Gap published the report “The financial impact of the European Union measures on Kosovo”

GAP  Instituute published the report “The financial impact of the European Union measures on Kosovo.”

Since June 2023, the European Union (EU) has imposed punitive measures against Kosovo, which have negatively impacted bilateral relations and financial support from the EU. The measures imposed by the European Union on Kosovo have resulted in significant financial and developmental consequences, costing Kosovo approximately €613.4 million in suspended or indefinitely delayed projects. Of this amount, due to the expiration of allowed deadlines for initiating procedures for certain projects, €7.1 million have been completely lost.

The work of bodies under the Stabilisation and Association Agreement (SAA) was suspended until May 2025, funds for Kosovo under the Instrument for Pre-Accession Assistance (IPA) have been frozen, and Kosovos proposals under the Western Balkans Investment Framework (WBIF) are not being considered by the WBIF Board. Moreover, Kosovo has not been included in high-level events, except those related to the situation in the north and regional integration of the Western Balkans. Lifting these measures requires full consensus among EU member states, and no such decision has been made so far.

The most affected sectors include the environment (€350.7 million), energy (€114.4 million), digitalization (around €57 million), and culture (€15 million). Of the total funds affected by the measures, approximately €218 million are IPA projects (IPA II and IPA III), and about €395.5 million are from WBIF projects. The implementation of these projects was expected to be financed through grants and loans, including approximately €421 million from the European Union, around €162 million from third parties such as international financial institutions, and €31 million from self-financing.

These delays in project implementation imply postponed or lost opportunities for growth, development, and improvement in citizens’ well-being, and negatively affect the prospects for European integration. The aim of this brief report is to provide an overview of the financial support Kosovo has received from the EU and to analyze the impact of the EU’s punitive measures on Kosovo by highlighting the losses and developmental consequences resulting from the suspension of EU projects and funding.

Click here to read the full report.