Republika e Kosovës

RepublikaKosova-Republic of Kosovo

Qeveria – Vlada – Government

Input to the Progress Report

April 2012

Prishtina

TABELAT

LISTA E SHKURTESAVE DHE AKRONIMEVE

Introduction

1. Political criteria

1.1. Democracy and Rule of Law

1.1.1. Institutions

1.1.2. Parliament / Elections

1.1.3 Public Administration

1.1.4. Judicial system

1.1.5. Anti-Corruption Policies

1.2. Human rights and minority protection

1.2.1 Human rights and minority protection

1.2.2. Minority rights, cultural right and protection of minorities

1.3. Regional Affairs and International Obligations

2. ECONOMIC CRITERIA

2.1. Market Economy functioning

2.1.1. Reporting on latest economic developments

2.1.2. Report on monetary and fiscal policies during the reporting period

2.1.3. Functionality of goods market

2.1.4. Financial Sector

2.2. CAPACITY TO COPE WITH COMPETITIVE PRESSURE AND MARKET FORCES WITHIN UNION

2.2.1. Human and physical capital

2.2.2. Reform and liberalization of network industry

2.2.3. Structural displacements in economy

2.2.4. Governments interventions in economy

2.2.5. Trade Integration

3. EUROPEAN STANDARDA

3.1. Internal Market

3.1.1 Free movement of goods

3.1.2. Free movement of Capital

a.Customs

b.Taxing Administration of Kosovo

3.1.3. Costums and Taxtation………..……………………………………………………………………….22

3.1.4. Public Procurement

3.1.5. Employment and social policies

3.1.6. Education and Research

3.2. Sectoral Policies

3.2.1. Industry and SMEs

3.2.2. Agriculture and Fishery….……………………………………………………………………………25

3.2.3.Food Safety and Veterinary…………………………………………………………………………….26

3.2.4. Environment

3.2.5. Transport Policies

3.2.6. Information Society and Media ..…………………………………………………………………….27

3.2.7. Energy

3.2.8. Financial Control

3.2.9. Statistics

3.3. JUSTICE, FREEDOM AND SECURITY

3.3.1.Visas, borders, asylum and migration

3.3.2.Money Laundering

3.3.3.Police and Organized Crime Combating

3.3.4.Personal data protection

TABLES

Tabela 1 - Nominaland real GDP according to expenditures29

Tabela 2 - Main development in external sector 2008-2011, in million euro...... 29

Tabela 3 –Annual difference in % of ICK and basic ICK30

Tabela 4 –Budget Income and expeditures of central and municipality January – February 20120

Tabela 5 - Participation of Private Sectore in GDP...... 30

LIST OF ABBREVIATIONS AND ACRONYMS

ACAAnti-Corruption Agency

ACSAPAnti-Corruption Strategy and Action Plan

AGEAgency for Gender Equality

AIAdministrative Instruction

AIGKAssociation of Independent Journalists of Kosovo

AMPMAntemortum – Postmortum

CBK Central Bank of Kosovo

CBPCross – border point

CCMPCentral Committee on Missing Persons

CECCentral Election Commission

CECSCentral Election Commission Secretariat

CEFTACentral European Free Trade Agreement

CLMChild Labor Monitoring

CMISCase Management Information System

CPCCorruption Prevention Committee

CPI Consumer Price Index

DCSA Department of Civil Service Administration

DMPARDepartment for Management of Public Administration Reform

EC European Commission

ECAAEuropean Common Aviation Area

EPAPEuropean Partnership Action Plan

EROEnergy Regulatory Office

ESPSMElectronic System for Pharmaceutical Stock Management

ETFEuropean Training Foundation

EUEuropean Union

EULEXEuropean Union Rule of Law Mission in Kosovo

FADNFarm Accountancy Data Network

FIUFinancial Intelligence Unit

FMCFinancial Management Control

FMNInternational Monetary Fund

FVAFood and Veterinary Agency

GDDS General Data Dissemination Standard

GDPGross Domestic Product

GGO Good Governance Office

GPCGovernment Privatization Committee

HHIHerfindalh – Hirchman Index

HISHealth Information System

IBMIntegrated Border Management

ICMMIndependent Commission for Mines and Minerals

ICPInstitute of Construction Products

IDPInternally Displaced Persons

IFS International Financial Institutions

IJPCIndependent Judicial and Prosecutorial Committee

IJPCIndependent Judicial and Prosecutorial Council

ILCDInternational Legal Cooperation Division

ILEPInitial Legal Education Program

IMCPARInter-ministerial Commission for Public Administration Reform

IMGD Inter-ministerial Group on Decentralization

IODIntellectual Property Department

IOMInternational Organization for Migration

IOOIndustrial Ownership Office

IPAInstrument for Pre-accession Assistance

IPAKInvestment Promotion Agency of Kosovo

KACCKosovo American Chamber of Commerce

KAD Kosovo Accreditation Directorate

KBA Kosovo Business Alliance

KBRAKosovo Business Registration Agency

KCKosovo Customs

KCCKosovo Chamber of Commerce

KCDSEEKosovo Company for Distribution and Supply of Electric Energy

KCF Kosovo Curriculum Framework

KCSKosovo Correctional Service

KEKKosovo Energy Corporation

KESPKosovo Education Strategic Plan

KFAKosovo Forest Agency

KGAWPKosovo Government Annual Work Plan

KIPAKosovo Institute of Public Administration

KJCKosovo Judicial Council

KJI Kosovo Judicial Institute

KOSTTElectricity Transmission System and Market Operator of Kosovo

KPKosovo Police

KPCKosovo Procurement Council

KPSKosovo Police Service

KSAKosovo Standards Agency

LMLine Ministries

MAMunicipal Assembly/ies

MAFRDMinistry of Agriculture, Forestry and Rural Development

MCRMinistry for Communities and Return

MCYSMinistry of Culture, Youth and Sport

MEDMinistry of Economic Development

MEIMinistry of European Integration

MESP Ministry of Environment and Spatial Planning

MEST Ministry of Education, Science and Technology

MFMinistry of Finances

MFAMinistry of Foreign Affairs

MHMinistry of Health

MHRU Municipal Human Rights Units

MIMinistry of Infrastructure

MIAMinistry of Internal Affairs

MKSFMinistry for the Kosovo Security Force

MLPA Ministry of Local Power Administration

MLSWMinistry of Labor and Social Welfare

MoJMinistry of Justice

MoUMemorandum of Understanding

MPAMinistry of Public Administration

MTIMinistry of Trade and Industry

NGO Non-Governmental Organizations

NQANational Qualifications Authority

OAGOffice of Auditor General

OCAOffice for Community Affairs

OCROffice for Communities and Return

OLEPOngoing Legal Education Program

OPM Prime Minister‘s Office

OSCEOrganization for Security and Cooperation in Europe

PAKPrivatization Agency of Kosovo

PARPublic Administration Reform

PIAPrishtina International Airport

POEPublicly Owned Enterprise

PPAPublic Procurement Agency

PPRCPublic Procurement Regulatory Commission

PRBProcurement Review Body

PTKPost and Telecomm of Kosovo

QMSQuality Monitoring System

RAE Project Project for Roma, Ashkali and Egyptians

RTKKosovo Radio and Television

SCAAKSociety of Certified Accountants and Auditors of Kosovo

SEBStandard Evaluation Body

SEECELSouth East European Centre for Entrepreneurial Learning

SMESmall and Medium Enterprises

SMESASmall and Medium Enterprise Support Agency

SMPStaff Monitored Program

SOESocially Owned Enterprise

SOKStatistical Office of Kosovo

SOPStandard Operation Procedures

SPOState Prosecution Office

TAIEXTechnical Assistance and Information Exchange

TAK Tax Administration of Kosovo

TBPTam/Bas Project

TRA Telecommunication Regulatory Authority

UNDPUnited Nations Development Program

UNHCROffice of the United Nations High Commissioner for Refugees

USAIDUnited States Agency for International Development

VAPUVictim Assistance and Protection Unit

VATValue Added Tax

VETVocational and Education Training

VTCVocational Training Centre

WBWorld Bank

WGWorking Group

WWROWater and Waste Regulatory Office

Introduction

This report contains main developments in Kosovo from January 1 2012 until March 30 2012, for the first quarter (Q1) of 2012.The Government of the Republic of Kosovo has expressed it’s willingness to submit additional data for this period, for the EC’s Progress Report for Kosovo, expected to be published in autumn 2012.

Data presented in this report are mainly focused on the progress in:

  • Reforms implementation;
  • Legislative and administrative capacities development;
  • Challenges identified on the EC’s Progress Report for Kosovo 2011, and
  • Implementation of Priorities of the European Partnership through European Partnership Action Plan;

Structure of data corresponds with the EC’s Progress Report for 2011, providing information on: Political Criteria, Economic Criteria and European Standards. The report is also based on quarterly reports drafted by Institutions of the Republic of Kosovo.

1. Political criteria

1.1. Democracy and Rule of Law

1.1.1. Institutions

During the reporting period Assembly has received 24 reports in total, 19 from the executive and 5 from independent institutions. In terms of capacity building two new officials have been hired within Division for Legal Standardization and Harmonization; and also there were 7 training sessions organizedwhere 245 officials were trained.

Furthermore, the Government has approved the AI no. 02/64 for procedure, criteria and methodology of preparation and approval of strategic documents and plans for their implementation, on March 7 2012.

Towards completion of legal framework for local self-governance, in February 2012 the AI 2012/02 for implementation of the law on municipalities’ immovable property lending and exchangewas drafted and signed, and the AI 2012/01 for Kosovo Municipal Assemblies monitoring through information technology “tele-presence” in January 2012.

The Guide Handbook for implementation of the Law on Inter-municipal Cooperation was finalized in March 2012 and is expected to be published and sent to municipalities.

As about decentralization, the plan for capacity-building in new municipalities has been drafted. The report on overall evaluation of capacities in municipalities has been drafted and published in March 2012. The annual report of Inter-ministerial Group for Decentralization has also been drafted.

1.1.2. Parliament / Elections

Towards electoral reform, on March 23 2012, the Assembly of the Republic of Kosovo has submitted before the Constitutional Court, amendments for changing the Constitution of the Republic of Kosovo.

In terms of preparations for extraordinary elections for Mayor of the Ferizaj Municipality, Central Elections Commission (CEC) has certified candidates of political parties for elections expected to be held on April 29 2012.

On March 19 2012, CEC has approved AI 01/2012 on nominating/discharging of Chief Executive, Vice-Chief Executive, director of the office for registration of political parties and the spokes-person for public information. CEC has also approved annual work-plan for 2012.

During the reporting period, CEC Secretariat has conducted two staff-training sessions, where four officials have been trained: two for “Statistics with Computer Software Programs SPSS” and two for “Labour Law enforcement in Practice”

1.1.3 Public Administration

In terms of completion of the legal framework on PAR, on March 2 2012 the Regulation No. 05/2012 for classification of jobs within civil service has been approved.Furthermore, on the meeting of Inter-ministerial Committee for Public Administration Reform (ICPAR) held on March 9 2012, proposal-Plan of Action for implementing revised Strategy for Public Administration Reform was approved, and also the Strategic Development Plan of MLSW was approved with some remarks.

Based on the civil servants training plan, so far, 35 training sessions have been organized on: overall management, administration and legislation, human resources, ITB public procurement, EU affairs and municipal affairs, where 496 civil servants have been trained. On 6 workshops organized by ReSPA an overall of 24 civil servants from 15 institutions have participated.

In terms of monitoring implementation of procedures, Department for Administration of Civil Service (DASC) has reviewed 82 requests for authorization of recruitment publications from institutions entitled to civil servants recruitment.

1.1.4. Judicial system

On February 1 2012, AI on reappointment/transfer of Judges inCourt of Appeal has been approved, whereas on February 24 2012 Regulation for evaluating Judge’s performance has also been approved. Furthermore, Monitoring Commission for implementation of the new law for Courts, has determined the number of needed Judges for the Court of Appeal, and has also initiated the process for Appointing Judges within this Court. Also, PCK has approved Regulation on setting procedures and criteria for evaluating prosecutors’ performance effective as of January 1; as well as AI for setting annual rate for prosecutors which was approved on January 24 2012. On December 1, respectively December 5 2011, Transit Plan for Courts, and Transit Plan for Prosecution have been approved. Furthermore, on March 9 2012 KJC has approved Strategy for Information Technology.

PCK, on March 20 2012, has approved the regulation for appointing and transferring prosecutors. On April 3 2012, PCK has made an internal announcement calling all interested prosecutors within the prosecutorial system to apply for position in Appeal Prosecution and Essential Prosecution including application for respective departments. PCK has taken the Decision on setting the number of prosecutors in Essential and Appeal Prosecution on April 17 2012. On the same date, PCK has also revised and approved the proposal of the evaluation panel of PCK, of 13 candidates for Prosecutors in Prosecutorial system of Kosovo. On April 20 2012, PCK has sent the proposals for 13 candidates for prosecutors to the President for decree.

On March 22 2012, PCK has signed the memorandum of cooperation with Balkan Investigative Reporting Network.

Towards filling position for Judges, on March 23, the President of the Republic of Kosovo has decreed 11 Judges, 7 of which are on duty for the first time. Furthermore, during the reporting period KJChas recruited 12 people as supporting staff. KJC has signed memorandums of understanding with Prime-Ministers Office/Official Gazette, respectively Ministry of Finance/Treasury, for sending the official gazette and KJC’s obligations for payment, respectively for delegating the managing of expenses.

As about disciplinary measures for judges and prosecutors, during the reporting period 20 final reports for disciplinary procedures have been revised for a total of 12 judges; among these files, some resulted with suspension of two jusdges until the disciplinary procedures end. On the other hand, from 19 cases on prosecutors presented since the establishment of PCK, so far, Disciplinary Commission has scrutinized 12 files, from which 7 files were suspended, 1 dropped, 1 rebuked, 1 suspension, and 2 with the decision on decreasing the salary up to 50%, while 7 files are still being processed. In terms of evaluating prosecutors’ performance and better planning on decreasing the number of accumulated files, PCK has taken a decision on registering accumulated files on the application of Records Base (on March 20 2012).

During the reporting period, 79 participants have attended trainings on: “Organized Crime”, “Implementing interrogation of witnesses and witnesses under protection” and “Witnesse in Criminal Procedures”, from which 22 were judges, 1 prosecutor, and 56 candidates for judges and prosecutors. Also, during this period 10 trainers have been certified, 2 in the field of cyber-crime and 8 for Human Rights Convention.

1.1.5. Anti-Corruption Policies

In the field of anti-corruption policies, ACA on March 28 has submitted before Assembly the annual report for 2011. The regular process of declaration of property in ACA, it has ended on March 31. From 3657 high officials obliged to declare their property, 3354 have completed it within the legal timeframe, 6 officials have notified ACA for the reasons for which they could not declare their property, 36 high officials have declared their property after the deadline (until April 11 2012), whereas 261 high public officials have not declared their property at all and their names were made public by ACA, accordingly with the law. ACA is in the phase of registering informations on database and initiating legal procedures in competent courts. During the reporting period, ACA has conducted 4-day training for 74 contact-points/officials from line institutions on the topic of property declaration.

1.2. Human rights and minority protection

1.2.1 Human rights and minority protection

As about missing persons, in the field of human right, a meeting of the Working Group for Missing Persons between Prishtina and Belgrade delegations has been held on March 9, as well as the informing session with families of missing persons.

As about property rights, regarding implementation of the agreemeing on cadastral dossiers return, on the meeting held on April 4, Serbia has submitted the final list followed by all supporting documents of cadastral registry.

Furthermore, regarding the freedom of expression, on March 26 the Assembly has approved the Law on Independent Media Commision and the Law on Public Broadcaster/RTK. Also, the budget for broadcastin in official languages has been set in compliance with the new law on RTK. A report on implementation of the Law on Access to Official Documents has been prepared.

Regarding gender equality, two discussion round-tables have been organized: “Media Role in treating gender issues” and “Emporing the woman in rural areas - challenges and institutional support”.

1.2.2. Minority rights, cultural right and protection of minorities

Regarding the reforms of the commission responsible for monitoring implementation of legislation on usage of languages, on March 21 the Government has approved the Regulation for the Office of Language Commissioner.

As about integration of RAE communities and closure of lead-rich camps, 3 familes have been moved from Osterode camp, 1 in “Roma Mahallë”, two others in “TreSoliterat” on the northern part of Mitrovica. After this, the number of remaining families in the camp falls down to 14. Furthermore, the manual on training staff of health, social, psicologists, pedagogs and members of the community which will provide training or activities within the communities regarding lead-poisioning and advocating for health-related issues, has been drafted. Evaluation report on the scale of contamination as such has been drafted, but due to specifics of this contamination this report is updated according with the new finding on the field.

During the reporting period, 13 people in total have been treated, 11 adults and 2 children, where 3 of them are in re-treatmend due to rebound effect. The number of measurements of the level of lead for this period has reached 467, where 154 are capillary and 313 venous.

As regards the return, three new OCR have been established (in Klokot, Partesh and Ranillug). Towards capacity-building, in March 2012 regional trainings for all OCR have been conducted, on the topic of re-patriation of people and re-integration in society.

MCR through the joint project with Brittish Embassy has started building 8 houses for moved RAE community families, in municipality of Istog.

During the reporting period, 530 m³ of burning material have been distributed for returned families and for those with low living social standards, as well as 20 food-hygienic packages. Also, 25 food-hygienic packages have been distributed for Goran community in Restelica Village municipality of Dragash. 15 NGO projects have been supported in the amount of 64,677.00 euro, which aimed at stabilization and re-integration of communities, and sustainable economic development, as well as their successful integration.

1.3. Regional Affairs and International Obligations

Based on the agreement reached in Brussels on Kosovo’s participation in regional forums, Kosovo has participated for the first time in the Meeting of the Board of Regional Cooperation Council (RCC) which has been held on 14 and 15 March in Sarajevo, whereas on February 23 in Brussels the Strategic meeting has been held and the Directing Committee of CEFTA meeting. From February 29 to March 1, the meeting of Task-Force for CEFTA’s Portal has been held. Also, on March 30 in Tirana, fourth meeting of Working Group on service Trade was organized. Regarding the cross-border, on March 6, Common Technical Secretariat with Albania has become operational, and with Macedonia the Common Committee of Monitoring has been established.