ECOFIN Adopts Conclusions on Kosovo's Economic Reform Programmes

EUROPEAN UNION

EUROPEAN UNION OFFICE IN KOSOVO / EUROPEAN UNION SPECIAL REPRESENTATIVE

PRESS RELEASE

ECOFIN adopts conclusions on Kosovo's Economic Reform Programmes

Pristina, 12 May 2015

The Economics and Finance Ministers of the EU (ECOFIN Council) and of the Western Balkans (Albania, Bosnia and Herzegovina, the former Yugoslav Republic of Macedonia, Kosovo, Montenegro, Serbia) and Turkey, representatives of the Commission and the European Central Bank and representatives of the central banks of the Western Balkans and Turkey met today for the annual economic policy dialogue. The meeting was part of the strengthened dialogue on economic governance between the EU and enlargement countries to better reflect the European Semester process at EU level. Kosovo participated for the first time in this multilateral dialogue. The Ministers welcomed Kosovo's first Economic and Reform Program (ERP) submission and see it as a first step in deepening the economic dialogue with the EU. The Council concluded the meeting with a set of country-specific conclusions, focusing in particular on measures to improve the macro-fiscal stability and improve competitiveness. Conclusions for Kosovo welcome the expressed commitment towards preserving stable public finances in the Economic Reform Programme, but noted that current fiscal challenges do not stem from structural issues, but rather from ad-hoc policy-making and a lack of credible medium-term budget planning. Among specific recommendations, the following were also included: • establishing an independent fiscal council, or fiscal agency; • developing a legal framework for maintaining a sustainable public wage and pension bill, • modernise revenue collection to reduce reliance on customs receipt; • consider setting up an independent observatory to contribute to the assessment of future major infrastructure projects, including their fiscal impact; • improve the quality of education; • improve the business environment and continue with the clearing of court backlogs, strengthening capacities of judicial system, and developing cadastre databases. • adopt a holistic approach to Foreign Direct Investment that anchors supportive policies in a strategic framework and focus on removing existing obstacles. The document with a comprehensive list of recommendations for Kosovo is available at: http://www.consilium.europa.eu/en/press/press-releases/2015/05/12-ecofin-joint-conclusions/ ______For more information contact: Safet Kabashaj, Outreach Officer, [email protected] 038 5131 525 European Union Office in Kosovo/ EUSR website: http://eeas.europa.eu/delegations/kosovo