Milic: Without normalization of relations with the West, Kosovo cannot count on major investments

Program Director of the “New Third Way” organization, Dimitrije Milic, stated that without normalizing relations with the West and returning to dialogue, Kosovo cannot expect significant investments from the EU. He added that one direct consequence of the EU’s economic measures is the growing import imbalance, which last year stood at seven to one in favor of imports.

"Kosovo’s economy, when it comes to exports and economic exchange, is largely connected to the EU and to countries in the region. The sectors that traditionally dominate Kosovo’s exports are metals, ores, and minerals. These sectors have accounted for most of the exports so far, even though Kosovo’s economy heavily depends on imports. In 2024, the import-to-export ratio was roughly seven to one," Milic told Kosovo Online.

He added that the biggest obstacle for Kosovo in attracting greater international assistance is the fact that it does not have EU candidate status.

"If Kosovo were to obtain candidate status, that assistance would increase significantly. Of course, that would also mean reducing the current political isolation that exists internationally, primarily from Western countries. Once relations are normalized, the existing framework for assistance would be decent, but only with candidate status would that support grow substantially," Milic explained.

He primarily referred to the IPARD program, as well as other pre-accession funds.

Milic emphasized that in order for the EU to lift its punitive measures, the new Kosovo government must reestablish dialogue with Brussels, and subsequently resume talks between Belgrade and Pristina.

That would also, he specified, require avoiding any escalatory measures by Pristina.

"Those measures have, in fact, generated the current form of international isolation and skepticism among Western countries, as well as the EU’s actions. Essentially, normalization of relations with the West and the continuation of the dialogue between Belgrade and Pristina are the key conditions for returning to previous, more predictable dynamics," Milic concluded.