The European Union has called on Kosovo and Serbia to avoid uncoordinated actions that are not in the spirit of normalizing relations and, as stated by the bloc, may have a negative impact on the situation on the ground.
This call was also made regarding the decision of the Central Bank of Kosovo, which has approved a regulation for cash transactions. This regulation stipulates that payments must be made only in euros, a decision seen by Serbia as a prohibition on payments in Serbian dinars.
The EU spokesperson, Peter Stano, responding to questions about the decision of the Central Bank of Kosovo, which will come into effect on February 1, stated that the European bloc is still analyzing this issue.
“We are still analyzing and seeking clarification on this decision, the motives, and the implications it may have… Kosovo and Serbia should avoid uncoordinated actions that do not align with the spirit of normalizing relations and that may have a negative impact on the situation on the ground,” said Stano.
He reiterated the call for both parties to address this issue within the framework of the dialogue for normalizing relations, mediated by the EU.
According to Kosovo’s Deputy Prime Minister, Besnik Bislimi, the particular importance of the Central Bank’s regulation lies in specifying the currency allowed for all banking and non-banking transactions in Kosovo, which in this case is the euro.
“Any citizen of the Republic of Kosovo who acts in violation of this has consistently been on the side of the lawbreaker,” Bislimi wrote on Facebook.
He stated that the Central Bank’s regulation “is not a product of political negotiations in Brussels” and as such “cannot have an impact on the overall progress” of the normalization process between Kosovo and Serbia.
A few days ago, the EU’s Special Envoy for the Kosovo-Serbia dialogue, Miroslav Lajčák, expressed hope for a solution to avoid negative consequences. According to the European envoy, the information he received from Kosovo on this issue has been conveyed to Brussels, adding that he expects the EU to come up with a common stance on this matter.
The Director of the Office for Kosovo in the Serbian Government, Petar Petković, in a statement to the Serbian Radio Television, said he expects what Lajčák declared to be realized, meaning to find “a solution that will not end with negative consequences”.
The decision of the Central Bank of Kosovo has also been opposed by the Serb List, the largest party of Serbs in Kosovo enjoying the support of the official Belgrade. This party stated on January 18 that this decision of the “regime of [Kosovo Prime Minister] Albin Kurti” is a “decision to expel Serbs from these areas without the use of weapons”.
“After all forms of institutional violence used against the Serbian people by the authoritarian regime of [Kosovo Prime Minister, Albin] Kurti, which failed to expel all Serbs from Kosovo, he has now decided to ban the dinar in Kosovo and thus directly threaten the physical survival of the Serbian people,” stated the Serb List in its reaction.
In Kosovo, in all Serbian-majority settlements, the population uses the Serbian dinar for payments. Those working in Serbian institutions in Kosovo also receive their salaries in dinars. Pensions, according to the Serbian system, as well as child allowances and social benefits, are also paid in dinars.
Additionally, in areas where Serbs live, dinars are used in commercial establishments, and in the four northern municipalities with a Serbian majority, prices are in dinars.
The regulation approved by the Central Bank of Kosovo for cash operations states that non-euro currencies can only be used to be “held physically or in bank accounts” and can be used for international payments and currency exchange.
