024. A total 
of 12 dual education profiles are now being applied to improve the employability of young boys and girls. 
In October 2023, the Prime Minister launched an awareness campaign to support the implementation of 
dual VET in Kosovo. A concept document for a new VET law still needs to be finalised. 

In  terms  of  inclusion,  despite  some  improvement,  children  from  vulnerable  groups  and  minorities 
continue  to  be  marginalised  when  it  comes  to  education  opportunities.  In  particular,  children  from  the 
Roma,  Ashkali  and  Egyptian  communities  are  at  a  higher  risk  of  dropout  of  compulsory  education. 
Learning  centres  are  not  yet  institutionalised.  Moreover,  some  centres  relying  on  external  financial 
support  and  offering  supplementary  educational  and  psychosocial  support  to  children  from  the  Roma, 
Ashkali  and  Egyptian  children,  have  closed.  The  Ministry  of  Education,  Science  and  Technology 
(MESTI), in coordination with municipal education directorates, needs to secure the necessary human and 
financial resources to support these centres. Additional efforts should also be made to improve access to 
public spaces and transport to children with disabilities and physical impairment.  

Following the 2024 census, the data on children in schools should be used by MESTI to rationalise the 
school  network  and  address  the  need  for  reorganising  overcrowded  schools  as  well  as  underpopulated 
schools in rural areas.   

Kosovo  benefits  from  the  international  dimension  of  the  2021-2027  Erasmus+  programme.  In  2023, 
Kosovo registered the highest number of students and staff in outward mobility (going to the EU) and the 
highest  number  of  projects  in  higher  education  compared  with  previous  years.  In  capacity  building  in 
higher education, 2023 saw the highest number of successful projects: 13 projects in total with 27 higher 
education institutions as beneficiaries and five Kosovo higher education institutions being coordinators of 
projects.  Kosovo  is  not  taking  part  in the  European  Education  Area (Bologna  Process)  working  groups 
2021-2025.  As  part  of  the  enhanced  partnership  with  the  region,  Kosovo  can  apply  for  the  European 
Universities Initiative calls, but no Kosovar universities have been selected as partners in funded alliances 
so far. 

On sports, Kosovo continued to participate in the European Week of Sport. 

Kosovo still needs to develop a culture strategy. The Law on art and culture was adopted, setting out the 
general principles of cultural policies and regulating conditions for their implementation. It regulates the 
scope  of  art  and  culture  and  lays  down  the  basic  rules  for  the  establishment,  organisation,  financing, 
administration and functioning of public institutions of art and culture. Kosovo cannot participate in the 
MEDIA strand of the Creative Europe programme until Kosovo aligns the Law on the Independent Media 
Commission with the EU’s Audiovisual Media Services Directive. 

Chapter 29 – Customs union 

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

In the area of customs legislation, the Customs and Excise Code, aligned with the Union Customs Code, 
was adopted in March 2024; Kosovo should proceed with drafting and approving relevant implementing 
legislation.  Due  to  statehood  issues,  there  was  no  progress  on  Kosovo’s  application  to  become  an 

70 

 
 
observer under the Common Transit Convention. On the rules of origin, Kosovo continues to apply the 
Pan-Euro Mediterranean Convention. Kosovo customs systematically exchange data on the cross-border 
movement of goods among Western Balkans economies. 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.  The  number  of  authorised 
economic  operators  increased  from  10  to  13.  There  was  also  a  55%  increase  in  shipments  imported 
through  the  Port  of  Durrës,  Albania,  resulting  in  over  EUR 9 million  saved  for  businesses  through  the 
acceleration of procedures and customs clearance. Progress was made on the abolishment and reduction 
of  fees  for  exporters/importers  at  inland  customs  terminals,  with  import  fees  entirely  abolished  at  the 
Peja/Peč,  Podujeva/Podujevo  and  Vërmice/Vrbnica  terminals,  resulting  in  savings  for  businesses  worth 
millions of euro. 

In  line  with  the  EU-Kosovo  SAA  provisions  on  mutual  administrative  assistance  in  customs  matters 
(MAA), Kosovo should strengthen combating customs fraud, in particular smuggling of tobacco products 
and by cooperating with OLAF accede to the WHO Framework Convention on tobacco control protocol 
to eliminate illicit trade in tobacco products. No progress with regard to the accession has been reported. 

On  administrative  and  operational  capacity,  Kosovo  continues  to  participate  in  the  EU  programme 
Customs and in different forums at the World Customs Organisation. Kosovo customs made progress by 
developing  recruitment  procedures  and  revising  administrative  instructions  concerning  merit-based  and 
transparent  transfers,  promotions  and  selection  processes.  Asset  declarations  by  customs  officers  have 
become mandatory, with the process managed and monitored by the Anti-corruption Agency of Kosovo. 

Kosovo  approved  a  new  Kosovo  customs’  medium-term  strategic  plan  for  2024-2028  and  finalised  its 
report on the implementation  of  the medium-term  strategic plan  for  2019-2023.  Substantial  amounts  of 
narcotics were detected and seized. For the first time, a canine unit was introduced in Kosovo customs to 
step up the fight against the smuggling of arms, cash and narcotics. Kosovo customs continue to have a 
shortage of officers. The office infrastructure is inadequate and does not meet international standards. 

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). 

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,  multimodal transport, aviation and 
maritime transport. 

On transport matters, Kosovo continued its proactive participation in Transport Community activities. 
In December 2023, the government approved the accompanying action plan for the implementation of the 
Multimodal  Transport  Strategy  (MMTS)  for  2023-2030.  In  June,  the  government  Strategic  Planning 
Committee  approved  the  Single  Project  Pipeline  for  the  transport  sector.  Further  efforts  are  needed  to 
align  with  and  implement  the  EU  acquis  across  all  areas  of  the  sector,  as  well  as  to  accelerate  the 
implementation  of  the  Transport  Community  Action Plans.  Kosovo needs  to  strengthen  the insufficient 
administrative  and  operational  capacities  to  improve  coordination  and  ensure  proper,  timely  and 
professional  implementation  of  all  infrastructure  projects.  Kosovo  should  begin  to  improve  transport 
climate  resilience  and  the  use  of  alternative  fuels  and  to  develop  sustainable  urban  mobility  plans 
respecting environmental and social standards following EU practice. In line with the Green Agenda and 
the Smart and Sustainable Mobility Strategy for the Western Balkans.  

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On road transport, the Law on roads is yet to be adopted by the Assembly; the proposed Law on roads 
entails  the  relocation  of  certain  departments  to  a  newly  set  up  Road  Agency,  which  will  oversee  road 
infrastructure planning, safety measures, and overall management. Further efforts are needed to align with 
the  EU  acquis  on  social  and  market  rules  in  road  transport.  In  April,  the  government  set  up  the  Road 
Safety  Council,  which  will  monitor  the  implementation  of  strategic  documents,  coordinate  work  of 
institutions and propose policies to improve road safety. However, Kosovo needs to step up its action to 
set up a road asset management system. Despite ongoing efforts, Kosovo’s existing crash data system is 
not yet compliant with the common accident data set (CADaS) protocol. Kosovo should continue to raise 
awareness  to  achieve  better  results  in  line  with  the  UN  and  EU’s  goal  of  halving  the  number  of  road 
deaths and injuries  by  2030.  Alignment  with the  Directive  on road  infrastructure safety  management  is 
still pending. Creating a system to increase the capacity of road safety inspectors and auditors remains a 
priority.  

Kosovo  made  limited  progress  in  implementing  the  rail  transport  acquis;  the  Railway  Regulatory 
Agency,  which  performs  the  functions  of  regulatory  body,  licensing  and  safety  and  interoperability 
authority,  published  several  legislative  acts  mainly  pertaining  to  the  technical  specifications  of 
interoperability.  The  market  for  rail  transport  services  is  open  and  functional.  A  National  Investigation 
Body  was  established,  which  reports  directly  to  the  Prime  Minister’s  Cabinet.  However,  the  railway 
legislation  still  needs  to  be  fully  aligned  with  the  market  and  technical  pillars  of  the  fourth  Railway 
Package. The drafting of the new railway law and railway safety and interoperability law is still ongoing. 
Despite the completion of works at the joint railway station with North Macedonia, the commencement of 
joint  operations  has  been  delayed.  A  multiannual  contract  has  been  signed  between  the  infrastructure 
manager and the relevant authority.  

On air transport, Kosovo made progress with the opening, in January 2024, of new air corridors between 
Kosovo and Albania, which will shorten flight times with European countries by up to 12 minutes and 
will  positively  affect  civil  aviation.  The  sector  continues  to  face  a  number  of  challenges  arising  from 
Kosovo’s  non-membership  in  several  international  civil  aviation  organisations.  The  NATO-led  Kosovo 
Force  (KFOR)  still  manages  and  coordinates  upper  Kosovo  airspace.  The  institutional  shortcomings  of 
the  Air  Navigation  Service  Agency  and  the  European  Civil  Aviation  Authority,  as  well  as  the  lack  of 
revenue  from  upper  airspace  management,  remain  issues.  Efforts  should  continue  in  aligning  with  the 
remaining European Common Aviation Area (ECAA) first-phase items. 

On multimodal transport, although the government approved the action plan for the implementation of 
the  MMTS  for  2023-2030,  it  does  not  specify  measures  for  developing  intermodal  infrastructure  or 
supporting efficient and sustainable logistics services within the 2023-2025 period. 

Concerning  EU passenger rights,  Kosovo adopted the national transposition measures regarding rights 
of passengers travelling by air in the context of the ECAA Agreement. Kosovo should increase its efforts 
to implement the EU acquis on passengers rights in all modes of transport.  

Chapter 15 – Energy 

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

Kosovo made some progress on the security of supply. In January 2024, Kosovo inaugurated its day-
ahead electricity market and initiated electricity day-ahead market coupling with Albania, a first of its 
kind among the Energy Community Contracting Parties. There has been no progress in restructuring the 
existing  bulk  supply  agreement  between  the  Kosovo  Electricity  Supply  Company  (KESCO)  and  the 
Kosovo  Electricity  Corporation  (KEK).  Under  this  agreement,  KEK  reserves  the  majority  of  its 
generation capacity for KESCO to the extent needed to meet its public service obligations. Kosovo needs 
to  restructure  the  bulk  supply  agreement,  which  will  be  essential  to  create  a  sustainable,  fair,  and 

72 

 
 
competitive market and to support the successful operation of ALPEX. 

Significant  deviations  of  Kosovo’s  control  area  of  Kosovo  continued  until  the  end  of  2023.  Although 
these deviations from the European grid passed from negative (in 2023) to positive (in 2024), this still 
leads to imbalances that might compromise the grid’s frequency and reliability. The situation stabilised 
following  conclusion  of  the  contract  between  KEDS  and  Elektrosever  (see  paragraph  below). 
Compliance with obligations under the newly signed Connection Agreement with ENTSO-E is a matter 
of urgency. 

A  significant  milestone  in  the  implementation  of  the  agreed  energy  roadmap  of  June  2022,  is  the 
conclusion  of  the  commercial  contract  between  the  distribution  company  KEDS  and  Elektrosever  in 
December  2023  enabled  the  commencement  of  billing  in  the  four  northern  Kosovo-Serb  majority 
municipalities  and  ended  the  non-regulated  practice.  Serbian  electricity  transmission  system  operator 
EMS has not yet determined the net transmission capacities at the interconnection with Kosovo which 
prevents cross-border capacities to be allocated to the market participants. 

Kosovo  needs  to  ensure  a  time-efficient  and  dynamic  implementation  of  its  energy  strategy 
implementation programme for 2022-2025 to meet its ambitious targets. Kosovo remains heavily reliant 
on  outdated,  highly  polluting  coal-fired  power  plants,  posing  serious  health  and  environmental  risks. 
Kosovo is still in breach of the Energy Community requirements for reducing greenhouse gas emissions 
from  the  large  combustion  plants,  which  also  requires  alignment  with  the  EU  Directives  on  large 
combustion plants and industrial emissions. Kosovo needs to speed up the environmental upgrade of the 
Kosovo B thermal power plant and work on decommissioning the non-working parts of the Kosovo A 
thermal power plant. In June, the government Strategic Planning Committee approved the Single Project 
Pipeline for the energy sector. 

Kosovo is non-compliant with the oil acquis. The draft law on compulsory oil stockholding is pending. 
There are no procedures in place to release emergency oil stocks. 

Regarding the internal energy market, there has been no progress in further opening the retail market. 
Kosovo is delayed in the transposition and implementation of the Electricity Integration Package, which 
is  a  precondition  for  market  integration.  Kosovo's  Energy  Regulatory  Office  (ERO)  still  needs  to 
implement  the  liberalisation  of  the  retail  electricity  market  based  on  market  price.  In  April  2024,  the 
ERO  Board  approved  the  maximum  allowed  revenues  for  regulated  operators  and  slightly  reduced 
electricity  tariffs.  Kosovo  needs  to  create  a  comprehensive  register  of  vulnerable  consumers  and  set a 
national objective to support energy poor households and vulnerable consumers in line with the relevant 
legislation and the NECP objectives. Kosovo needs to adopt its NECP as soon as possible. 

Concerning renewable energy sources, Kosovo adopted the Law on renewable energy sources in April 
2024. This Law is aligned with the Renewable Energy Directive and sets up a comprehensive market-
based  support  scheme  for  renewables,  which  is  expected  to  facilitate  Kosovo’s  renewable  energy 
auctions. Kosovo successfully concluded its first solar auction in March 2024, and signed in May 2024 
an agreement for the development of the project. The process was open, transparent, and well-received 
by  interested  investors.  The  winning  bidder  will  be  awarded  a  30-year  concession  contract  for  the 
construction and operation of the solar plant, accompanied by a 15-year power purchase agreement. To 
achieve  its  strategic  targets  of  a  35%  share  of  renewable  energy  in  the  electricity  consumed  by  2031, 
Kosovo  needs  to  accelerate  the  deployment  of  renewable  energy  projects  and  promptly  launch  the 
upcoming first wind auction  for which the draft criteria were published in July 2024 and which will be 
of 75 MW. Lessons learnt from the first pilot solar auction, which experienced significant delays, should 
be taken into account in subsequent competitive bidding processes. The agreement between ERO  and 
the  service  provider  to  utilise  the  national  electronic  registry  for  guarantees  of  origin  was  signed.  
Provisions  related  to  sustainability  and  greenhouse  gas  emissions  saving  criteria  for  biofuels,  biomass 
and bioliquids deriving from the Renewable Energy Directive (RED II) still need to be aligned. 

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On  energy  efficiency,  good  progress  was  achieved  with  the  implementation  of  the  energy  efficiency 
measures in  the residential  and  private  sectors  as  part  of the  Energy  Support  Package  financed  by  the 
EU.  The  financial  model  for  investments  in  the  residential  sector  is  under  development.  Kosovo  still 
needs  to  adopt  the  new  Law  on  energy  efficiency.  The  amended  Law  on  energy  performance  of 
buildings  was  adopted  in  May  2024.  The  adoption  and  implementation  of  the  Labelling  Directive 
remains  pending.  To  increase  energy  efficiency  as  outlined  in  the  energy  strategy,  Kosovo  needs  to 
mobilise  additional  financing  and  strengthen  the  institutional  capacity  to  implement  and  monitor  the 
associated savings. 

The capacities of the Nuclear Safety and Radiation Protection Agency is weak. Kosovo still needs to ensure 
the treatment and interim storage of radioactive waste in accordance with EU standards. There has been 
no  progress  concerning  the  Kosovo’s  participation  in  the  European  Community  urgent  radiological 
information  exchange  (ECURIE)  and  the  European  radiological  data  exchange  platform  EURDEP. 
Kosovo  is  not  a  member  of  the  International  Atomic  Energy  Agency  (IAEA),  nor  party  to  any 
international radiation protection and nuclear safety conventions and agreements. 

Chapter 21 – Trans-European Networks 

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

Progress  on  the  trans-European  Transport  Network  (TEN-T)  is  limited,  mainly  due  to  insufficient 
interinstitutional capacities to ensure, realistic cost/benefit analysis, EU standards public procurement 
rules, State aid and environmental impact assessments. The revised TEN-T Regulation 2024/1679 of 
13 June 2024 is setting up a new Western Balkans-Eastern Mediterranean European Transport Corridor 
which includes Kosovo.  

There is no progress on the Pristina – Merdare motorway or the ‘Peace Highway’. The railway works 
on  the  Orient/East-Med  Corridor  (Rail  Route  10)  connecting  Fushë  Kosovë/Kosovo  Polje  to 
Mitrovica/ë continued at slow pace. The tendering of signalling systems and telecommunications which 
is of utmost priority, is still delayed. The feasibility study for the railway connection between Durres and 
Pristina is under way.  

On energy networks, in January 2024, electricity market integration with Albania advanced with the 
inauguration of the day-ahead market in Kosovo and the initiation of the Albania-Kosovo day-ahead 
electricity  market  coupling,  a  first  of  its  kind  in  the  Energy  Community.  Kosovo  also  signed  a 
Memorandum  of  Understanding  concerning  electricity  market  coupling  with  Greece,  Albania  and 
North Macedonia.  

The old TEN-E Regulation 347/2013 has been aligned and implemented. Kosovo still needs to align its 
legislation with the revised TEN-E Regulation 2022/869. 

On  telecommunications  networks,  the  institutional  capacity  of  the  Electronic  and  Postal 
Communications Regulatory Authority still needs to be increased. 

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. 

Environment 

Concerning horizontal issues, further efforts are needed to revise and adopt strategies, action plans and 
relevant  legislation  to  ensure  consistency  with  the  objectives  of  the  Green  Agenda  and  implement 

74 

 
 
commitments  under  the  Energy  Community’s  Decarbonisation  Roadmap.  The  capacities  of  the 
environmental  authorities  at  both  central  and  local  levels  to  implement  and  enforce  the  environmental 
acquis are still very limited, which seriously hampers progress in the sector. Structural reforms continue 
to be delayed. Insufficient political commitment and funding constitute key challenges to implementing 
the  strategic  framework.  The  adoption  of  the  strategy  for  environmental  protection  and  sustainable 
development  for  2022-2033  remains  pending.  Full  alignment  with  the  EU  Environmental  Liability  and 
Crime Directives is yet to be completed. Implementation of the strategic environmental assessment and 
environmental  impact  assessment  legislation  is  not  applied  consistently.  In  June  2024,  the  government 
Strategic  Planning  Committee  approved  the  Single  Project  Pipeline  for  the  environment  sector.  The 
quality of the preparation and implementation of infrastructure investments, including the transparency of 
procedures, in  compliance with  Environmental  Impact  Assessment  and  Strategic  Environmental  Impact 
Assessment  Directive  and  other  elements  of  the  acquis  needs  to  be  ensured.  Public  awareness  of  the 
importance of environmental protection is still limited. 

While some progress was made in improving air quality, it continues to present a major health risk amid 
delays in the implementation of appropriate remedial measures to curb air pollution. The implementation 
of  the  Pristina  air  quality  plan  has  begun  with  the  introduction  of  new  public  transport  buses  and  the 
application of control measures for exhaust gases from vehicles, but the adoption of plans in the rest of 
Kosovo  is  still  pending.  Kosovo  still  does  not  comply  with  the  emission  ceilings  set  by  its  emissions 
reduction  plan.  The  implementation  of  measures  banning  the  use  of  coal  for  heating  still  needs  to  be 
enforced. The work on the air quality plans for the zones in which pollutant levels exceed limit values, 
continues.  

The  implementation  of  waste  management  legislation  saw  some  progress,  with  the  approval  of  the 
implementing legislation on the export, import, transit and transboundary movement of waste, as well as 
the adoption of the legislation on packaging and packaging waste, which introduces a base for extended 
producer responsibility and the application of the ‘polluter pays’ principle. In addition, activities aimed at 
reducing the use of lightweight plastic carrier bags and introducing a deposit refund system for beverage 
containers are taking place. Finally, the number of illegal dumpsites continued to  steadily decline, from 
747 in 2022, to 373 in 2023, representing a reduction of 374 illegal landfills. 

The very limited inspection capacity of the central level institutions needs to be increased as a matter of 
urgency.  More  efforts  are  needed  to  amend  the  Law  on  waste  management  and  the  integrated  waste 
management strategy by introducing recycling targets, and to approve and implement the inter-municipal 
waste  management  plans.  Kosovo  also  needs  to  start  a  reform  of  communal  enterprises,  ensure  proper 
management  of  industrial  and  hazardous  waste  and  boost  the  circular  economy.  Kosovo  Electricity 
Company  (KEK)  needs  to  conduct  the  environmental  and  social  impact  assessment  procedure  for  the 
hazardous waste storage.  

Kosovo made limited progress on water management by approving and implementing its revised water 
strategy.  The  adoption  of  a  new  Law  on  water  and  the  approval  of  river  basin  management  plans  are 
pending.  The  capacities  of  key  institutions  at  both  central  and  local  levels,  public  enterprises  and  river 
basin  management  authorities  remain  low  and  need  further  strengthening.  The  lack  of  identification  of 
agglomerations and sensitive areas in line with the EU Urban Waste Water Treatment Directive as well as 
the  absence  of  a  sludge  management  strategy  hamper  progress  in  the  infrastructure.  There  was  no 
progress  in  harmonising  the  legislation  on  water  management  and  floods  with  the  EU  acquis  in  the 
reporting  period.  More  efforts  are  necessary  for  the  reduction  of  water  losses  and  the  management  of 
water protection zones.  

Kosovo made limited progress on nature protection with the designation of three new protected areas.  
Kosovo  should  start  identifying  and  pre-designating  sites  that  will  be  covered  by  the  Natura  2000 
network. They lack appropriate management, continue to be polluted and poorly maintained, suffer from 
illegal  activities  and  insufficient implementation  and enforcement  capacities  at  central  and  local levels. 

75 

 
 
The  adoption  of  the  draft  strategy  for  environmental  protection  and  sustainable  development  for  2022-
2033 remains pending. There was also no progress in harmonising legislation on nature protection. The 
identification  of  potential  Natura  2000  sites  is  at  a  very  early  stage.  Kosovo  made  limited  progress  in 
implementing  the  Law  and  strategy  on  forestry.  Deforestation  and  illegal  logging  remain  a  matter  of 
serious concern. 

There  was  no  progress  in  aligning  with  the  acquis  on  industrial  pollution  and  implementation  of 
industrial  pollution  prevention  and  control  is  very  slow.  Hazardous  mining  waste  as  well  as  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 concerning the Industrial Emissions Directive 
and to ensure proper implementation and monitoring.  

There was no progress in aligning with the EU acquis on chemicals. The implementation of the relevant 
legislation  remains  at  a  low  level.  Kosovo  still  needs  to  improve  the  implementation  of  the  regulatory 
framework on the export and import of hazardous chemicals.  

No progress was registered in in aligning with the EU acquis on noise. 

On civil protection, Kosovo made some progress with the adoption of the national disaster response plan, 
and the approval of the Strategy for Risk Reduction from Natural and other Disasters for 2023-2028. The 
coordination  between  the  central  and  local  levels  is  still  insufficient  Kosovo  made  no  progress  in 
developing national disaster risk needs assessment and did not devise a recovery strategy. Kosovo should 
make  more  efforts  to  prepare  legislation  as  well  as  a  governance  and  financial  framework  on  the 
prevention  of,  preparedness  for  and  response  to  natural  and  other  disasters.  Kosovo  should  improve 
coordination among responsible authorities in large-scale disasters. Although not part of the Union Civil 
Protection Mechanism (UCPM), Kosovo benefits from different tools under the UCPM (projects, training 
sessions, exercises, peer reviews and advisory missions).  

Climate change 

Kosovo made some progress on climate change by adopting the Law on climate change. However a 2050 
climate  neutrality  target  is  missing  and  the  implementing  legislation’s  approval  and  enforcement  is 
pending. The adoption of the decarbonisation and adaptation strategies is also pending. The NECP needs 
to be adopted as soon as possible. The legislative framework for the monitoring, reporting, verification 
and  accreditation  of  greenhouse  gas  emissions  needs  to  be  developed  and  implemented  as  well  as  a 
mechanism on carbon pricing with a view to aligning with the EU emissions trading system. In parallel, 
Kosovo should implement adaptation and mitigation measures. Consideration also ought to be given to 
aligning with major upgrades of the EU climate policy as a result of the Fit for 55 package. The capacity 
of the relevant institutions, including inspections, to fulfil their responsibilities needs to be urgently and 
significantly strengthened. Finally, awareness raising needs to be strengthened and the cooperation with 
operators in the private sector should be made more efficient. 

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). 

Chapter 11 – Agriculture  

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 

76 

 
 
 
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. 

On horizontal issues, the national programme for agriculture and rural development for 2023-2027 was 
adopted in October 2023. Support measures need to be brought in line with the EU acquis.  

Kosovo  needs  to  strengthen  and  maintain  its  capacities  and  take  steps  towards  the  development  of  an 
integrated administration and control system, farm sustainability data network. 

On  the  common  market  organisation,  the  Law  on  market  organisation  for  agricultural  products  was 
adopted in December 2023. Its implementing legislation should be prepared. 

On  quality  policy,  Kosovo  continued  to  progress  with  the  registration  of  a  second  geographical 
indication. However, the registration process and control need to be aligned with the EU acquis. 

On organic farming, legislation needs to be aligned with the EU acquis, the national organic action plan 
2023-2026  needs  to  be  implemented  and  actions  need  to  be  taken  to  prioritise  organic  farming  and 
production  as  a  cross-cutting  element  within  the  national  programme  for  agriculture  and  rural 
development.  

Kosovo still needs to amend or repeal the Law on agricultural land and an action plan to address the loss 
and degradation of farmland. 

Chapter 12 – Food safety, veterinary and phytosanitary policy  

The EU food acquis including EU hygiene rules for foodstuff production ensure a high level of food and 
feed safety and a high-level protection of consumers’ interests. 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. 

In the area of food safety, Kosovo still needs to adopt the secondary legislation on the Law on food, and 
the strategy for aligning the EU acquis in the field of veterinary and phytosanitary policy. The financial 
and human resources of the Food and Veterinary Agency remain insufficient to implement the EU acquis.  

The food control traceability and management system and the laboratory information management system 
are operational, but more resources are needed to strengthen and systematically maintain them. Following 
the  transfer  of  58  inspectors  to  the  Ministry  of  Health,  the  agency  should  diligently  recruit  food 
inspectors,  set  up  an  epidemiological  unit,  and  implement  the  relevant  legislation  related  to  risk-based 
approach in inspections within Kosovo as well as on imports.  

The agency continued its work to implement the national plan for the control and monitoring of food and 
animal disease and successfully completed the obligatory proficiency testing schemes with EU reference 
laboratories as part of the laboratory accreditation. 

In  the  area  of  veterinary  policy,  while  Kosovo  took  over  from  the  EU  the  financing  of  the  rabies 
eradication and vaccination campaign, the government has yet to adopt a Law on animal health and repeal 
the 2004 Law on veterinary with a new one. The agency has still not adopted the five-year development 
plan  for  disease  monitoring  and  control,  and  earmark  resources  for  its  implementation.  Resources  for 
controls of animal health and welfare at farm level, during transportation remain insufficient, including in 
slaughterhouses  and  livestock  markets.  Kosovo  adopted  a  new  administrative  instruction  on  animal 
identification and registration.  However, animal movements remain under-reported and controls are yet 
to be strengthened. Kosovo should complete the alignment of its legislation with the EU animal welfare 
legislation  and  ensure  adequate  resources  for  its  implementation.  Kosovo  made  some  progress  in 
identifying  basic  cross-compliance  measures  in  the  areas  of  food  safety,  animal  health  and  welfare. 
Relevant checklists and guidelines were prepared.   

On the placing of food, feed and animal by-products on the market, the implementation of a system 

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for the collection and safe disposal of animal by-products remains crucial as well as the approval of the 
model for operating the existing rendering plant. Kosovo addressed the European Commission’s findings 
on their national residue monitoring plan. 

In  the  area  of  phytosanitary  policy,  alignment  with  the  EU  acquis  still  needs  to  be  improved.  It  is 
important to strengthen actions with regard to surveys, early detection and eradication of pests. Finally, 
Kosovo has yet to start working on the development of the legal basis 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. 

As Kosovo has only inland fishing and aquaculture, the acquis on catch quotas and inspection and control 
is only partially applicable. Kosovo needs to draft a law on fisheries and aquaculture to align with the EU 
acquis.  

The adoption of a multiannual strategy dedicated to aquaculture and the alignment of legislation with the 
acquis is still pending.  

Kosovo should focus on developing a market policy and data collection in line with the acquis, as well 
as an inventory of fish species. Kosovo should also significantly increase the administrative capacity for 
policy management and inspection and control. 

There  was  no  significant  development  concerning  resource  and  fleet  management,  structural 
measures, State aid and international agreements.  

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  operates  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. 

There is good progress on the legislative framework underpinning the regional development, particularly 
as  regards  sustainable  and  inclusive  growth  (see  also  Chapters  15,  27  and  19).  Eurostat  approved  the 
classification of statistical regions in Kosovo, which will facilitate the production of regional statistics in 
line with the EU standards. On the strategic framework, some progress was achieved with the adoption of 
the 2023-2025 action plan for regional development, which however shows a gradual decline in funding 
for  Kosovo’s  regions  over  the  3-year  period  (2023:  EUR 4.3 million;  2024:  EUR 3.4 million;  2025: 
EUR 3.3 million).  

The institutional framework for the management of EU funds is not yet in place, and this also affects 
the  financial  management,  control  and  audit  systems  for  the  EU  funds,  which  remain  at  an  early 
stage.  The  national  systems  for  regional  development  are  underperforming  due  to  lack  of  funds, 
insufficient  involvement  of  regional  development  stakeholders  and  weak  inter-municipal  cooperation; 
they need to be significantly strengthened to boost regional growth and address regional disparities. The 
administrative  capacity  of  key  institutions  involved  in  programming  and  managing  the  EU  funds  is 
gradually improving but remains overall weak due to delays in the public administration reform and lack 
of effective mechanism for training on EU issues.  

78 

 
 
Kosovo still needs to improve the public investment planning and management and develop solid single 
project pipelines. 

Kosovo  advanced  on  the  monitoring  and  evaluation  of  EU  assistance  with  improved  steer  by  the 
National  Instrument for Pre-accession Assistance (IPA) Coordinator, regular dialogue with the EU, and 
improved annual reporting. Kosovo needs to further progress in this area and ensure the implementation 
of the recommendations of the IPA Monitoring Committee and SAA process. 

In  December  2023,  Kosovo  signed  three  cross-border  cooperation  financing  agreements  with  Albania, 
North  Macedonia,  and  Montenegro  for  2021-2027.  Kosovo  does  not  participate  in  transnational  and 
interregional cooperation programmes that cover the Western Balkans. 

CLUSTER 6: EXTERNAL RELATIONS  

This cluster covers: external relations (Chapter 30). 

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. 

On the common commercial policy, Kosovo has not adopted a comprehensive trade policy nor ratified 
the  CEFTA  Additional  Protocols  on  trade  facilitation  and  trade  in  services  nor  the  recently  adopted 
protocol  on  dispute  settlement.  The  government  supports  the  CRM  as  a  basis  for  a  regional  free  trade 
agreement. Kosovo continued to make progress in implementing technical measures of the CRM Action 
Plan  for  2021-2024,  notably  regarding  the  green  lanes.  Some  11  authorised  economic  operators  were 
licensed in 2023. The systematic exchange of electronic data was updated. The government approved a 
draft law on the ratification of the Agreement on the recognition of professional qualifications for nurses, 
surgeons, veterinarians, pharmacists and midwives in the context of CEFTA.  

There  is  an  urgent  need  to  strengthen  the  capacities  in  the  Ministry  for  Industry,  Entrepreneurship  and 
Trade,  including  staffing  numbers,  particularly  in  view  of  Kosovo’s  upcoming  CEFTA  chairmanship 
responsibilities in 2025, but also trade negotiations.  

Disagreements relating to Kosovo’s representation and denomination in CEFTA were resolved to allow 
for the unblocking of CEFTA’s decision-making mechanisms. Kosovo, along with all the participants in 
the  CRM  Action  Plan,  should  play  a  constructive  role  and  deliver  on  joint  commitments  set  out  in  the 
action plan. The ban on goods of Serbian origin, introduced in June 2023, was lifted in October 2024 and 
is  replaced  with  a  system  of  manual  checks.  In  July  2023,  following  requests  from  the  business 
community, the government lifted the measure for raw materials and half products.  

Kosovo’s Law on dual-use goods is aligned with the latest EU acquis, namely Regulation (EU) 2021/821 
and its annual updates as regards the list of dual-use items. Kosovo is neither a participant nor an adherent 
to the Australia Group. 

As  regards  bilateral  agreements  with  third  countries  on  economic/trade/technical  cooperation, 
Kosovo has free trade agreements with Türkiye and the United Kingdom, in addition to the enlargement 
countries  (CEFTA).  The  free  trade  negotiations  with  European  Free  Trade  Association  countries, 
launched in June 2022, are ongoing.  

There was limited progress in the areas of development policy and humanitarian aid. As a recipient of 
aid programmes, Kosovo does not provide humanitarian aid to third countries in a systematic manner and 
has no development aid agency. Kosovo is encouraged to start the process of creating a legal framework 

79 

 
 
 
covering  international  cooperation,  development  policy  and  humanitarian  aid,  in  accordance  with  EU 
policies and principles. Kosovo is also encouraged to build dedicated administrative structures.  

80 

 
 
 
 
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 a variety 
of  sectors.  Since  2016,  five  Stabilisation  and  Association  Council  meetings  and  seven  cycles  of 
subcommittee  meetings  have  taken  place.  Since  June  2023,  in  line  with  the  EU  measures  vis-à-vis 
Kosovo,  meetings  of  Stabilisation  and  Association  bodies  have  been  put  on  hold.  The  High 
Representative has recommended the lifting of those measures. 

On 2 April 2024, the government approved the National Programme for European Integration for 2024-
2028.  This  programme  sets  out  measures  and  priorities  for  the  implementation  of  the  SAA  as  well  as 
other reforms for Kosovo’s European path.  

To further guide the implementation of reforms, in November 2016, the Commission and Kosovo adopted 
the European Reform Agenda (ERA). In 2021, Kosovo adopted the second phase of the ERA (ERA II) 
through a dedicated action plan that expired in 2023 and is pending update.  

Kosovo formally submitted its application for EU membership on 15 December 2022. 

Visa liberalisation for Kosovo entered into force on 1 January 2024, allowing Kosovo biometric passport 
holders  to  travel  to  the  EU  without  a  visa for  a  period  of  stay  of  90  days  within  any  180-day  period. 
Following final adoption by the European Parliament and the Council, visa requirements were lifted for 
holders of passports issued by the Serbian Coordination Directorate.  

The  Instrument  for  Pre-accession  Assistance  (IPA)  III  allocations  under  the  bilateral  strand  reached 
EUR 233.8 million  for  2021-2023,  of  which  33.3%  for  fundamental  reforms  and  66.7%  for  sustainable 
and inclusive growth. This also includes funding for civil society, funding under the individual measures 
for migration  and  border management,  and  assistance  for  Kosovo’s  participation  in  Union  programmes 
such as Erasmus+, the Single Market Programme, the Citizens, Equality, Rights and Values Programme, 
Creative Europe, the Customs programme, the Fiscalis programme, Horizon Europe, Digital Europe, and 
the  Justice  programme.  To  enhance  access  to  EU  initiatives  and  funds,  Kosovo  is  participating  as 
observer in a pilot project under the Technical Support Instrument. 

Kosovo continues to benefit from the implementation of the EU assistance of EUR 602 million under the 
Instrument for Pre-accession II (2014-2020), 44% of which targets democracy, governance, rule of law 
and human rights while 56% has been allocated for competitiveness and growth. 

Kosovo also receives supplementary support under the multi-country and regional programmes and under 
three cross-border cooperation programmes – with Albania, North Macedonia and Montenegro.  

Under  the  Western  Balkans  Investment  Framework  (WBIF),  since  2009,  the  EU  provided  EUR  300 
million, mobilising total investments of EUR 2 billion for infrastructure projects. 

A  total  of  EUR 315 million  of  EU  funding  has  been  made  available  to  implement  the  Economic  and 
Investment Plan (EIP) for Kosovo, which is expected to mobilise EUR 892 million of total investment for 
priority high impact projects.  

Following the adoption of measures vis-a-vis Kosovo, the EU suspended the programming of the 2024 
IPA  and  the  approval  of  two  Western  Balkans  Investment  Framework  projects.  As  regards  ongoing 
support, procurement procedures and signing of new contracts were suspended.  

Under the Reform and Growth Facility, Kosovo could benefit from an indicative allocation of EUR 882 
million,  to  be  channelled  via  a  Reform  Agenda  covering  key  reforms  in  five  policy  areas:  governance, 
public administration reform and public financial management; green and digital transition; private-sector 
development  and  business  environment;  human  capital  development;  and  fundamentals  /  rule  of  law. 
Disbursement of Union support will be conditional on compliance with the preconditions – including, for 
Kosovo and Serbia, constructive engagement in the normalisation of their relations with a view to fully 

81 

 
 
implementing all their respective obligations stemming from the Agreement on the Path to Normalisation 
and  its  Implementation  Annex  and  all  past  Dialogue  Agreements  and  engage  in  negotiations  on  the 
Comprehensive Agreement on normalisation of relations.  

The  Kosovo  Specialist  Chambers  (KSC)  and  the  Specialist  Prosecutor’s  Office  (SPO)  set  up  to 
investigate and prosecute allegations stemming from the 2011 Council of Europe Report, continued their 
work, resolving pending cases. In December 2023, the KSC rendered its first appeal judgment in a case 
dealing with war crimes. The case was indicative of the challenges the KSC faces, including in terms of 
obstruction of justice, sentence enforcement, and compensation of Kosovan victims.  

Since 2008, the European Union Rule of Law Mission in Kosovo (EULEX) has been assisting Kosovo 
authorities in setting up sustainable and independent rule of law institutions. Under its current mandate 
(extended until June 2025), EULEX has limited executive functions. It continues to perform monitoring 
activities and the role of second security responder through its Formed Police Units. EULEX also assists 
the  KSC/SPO  with  logistical  and  operational  support  in  compliance  with  its  mandate  and  Kosovo 
legislation. 

Frontex  is  sending  officers  to  several  border-crossing  points  in  Kosovo  based  on  mutually  agreed 
operational  plans.  Additionally,  Frontex  provides  other  border  management-related  support  such  as 
advice on setting up a national coordination centre.  

To  date,  according  to  the government,  Kosovo has been  recognised  by  117 countries,  including  22  EU 
Member States.  

During  the  reporting  period,  the  UN  Secretary-General  continued  to  provide  regular  updates  on  the 
implementation  of  the  UN  mission  in  Kosovo  (UNMIK).  The  NATO-led  Kosovo  Force  (KFOR)  has 
continued to  help  ensure  a  safe and  secure  environment.  In  June 2024,  it  had  4 490  personnel  from  28 
contributing nations. 

Kosovo continued to condemn Russia’s unjustified and unprovoked military aggression against Ukraine 
and continues to implement restrictive measures against Russia and Belarus. As regards Kosovo support 
to Ukraine, the government allocated EUR 100 000 in humanitarian aid and dedicated funds to shelter 20 
journalists from Ukraine. Recently, Kosovo announced its first military aid packages for Ukraine.  

82 

 
 
 
 
 
ANNEX II - STATISTICAL DATA 

STATISTICAL DATA (as of 5/09/2024) 
Kosovo 

Basic data 
Population (thousand) 
Total area of the country (km²) 

National accounts 
Gross domestic product (GDP) (million national currency) 
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 (%) 
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 

Note 

2011 
1 794 bi 
10 908 w 

2018 
1 799 i 
10 905 w 

2019 
1 796 i 
10 905 w 

2020 
1 782 i 
10 905 w 

2021 
1 798 i 
10 905 w 

2022 
: 
10 905 w 

2011 
4 556 
4 556 
2 539 bi 
: 
: 
6.3 
: 
: 

: 
: 
: 

10.0 
23.6 
10.4 
56.0 i 
100.2 
31.2 
25.0 
61.2 
: 

2018 
6 672 
6 672 
3 709 i 
: 
: 
3.4 
C 
C 

C 
C 
: 

8.1 
24.2 
10.4 
57.2 i 
91.9 
31.7 
29.1 
57.3 
: 

2019 
7 056 
7 056 
3 930 i 
: 
: 
4.8 
C 
C 

C 
C 
: 

9.0 
23.4 
10.1 
57.5 i 
92.6 
31.0 
29.3 
56.4 
: 

2020 
6 772 
6 772 
3 800 i 
: 
: 
-  5.3 
: 
: 

: 
: 
: 

8.9 
24.1 
9.3 
57.7 i 
98.8 
29.7 
21.7 
53.9 
: 

2021 
7 958 
7 958 
4 426 i 
: 
: 
10.7 
: 
: 

: 
: 
: 

8.6 
23.6 
10.6 
57.2 i 
95.9 
32.9 
33.4 
65.2 
: 

2022 
8 896 
8 896 
: 
: 
: 
4.3 
: 
: 

: 
: 
: 

9.2 
23.3 
10.7 
56.9 i 
97.5 
32.5 
38.6 
71.4 
: 

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 (%) 

Note 

2011 
: 
31 556 w 
12.7 w 

2018 
: 
31 028 w 
4.8 w 

2019 
: 
34 615 w 
: 

2020 
: 
40 056 w 
: 

2021 
: 
45 468 w 
: 

2022 
: 
46 157 w 
: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Death rate: number of enterprise deaths in the reference period (t) divided by the number of 
enterprises active in t (%) 
People employed in SMEs as a share of all persons employed (within the non-financial 
business economy) (%) 
Value added by SMEs (in the non-financial business economy) (EUR million) 
Total value added (in the non-financial business economy) (EUR million) 

Inflation rate 
Consumer price index (CPI), change relative to the previous year (%) 

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) 
Total credit by monetary financial institutions to residents (consolidated) (million euro) 
**Annual change in financial sector liabilities (%) 

4.7 w 

3.7 w 

4.2 w 

2.6 w 

: 

: 

Note 

Note 

Note 

Note 

: 

: 
: 

2011 
: 

2011 
-  611.4 
- 2 047.1 
395.7 
111.2 
928.8 
322.2 
-  12.2 
: 
378.9 w 
5.5 w 
: 
384.4 w 
: 
2.4 w 
10.8 iw 

2011 
: 
5.3 ew 
27.1 w 
28.8 w 

2011 
31.4 iw 
125.7 w 
: 
1 840.9 w 
: 

77.6 iw 

77.8 iw 

80.9 iw 

82.1 iw 

81.3 piw 

: 
: 

2018 
1.1 d 

2018 
-  508.8 
- 2 737.7 
855.8 
113.1 
1 260.0 
226.1 
-  7.1 
37.5 
225.8 w 
46.3 w 
13.0 
272.1 w 
58.7 
-  6.1 w 
12.0 i 

2018 
-  1.0 w 
17.1 ew 
30.1 w 
29.6 w 

2018 
30.5 iw 
105.0 w 
: 
2 939.2 w 
: 

: 
: 

2019 
2.7 d 

2019 
-  399.5 
- 2 840.2 
926.0 
160.6 
1 354.1 
236.6 
-  6.3 
36.9 
188.4 w 
66.2 w 
6.1 
254.6 w 
158.6 
-  5.8 w 
12.1 i 

2019 
-  0.5 w 
17.5 w 
31.5 w 
30.5 w 

2019 
31.2 iw 
106.4 w 
: 
: 
: 

: 
: 

2020 
0.2 d 

2020 
-  472.2 
- 2 573.2 
391.6 
164.0 
1 545.4 
276.6 
-  6.8 
14.8 
286.6 w 
59.1 w 
16.5 
345.7 w 
152.1 
-  12.3 w 
14.5 i 

2020 
-  5.2 w 
21.8 w 
32.6 w 
34.4 w 

2020 
37.2 iw 
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 
48.5 
320.4 w 
100.3 w 
26.5 
420.7 w 
215.6 
-  11.6 w 
14.5 i 

2021 
: 
: 
: 
: 

2021 
37.4 iw 
111.9 w 
: 
: 
: 

: 
: 

2022 
11.6 d 

2022 
-  917.0 
- 4 287.2 
1 367.5 
119.8 
1 881.8 
295.9 
-  8.7 
34.6 
556.9 w 
175.2 w 
37.8 
732.0 w 
388.9 
-  17.9 w 
13.7 i 

2022 
: 
: 
: 
: 

2022 
38.6 iw 
: 
: 
: 
: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
**Private debt, consolidated, relative to GDP (%) 
Interest rates: day-to-day money rate, 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) 

: 
: 
1 w 
: 
: 

: 
: 
1 w 
: 
: 

: 
: 
1 w 
: 
: 

: 
: 
1 w 
: 
: 

: 
: 
1 w 
: 
: 

: 
: 
1 w 
: 
: 

-  61.2 

86.8 

95.2 

46.3 

168.9 

67.6 

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 (%) 
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 
(%) 

Note 

Note 

Note 

2011 
2 437 
307 
- 2 131 
97.2 iw 
43.3 iw 
39.9 iw 

2011 
11.5 b 

13.1 
: 
: 

2011 
: 

: 

: 
: 
: 

: 
: 
: 
: 
: 

: 

2018 
3 347 
368 
- 2 980 
91.0 iw 
27.5 iw 
42.7 iw 

2018 
7.7 

10.6 
: 
: 

2019 
3 497 
384 
- 3 114 
94.2 iw 
33.2 iw 
49.1 iw 

2019 
6.9 

8.7 
: 
: 

2020 
3 297 
475 
- 2 822 
92.6 iw 
34.4 iw 
45.9 iw 

2020 
7.4 ep 

: 
: 
: 

2021 
4 684 
756 
- 3 929 
101.4 iw 
31.5 iw 
44.3 iw 

2021 
: 

: 
: 
: 

2022 
5 639 
920 
- 4 719 
87.5 iw 
33.9 iw 
42.4 iw 

2022 
: 

: 
: 
: 

2018 
46.6 w 

2019 
45.2 w 

2020 
42.9 w 

2021 
43.9 w 

2022 
43.2 w 

33.2 w 

34.2 w 

32.3 w 

35.1 w 

37.9 w 

52.6 w 
14.1 w 
31.5 w 

3.5 w 
14.3 w 
11.9 w 
70.3 w 
30.8 w 

53.0 w 
15.6 w 
32.2 w 

5.2 w 
15.1 w 
12.6 w 
67.1 w 
27.6 w 

48.8 w 
16.0 w 
30.9 w 

4.8 w 
16.3 w 
11.1 w 
67.9 w 
28.7 w 

51.9 w 
18.5 w 
32.1 w 

2.8 w 
14.8 w 
10.5 w 
71.9 w 
28.3 w 

55.7 w 
20.5 w 
32.1 w 

2.2 w 
13.3 w 
11.0 w 
73.4 w 
27.7 w 

69.2 w 

72.4 w 

71.3 w 

71.7 w 

72.3 w 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unemployment rate: proportion of the labour force that is unemployed (%) 
Male unemployment rate (%) 
Female unemployment rate (%) 
Youth unemployment rate: proportion of the labour force aged 15–24 that is unemployed (%) 
Long-term unemployment rate: proportion of the labour force that has been unemployed for 
12 months or more (%) 
Unemployment rate for persons (aged 25–64) having completed at most lower secondary 
education (ISCED levels 0-2) (%) 
Unemployment rate for persons (aged 25–64) having completed tertiary education (ISCED 
levels 5-8) (%) 

Social cohesion 
Average nominal monthly wages and salaries (national currency) 
Index of real wages and salaries (index of nominal wages and salaries divided by the 
inflation index) (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 

: 
: 
: 
: 
: 

: 

: 

2011 
: 
: 

: 
: 
: 

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 

12.5 w 
11.0 w 
16.5 w 
21.4 w 
8.1 w 

35.8 w 

28.3 w 

30.2 w 

27.6 w 

21.8 w 

16.8 w 

18.0 w 

17.0 w 

13.7 w 

9.7 w 

2018 
453 w 
: 

44 w 
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 
: 

57 w 
65.0 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) 

Note 

2011 
94.9 biw 
: 

2018 
155.9 iw 
1 281.1 ew 

2019 
162.2 iw 
1 266.4 ew 

2020 
164.4 iw 
1 095.0 ew 

2021 
179.3 iw 
1 072.0 ew 

: 
: 

73.9 ew 
18 ew 

78.4 ew 
20 ew 

84.5 ew 
21 ew 

88.4 ew 
22 ew 

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

Length of motorways (kilometres) 

Education, innovation and research 
Public expenditure on education relative to GDP (%) 
*Gross domestic expenditure on R&D relative to GDP (%) 
Government budget appropriations or outlays on R&D (GBAORD), as a percentage of GDP 
(%) 
Percentage of households who have internet access at home (%) 

Note 

Note 

2011 
30.5 iw 

38 w 

2011 
: 
: 
: 

2018 
30.5 iw 

119 w 

2018 
4.5 iw 
: 
: 

2019 
30.5 iw 

137 w 

2019 
4.6 iw 
: 
: 

2020 
30.5 iw 

137 w 

2020 
4.6 iw 
: 
: 

2021 
30.5 iw 

137 w 

2021 
4.3 iw 
: 
: 

: 

93.2 

93.2 

96.4 

: 

: 

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

Note 

2011 
: 

2018 
: 

2019 
: 

2020 
: 

2021 
: 

2022 
: 

2022 
521 w 
: 

: 
: 
7.8 w 

2022 
191.2 iw 
: 

88.2 ew 
23 ew 

2022 
30.5 iw 

137 w 

2022 
3.9 iw 
: 
: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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) (2015 = 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 

525.2 

398.1 

392.3 

413.9 

405.0 

358.0 

1.4 
: 

2011 
1 795 
0 
1 545 
0 
699 i 
2 541 
5 801 

2011 
99.3 w 
408.5 e 
: 
: 
: 
: 
435.0 
: 
162.1 

4.2 
: 

2018 
1 822 
0 
1 428 
0 
757 i 
2 585 
5 915 

2018 
108.3 w 
419.5 
259.7 
40.2 
209.8 i 
334.3 
441.8 
: 
155.3 

5.2 
: 

2019 
1 849 
0 
1 503 
0 
815 i 
2 669 
6 351 

2019 
119.0 w 
421.0 
257.7 
40.5 
216.3 i 
: 
459.4 
: 
177.8 

5.3 
: 

2020 
1 901 
0 
1 562 
0 
787 i 
2 665 
6 711 

2020 
120.5 w 
421.1 
261.4 
45.4 
241.7 i 
: 
529.1 
: 
169.4 

5.1 
: 

2021 
1 937 
0 
1 591 
0 
942 i 
2 888 
6 892 

2021 
115.3 w 
421.2 
260.5 
47.4 
241.4 i 
: 
504.4 
: 
165.0 

5.8 
: 

2022 
1 796 
0 
1 543 
0 
858 i 
2 662 
6 998 

2022 
113.3 w 
421.4 
250.9 
45.4 
233.5 i 
: 
518.7 
: 
175.6 

: = not available 
b = break in series 
C =  confidential value 
d =  definition differs 
e = estimated value 
p = provisional 
i = Eurostat estimate 

w= data supplied by and under the responsibility of the national statistical authority and published on an "as is" basis and without any assurance as regards their 
quality and adherence to EU statistical methodology 
* = Europe 2020 indicator 
** = Macroeconomic Imbalance Procedure (MIP) indicator