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Moreover, the banking system in Kosovo seems very sound. The United Nations Interim Administration Mission in Kosovo introduced an external trade office and customs administration on September 3, , when it established border controls in Kosovo. Interim Administration and Kosovo institutions have signed free-trade agreements with Croatia , [21] Bosnia and Herzegovina , [22] Albania , [23] North Macedonia. The euro is the official currency of Kosovo. This means that Kosovo has no levers of monetary policy over its economy, and must rely on a conservative fiscal policy to provide the means to respond to external shocks.

Officially registered unemployment stood at The dispute over Kosovo's international status, and the interpretation which some non-recognising states place on symbols which may or may not imply sovereignty, continues to impose economic costs on Kosovo. Examples include flight diversions because of a Serbian ban on flights to Kosovo over its territory; loss of revenues because of a lack of a regional dialling code end-user fees on fixed lines accrue to Serbian Telecoms, while Kosovo has to pay Monaco and Slovenia for use of their regional codes for mobile phone connections ; no IBAN code for bank transfers; and no regional Kosovo code for the internet.

A major deterrent to foreign manufacturing investment in Kosovo was removed in when the European Council accepted a Convention allowing Kosovo to be accepted as part of its rules for diagonal cumulative origination, allowing the label of Kosovo origination to goods which have been processed there but originated in a country elsewhere in the Convention. Since the European Commission has compiled a yearly progress report on Kosovo, evaluating its political and economic situation. Foreign direct investment in Kosovo is still a relatively small contribution to the Kosovo economy, compared with other transition economies.

Much of the reason is, apart from a late start in , because of legal and political uncertainties, and an incomplete, contested, and very slow system of privatisation before the declaration of independence in Thus Kosovo still retains a state-owned telecommunications company, a state-owned electricity monopoly with the largest lignite reserves in Europe , and a ski-resort in Brezovica a Serb-majority area which was the Winter Olympics reserve site during the Sarajevo Winter Olympics.

All of these are now under the process of privatisation.

Creating Balance in Reconstruction States

Other infrastructure companies water, railways may also be privatised. While there remain significant disincentives to investment in Kosovo a small domestic market, residual political uncertainty, perceptions of corruption, and a slow and uncertain judicicial system , there are also incentives.

These include a much younger workforce than elsewhere in south-eastern Europe, which has been more exposed to Western European culture and has higher linguistic standards see next paragraph ; a low corporate tax-rate; access to the European Union and Central European Free Trade Agreement markets; and a government with low debt and low contingent liabilities in terms of pension and other social welfare transfers. Information and communications technology in Kosovo has also developed very rapidly and broadband internet penetration is comparable to the European Union average.

A lack of female employment opportunities in Kosovo perpetuates a traditional society in which many women remain in the home. Firms are not permitted to terminate the employment of employees taking maternity leave. Upon the birth or adoption of a child, a father receives three days of paid leave. After informing an employer ten days in advance of his intent to do so, a father may take two weeks of unpaid leave upon the adoption or birth of a child, until the child reaches the age of three.

€1.1 billion of EU assistance in Kosovo

In the event that a woman dies while on a maternity leave, the father of her child is eligible to receive the benefits of maternity leave. Representatives of women's groups in Kosovo find maternity leave provisions to be discriminatory as they de-incentivize employers from hiring qualified female employees on account of the costs associated with maternity leave.

Surveys conducted amongst women seeking employment in Kosovo have found that certain employers require potential female employees to take pregnancy tests upon receiving their applications for employment. If standard prenatal checkups must occur during working hours, pregnant employees have the right to be absent from work without any loss of pay. Labor contracts are signed by employers and employees upon the hiring of new employees.

The contract details the role that each party is to play within the employment relationship. A job's description, level of compensation, scheduled hours, duration, number of vacation days provided, termination rules, schedule and location are stipulated within the contract. Termination of labor contracts may occur upon contract expiration, the death of an employee, or an employee's eligibility for pension collection.

Should the employee fail to improve after receiving a warning, termination of employment will occur before the date originally stipulated within the contract signed by both parties. Kosovo Energy Corporation is currently the sole power corporation in the Republic of Kosovo. It is vertically integrated and was legally incorporated at the end of It relies on extensive lignite deposits - In Yugoslav times, Kosovo was a net exporter of electricity.

But its current generating capacity has been affected by many factors. The generation units were designed for a life of 30 years but have all operated for longer than 28 years, and in some cases for 50 years. They were part of a much wider integrated energy system in which they could be shut down for maintenance without local economic consequences. Maintenance was reduced in the period from to ; and expert Albanian workers were sacked in and expert Serb workers left in Distribution has also suffered.

The Northern Serb-majority municipalities have received electricity without any ability by Kosovo Energy Corporation to receive payment, as has also been the case for much of the period in southern Serb-majority areas. Many Albanians also avoided their payments during this period. Transmission of electricity through Kosovo from Serbia to Macedonia has not created any income for Kosovo because of the status dispute.

ISBN 13: 9781589060982

Kosovo is rich in natural resources , and has been an important mining centre for much of its history. In Kosovo there is substantially high reserves of lead , zinc , silver , nickel , cobalt , copper , iron and bauxite. Canadian company Avrupa Minerals Ltd has achieved the rights to a three-year mining programme, which is expected to start in summer Lignite is of outstanding importance in Kosovo.

At 14, megatons, Kosovo possesses the world's fifth-largest proven reserves of lignite. The first systematic records of lignite exploitation date from , when small-scale, shallow underground room-and-pillar mining commenced in the Kosovo Basin. Cumulative exploitation from the commencement of mining in up to the end of has amounted to megatons. Geologically, Kosovo's lignite mines exploit one of the most favorable lignite deposits in Europe.

The average stripping ratio is 1. The lignite is of high quality for the generation of electricity and compares well with the lignite resources of neighbouring countries on a range of parameters. Kosovo's lignite varies in net calorific value from 6. The deposits Pliocene in age can be up to m thick, but average 40 m, and possess an average strip ratio of 1.

This combination has meant that the cost of lignite-fuelled electricity in Kosovo is the lowest in the region.


Further development of lignite mining in the medium term will continue with the exploitation of the Sibovc mining field in the northern part of the Kosovo Basin, and provides a great opportunity for private investors. In what today is Kosovo, base-metal mining has been a mainstay of the economy, since pre-Roman times. These activities have been based on a series of nine mines, of which five comprise today's Trepca Complex.

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Modern mining began in the s, when the British company Selection Trust Ltd revamped the Trepca Complex, including the development of a battery factory that utilised the lead. Active mining of the five mines ceased during the NATO bombing campaign. The locations of the Trepca mines define the Trepca Mineral Belt. Zone I includes the Novo Brdo mine and follows the boundary between the Vardar Zone and the Kosovo sector of the Serbo-Macedonian Massif, which is characterised by extensive Neogene calc-alkaline volcanics and intrusives.

This zone follows the major fault that marks the eastern margin of the Miocene Pristina basin, and its extension to the NNW and the intrusive and volcanic complexes in northern Kosovo. Zone III includes the Crnac mine, and hosts a number of lead-zinc occurrences along the western border of the Vardar Zone, where it is in contact with the Dinaride Drina-Ivanjica Drenica structural block. Current estimates for combined mineable reserves for the five mines have been undertaken, but all of the deposits are open at depth and their strike lengths are uncertain, owing to a lack of systematic exploration and definition drilling.

During the lead-zinc-silver exploitation at Farbani Potok Artana-Novo Brdo , about 3 megatons of high-grade halloysite was discovered.

Economy of Kosovo

Current world production is estimated at , tons per year. Remaining mineable reserves have been calculated as Production stopped in and has resumed. The company had to invest at least 20 million euro in the first three years and to employ 1, at the end of the first year. Ferronikeli ore mining and metallurgical complex was set up in to produce ferro-nickel for exports.

It produced and exported 6, tonnes a year of nickel, in ferro-nickel ingots, before the s but since it has been idle. Ferronikeli has three open pit mines: the Dushkaja mine with estimated reserves of 6. Ferronikeli now is one of the main exporters of Kosovo. A chain of Alpine-type chromite pods in southwestern Kosovo are part of a series of linear deposits that continue into Albania.

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These pods are small but of high grade and in Albania are known to possess enhanced levels of platinum group metals PGM. From the end of World War Two until , the ores were worked, primarily from the Gjakova mine by Deva holding company, and direct-shipping ore was sent to Albania for treatment. This ceased when the plant was closed in No meaningful exploration for chrome has been undertaken for several decades. Kosovo's bauxite deposits are hosted in karst limestone and have been exploited in a series of pits that comprise the Grebnik mine.

The host limestone was worked as a construction material and a sizeable stockpile of broken limestone remains on site. Mining began in and ceased in , owing to the deteriorating political climate in Kosovo. Total production was 2. The traditional markets for bauxite from Grebnik were Romania, Germany and Russia. Both were originally worked as quarries and both moved to underground operations prior to their closure in Before , the Golesh operation produced , t of magnesite, 22, t of sintered magnesia and 10, t of caustic calcined magnesia per annum. Golesh mine is accessed via a shaft, whereas Strezovc is accessed via a horizontal adit in the hillside. Both mines have recently been put up for privatisation. For further information on the privatisation process, visit: www. Kosovo is rich in high quality construction minerals, such as andesite, basalt, diabas, gabbro, granite, limestone and marble.

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