1

Republika e Kosovës Republika Kosova-Republic of Kosovo

Qeveria – Vlada – Government

Input to Progress Report

September 2011 Prishtina

2

INTRODUCTION .......................................................................................................................................7  POLITICAL CRITERIA ..............................................................................................................................8  1.1.  DEMOCRACY AND RULE OF LAW................................................................................................... 8 

1.1.1.  Institutions................................................................................................................................ 8  1.1.2. Parliament / Elections................................................................................................................... 9  1.1.3 Public Administration ................................................................................................................... 9  1.1.4.  Judicial system........................................................................................................................ 10  1.1.5. Anti-corruption Policies ............................................................................................................. 12 

1.2. HUMAN RIGHTS AND PROTECTION OF MINORITIES.......................................................................... 13  1.2.1. Human rights and protection of minorities ............................................................................. 13  1.2.2. Minority rights, cultural rights and protection of minorities............................................... 14 

1.3 REGIONAL ISSUES AND INTERNATIONAL OBLIGATIONS .................................................................. 15  2. ECONOMIC CRITERIA......................................................................................................................17  2.1 FUNCTIONING OF MARKET ECONOMY ................................................................................. 17 

2.1.1. Reporting on recent economic developments ........................................................................... 18  Developments in the Balance of Payments ........................................................................................ 18  Employment trends ................................................................................................................................ 19  Inflation trend index(core inflation, including definition) .............................................................. 19  2.1.2. Report on monetary and fiscal policies during reporting period .......................................... 20  Evolution of fiscal policies ................................................................................................................... 20  Public debt .............................................................................................................................................. 21  2.1.3. Functioning of product markets................................................................................................. 21  Privatization .......................................................................................................................................... 21  Businesses entry and exit ...................................................................................................................... 22  Business environment, judicial system and administrative capacities......................................... 22  2.1.4. Financial sector ............................................................................................................................ 23 

2.2. CAPACITY TO FACE WITH PRESSURE OF COMPETITION AND MARKET FORCES WITHIN UNION ...................................................................................................................................... 24 

2.2.1. Human and physical capital ...................................................................................................... 24  2.2.2. Reform and liberalization of industry of network.................................................................. 26 

ENERGY ........................................................................................................................................................ 26  Telecommunication Regulatory Authority ........................................................................................ 26  2.2.3. Structural displacement in economy ......................................................................................... 27  Sectional structure ................................................................................................................................. 27  Small and medium enterprises ............................................................................................................. 27  2.2.4. Government intervention in economy....................................................................................... 28  Big state enterprises .............................................................................................................................. 28  2.2.5. Trade integration ......................................................................................................................... 29 

3. EUROPEAN STANDARDS.................................................................................................................29  3.1. INTERNAL MARKET .............................................................................................................................. 29 

3.1.1.  Free Movement of Goods ....................................................................................................... 29  3.1.2. Free Movement of Capital .......................................................................................................... 30  3.1.3. Customs and taxes ....................................................................................................................... 31  a. Customs............................................................................................................................................... 31  b. Tax Administration of Kosovo ........................................................................................................ 32  3.1.4. Competition .................................................................................................................................. 32  3.1.5. Public procurement ...................................................................................................................... 33  3.1.6. Intellectual Property Rights and Copyright ............................................................................ 34 

3

3.1.7. Employment, Health and Social Policies ................................................................................. 34  3.1.8. Education and Research .............................................................................................................. 36 

3.2. SECTIONAL POLICIES............................................................................................................................ 37  3.2.1. Industry and SMEs ...................................................................................................................... 37  3.2.2. Agriculture and fishing................................................................................................................ 38  Food safety and veterinary ................................................................................................................... 39  3.2.3. Environment.................................................................................................................................. 40  3.2.4. Transport policies ........................................................................................................................ 41  3.2.5. Energy ............................................................................................................................................ 43  3.2.6 Information Society and Media .................................................................................................. 43  3.2.7. Financial Control ......................................................................................................................... 44  3.2.8. Statistics ....................................................................................................................................... 45 

3.3. JUSTICE, FREEDOM AND SECURITY......................................................................................... 45  3.3.1. Visas, borders, asylum and migration ...................................................................................... 45  3.3.2. Money Laundry ............................................................................................................................ 48  3.3.3. Police and Fight against Organized Crime .............................................................................. 49  3.3.4. Protection of personal data........................................................................................................ 50 

ANNEX I – LIST OF APPROVED LAWS DURING THE PERIOD MAY – OCT 2011 ................51 ANNEX II- LIST OF THE APPROVED DRAFT LAWS DURING THE PERIOD MAY 2011 - SEPTEMBER 2011 .. 0 ANNEX III – LIST OF SECONDARY LEGISLATION APPROVED DURING PERIOD OF MAY 2011 – AUGUST 2011..........................................