Consequences of EU funds suspension will feel if no quick solution to the crisis

The European Union's (BE) penal measures applied to Kosovo, economically, are seen as a serious blow to the country. The EU itself does not show the exact amount it has suspended from its funds, but insists that those Kosovo has not lost and the projects could be returned in the event of changing the behaviour of the Government of Kosovo and meeting their demands for extending the situation.

Civil society and opposition parties demand that Prime Minister Albin Kurti have co-ordination with allies as projects are already under threat under the European Union's Instrument for Pre-membership Assistance programme, known as the IPA acronym, which is funded by the EU for the Western Balkan countries for 2024.

The Serbian Loja-Sublla, executive director of the Group for Jury and Political Studies (GLPS), says that Kosovo only from IPA programmes by 2020 has benefited 1.2 billion euros, while this year agreements have been signed for about 64m others as financial assistance for Kosovo.

She says the impact of suspending these funds will begin to feel if the situation does not change soon and the crisis begins and deepens.

The 2007 until 2020 “through 14 agreements or partnerships under the IPA that Kosovo is behind with IPA I and IPA II has benefited 1.2 billion euros in financial assistance from the EU. The IPA III that has recently been signed envisions financial assistance for Kosovo, which is about 64m euros, so these are the financial amounts of IPAs that Kosovo has benefited from or is expected to benefit. The EU is the biggest donor for Kosovo. Various sectors have been funded through the IPA, or designed to finance various sectors, including agriculture, energy, education, but civil society as well. The real effects of these measures can be observed if the crisis deepens away because only then can we really see the impact of stopping funds in these” sectors, Stublla says.

Another move towards Kosovo is the temporary suspension of the work of all working groups for the Stabilisation and Association Agreement (MSA) ) which is the first step towards EU membership, as well as invitations to Kosovo's participation in high-level meetings.

Stublla says this too is another bad news, since it is the first contractual agreement between Kosovo and the European Union, suggesting that a solution to the situation in the north be found.

The other “Anna is the SAA, which is the first contractual agreement that Kosovo has signed the EU, and therefore its suspension also leaves a bad taste in the sense of what is the only contractual agreement we have with the EU and the suspension of subcommittee meetings will affect Kosovo as a success or an accounting in the sense of meeting the MSA and in the sense of the image... 02:17 If the crisis deepens and these measures have been power for a long time, of course financially we have lost because actually I PA III meant about 64m euros... 2:34 A reconciliation should be reached between the two sides initially, between Kosovo and Serbia, and a better demarcation and co-ordination of the Government of Kosovo with international partners”, Stublla follows.

Even proposals submitted by Kosovo under the Western Balkans Investment Framework (WBIF) have not been submitted for review at the W Board BIF June 29th-30th. The Western Balkans' investment framework is a joint initiative of the EU, financial institutions and donors, aimed at developing socio-economic and European perspective of Western Balkan countries.

Chief spokesperson for Foreign Affairs and Security Policy Peter Stano in a written response to Kosova Prees points out that Kosovo has unfortunately not yet taken the necessary steps for the EU to halt the measures it has set for Kosovo.

“These measures are temporary and completely returnable, depending on developments on the ground and decisions on the despass taken by Prime Minister Kurti. The EU is also closely monitoring the fulfillment of our demands from Serbia, and is willing to take measures in case of inconsistencies”, Stano said.

Even from the Kosovo government have refused to talk about the amount of funds suspended under EU measures, suggesting that we address the Union as they have undertaken it.

Parliamentary Commission for European Integration head LDK deputy Rzazarta Krasniqi says that if this situation continues this way, Kosovo risks losing all projects with the European Union.

According to her, if Prime Minister Kurti is unable to find a solution to the situation, then he must pave the way for someone else.

If this continues, we will not benefit from the IPA, also bilateral meetings and other meetings that are important to the country... The measures are extremely harmful, the government's proposals at the European Union Council this time have not been introduced due to the situation in the north, have been a good benefit for the country, but they have not taken into account because of the situation. If this situation continues for The IPA 2024 is disturbing where we will not gain any project from the EU... the best choice it would have been for the prime minister, Kurti to agree with the US and the EU or to give way to another prime minister, because that's how it doesn't go to”, Krasniqi says.

The Vetevendosje movement is aware that European Union funds have an impact on Kosovo's economy.

This party's MP, Driton Hyseni, says convinced that the measures will soon be lifted after the Kosovo government has expressed readiness to meet EU requirements for the stress of the situation.

The whole idea is to suspend new applications for IPA funds as a measure which the EU has seen from their perspective that could spur towards improving the situation they consider in the north and imposing there. Those funds always have after impact on developments in Kosovo, are the funds the EU has regularly allocated for projects in Kosovo. However, I consider that Kosovo institutions have expressed full readiness to take steps to implement even some of the requirements we have from the EU in this case for extending the situation to the north of the country... Therefore, to ignore all necessary legal procedures and in this direction EU measures will be measures that will soon return to zero point, because there will be no reason”, Hyseni says.

The European Union had said that on June 28th it had officially announced Kosovo's measures taken against it, as it has not helped reduce the situation in the northernmost municipalities of the Republic. The international community has submitted three key requirements to Kosovo: calming the situation in the north, holding new elections in four northern municipalities, and returning to dialogue for normalising Kosovo-Serbia reports.