Mijacic: The Development Fund for the North marginalized by opening only Merdare for Serbian goods

Dragisa Mijacic, Coordinator of the Working Group of the National Convention on the EU for Chapter 35, says to Kosovo Online that the Development Fund for the North, designed as a tool for infrastructural and economic development in northern Kosovo municipalities, has withered in recent years due to various actions. The most recent of these was the Kosovo Government's ban on importing Serbian goods, followed by a partial allowance of imports exclusively through the Merdare crossing.

Mijacic explains that the Development Fund for the North is financed through customs revenues on goods for northern Kosovo, collected at the Mitrovica Customs Terminal, and that these goods enter Kosovo through the Jarinje and Brnjak crossings.

“The Development Fund for the North is one of the best instruments created within the Brussels dialogue process. However, it has not received funds for years. First, due to the introduction of a 100% tax on Serbian goods entering Kosovo, and in recent years, due to the ban on Serbian imports and their partial allowance only through Merdare. As a result, all Serbian goods consumed by residents of northern Kosovo are cleared at the Pristina terminal or Merdare, not at the Mitrovica terminal, leading to a lack of inflow into the fund,” Mijacic pointed out.

He adds that the fund has been plagued by a significant lack of transparency since its inception.

“So far, about 14 million euros have been collected, some funds have been spent, and about 3 million euros remain unallocated. However, the fund has not significantly contributed to the socio-economic development of northern municipalities for various reasons. The recent restriction on importing goods through Jarinje and Brnjak has further marginalized this financial instrument,” Mijacic emphasized.

He notes that the fund's Managing Board, which includes Kosovo’s Minister of Finance, a representative of Kosovo Serbs or northern municipalities, and the EU Ambassador to Kosovo, has not convened in several years.

“The Kosovo Government wanted to use these funds to cover electricity bills in the north, but the EU rejected this. However, the EU has neither found the will nor the means to channel the fund's resources into development projects, leaving it as a tool that receives little attention,” Mijacic said.

He acknowledges that, since the fund's creation in 2013, many projects have been completed using its resources but noted ongoing issues with fund utilization.

“Initially, the principle was that the first local self-government to propose a project would receive funding. Later, a type of agreement among local governments was introduced, and funds were allocated not based on project viability but on political agreements among the leaders of the four northern municipalities. Eventually, there was no allocation of funds at all,” Mijacic said.

Among the successful projects funded, he mentions the Via Ferrata Berim, a climbing route whose first phase was completed thanks to the fund, however, he adds that about 75% of the initiated projects were never brought to completion.