The European Union has asked Kosovo to postpone the deadline for implementing the decision of the Central Bank of Kosovo, which stipulates that only the euro currency be used in cash transactions.
EU spokesperson Peter Stano said that this issue should be resolved by the parties within the framework of the dialogue mediated by Brussels.
Postponing the decision, scheduled to take effect on February 1st, according to the EU, would address the potential negative impact on the Serbian community in Kosovo.
The bloc’s request comes on the day when the special envoy for Kosovo-Serbia dialogue, Miroslav Lajčák, is in Serbia, and the following day he will also visit Kosovo.
“The EU is aware of the regulation of the Central Bank of Kosovo regarding the use of cash, aimed at reducing counterfeiting, maintaining financial stability, and increasing transparency in cash circulation in Kosovo. However, this raises concerns about the impact it will have on Serb-majority communities, especially schools and hospitals, for which no alternative process seems appropriate at this time. The regulation also directly affects the daily lives of the majority of Serbs in Kosovo, who receive payments and financial assistance from Serbia,” said Stano.
Stano said the EU calls “for a sufficient transitional period that would allow for the negotiation of an agreement” regarding the decision of the Central Bank of Kosovo.
This decision by the Central Bank is seen by Serbs in Kosovo as a decision that would prevent them from using the dinar.
“Given the possible consequences of this regulation on the process of normalizing relations between Kosovo and Serbia, the EU expects the aspect related to the Serbian community in Kosovo to be addressed in the facilitated dialogue by the EU,” Stano said.
Stano also spoke about Lajčák’s visit to Serbia and Kosovo. He said that these visits, to be held on January 29 and 30, are part of his daily work to help the parties advance in the process of normalizing their relations. Stano said that in Belgrade, Lajčák will meet with Serbian President Aleksandar Vučić, while in Kosovo with “his interlocutors”.
Earlier, the United States, as well as other QUINT states – Italy, Germany, France, and Britain – also requested the postponement of the implementation of the Central Bank of Kosovo regulation on cash transactions.
After the decision was published by the Central Bank on January 17, the EU said it had sought clarification from Kosovo on this decision.
The Serb List – the main party of Serbs in Kosovo, enjoying the support of Serbia – has said that the Central Bank’s decision jeopardizes the survival of Serbs in Kosovo.
In Kosovo, in all Serb-majority areas, the population uses the Serbian dinar to make payments, and those who work in Serbian institutions in Kosovo also receive salaries in dinars.
Pensions are also paid in dinars, according to the Serbian system, as well as child allowances and social benefits.
In commercial establishments, in areas where Serbs live in Kosovo, besides euros, the dinar is also used.
