 The EU Pillar (Pillar IV) has been a founding component of the United Nations Interim Administration Mission in Kosovo . After facilitating the basic reconstruction to mitigate the consequences of the 1999 conflict and the Milosevic era, the EU Pillar supported the economic development of Kosovo in line with its European perspective.
After the groundwork was laid, the EU Pillar modernised the economic framework of Kosovo, with a view to developing the structures and instruments that form the basis of a competitive, efficient market economy ready for its path towards the European Union. Today, Kosovo possesses many institutions, the legal framework and mechanisms necessary to become more competitive on the regional and European markets.
Working hand in hand with Kosovo’s Provisional Institutions of Self-Government and other major stakeholders, the EU Pillar helped Kosovo integrate into the regional and European marketplace. Today, Kosovo is partner in numerous multilateral agreements, such as the Central European Free Trade Agreement (CEFTA) , the Energy Community’s common market or the European Common Aviation Area (ECAA) .
The EU Pillar has undertaken a massive privatisation programme through the Kosovo Trust Agency with the selling of around 320 companies and collecting around €360 million in the Kosovo Trust Fund. Privatisation led to the creation of many new working places and to the attraction of large investments, as in the nickelore factory of Ferronikeli, which employs today more than 1000 workers.
The Kosovo Trust Agency also restructured and incorporated Kosovo’s Publicly Owned Enterprises including all big utilities such as the Kosovo Energy Cooperation (KEK) , the Post and Telecommunications Company of Kosovo (PTK) and Prishtina International Airport – all of which faced serious under-investment and a lack of management skills. New governance structures, accounting systems, training programmes etc. shall ensure greater transparency and accountability, and better management in these companies.
The EU Pillar supported the Central Banking Authority of Kosovo (CBAK) in its successful efforts to build a banking system for Kosovo. Kosovo at this moment has a good mixture of international and local banks, totalling up to 8 banks with around 240 branches. The use of the Euro as single currency brought great stability to the financial sector. A new pension scheme has been set up, the Kosovo Pension and Savings Trust, which will secure pensions for Kosovars after retirement.
The UNMIK Customs Service , another component of the EU Pillar, has been built up from scratch in 1999 and developed into the largest contributor to the Kosovo Consolidated Budget providing around 70% of the budget. UNMIK Customs is one of the most modern and youngest customs services in the region. It vigorously fights corruption and contraband, using modern technology such as video surveillance at the customs points and by cooperating closely with its neighbours.
The EU Pillar established independent market regulators in the areas of mining, energy, water and waste, civil aviation, frequency management and telephony. These regulators make sure that essential services are offered at fair prices balancing the interest of the (mostly publicly owned) companies with those of the customers.
The EU Pillar was pivotal in opening the door for Kosovo on its way towards Europe. Its European Integration Office facilitated regular meetings between UNMIK, the representatives of the Kosovo Government and the European Commission in the framework of the Tracking Mechanism, especially created under the Stabilisation and Association process , and also integrated Kosovo into various initiatives related to the European integration process. |
