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EUROPEAN COMMISSION Brussels, 6.10.2020 SWD(2020) 356 Final COMMISSION STAFF WORKING DOCUMENT Kosovo* 2020 Report Accompany

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EUROPEAN COMMISSION Brussels, 6.10.2020 SWD(2020) 356 Final COMMISSION STAFF WORKING DOCUMENT Kosovo* 2020 Report Accompany EUROPEAN COMMISSION Brussels, 6.10.2020 SWD(2020) 356 final COMMISSION STAFF WORKING DOCUMENT Kosovo* 2020 Report Accompanying the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 2020 Communication on EU Enlargement Policy {COM(2020) 660 final} - {SWD(2020) 350 final} - {SWD(2020) 351 final} - {SWD(2020) 352 final} - {SWD(2020) 353 final} - {SWD(2020) 354 final} - {SWD(2020) 355 final} *This designation is without prejudice to positions on status, and is in line with UNSCR 1244(1999) and the ICJ Opinion on the Kosovo declaration of independence. EN EN Table of Contents 1. INTRODUCTION .............................................................................................................. 3 1.1. Context ......................................................................................................................... 3 1.2 Summary of the report ................................................................................................. 4 2. FUNDAMENTALS FIRST: POLITICAL CRITERIA AND THE RULE OF LAW ............................ 7 2.1 Functioning of democratic institutions and public administration reform ................... 7 2.2.1 Democracy ................................................................................................................... 7 2.1.2 Public administration reform ...................................................................................... 13 2.2 Rule of law and fundamental rights ........................................................................... 17 2.2.1 Judiciary and fundamental rights ............................................................................... 17 2.2.2 Justice, freedom and security ..................................................................................... 39 3. Fundamentals first: economic development and competitiveness ............................. 51 3.1. The existence of a functioning market economy ....................................................... 51 3.2. The capacity to cope with competitive pressure and market forces within the Union .................................................................................................................................... 58 4. Good neighbourly relations and regional cooperation ............................................... 60 5. NORMALISATION OF RELATIONS BETWEEN KOSOVO AND SERBIA ............................... 62 6. European standards .................................................................................................... 63 6.1. Free movement of goods ............................................................................................ 63 6.2 Movement of workers, services and right of establishment ....................................... 65 6.3 Free movement of capital ........................................................................................... 66 6.4. Financial services ....................................................................................................... 67 6.5. Customs ...................................................................................................................... 69 6.6 Taxation ...................................................................................................................... 70 6.7 Competition ................................................................................................................ 72 6.8 Public procurement .................................................................................................... 73 6.9 Company law ............................................................................................................. 76 6.10 Intellectual property law ............................................................................................ 76 6.11 Social policy and employment ................................................................................... 78 6.12 Consumer and Health Protection ............................................................................... 81 6.13 Education and culture ................................................................................................. 83 6.14 Science and research .................................................................................................. 85 6.15 Trade issues ................................................................................................................ 87 6.16 Enterprise and industrial policy ................................................................................. 88 1 6.17 Agriculture ................................................................................................................. 90 6.18 Food safety, veterinary and phytosanitary policy ...................................................... 91 6.19 Fisheries ..................................................................................................................... 92 6.20 Environment and climate change ............................................................................... 92 6.21 Transport policy ......................................................................................................... 95 6.22 Energy ........................................................................................................................ 96 6.23 Trans-European networks .......................................................................................... 98 6.24 Information society and media ................................................................................. 100 6.25 Financial control ....................................................................................................... 101 6.26 Statistics .................................................................................................................. 103 ANNEX I – RELATIONS BETWEEN THE EU AND KOSOVO ......................................................... 106 2 KOSOVO 1. INTRODUCTION 1.1. Context The EU-Kosovo Stabilisation and Association Agreement (SAA) has been in force since April 2016. The European Reform Agenda (ERA) has continued to serve as a useful tool to guide the implementation of EU-related reforms in the SAA context. In July 2018, the Commission confirmed that Kosovo has fulfilled all visa liberalisation benchmarks endorsed by the Council. The Commission continues to stand behind this assessment. The European Parliament confirmed its support for the Commission’s proposal for visa liberalisation. The proposal is pending in the Council and should be treated as a matter of urgency. During the reporting period, Kosovo lifted the 100% tariff on imports from Serbia and Bosnia and Herzegovina, which had been imposed in November 2018, as well as all reciprocity measures. This has allowed for a restoration in trade with Serbia and Bosnia and Herzegovina and for the resumption of the EU-facilitated Belgrade-Pristina dialogue. The Kosovo authorities continued to demonstrate publicly their commitment to advance on its European path. The COVID-19 pandemic is a global shock that has not spared the Western Balkans. It represents an unprecedented burden on their health and social protection systems. The final extent of its footprint in terms of loss of human lives and damage to the economies is still difficult to assess, but early Commission estimates foresee a drop of between 4 and 6% of Gross Domestic Product in the region. Thousands of citizens are at risk of losing their jobs, and temporary government support measures (unemployment benefits, deferrals/waivers to tax and social security contributions, etc.) have an important fiscal impact. While the EU is itself heavily affected by the pandemic, it has spared no time and effort to provide essential and unparalleled support to the Western Balkans. This includes financial support of more than EUR 3.3 billion for countries in the region to address the immediate health crisis and resulting humanitarian needs, as well as longer term and structural impact on their societies and economies. Given the European perspective of the Western Balkans, the EU is also treating the region as privileged partners by associating them with the Union’s mechanisms and instruments. These include the Health Security Committee, Joint Procurement Agreements, Union Civil Protection Mechanism, Solidarity Fund, consular assistance in repatriation or exemption from temporary EU export restrictions of medical equipment. These and other measures have provided immediate relief and are a clear message of the EU’s political commitment towards the region. In Kosovo, the government declared a public health emergency in March 2020 and introduced containment measures and restrictions to prevent the spread of the virus. Measures were gradually lifted from early May 2020. However, in response to increasing numbers of cases from early June, the government reintroduced in mid-July several public health measures, including obligatory wearing of facemasks, curfews and testing requirements for entry into Kosovo. In August 2020, the Kosovo Assembly adopted a new Law on prevention and fight against the COVID-19 pandemic, in order to provide a solid legal framework for the required public health measures. In order to mitigate the social and economic effects of the COVID-19 crisis, an initial emergency package of EUR 180 million was adopted in April 2020 to provide support for 3 businesses, farmers and employees, additional social protection
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