Kocijancic calls to Kosovo: Pause the tax and return to dialogue

In an interview for the newspaper “Century”, European Union spokeswoman Maja Kocijancic points to the main economic problems of the Western Balkans. She notes that Albania's Public-Private Partnership model (PPP) has a variety of problems, the European Commission has voiced its doubts about Albania's economic development process in some recently released reports.

Developing Investments Based on Partnership Model - Public-Private, has received much criticism from opposition and experts in Albania. This model is viewed as a new way of emptying the state budget and deepening corruption.

Economic growth continued in the Western Balkans at a relatively powerful pace during the third quarter of 2018. However, low labour market participation and high unemployment continue to represent some of the most stable challenges for the Western Balkans. Despite overall improvements in fiscal balances, high levels of public debt remain the source of sensitivity in most countries”. For the years 2019-2020, Albania's overall GDP level is expected to be at 3.9 per cent. Albania's 2019 unemployment rate is expected to be 11.1 percent. Inflation will be at 2-6 percent.

The last two years, The IMF has voiced some concerns about fragile economic states in the Western Balkans, such as Albania, Kosovo and Macedonia. What more should be done?

The Commission stresses that Western Balkan economies present weaknesses, but do not consider them to be the key <x1-> states”, which would bring no established government and administration, no government control of the territory, a very unstable political situation, etc. The challenges of economic policies and priorities in the Western Balkans can be found in publications related to annual macroeconomic and financial dialogue between the European Union and the Western Balkans (and Turkey) realised under the Economic Reform Programme process (ERP).

As for Albania, Albania faces some obstacles to improving potential growth and competitiveness. The weak judiciary, insufficient implementation of property rights and administrative procedures are institutional weaknesses that have been addressed only partially so far. This is hampering both local businesses and potential foreign, international investments.

An additional concern of the European Commission is that PPP contracts should be provided transparently in line with Albanian public procurement standards.

Asked about the Kosovo-Serbia dialogue and the fee set by the Kosovo Government for Projects from Serbia and BiH, Kocijancic said:

As stated repeatedly, the European Union, along with the United States of America and others, calls on the Kosovo government to immediately suspend the tariffs in order to allow quick resumption of dialogue. The status quo is not an option and there is no alternative for quick resumption of dialogue between the parties. The tariffs not only stand on the path of dialogue but also stand on the road to Kosovo's European integration.