Press release
Kosovo to deepen economic and social reforms with the EU
Brussels/Pristina, 25 May 2016
At a Ministerial Dialogue with the EU held in Brussels today, the Western Balkans and Turkey committed to deepen economic and social reforms to strengthen macroeconomic stability and boost competitiveness and growth.
In conclusions adopted at the meeting, policy recommendations for each of the seven enlargement partners were agreed, with a clear focus on structural reforms.
"A fundamental objective of the EU enlargement strategy is to boost economic and social development in all our partner countries. Today we have focused our discussion on how to implement the economic reforms agreed with the EU. I am pleased that all enlargement countries have shown great commitment to the exercise, including by putting a greater focus on structural and social reforms", said Johannes Hahn, Commissioner for European Neighbourhood Policy and Enlargement Negotiations.
"We fully support enlargement countries' efforts towards further fiscal consolidation, especially given concerns about high and still rising debt levels in a number of our partner countries. In all countries, fiscal credibility and sustainability would greatly benefit from more transparent budgeting, stronger medium-term fiscal frameworks and the introduction or consistent application of well-defined fiscal rules capable of firmly anchoring expectations", said Valdis Dombrovskis, Vice President of the Commission for the Euro and Social Dialogue.
"Amongst other key recommendations, Kosovo agreed to establish an independent review mechanism for fiscal policy, to ensure that public investments are maintained and implemented, and to address the underlying causes for the high interest rate on bank loans. The authorities committed themselves to implement the action plan on the informal economy andto increase energy security, in particular by supporting energy efficiency measures in the residential sector. Kosovo agreed to set up an action plan for tackling youth unemployment, to improve teacher training and female labour market participation, and to strengthen the Employment Agency", said Samuel Žbogar, Head of the EU Office in Kosovo/EU Special Representative.
The jointly adopted policy guidance is based on Economic Reform Programmes, which the authorities develop on an annual basis and submit to the EU at the end of January. The programmes run over three years. They comprise a macroeconomic and fiscal policy framework and priority structural reforms to boost growth and competitiveness. These structural reforms range from liberalising energy, transport and telecoms markets, tackling the very high unemployment rates, raising the quality of the education system, improving the business environment and attracting investments, among other things.
The exercise is meant to help the EU's enlargement partners boost their economic and social development, and to support them in gradually meeting the economic criteria for accession.
The factsheet on the Economic Reform Programme and the conclusions of the Ministerial Dialogue are availablehere
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