The United States envoy for the Western Balkans, Gabriel Escobar, has called the decision of Kosovo authorities to implement the regulation of the Central Bank of Kosovo that designates the euro as the currency for cash transactions “catastrophic” and “incompetent”.

This decision has prevented the use of the Serbian dinar in Serb-majority municipalities in Kosovo.

He made these statements in Brussels during an open discussion with journalists.

“We urge the government of Kosovo to consider the concerns of the Serbian community and international mechanisms for the treatment of minorities within Kosovo.”

He recalled that France took nearly a year to adopt the euro, while “in northern Kosovo, they wanted to implement the decision within 3 weeks”.

Escobar reiterated that the United States does not oppose the legitimacy of the decision, but has issues with the way it is implemented and its effect on the Serbian community.

From March 10 to March 18, Escobar will hold a series of meetings in Belgium, Kosovo, Austria, and Montenegro.

Escobar is expected to start the meetings in Pristina on March 13.

He said that during the visit to Pristina, there will be a focus on a “possible solution to the coordinated decision to stop the dinar as well as transfers from Serbia to the citizens of Kosovo, who depend on them”.

Serbia declares that it allocates millions of euros to Serbs in Kosovo and pays them salaries, pensions, and additional assistance.

“Communication problems” with Kurti

Escobar admitted that there is a rift in diplomatic communications between the US and Kosovo.

“The partnership between the United States and Kosovo, between the American people and the people of Kosovo, does not go through one person in Kosovo or one party. However, I must say that currently we have communication problems with Prime Minister [of Kosovo, Albin Kurti]. And it’s not just the US; Kosovo also has a problem with the EU, NATO, the United Kingdom, and more partners, including Albania and North Macedonia.”

He said that communication with Kosovo has been very good in the past and hopes the same will be true in the future.

Asked why he is not visiting North Macedonia, he said that the situation in Kosovo is “terrible, so I need to visit Kosovo”.

Dialogue is at a “critical moment”

Escobar considered the dialogue between Kosovo and Serbia – initiated since 2011, with EU mediation – to be at a “critical moment”.

He acknowledged that Washington has issues with the direction of the Brussels agreements and the Ohrid agreement “on the right track”, and that from the American perspective, “there is no alternative to dialogue”.

He specifically mentioned that Kosovo is required to work towards the formation of the Association of Serb-majority municipalities, while Serbia is required to ensure that its commitments are legally binding and irreversible.

Asked about the possible consequences for Kosovo and Serbia for non-implementation of the Ohrid Agreement, Escobar mentioned a slowdown in the European integration process.

In February 2023, Kosovo and Serbia reached an agreement aimed at normalizing relations between the two countries.

In March of that year, agreement was also reached in Ohrid on the implementation annex of the basic agreement.

Solving problems in the Balkans prevents Russia’s malicious interference

During the discussion, Escobar also spoke about US assistance to Kosovo in Euro-Atlantic processes.

According to the American diplomat, “it is impossible to convince non-recognizing countries to move forward with integrations if Kosovo ignores dialogue and European partners”.

“Yes, I am very concerned that Kosovo is not listening to the US offer of partnership to advance Kosovo’s integration further and faster.”

Asked whether US policies toward Kosovo and Serbia have changed since Russia’s war in Ukraine began – in February 2022 – Escobar said that nothing of the sort has happened.

“However, the urgency to address challenges to European stability within the European continent has changed.”

In this regard, Escobar assessed that it is very urgent “to start addressing some open issues in the Western Balkans”.

According to him, what is happening in the Balkan region – although it opens the door to Russia’s malicious influence – is not always caused by Moscow, mentioning that the problems are very deep-rooted and have been going on for a long time.

“By solving these issues, we have hoped to close off any opportunity for Russia to exploit instability in the Balkans as a means to weaken transatlantic security.”