Vujinovic: Imports and diaspora remittances are the core of Kosovo’s economy – unsustainable in the long run

Security studies researcher Nikola Vujinovic stated that the essence of Kosovo’s economy has become reduced to imports and diaspora remittances, noting that one of the consequences of EU measures is the lack of foreign direct investment.

“No developing economy can progress without foreign direct investment. The absence of such investment, combined with the lack of European financial assistance as a form of sanctions imposed by the EU on Kosovo, directly affects economic development. Infrastructure is not developing, the market is not developing, and small and medium-sized enterprises are not growing. Imports and remittances from Kosovo citizens abroad have become the backbone of the economy — which is unsustainable in the long term,” Vujinovic told Kosovo Online.

EU representatives have announced the gradual lifting of restrictive measures against Kosovo, but Vujinovic emphasizes that this will happen only once Pristina meets the very clear requirements set by Brussels in June 2023 — namely, free elections, a reduction of tensions in northern Kosovo, a change in approach toward the Serbian community, and the formation of the Community of Serb-Majority Municipalities (CSM).

He added that the problem is that of all the EU measures, only the financial ones are being partially implemented.

“Essentially, of all those measures, only the financial one — preventing EU funds from financing projects in Kosovo — is truly being enforced. As for the political measures, they depend more or less on individual European leaders. For instance, Osmani attended the meeting in Copenhagen, although under those measures she should not have been there. European officials were present, with whom she is technically not supposed to communicate due to those restrictions,” Vujinovic noted.

He therefore sees the real strength of EU measures not in their political dimension, but rather in the potential unfreezing of blocked financial resources from various funds.

That, he clarified, will be possible only once Kosovo meets Brussels’ explicit demands.

“The key point is that financial assistance — which is truly essential for the survival of Kosovo’s economy — can be restored only if there are free elections in northern Kosovo, a reduction in political violence against the Serbian community, and the establishment of the Association of Serb-Majority Municipalities,” Vujinovic concluded.