EPIK Institute: Kosovo loses 7.5m euros of EU funds

According to an Institute communique EPIC in 2018 Kosovo has had twelve indicators fulfilled, in 2019 eleven indicators, and in 2020 ten indicators.

Full communication:

In December 2017, Kosovo and the European Union signed the Financing Agreement for the Kosovo Action Programme for 2016, Part 2 .

Under this agreement, Kosovo has taken on obligation to implement reforms in the field of public administration, in line with the Stabilisation and Association Agreement (MSA) and the European Reform Agency (ERA), towards the establishment of an independent, professional and civic public administration.

The institution responsible for co-ordinating the implementation of the agreement is the Ministry of Internal Affairs and Public Administration. Under the deal, Kosovo institutions pledged that during 2018-2020, 8 reforms in the field of public administration will be assessed by 33 indicators.

While, on the other hand, the European Union pledged that implementing agreed reforms would reward an estimated $22m of direct budgetary support through four financial flows worth $5.5 million each.

In contrast, Kosovo institutions through implementation of these reforms would gain financial injections worth $22 million, which could guide for business financial support, exchange delivery for students, school construction, hospitals or any other public service for the benefit of citizens.

In 2018 Kosovo has had twelve indicators fulfilled, in 2019 eleven indicators, and in 2020 ten indicators. Throughout this time, Kosovo's institutions have also had to consistently ensure the fulfillment of four preconditions. In this context, the first tranche of $5.5 million has not been conditional on indicators, and has subsequently been implemented as a whole.

The second tranche has been implemented in value of $3.11 million after Kosovo institutions had completed 7 out of 12 variable indicators. The third tranche has been implemented in value of only $0.42 million after Kosovo institutions had met only 1 out of 11 variable indicators.

The fourth transfer was postponed for 2021 because of the effects of pandemic. So under the agreement so far, Kosovo institutions have had to implement 23 specific reforms and earn $16.5m direct budgetary support from EU funds.

Instead, institutions have implemented only eight specific reforms and earned $9.03 million, thus losing $7.47 million from EU funds.