Luka: Serbian products still in Kosovo, thinking full reciprocity

For its effects on both economic and political plans, there are different opinions and assessments. Some view them as positive and others negative.

The biggest tax effects of 100 percent are related to the economic aspect, but also that Kosovo has imposed a 100 per cent tax on Serbian and Bosnian products, their absence is not seen in Kosovo shops.

Economic Development Minister Valdrin Luka, in an interview for Online Economics, although acknowledging that the 100% tax on Bosnian Serb products has had a political and economic effect, he says it remains disturbing that Serbian products still enter Kosovo, which, according to him, have no price increases.

The decision on the timing was necessary, the tax initially proposed to the prime minister in the cabinet, months before the decision was made, my proposal has been closely linked to the obligation of the Energy Agreement with Serbia, as it did not implement the energy agreement, we have had a loss of about 25m euros a year, my proposal has been to have a tax reflecting it 25 million for replacement, but at that time has not been supported. The tax has been the right time because of Serbia's major pressure on Kosovo and our partners and on attracting recognitions and not membership in various organisations, the tax decision has been very politically necessary”.

“ ... as far as the economic share is there is space, we are witnesses that some of the local companies have reported growth in production, employment, the share of imports has been displaced, mainly from Europe, it has had to reflect from Albania, but we don't have the increase that we've been waiting for, but the idea is that we're in the situation of replacing these products in Albania, what's happened is that an import has been replaced, the most disturbing part is that we have Serbia's products coming to Kosovo but they don't have a price increase, but some of them have little price, but the idea is that we're in the situation for controlling these products in Kosovo, or they're doing well coming from the origin't be able to be able to come to do it.

Luka says that in addition to a 100 per cent tax with the neighbouring state, Serbia, a full reciprocity is needed and that local governments should not make population decisions.

“Taxa has been a very necessary mechanism, good at the moment is one of the best decisions the Government has made, should gradually be thought of as a full reciprocity with Serbia, we should no longer go into population decisions, but we must think wider, we should block Serbia's license plates, why not block the recognition of various documents, this should be the focus”.

Among the decisions affecting the energy sector during Minister Luka's mandate has been the agreement with the company “Contur Global”, which is launched between this company and the MZE, for construction of the thermo power plant “Kosova e Re”.

A project that, after the withdrawal of the World Bank, as the main sponsor of the project, created difficulties in its implementation, even Luka says that even if the single financing company of this project, the American company “Opic”, pulls out, then the entire project will be jeopardised.

According to him, the failure of this project will cost the Government of Kosovo millions of euros in losses, reports EO.

“Vulnet is complete with the project because everyone has realized the importance of building a new thermal power plant in Kosovo, we are witnesses today where Kosovo A is extremely stable and Kosova B is hugely polluting, Kosova A is impossible for a complete rehabilitation for the reasons that has spent 60 years but Kosova B has the potential for rehabilitation, but it is not enough as alone, it needs new capacities to replace those of Kosovo A, most or even all in the Kosovo Parliament, all MPs agree that we have additional energy capacities through the legislation, because this is cost-free production.

“Contur Global is responsible for the agreement to ensure the financing of the thermal power plant and we assist in this process, but the main responsibility is Contur Globali, we already know the cost of building the thermal power plant. If Opic's company fails to secure financing, the project is in full danger, as there are no other sponsors because the World Bank has withdrawn”, Lu Lukaa said.

Another challenge affecting the country economically has been the failure of Telekom's public company, for which procedures for its privatisation have been launched.

Minister Luka says the privatisation of this company is already seen as its only salvation, as according to him, this company has been crowded, with nepotism and political interference.

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“... as long as it is always managed in the public sector, while there are employment and nepotism, that we are witnesses that there are continued nepotism, political interference, I think no company can withstand these pressures, the only form is privatisation. We have not witnessed at any moment that we can manage a public enterprise properly”, said Minister Luka.