Brussels – Following the tensions in northern Kosovo, the EU introduced “temporary and reversible” measures against Kosovo on 28 June 2023, which have negatively affected bilateral diplomatic relations, as well as financial support.
These financial measures have been particularly severe. Funding through the Instrument for Pre-Accession Assistance (IPA) has been frozen, while Pristina’s proposals under the Western Balkans Investment Framework (WBIF) are currently not being considered by the WBIF Management Board.
An analysis by the GAP Institute for Advanced Studies revealed that the financial and developmental impact amounts to approximately €613.4 million. Of this, €7.1 million has already been irretrievably lost due to the expiration of procedural deadlines.
Around €218 million relates to IPA projects, with the remaining €395.5 million attributed to WBIF projects—all expected to be financed through grants and loans, including €421 million from the EU, €162 million from third parties (such as international financial institutions), and €31 million from Kosovo’s self-financing.
Among the IPA funds, three signed agreements from 2020, 2021, and 2022, as well as one pending agreement for 2024, have been affected. Under the WBIF, eight applications for grants and loans have been blocked—two submitted in 2023 and six in 2024.
The most affected sectors include the environment (€350.7 million), energy (€114.4 million), digitalisation(around €57 million), and culture (€15 million). As an example of the indirect impact on citizens’ well-being, among the suspended funds is a €25 million project for local district heating in Pristina, which was intended to provide more affordable heating for residents.
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