EU measures damage Kosovo economy, sanctions required

The European Union's (BE) measures on Kosovo, imposed in June last year, have had a negative impact on our country's economy. Thus estimates Kosovo Economic Ode Chairman Lulzim Rafuna, where according to him about 300m euros are blocked by the EU.

Rafuna called on the Kosovo government to work closely with international partners to quickly abolish these measures and not be allowed to impose additional sanctions warned by the European Union.

In addition, Rafuna criticises the country's executive for not taking the economy first, as he stresses Kosovo's “economy is in second place”.

The OEK chairman in an interview for Kosova Prees has also talked about administrative navigation released days earlier by the Ministry of Industry, Trade and Trade for quotas in import.

As much as we've had access to and from data that are public, the value of projects that have not been implemented as a result of the penalties imposed on Kosovo totals about 300m euros so far. So we're always referring to the data that we've had before. But if these measures are difficult for us, no doubt, but even if you do not, if these measures remain in force, it will go on increasing in projects that you cannot use. Therefore, this is very bad and harmful for the country's economy, because these projects have been money for capital investments. They are thus harmful to the citizens of Kosovo because in implementing these projects, we would have better welfare for citizens. And it's even worse for the state of Kosovo, because it's not a message we deliver to foreign investors to motivate coming to Kosovo with invested”, Rafuna points out.

OEK's chairman has asked the Kosovo government to make any move and important political decision for the country, as he says in co-ordination with international allies.

Our request is to work closely with our international partners. Let's coordinate with our partners. The best decision is the one made in co-ordination with all those friends who have helped Kosovo develop and are part of Kosovo's history so far... Let us not allow new measures to be made but also strive to remove these measures that have wrongly imposed on us”, Rafuna points out.

Dialogue and the country's northern issue, according to Rafuna, have overshadowed Kosovo's economy. It requires that this vital sector for the country be in first place.

“Opening these topics and keeping these topics is putting the economy in second order. Our demand is that the economy be in first place, not to put these issues aside, but also to foreign policy, by rule of law, but not to leave the economy in second place. So our demand is to work as hard as possible in the economy and improve the image through economic diplomacy. But even in domestic legislation, we've already had the last law on the Tax Administration that is not a business-friendly law, but it's a law that puts business in full control on the part of ATK or other institutions. So this is where the government has to work to open up the business potential not to choke business, but to play its own role in drafting good policies, good laws, favourable taxes and thus make it a good environment to come to invest in Kosovo”, he says.

Meanwhile, administrative guidance of the Ministry of Industry, Undertaking and Trade (MINT), for import quotas, has not been welcomed by the Kosovo Economic Oda. According to President Rafuna, there are not enough clarifications for businesses.

“We have embraced free trade and good was to allow the offer and demand to regulate this issue. ... We have had quotas even when the SAA agreement was signed, but even when the European Union prior to the SAA agreement with itself's decision of 2000/47, where Kosovo unilablely has recognised the right to a wide range of products exported to us EU countries without customs tax tax, and in that for wine we have had a quota of how much we exported to the European Union. But what we've already been able to do during the administrative guidance working groups that have no ample clarification. There is no abundant information in business as to what the goal of the Guide is and how it should be implemented... We are waiting to have additional clarifications on how this administrative directive is implemented and what this administrative guide has been brought. We still don't have an explanation to see how much business would benefit”, he says.

From the Ministry of Industry, Enterprise and Trade say this administrative directive is in line with international practices, World Trade Organisation agreements and European Union legislation. Furthermore, it is said that “based on principles of the World Trade Organisation; Import quotas can be placed mainly for seasonal protection of specific products”.