EUROPEAN
COMMISSION

Brussels, 10.10.2012
COM(2012) 602

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN
PARLIAMENT AND THE COUNCIL
on a Feasibility Study for a Stabilisation and Association Agreement between the
European Union and Kosovo∗
{SWD(2012) 339}

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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.

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COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN
PARLIAMENT AND THE COUNCIL
on a Feasibility Study for a Stabilisation and Association Agreement between the
European Union and Kosovo∗

1.

INTRODUCTION

The main principles of the Stabilisation and Association Process (SAP) were set out in a
Commission Communication of May 19991 and were confirmed by the Council in June 1999.
Through this process, the European Union (EU) expresses its determination to take up the
challenge and responsibility to contribute to the stability of the Western Balkans region. In
return for compliance with the relevant conditions, the EU offers the countries tailor-made
contractual relations: Stabilisation and Association Agreements. The conditions for
establishing contractual relations with the Western Balkans countries are set in the Council
Conclusions of April 1997. The main elements include a credible engagement to undertake
democratic reforms, respect and protect human rights, minorities and freedom of expression,
and free and regular elections. The Council also expects implementation of the first economic
reforms, readmission from Member States and commitment to the regional cooperation.
The Feira European Council (June 2000) gives a clear signal to the Western Balkans region
establishing the status of potential candidates for membership. This message is further
reinforced by the summit in Zagreb (November 2000). The European Council Conclusions of
March 2003 state that the future of the Western Balkans is within the EU and strong political
will and sustained efforts are required to secure it. The Thessaloniki agenda for the Western
Balkans of June 2003 makes clear that the Western Balkans countries and support to their
preparation for the future integration into the European structures and ultimate membership
into the Union is a high priority for the EU.
To date, feasibility studies have been prepared for Albania, Bosnia and Herzegovina, Croatia,
the former Yugoslav Republic of Macedonia, Serbia and Montenegro. Stabilisation and
Association Agreements have subsequently been signed with all these countries. The
December 2011 Council recalls the EU's willingness to assist the economic and political
development of Kosovo through a clear European perspective, in line with the European
perspective of the region. The Council underlines the need to take concrete steps to that effect.
In February 2012, the Council takes note of the intention of the Commission to launch the
feasibility study for a Stabilisation and Association Agreement between the European Union
and Kosovo, without prejudice to Member States' position on status, or any future decisions to
be taken by the Council.
In the context of the Council Conclusions of February 2012, the Commission made a
Declaration stating that "the Commission's feasibility study will examine whether the
political, economic and legal criteria for a Stabilisation and Association Agreement are

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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.
COM(1999) 235 final.

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fulfilled. The launch of the feasibility study for a Stabilisation and Association Agreement
with Kosovo is without prejudice to the legal status and Member States' positions on the
recognition of Kosovo".
Methodology
This study is based on the findings presented in the Commission Staff Working Document.2
This has been compiled on the basis of a questionnaire completed by the Kosovo authorities,
an assessment mission of 20 experts, contributions from the EU Office in Pristina,
international organisations and non-governmental organisations. The study assesses whether
Kosovo is ready to negotiate and subsequently can implement a Stabilisation and Association
Agreement. The document identifies priority issues to be addressed before negotiations can
start and priority areas that Kosovo would need to address to be able to meet its obligations
under a Stabilisation and Association Agreement.
Legal aspects
The possibility for the Union to conclude international agreements is not limited to generally
recognised independent states or international organisations. Such agreements can be
concluded with any entity with regard to which the other Contracting Party accepts that it can
enter into an agreement that will be governed by public international law. In the past, the EU
has concluded several international agreements with entities other than sovereign states.
These agreements were concluded by the Council on the basis of Article 218 Treaty on the
Functioning of the EU (TFEU) (or the predecessor articles, Article 300 -and previously 228EC). In this context, it is important to note that the use of Article 218 TFEU, as the legal basis
for an agreement with Kosovo, does not constitute recognition of Kosovo by the Union as an
independent state nor does it constitute recognition by individual Member States of Kosovo,
provided that an express reservation to that effect is made. Equally, it does not constitute a
reversal of recognition by the Member States which have already recognised.
There is no legal obstacle for the Union to conclude on that basis an association agreement
with Kosovo. There is no precise definition of that notion in EU-law: Article 217 TFEU
indicates that such an agreement establishes "an association involving reciprocal rights and
obligations, common action and special procedure". It follows from the Union's practice that
association agreements create special, privileged links with a third country. In particular,
association agreements always lay much emphasis on the shared values and principles,
comprise an important trade component, provide for approximation of the country's national
legislation and policies with all core policies of the Union, and organise cooperation on
almost any area of Union competence. The association is developed through an institutional
framework, which not only includes a decision-making mechanism, but provides also
intensive dialogue at civil service level.
Consequently, the Union can conclude such an agreement with a third country if its political
and judicial authorities are capable to ensure that the terms of the agreement are respected,
applied and implemented. It is precisely the purpose of this feasibility study to examine
whether the political and economic development of Kosovo would allow it to undertake the
extensive obligations of an association agreement. From the legal point of view, however, it
suffices to find that the fact that some Member States do not recognise Kosovo as an
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SWD(2012) 339 final.

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independent state does not constitute a legal obstacle for the Kosovo authorities to implement
the obligations that would arise from an association agreement. The association of Kosovo to
the European Union is not in conflict with the fact that the Member States of the Union have
different positions on the status of Kosovo under international law. Moreover, the precise
legal nature of the agreement would have to be determined at the end of the negotiations, in
view of its actual content and taking duly into account the legal context.
The international presence3 in Kosovo does not constitute an obstacle for the Kosovo
authorities to implement the obligations arising from a Stabilisation and Association
Agreement. Such an agreement would not be in contradiction with the United National
Security Council Resolution 1244 of 1999 and is consistent with the current presence of the
United Nations Interim Administration Mission in Kosovo.
The International Civilian Office (ICO) was set up to supervise the implementation of the
Comprehensive Proposal for a Status Settlement for Kosovo. On 10 September, the
International Steering Group (ISG), having determined that Kosovo had substantially
implemented the terms of the Comprehensive Settlement proposal and Kosovo having
adopted the necessary constitutional and legal framework, declared the end of the supervision
of Kosovo's independence, and the end of the mandate of the International Civilian
Representative. As a consequence, the International Civilian Office will be closed by the end
of 2012. Following this process, the EU will take on a more prominent role in Kosovo.
The central aim of the EU rule of law mission, EULEX, is to assist and support the Kosovo
authorities in key areas of the rule of law – police, judiciary and customs. Its mandate has
certain executive responsibilities. If an association agreement were concluded, this EU
mission would, within its remit, support the Kosovo authorities in the implementation of such
an agreement.
Aspects related to the north of Kosovo
The north of Kosovo refers to an area which includes the municipalities of
Leposaviq/Leposavić, Zubin Potok and Zveçan/Zvečan as well as the part of
Mitrovicë/Mitrovica municipality north of the river Ibër/Ibar. This area is predominantly
inhabited by Serbs.
Serbia has continued to fund and maintain certain structures in this part of Kosovo. This
includes not only hospitals and schools, but also municipal administrations, security services
and judicial structures. Currently, the Mitrovica District Court can only operate with the
support of EULEX judges. The Serbian power utility maintains an unlicensed branch in the
north, unlicensed Serbian mobile telephony companies continue to operate and the population
in the north frequently uses alternative roads to cross the border/boundary line.
The north of Kosovo faces a difficult economic situation. The local population is overly
dependent on public employment and social assistance financed by Belgrade. The area's

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It can be recalled that the presence in Bosnia and Herzegovina of a High Representative, supported by
the Office of the High Representative (OHR), appointed by the Peace Implementation Council to
oversee the civilian implementation of the Dayton Peace Agreement, was not considered a legal
impediment for the signature of a Stabilisation and Association Agreement between the European
Union and Bosnia and Herzegovina.

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potential in terms of natural resources, such as the Trepça/Trepča mine, remains largely
under-developed.
In 2011, a census was conducted across Kosovo, but it did not include data on these parts of
Kosovo. At the time of the last Kosovo elections, the turnout in these municipalities was
extremely low. In May 2012, the municipalities of Zubin Potok and Zveçan/Zvečan
unilaterally organised separate local elections at the same time as elections were held in
Serbia. These elections were not recognised by Pristina, Belgrade or international community.
Following the deployment of Kosovo police and customs to the border/boundary crossing
points over the summer 2011, a number of barricades were erected. Most have now been
dismantled. There is still a barricade on the main bridge across the Ibër/Ibar river. The current
situation with outbursts of violence and frequently heightened tensions is not sustainable.
KFOR and EULEX have an important role to play in helping maintain calm.
Belgrade/Pristina dialogue
The situation in the north of Kosovo remains a challenge for Kosovo, Serbia, Western
Balkans region and international community. Following the UN General Assembly
Resolution of September 2010, the EU has facilitated a dialogue between Pristina and
Belgrade. The dialogue was launched in March 2011 to promote cooperation, achieve
progress on the path to the European Union and improve the lives of the people. To date, the
parties have reached agreements on free movement of persons, customs stamps, recognition
of university diplomas, cadastre records, civil registries, IBM and on regional cooperation.
Both Kosovo and Serbia need to continue implementing in good faith all agreements reached
to date and to engage constructively on full range of issues with the facilitation of the EU.
Further progress on the issues in the north will require all relevant actors involved to work
together in a constructive spirit. The Kosovo authorities need to do their part. They need to
promote a multi-ethnic Kosovo and to respect the particular needs of the local population.
Kosovo has continued preparing an agenda for the north in line with the Council Conclusions
of December 2011. Non-Serb minorities in the north will also benefit from normalisation in
this part of Kosovo.
The current situation is challenging and needs to be urgently improved. In this regard, the
Commission considers that the benefits of a Stabilisation and Association Agreement would
serve as an encouragement for the population of all of Kosovo, including the north.
2.

RELATIONS BETWEEN THE EUROPEAN UNION AND KOSOVO

Kosovo has gradually strengthened its structures dealing with European integration processes.
Kosovo has established a National Council for EU Integration chaired by the President. The
objective of this National Council is to mobilise Kosovo institutions to deliver on its EU
reform agenda. The Ministry of European Integration leads a Task Force for European
Integration. The Ministry has demonstrated a good ability to mobilise other ministries and
institutions by coordinating a comprehensive contribution of Kosovo to the preparation of this
feasibility study.

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Review of the 2009 Communication on Kosovo – Fulfilling its European perspective4
In 2009, the Commission issued a Communication on Kosovo, which included
recommendations for a number of practical steps the EU could take to ensure Kosovo's
continued progress towards Europe.
The EU has launched a visa liberalisation dialogue and presented the visa liberalisation
roadmap to the Kosovo authorities; the Kosovo authorities have now submitted their first
report. The EU agreed to extend the Autonomous Trade Measures for Kosovo in 2011.
Kosovo has also been included in the Convention on Pan-Euro-Med Cumulation of Origin, in
which it can actively participate once a trade agreement is in place. Kosovo continues to
prepare for integration into the economic and fiscal surveillance framework. In December
2011, the Council recognised that Kosovo's socio-economic development would also be
enhanced through membership of the European Bank for Reconstruction and Development.
In March 2011, the Commission recommended to the Council to authorise it to negotiate a
framework agreement allowing Kosovo to participate in EU programmes. The Commission
and Kosovo have completed three cycles of the Stabilisation and Association Process
Dialogue. This Dialogue has proven an effective mechanism to monitor and advise Kosovo on
measures it has to take to implement its European reform agenda. This mechanism also
provides for consultations with civil society organisations.
Kosovo benefits from the Instrument for Pre-Accession Assistance cross-border cooperation
programmes with Albania, the former Yugoslav Republic of Macedonia and Montenegro.
Kosovo's allocations for Erasmus-Mundus, Tempus and the Young Cell scheme under the
Instrument have increased. Overall, within the 2007-2013 framework, € 635.4 million is
available to Kosovo.
Jointly with the Kosovo authorities, the Commission launched a Structured Dialogue on the
Rule of Law. This demonstrates the political commitment of the Kosovo authorities and the
Commission to address challenges in this area early in the enlargement process.
EU presence in Kosovo
The double-hatted office of the EU Special Representative and the International Civilian
Representative has been decoupled. The office of the EU Special Representative and the
European Commission Liaison Office have been merged into one EU Office. This has
enhanced the EU's presence and visibility in Kosovo. To reflect increasing capacities of the
Kosovo authorities, the mandate of EULEX has been reconfigured and downsized. To assist
the Kosovo authorities in facing the remaining challenges, its mandate has been extended
until June 2014. Kosovo needs to maintain good cooperation with the mission and actively
support the implementation of its mandate. The Commission is cooperating closely with
EULEX throughout its reconfiguration to ensure a smooth transition and sustained support to
the Kosovo authorities.
Kosovo in the regional context
Kosovo participates in the Regional Cooperation Council, the Energy Community Treaty, the
South East-Europe (SEE) Transport Observatory and CEFTA, and is ready to participate in

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COM(2009) 534 final.

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other regional initiatives. The formula for Kosovo's participation in regional cooperation
arrangements agreed in February 2012 is a good basis for Kosovo to increase and extend its
direct participation in these mechanisms. These include the Transport Community Treaty,
judicial cooperation, and arrangements for employment and social policies within the
framework of SEE Employment and Social Policy Network and the SEE Health Network. It
should also ensure Kosovo's full participation in the Roma Decade.
3.

ASSESSMENT

3.1.

Political issues

Kosovo's political system is based on the principles of a parliamentary democracy. These
principles are enshrined in its constitution and legal framework. Over the past three years, the
functioning of democratic institutions and the respect for the rule of law have been
consolidated. The necessary institutions have been established.
The president, government and parliament are the main institutions responsible for driving
forward the reform process. The Constitutional Court has played an important role in
guaranteeing democratic principles and respect of the constitution, for example through its
judgements on the mandate of the current President. The cooperation on legislation between
the government and the parliament has also been gradually improving. Kosovo has
demonstrated sufficient commitment to the democratic principles of governance to start
negotiating a Stabilisation and Association Agreement. To meet its obligations under such an
agreement, Kosovo needs to continue to implement democratic reforms. In particular, the
Assembly and its committees need to strengthen their oversight of the executive and the
security sector, through improved scrutiny of legislation and monitoring of implementation of
policies and laws. The financial and administrative independence of the Assembly from the
government needs to be strengthened. This can be achieved through adopting legislation on
the status of civil servants of the Assembly. It is also important to ensure that the draft budget
of the Assembly is modified by the government in consultation with the Assembly before the
government submits the budget proposal to the Assembly for adoption.
Kosovo has held regular elections at both central and municipal levels. The electoral system
allows for competition between different political parties and free choice for voters. This has
resulted in a differing composition of governing coalitions over time. The most recent general
elections in 2010/2011 demonstrated that new political parties can enter the Assembly.
Kosovo is ready to start negotiating a Stabilisation and Association Agreement. At the same
time, these elections were marked by serious shortcomings and technical difficulties.
Therefore, Kosovo needs to ensure that the legal framework improves to better reflect best
practices and standards in the EU to meet its obligations under such an agreement.
On the rule of law, the legal framework is complex, including legislation from the former
Yugoslavia and from the Federal Republic of Yugoslavia, UNMIK legislation and new
Kosovo legislation. Some elements of the necessary legislative reforms for the fight against
organised crime have been put in place. Several important laws are still missing or need
amendment, notably in the area of money laundering and asset confiscation. In the short term,
Kosovo needs to demonstrate a clear commitment to deliver results in the fight against
organised crime, including launching investigations, in close coordination with EULEX.
Kosovo needs to adopt new legislation on confiscation of assets and adapt to the acquis the
law on the prevention of money laundering and financing of terrorism.

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Enforcement of the legal framework for the fight against various forms of organised crime
remains an important challenge. For Kosovo to meet its obligations under a Stabilisation and
Association Agreement, concrete evidence of results in fighting organised crime needs to be
given as a matter of priority. Kosovo also needs to continue in strengthening and
implementing its legislation particularly on prevention and fighting against trafficking in
human beings, drugs, their precursors and weapons trafficking. Kosovo also needs to improve
the reliability of its statistics.
Kosovo has put in place important elements of the legislative framework necessary for the
fight against corruption. Examples include legislation on declaration of assets, preventing
conflicts of interest in exercising public functions, whistle-blowers, public procurement and
financing of political parties. It is important that Kosovo now achieves tangible results in this
area.
Over the past three years, the prosecution service and the police have been reorganised to
strengthen their capacity to tackle corruption. Kosovo also has an Anti-Corruption Agency
with the right of administrative investigation and reporting. The capacity of the Agency
corresponds to its responsibilities. In the short term, Kosovo needs to demonstrate a clear
commitment to deliver results in the fight against corruption, including launching
investigations, in close coordination with EULEX. Kosovo needs to adopt a new anticorruption strategy.
To meet its obligations under a Stabilisation and Association Agreement, Kosovo also needs
to effectively implement its anti-corruption legislation and establish an effective mechanism
for prevention of corruption. As a matter of priority, Kosovo needs to provide concrete
evidence of results in its fight against corruption. This would include successful investigations
and prosecutions of appointed and elected officials guilty of corruption. Kosovo also needs to
improve the reliability of the statistics in this area.
The Council Conclusions of April 1997 underline the importance of satisfactory readmission
procedures. Within the framework of the visa liberalisation process, Kosovo has adopted a
law on readmission and continues to cooperate on readmission issues with EU Member
States. It needs to fully implement its law on readmission and needs to ensure the
reintegration of the returned persons.
Over the past three years, Kosovo has adopted legislation for major judicial reforms. The
principles of impartiality, independence, accountability and efficiency are at the heart of this
reform. The reforms change the structure of the court system and the prosecution. A
Prosecutorial Council has been established and the Judicial Council has been strengthened.
Key institutions of the judiciary are in place, although in the court in northern Mitrovica only
EULEX judges are present. They have progressively increased their capacity and have a good
understanding of how to take these reforms forward. The efforts made to reduce the backlog
of old cases are now slowly showing results. While implementing the new structure of courts,
Kosovo needs to ensure that the Special Prosecution responsible for cases of organised crime,
war crimes and corruption maintains its competencies.
It is clear that Kosovo faces many important challenges in this area. To meet its obligations
under a Stabilisation and Association Agreement, Kosovo needs to continue improving the
effectiveness, accountability and impartiality of the judiciary. It needs to successfully
implement the four main judicial reform laws, including by ensuring their consistency.
Kosovo needs to take measures to decrease the total backlog of cases. The Kosovo authorities

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need to provide appropriate security and protection to judges, prosecutors, witnesses and
plaintiffs, as well as court staff. Kosovo needs to ensure trials are conducted in appropriate
premises and in line with court procedures. Recruitment of judges and prosecutors from
minorities, as set out in the legislative framework, needs to continue.
The legal framework providing for the basic conditions for a stable and professional civil
service is largely in place. Legislation is inspired by the latest approaches to public
administration in Europe. The capacity of the public administration at the central level are
better developed than those at the municipal level. Kosovo has also established the institution
of the Ombudsperson, which is a key independent body to promote human and fundamental
rights. The Ombudsperson however faces challenges, notably in terms of budget and
premises.
In the short term, Kosovo needs to adopt the necessary secondary legislation on civil service
and on salaries for the civil service. Furthermore, it needs to allocate premises to the
Ombudsperson and to ensure its budgetary independence. The government needs to include
the Ombudsperson's draft budget proposal without modifications into the global draft budget
submitted to the parliament.
At the same time, Kosovo needs to continue to implement the necessary reform of the public
administration. To meet its obligations under a Stabilisation and Association Agreement,
Kosovo needs to make progress in implementing the public administration strategy and action
plan and related legislation. It also needs to ensure sustainable public administration reform,
including the necessary funding and staffing. The share of persons belonging to minorities in
the public administration needs to be increased. An efficient and professional public
administration is key for the successful implementation of an agreement.
The constitution of Kosovo and the overall legislative framework provide guarantees for basic
human rights and the protection of minorities. Although Kosovo is not a member of the
UN or the Council of Europe, its constitution stipulates that key UN and Council of Europe
conventions and protocols are directly applicable in Kosovo and take precedence over
Kosovo's legislation. Over the past three years, Kosovo has taken steps to implement these
provisions in practice.
There are important challenges that need to be addressed by Kosovo in order to meet its
obligations under a Stabilisation and Association Agreement. This area is particularly
important in light of the new EU Strategic Framework and Action Plan on Human Rights and
Democracy adopted by the Council in June 2012. Kosovo needs to investigate and prosecute
any physical attacks against journalists and complete the parliamentary procedure changing
the Criminal Code on criminal liability of the media and protection of journalist sources.
Kosovo also needs to streamline and simplify the multitude of different bodies dealing with
the protection of human and fundamental rights to ensure effective monitoring and
enforcement of the legal framework in this area. Kosovo needs to make progress in enforcing
property rights, for example through decreasing the backlog of cases and improving
enforcement of judicial and administrative decisions. Legislation on personal data protection
needs to be further harmonised with EU standards and administrative capacities strengthened
in this area.
The legislative framework for the protection of minorities is in place, including constitutional
guarantees. According to Kosovo's constitution, the Council of Europe Framework
Convention for the Protection of National Minorities is directly applicable in Kosovo. Persons

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belonging to minorities are well represented in the Assembly and in political functions at the
government level.
With strong international support, Kosovo has continued offering the possibility of return for
displaced persons. Overall, over 23,000 persons belonging to minorities have returned to
Kosovo since 2000.
Kosovo has also started implementing decentralisation, including the establishment of new
municipalities with a majority of minority population. In the short term, Kosovo needs to
ensure existence of a body enabling direct consultation on the promotion and protection of
religious and cultural heritage with religious communities, notably the Serbian Orthodox
Church.
To meet its obligations under a Stabilisation and Association Agreement, Kosovo needs to
promote a multi-ethnic Kosovo, by creating conditions for Kosovo Serbs to feel part of
Kosovo's future and to facilitate return for persons wishing to do so. The Commission also
expects that Kosovo will continue to implement decentralisation, notably in the new
municipalities and thereby help the integration of Kosovo Serbs. Budget, staff and premises
need to be allocated to the Office of the Language Commissioner.
Kosovo also needs to implement legislation on protection of the cultural heritage and of the
Serbian Orthodox Church, notably laws on the historic centre of Prizren and on the village
Velika Hoča/Hoçë e Madhe. The Kosovo public broadcaster needs to ensure broadcasting in
Serbian language. Attacks motivated by ethnicity or religion need to be investigated and
perpetrators brought to justice and discrimination tackled. With regard to Roma, Ashkali and
Egyptians who still live in very poor conditions, Kosovo needs to demonstrate progress on
implementation of the strategy and action plan, including through allocation of the necessary
resources.
On war crimes, Kosovo has maintained good cooperation with the International Criminal
Tribunal for the former Yugoslavia. Kosovo also needs to support the work of the Special
Investigative Task Force of EULEX.
3.2.

Economic issues

Kosovo has implemented the initial essential reforms towards establishing a fully functioning
market economy. This is sufficient to establish contractual relations with countries from the
Western Balkans, as stated in the Council Conclusions of April 1997. At the same time,
Kosovo's economy faces many important challenges. Unemployment is very high and the
private sector remains weak. Informalities are widespread and the rule of law needs to be
enhanced to improve the business environment and support private sector development.
Significant further efforts are needed to better target economic policies, address fiscal
consolidation, job creation and competitiveness issues, and promote private investments to
achieve more sustainable and inclusive growth.
3.3.

Ability to assume the obligations resulting from a Stabilisation and Association
Agreement

The Commission analysis confirms that for majority of the sectors, Kosovo has put in place
elements of the legislative framework and the basic administrative capacity. This is sufficient
to start negotiating a Stabilisation and Association Agreement. At the same time, the Staff

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Working Document highlights that there are significant gaps and many issues that need to be
addressed by Kosovo, to meet its obligations under such an agreement.
Trade is a key sector in the context of a Stabilisation and Association Agreement. Kosovo has
a liberal trade regime and is a very open economy, with few restrictions to trade. Kosovo is a
member of CEFTA and has a tariff-free regime for all industrial goods and agriculture
products with all members of CEFTA. Kosovo also enjoys customs-free access to the EU
market for manufactured products and almost all agricultural products, through the EU's
autonomous regime. Kosovo has been taking steps to modernise the regulatory framework
related to the free movement of goods with a view to approximation with the acquis by
adopting new legislation in line with EU standards and eliminating non-EU compatible
regulations.
The Ministry for Trade and Industry is being reorganised to improve capacity in this area in
view of the trade-related parts of a Stabilisation and Association Agreement. The restructuring
has not yet been fully completed. Therefore, in the short term Kosovo needs to implement the
government decision on the restructuring of the Ministry and put in place a structure to lead
and coordinate such negotiations. To improve the understanding of the impact of trade
provisions of a Stabilisation and Association Agreement on Kosovo's economy, Kosovo needs
to prepare an analytical study, including a clear statement of its negotiating priorities.
There are further areas in which Kosovo needs to make progress to meet its obligations under
a Stabilisation and Association Agreement. One of the key elements is implementation of the
legal framework on trade, competition and internal market issues. Illegal animal trade and
slaughtering continues and Kosovo needs to enhance control of these practices. The controls
at livestock markets also need to be strengthened. Kosovo would benefit from improved
business statistics.
To meet its obligations under a Stabilisation and Association Agreement, Kosovo needs to
enhance facilities dedicated to the phytosanitary and veterinary import controls as well as the
capacity to transfer samples. The transfer of the food safety and veterinary inspectors from
municipalities to the Kosovo Food and Veterinary Agency needs to be finalised. Data entry
into the animal identification, registration and movement database needs to be systematised.
The laboratories involved in food controls need to be accredited.
4.

OVERALL CONCLUSIONS AND RECOMMENDATIONS

Kosovo has made considerable progress on its path towards the EU since the conflict of the
late 1990s. It has put in place a stable institutional and legal framework required for
democratic governance and protection of human rights, of all minorities living in Kosovo as
well as of rights of returning displaced persons.
The core institutional and legal framework to ensure the rule of law is in place. The legislation
provides for strong guarantees of the independence of the judiciary. The basic institutions of
the judiciary have started to perform their role. The legal framework necessary for a stable
and professional public administration is also largely in place.
Kosovo has implemented the initial essential reforms towards establishing a functioning
market economy. Kosovo has a liberal trade regime and is overall, a very open economy, with
few restrictions to trade. One of the key economic challenges Kosovo faces is a very high
level of unemployment.

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Through engagement in the EU-facilitated dialogue with Serbia, Kosovo has demonstrated
commitment to regional cooperation and stability. Kosovo has also established good relations
with most of its neighbours. It participates in some of the regional fora and chaired CEFTA.
Over the past three years, Kosovo has increased its capacity to meet obligations stemming
from a Stabilisation and Association Agreement. Kosovo is currently the only country of the
Western Balkans that does not yet have contractual relations with the EU or benefit from the
visa liberalisation. In trade, it relies on EU autonomous trade measures.
From a legal point of view, the EU can conclude a Stabilisation and Association Agreement
with Kosovo, as per Articles 217 and 218 TFEU. A Stabilisation and Association Agreement
between Kosovo and the EU can be concluded in a way that it respects the positions of
Member States on the status of Kosovo. On several occasions, the Council has confirmed the
European perspective of the Western Balkans. Most recently, the Council confirmed this
perspective for Kosovo in December 2011. Kosovo’s European ambitions enjoy strong
support from the general public in Kosovo.
The situation in the north of Kosovo remains an important challenge for Kosovo, the Western
Balkans region at large as well as the EU. All actors involved need to take positive and
proactive steps to help resolve this situation. It is for the Kosovo authorities to promote a
multi-ethnic Kosovo. They need to create conditions for Kosovo Serbs to feel they have future
in Kosovo. The current situation is not an obstacle to negotiate the agreement, but further
improvements are required for Kosovo to meet the obligations under a Stabilisation and
Association Agreement. It is in the interest of people living in this part of Kosovo to benefit
from the provisions of a possible future Stabilisation and Association Agreement. The EU is
committed to help all parties concerned to find solutions to improve the lives of people living
in the north of Kosovo.
The analysis presented in the Staff Working Document and summarised in this
Communication suggests that Kosovo is largely ready to open negotiations for a Stabilisation
and Association Agreement. It is also essential that Kosovo continues implementing in good
faith all agreements reached between Belgrade and Pristina to date and that it engages
constructively on the full range of issues with the facilitation of the EU. On this
understanding, the Commission will propose negotiating directives for such an agreement,
once Kosovo takes the following steps:

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Rule of law: demonstrate a clear commitment to deliver results in the fight against
organised crime and corruption, including launching investigations and ensuring
continuous good cooperation with EULEX. Support the work of the Special
Investigative Task Force. While implementing the new structure of courts, ensure
that the Special Prosecution responsible for cases of organised crime, war crimes and
corruption maintains its competencies. Adopt the legislation on confiscation of assets
and revise the law on prevention of money laundering and financing of terrorism.
Adopt a new anti-corruption strategy.

•

Public administration: adopt the necessary secondary legislation of laws on civil
service and on salaries for the civil service. Allocate premises to the Ombudsperson
Institution and ensure its budgetary independence through obliging the government
to include the Ombudsperson's draft budget proposal into the global draft budget
submitted to the parliament without changes.

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•

Protection of minorities: ensure existence of a body enabling direct consultation on
the promotion and protection of religious and cultural heritage with religious
communities, notably the Serbian Orthodox Church.

•

Trade: implement the government decision on the restructuring of the Ministry for
Trade and Industry, put in place a mechanism to lead and coordinate negotiations
within Kosovo and prepare an impact analysis of trade aspects of a Stabilisation and
Association Agreement.

Kosovo needs to continue demonstrating its commitment to the overall EU reform agenda,
including by increased alignment of legislation with the acquis. To meet its obligations under
a Stabilisation and Association Agreement, Kosovo needs to make progress in the following
areas in particular:

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•

Rule of law: provide concrete evidence of results in fighting organised crime and
corruption as a matter of priority, and strengthen legislation and its implementation
particularly on prevention and fighting against trafficking in human beings, drugs,
their precursors and weapons trafficking. Improve the reliability of statistics on the
fight against serious and organised crime and corruption. Actively support
implementation of the mandate of EULEX, including of the Special Investigative
Task Force. Ensure readmission from Member States.

•

Judiciary: take measures to reduce the total backlog of cases. Implement the judicial
reform, including by ensuring consistency among the laws on courts, Judicial and
Prosecutorial Councils and prosecution. Provide appropriate security and protection
measures for judges and court staff, as well as for prosecutors, witnesses and
plaintiffs, and provide effective safeguards against threats or intimidation. Ensure
trials are conducted in appropriate premises and in line with the court procedures.
Continue recruiting judges and prosecutors from minorities, as set out in the
legislative framework.

•

Public administration: make progress in implementing the public administration
strategy and action plan and related legislation. Ensure a sustainable public
administration reform, including the necessary funding and staffing. Increase the
overall share of persons belonging to minorities in the public administration.

•

Electoral reform and the Assembly: ensure that the legal framework for elections
better reflects best practice in the EU and that implementation is also in line with
international standards. Assembly to enhance its oversight of the executive, including
of the security sector, through improved scrutiny of legislation and monitoring of
implementation of policies and laws. Assembly's financing and administration to be
made more independent from the government, notably through adopting legislation
on the status of civil servants of the Assembly, ensuring that the draft budget of the
Assembly is modified by the government in consultation with the Assembly before it
is submitted to the Assembly for adoption.

•

Human and fundamental rights: investigate and prosecute any physical attacks
against journalists and complete the parliamentary procedure to change the Criminal
Code on criminal liability of media and protection of journalist sources. Streamline
and simplify the multitude of bodies dealing with the protection of these rights to
ensure effective monitoring and enforcement of the legal framework in this area.

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Make progress on the enforcement of property rights for example through decreasing
the backlog of cases and improving enforcement of judicial and administrative
decisions. Harmonise legislation on personal data protection with EU standards and
focus on its implementation, notably by drafting secondary legislation and building
up administrative capacities.
•

Protection of minorities: promote multi-ethnic Kosovo; create conditions for Kosovo
Serbs to feel part of Kosovo's future and conditions for the return of persons who
wish to do so. Continue implementing decentralisation, notably in the new
municipalities. Allocate budget, staff and premises to the Office of the Language
Commissioner. Implement legislation related to the protection of cultural heritage
and the Serbian Orthodox Church. Ensure broadcasting in Serbian by the public
broadcaster. Investigate and prosecute any physical attacks motivated by ethnicity or
religion and bring perpetrators to justice. Progress on implementing the strategy and
action plan for the Roma, Ashkali and Egyptians, including through the allocation of
the necessary resources.

•

Trade and internal market issues: implement the legal framework on trade,
competition and internal market. Enhance the control of the continuing illegal animal
trade and slaughtering and strengthen the controls at livestock markets. Improve
business statistics.

•

Phytosanitary and veterinary issues: enhance the facilities for phytosanitary and
veterinary import controls as well as the capacity to transfer samples. Strengthen
food safety and phytosanitary controls, including through finalising the transfer of
the food safety and veterinary inspectors from municipalities to the Kosovo Food and
Veterinary Agency. Systematise data entry into the animal identification, registration
and movement database. Accredit the laboratories involved in food controls.

The Commission invites Kosovo to intensify reforms in these areas and focus on
implementation. The pace of progress depends on Kosovo. Public and political consensus in
Kosovo on the EU reform agenda are key to its swift implementation. The Commission will
continue to monitor Kosovo's progress through the Stabilisation and Association Process
Dialogue, the Structured Dialogue on the Rule of Law, the visa dialogue process as well as
through its regular progress reports.

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