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EU: The decision to use only the euro in Kosovo should be addressed within the dialogue

2024-01-19 20:30:00, Kosova & Bota CNA

EU: The decision to use only the euro in Kosovo should be addressed within the

The European Union said on Friday that it is analyzing the decision of the Central Bank of Kosovo to make the euro the only currency for making cash payments in the country, a decision that prompted concern and reaction from Belgrade.

The spokesperson of the European Union, Peter Stano, said today in a press conference that the bloc calls on Kosovo and Serbia to avoid uncoordinated actions that could undermine stability on the ground.

"We are still analyzing and seeking clarification on the reasons, motives and possible impacts of this decision. But in general, we expect Kosovo and Serbia to avoid untrustworthy actions, which do not help the process of normalization of relations between them, which may even have a negative impact on stability on the ground. We encourage and call on both sides to address this issue within the dialogue facilitated by the European Union", he said.

Serbian citizens living in Kosovo receive their salaries and pensions from Serbia in Serbian dinars, which are used for payments in Serb-majority areas, especially in the north.

The decision of the Central Bank of Kosovo raised the concern of the leaders of Serbia who said that its purpose is to ban the use of the Serbian dinar in areas inhabited by Serbian majority in Kosovo.

Serbian President Aleksandar Vucic has said that this is an attempt to destroy the dialogue.

However, the Deputy Prime Minister of Kosovo, Besnik Bislimi, said that with the new regulation, the transparency of sending money will be increased and the large space for, as he said, misuse in the name of support and social assistance, will be reduced, underlining that it is not a product of political negotiations. in Brussels and there is no way to have an impact on the completion of the process of normalization of relations between Kosovo and Serbia.

Sasha Sekuli?, from the Association of Entrepreneurs in Graçanica, a municipality with a Serbian majority near Pristina, estimates that this decision represents additional pressure for the Serbian community in Kosovo.

"Citizens are confused about how they will receive their salaries, if they have to travel miles to the nearest city in Serbia to receive their salary. Another concern is how retirees will receive their pensions. They are the most vulnerable because until now they have received their pensions at home through the mail. However, the Serbian political representatives are still silent, they should come out and explain to the people what is happening", he said.

But expert in the field of economics, Lekë Musa, evaluates the decision as completely fair.

"It should be seen from the economic point of view as a process which brings a kind of long-term stability of the country's economy because we are moving in the direction of creating a normal economic system where everything works, just as other economies in the west work. Any investor who considers a place to invest would find something not very stable to have two payment systems and does not convey a positive message," he says.

However, Mr. Musa says that the implementation of this decision must be done very carefully, to avoid informality.

"Don't allow spaces for the dinar to behave in an illegal or illegal way because, as you know, there are many payment options that can be made through a non-banking system. Payments can be made in cash and it is very difficult to stop circulation in businesses and in this way we can stimulate informality in the north. The goal is always for the north and other areas where the Serbian community lives to join the formal system of Kosovo and, in addition to carrying out transactions through the banking system as in the whole country, also start paying taxes. Because the greater the informality, the greater the tax evasion will be," he says.

Mr. Musa insists that the Kosovo authorities must fully coordinate with the European Union to implement the new regulation, since, he says, a direct agreement with the Serbian authorities is difficult to achieve.

Since 2011, Kosovo and Serbia have been involved in the dialogue facilitated by the European Union, within which a number of agreements have been signed - the implementation of which continues to be a challenging process./ VOA