When worst health crisis the world has ever seen hit Kosovo, the latter turned to the European Union (EU). From political support from the leaders of the EU, keeping borders open for essential health supplies, securing COVID-19 tests and all the way to scientific and administrative support by European Center for Disease Control (ECDC) – Kosovo turned to EU.
Two weeks after first COVID-19 case was registered in Kosovo EU Ambassador in Kosovo, Ms Nataliya Apostolova, was already signing off EU funds that would deliver to Kosovo most essential health supplies needed to absorb the immediate pandemic hit at the health system of Kosovo. As Kosovo politicians were plotting petty political power-games that would eventually make Kosovo the only country in the world to collapse a government in midst of most dangerous pandemic the world has ever seen, the EU secured anything from fully equipped ambulances and respirators, and all the way to hospital beds and patient monitors.
Beyond health emergency, and in order to support Kosovo economic recovery, the EU designed a robust financial architecture to support most vulnerable groups of society and ensure macro financial stability of the country. In this light, EU launched a €63 million package of support in grants and €100 million in loans on highly favorable terms. In contrast, Kosovo politicians only achieved to adopt a Law on Economic Recovery after six failed attempts in the Assembly.
As the world is trying to return to normality and vaccination is picking up slowly across the globe, it is EU again to the rescue. EU has concluded vaccine contracts with several pharmaceutical companies. In an act of solidarity with Western Balkans, EU allocated €70 million to help fund the access of Western Balkans counties to COVID-19 vaccines procured by EU Member States. Furthermore, Kosovo will get additional 300,000 free vaccines from COVAX of which EU is the largest donor. In the meantime, EU launched a new €7 million project with WHO to support safe and effective vaccination of the populations across the Western Balkans. This project will help prepare the region for the effective reception and administration of COVID-19 vaccines, including those received from COVAX and through the EU vaccine sharing mechanism with EU Member States.
It must also be noted that COVID-19 vaccination has turned into global race with strong geopolitical implications. Russia and China have made serious attempts to undermine and challenge US and EU vaccination programs globally. This is also true in the Western Balkans. In this light, EU must take steps to ensure that its dominant footprint in the region remains unsullied.
In our latest publication “The only game in town: EU support to Kosovo in fight against COVID-19” we looked into ways and means through which EU has been helping Kosovo to tackle consequences of pandemic. You can download the document under “Publications” section of our webpage.
In August 2018 Kosovo lost €43.4 million of EU funds. In June 2019 additional €12 million. And now Kosovo lost €7.5 million more. This trend paints a grim prospect of Kosovo potential to benefit from EU funds under IPA III in 2021-2027 where major emphasis will be put on performance of Western Balkans countries in the absorption of EU funds.
As part of this agreement Kosovo undertook an obligation to implement reforms in public administration, in line with the Stabilization and Association Agreement (SAA) and European Reform Agenda (ERA) in view of creating independent, professional and citizens-centered public service. Ministry of Public Administration (later merged with Ministry of Internal Affairs) was appointed as key coordinating body.
Kosovo institutions agreed that during 2008-2010 they will implement eight specific reforms in view of advancement of public administration. These reforms would be measured by 33 indicators. On the other hand, EU pledged to reward these reforms with €22 million in direct budget support. This financial support would be disbursed through four financial tranches of €5.5 million each.
To put it differently in exchange for implementing the promised reforms Kosovo institutions would receive a €22 million financial boost that they could channel to financial support for businesses, scholarships for youth, construction of schools and hospitals, etc.
In 2018 Kosovo had to implement twelve indicators, in 2019 eleven indicators and in 2020 ten indicators. Also, during the entire program duration Kosovo pledged to maintain fulfillment of four basic precondition.
In this light, in our latest publication we took stock of the implementation of the 2016 Kosovo – EU sector budget support agreement in the area of public administration.
First fix tranche of €5.5 million was not tied to any indicators and was hence disbursed in its entirety. Second tranche was disbursed in the amount of €3.11 million since Kosovo institutions met only 7 out of 12 indicators. Third tranche was disbursed in the amount of only €0.42 million since Kosovo institutions met only 1 out of 11 indicators. Fourth tranche has been postponed to 2021 because of pandemic.
Summing up, Kosovo institutions should have met by now 23 specific indicators and receive €16.5 million of EU direct budget support. Instead, Kosovo institutions met only 8 specific indicators and received €9.03 million, loosing thus €7.47 million of EU funds.
Latest loss of EU funds is no isolated act. In August 2018 Kosovo EU funds were slashed by €43.4 million and in June 2019 a €12 million hazardous waste facility project was scrapped. These developments depict a worrying trend of the lack of Kosovo political will and administrative capacity for the administration and absorption of EU funds. Under IPA III 2021-2027 even larger emphasis will be placed on the performance capacity of Western Balkans countries. This means that Kosovo might face even greater difficulties in effective absorption of EU funds in the future.