Council Decision of 30 January 2006 on the principles, priorities and conditions contained in the European Partnership with Serbia and Montenegro including Kosovo as defined by the United Nations Security Council Resolution 1244 of 10 June 1999 and repealing Decision 2004/520/EC (2006/56/EC) (repealed)

KOSOVO AS DEFINED BY THE UNITED NATIONS SECURITY COUNCIL RESOLUTION 1244 OF 10 JUNE 1999

SHORT-TERM PRIORITIES

• In order to ensure a secure, democratic and multi-ethnic Kosovo, implementation of the Kosovo Standards endorsed by the UN Security Council needs to be pursued.

• The following priorities are to be addressed in this context:

Key priorities

• Ensure full respect for the rule of law and pursue a policy of zero tolerance against corruption, organised crime and financial crime.

• Ensure democratic governance of, and delivery of public services to, all people of Kosovo establishing a professional, accountable, accessible, representative and transparent public administration free from political interference.

• Advance the reform of local self-government taking into account the views and interests of all communities in Kosovo including the allocation of appropriate budgetary resources and increase administrative capacity to facilitate the decentralisation process.

• Create a climate for inter-ethnic tolerance, sustainable multi-ethnicity and which is conducive to returns. Ensure the respect, security, freedom of movement and participation of all communities. Explicitly condemn all manifestations of anti minority-communities sentiment. Vigorously prosecute all inter-ethnic crime.

• Create the conditions for investment, trade, employment and economic growth for the benefit of all communities.

• Ensure full cooperation with UN International Criminal Tribunal for the former Yugoslavia (ICTY).

• Fully respect UNSCR 1244 and intensify well prepared dialogue with Belgrade. Show a constructive attitude. Create the necessary conditions to facilitate the participation of Kosovo Serbs in the political process.

Political requirements

Democracy and the rule of law

Provisional institutions of self-government

• Ensure fully effective functioning of the Assembly and its committees, the government and municipalities, including full respect of the respective rules of procedure, and the rights and interests of all communities.

• Increase executive oversight by, and accountability and transparency, within the Assembly.

• Increase minority representation in all institutions and the civil service at municipal and central level.

• Prepare and carry out a population and housing census in full respect of international standards.

Elections

• Hold free, fair and transparent elections. Strengthen the independent and multi-ethnic Central Election Commission to administer the 2006 elections in a timely manner.

• Make sure that adequate voting sites, security and other measures are provided to all communities to exercise their voting rights. Enable internally displaced people and refugees to participate in the elections even if their ability to return to Kosovo is curtailed.

Public administration

• Reinforce capacity for government coordination and define more precisely the responsibilities of the central and local authorities for ensuring consistency of policy implementation.

• Enforce transparent procedures on recruitment, transfer, appraisal, promotion, conduct and dismissal of civil servants including Kosovo Protection Corps (KPC), police and justice system employees and on financial management.

• Improve quality and availability of basic public services to all communities, including as a contribution to reduce the demand for services provided by parallel structures.

• Develop and maintain effective public service training institutions free from political influence. Improve higher management training. Develop the Kosovo institute of public administration into a body capable of delivering professional training to all civil servants.

• Adopt the Law on emergency management and further improve the performance, professionalism and coordination of relevant Kosovo institutions, including the KPC, on civil protection matters.

Judicial system

• Ensure effective and impartial courts free from political influence.

Protect witnesses.

• Implement the automated case management system to reduce the backlog of court proceedings in particular in civil law. Ensure enforcement of civil court decisions.

• Further develop legal education and training, particularly for judges, prosecutors and administrative personnel. Adopt and implement the law on the Kosovo Judicial Institute and transform it into a viable institution responsible for judicial training.

• Strengthen municipal courts and police action to prevent, sanction and address illegal occupation, use and construction of property.

• Strengthen the Prosecutor’s Office to ensure that is able to comply with the principles of autonomy and impartiality.

• Develop capacity free from political influence to take on competences in the areas of justice and interior.

Anti-corruption policy

• Implement the law on the suppression of corruption. Establish the anti-corruption agency. Adopt and implement the anti corruption plan.

Human rights and the protection of minorities

• Ensure the continued independent functioning and the financial viability of an impartial ombudsman institution, and due consideration of ombudsman recommendations.

• Facilitate and encourage the return of refugees and displaced persons from all communities and finalise the rehabilitation of damaged and destroyed properties caused by the March 2004 events, including historic and religious sites.

• Strengthen administrative structures and accountability mechanisms in the Ministry of Communities and Returns. Further develop and implement the joint strategic framework on communities and returns and develop mechanisms at municipal level for facilitating the sustainable integration of returnees and existing minority communities.

• Adopt and enforce an effective law on official languages and set up effective mechanism to monitor its implementation.

• Regularise informal settlements. Find sustainable repatriation solutions for the integration of Roma minority communities that are living in hazardous living conditions in camps and for internally displaced persons groups living in informal centres.

• Adopt the law on the preservation of cultural heritage and establish administrative mechanisms to ensure its implementation.

• Adopt laws on public broadcasting and against on civil defamation. Consolidate the media self-regulatory system with the establishment of the Independent Media Commission, the effective functioning of the Press Council and the implementation of the Press Code.

• Establish an adequate legal framework for non-government organisations and ensure that they can operate freely within it.

• Complete legislation and actions to safeguard property rights notably on ownership possession; occupancy and rights to residential and non-residential property including the legislative framework to regulate construction. Harmonise municipal regulations and establish a mechanism for the effective resolution of commercial and agriculture property disputes. Increase public awareness on consequences of illegal construction.

• Develop and implement a strategy including sustainable successor arrangements to the Housing and Property Directorate in order to implement all outstanding residential property claims.

• Ensure effective implementation of the anti-discrimination law.

• Take concrete measures to prevent and sanction all forms of violence against women.

Regional issues and international obligations

• Strengthen regional cooperation and good neighbourhood relations.

• Conclude and implement free trade agreements within the region and participate in all relevant regional initiatives notably under the auspices of the Stability Pact.

Economic requirements

• Finalise the privatisation process in accordance with the Kosovo Trust Agency schedule.

• Complete the incorporation of publicly-owned enterprises, namely the electricity utility, railways, district heating and water and waste services. Implement further restructuring steps to improve their governance, efficiency and financial sustainability. Further strengthen the regulatory framework for public utilities and enhance the administrative capacity of the independent regulators.

• Strengthen the transparency and sustainability of public finances. Ensure consistency of the 2006 budget with the consolidated medium-term expenditure framework.

• Define and apply the macroeconomic and budget priorities in close cooperation with the IMF.

• Enhance fiscal discipline and better control of public expenditure. Establish effective procedures for the detection, treatment and follow-up of cases of suspected fraud and other irregularities affecting national and international funds.

• Continue the development of a legislative and policy framework for trade and trade-related policies, ensuring EU- and WTO-compatibility. Promulgate and implement the law on external trade activity.

• Improve the quality of primary and secondary education, higher education and vocational and educational training.

European standards

• Strengthen the administrative capacity of all institutions for effective verification on consistency of policies and legislation with EU requirements, in particular by reinforcing the structures dealing with European approximation.

Internal market

Free movement of goods

• Prepare the necessary legislation and establish the infrastructure as regards standardisation certification, metrology, accreditation and conformity assessment, taking into account complementarities with the region.

• Implement the law on domestic trade.

Free movement of capital

• Adopt appropriate prudential requirements and strengthen the supervisory process in the financial sector.

Customs and taxation

• Enhance the capacity of the customs administration to fight against corruption and cross-border crime. Enhance the capacity of the criminal investigation unit

• Ensure observance of obligations related to the implementation of preferential trade measures (origin).

• Improve the taxation system and enhance the control and collection capacity of the tax administration.

• Commit to the principles of the Code of Conduct for Business Taxation and ensure that new tax measures are in conformity with these principles.

Public procurement

• Adopt and implement effectively the revised public procurement law, including related implementing legislation. Establish effective review procedures.

Intellectual property law

• Design and implement legislation on the protection of intellectual, industrial and commercial property rights. Define a medium-term strategy to improve the enforcement of these rights.

Statistics

• Establish a first set of reliable (national type) accounts statistics.

Sectoral policies

Industry and SME

• Adopt a medium-term strategy on SME policy, including the establishment of the SME support agency and the investment promotion agency. Continue implementation of the European Charter for Small Enterprises.

• Adopt a general-purpose financial reporting framework appropriate for Kosovo’s circumstances, limiting the use of International Financial Reporting Standards/International Accounting Standards to public interest entities and making full use of the exemptions foreseen in the fourth and seventh company law directives.

Agriculture and fisheries

• Design and start implementing a rural development policy.

• Continue the alignment of legislation on the EU veterinary and phytosanitary acquis.

• Align the system of animal identification and registration for bovines with EU requirements.

Environment

• Prepare the adoption and the implementation of legislation on environmental impact assessment in line with the EU acquis.

• Prepare a comprehensive environmental action plan, particularly relating to public health issues, with a view to approximating with the EU acquis.

• Prepare activities to increase public awareness and civil society participation in environmental matters.

Transport policy

• Implement the Memorandum of Understanding on the development of the south-east Europe core regional transport network including the transport observatory.

• Implement the law on road transport. Adopt a law on road safety and start to implement measures in this field.

• Enhance transport-planning capacity to adopt and start implementing a transport policy framework, including the development of a multi-modal transport strategy on central and local level.

• Continue improving data led asset management for maintenance and rehabilitation.

• Continue to align the aviation legislation with EU acquis in view of the European Common Aviation Area.

• Develop the civil operator of Pristina airport, its staff and facilities, to ensure an adequate level of security and sound and accountable management.

Energy

• Start implementing the commitments undertaken in the framework of the Energy Community Treaty. Ensure the viability and sustainability of the electricity company, notably by substantially increasing revenue collection and improving governance structures.

Information society and media

• Adopt and start implementing policy concerning electronic communication networks and services aimed at creating a stable competitive environment in order to attract foreign investment.

Financial control

• Develop a public internal financial control strategy as a basis for fulfilling the medium-term recommendations in this area.

Justice, freedom and security

Visas, border control, asylum and migration

• Strengthen cooperation between border/boundary management agencies.

Money laundering

• Ensure that the Financial Information Centre effectively fulfils its role in collecting and analysing data in relation to money laundering.

Drugs

• Further strengthen local capacity in the narcotics investigation section.

Police

• Improve the effectiveness of investigations of crime. Adopt and implement legislation to establish the Kosovo Police Service (KPS) and strengthen its investigative and internal control capacities. Strengthen its leadership.

• Ensure that the future academy for public safety education and training will be an independent and professional training body.

Fighting against organised crime and terrorism

• Further strengthen local capacity in the organised crime directorate within the KPS. Implement the action plan against trafficking in human beings.

MEDIUM-TERM PRIORITIES

Political requirements

Democracy and the rule of law

Public administration

• Proceed with a sustainable public administration reform while respecting budgetary constraints. Improve the capacity of local administration to provide services to their constituencies in an equitable and effective manner.

Judicial system

• Define and consolidate a complete body of law that respect rights and interests of all communities, drawing from all legal sources currently applicable in Kosovo.

• Design and implement a comprehensive strategy to enhance independence of judiciary, as well as the autonomy of the prosecution system.

• Strengthen the administrative capacity and effectiveness of the judiciary and all law enforcement agencies. Ensure the viability of a comprehensive legal aid system. Develop an alternative dispute resolution mechanism.

• Improve the penitentiary system with particular attention to security, control, management, vocational training and reintegration schemes, as well as the conditions of facilities.

Human rights and the protection of minorities

• Adopt legislation and establish and respect mechanisms for the protection of human and minority rights in line with Council of Europe recommendations.

• Ensure the viable existence of minority communities and their non-discriminatory participation in society, taking concrete measures to ensure their safety, freedom of movement as well as the equitable provision of and access to public and universal services.

• Implement the law on gender equality. Ensure mainstreaming of women’s rights in all existing policies and legislation.

• Develop an integrated conservation policy for cultural heritage. Actively engage in increasing the general awareness of and respect for cultural heritage.

• Ensure that the public broadcaster performs its role as a public service to all communities and in their languages. Promote minority broadcasting and facilitate the sustainability of minority media. Ensure a level playing field for both private and public media.

• Ensure that the Kosovo Cadastral Agency and the municipal cadastral offices offer transparent and non-discriminatory access to full property records and have functioning accountability mechanisms.

Regional issues and international obligations

• Further strengthen mechanisms of regional and international cooperation in the field of law enforcement, including transfer of suspects and sentenced persons and mutual legal assistance to jurisdictions.

• Work towards the future regional free trade agreement in south-east Europe.

Economic requirements

• Prepare the ground for the development of a borrowing and debt management capacity.

• Examine possible guarantee mechanisms to attract foreign investment, in particular in cooperation with the Multilateral Investment Guarantee Agency.

• Develop flexible social policies to promote employment and social cohesion and address poverty and social exclusion with particular attention to youth employment.

• Develop the capacity of the banking sector to provide competitive banking services and long-term competitive financing. Ensure reliable and effective supervision of banking, insurance and pension institutions.

• Advance the formulation of a medium term development strategy and plan that is linked to sector strategies, takes into account poverty alleviation and is aligned with the medium-term expenditure framework and the public investment programme.

European standards

Internal market

Free movement of goods

• Start transposing the new and global approach and old approach directives.

• Continue transposing European standards.

• Establish on market surveillance structure.

Customs and taxation

• Continued approximation of tax and customs legislation to the EU acquis and further increase the administrative capacity to enforce legislation and to fight against corruption, cross-border crime and fiscal evasion.

Public procurement

• Ensure that public procurement rules are effectively implemented by contracting authorities and entities at all levels, including through developing operational tools, providing training and strengthening the administrative capacity.

Intellectual property law

• Continue strengthening the enforcement of intellectual, industrial and commercial property rights, in line with the medium-term strategy.

Statistics

• Increase efforts to establish a reliable statistical system.

Sectoral policies

Industry and SME

• Continue implementing the European Charter for SMEs and the medium-term SME strategy.

• Continue gradual alignment of company law, including financial reporting standards.

Agriculture and fisheries

• Develop a policy and a regulatory framework to support viable land reform. Support the protection of agricultural land against unplanned urban development.

• Start action for identification of sheep and goats and registration of their movements.

• Prepare a programme for upgrading food processing establishments.

• Start action for efficient control of domestic plant production in particular for products with EU specific requirements.

Environment

• Adopt and implement the environmental action plan with a view to approximating with the EU acquis.

• Implement and support activities to increase public awareness and civil society participation in environmental matters.

Transport policy

• Continue the implementation of the Memorandum of Understanding on the development of the south-east europe core regional transport network.

Energy

• Develop legislative and regulatory frameworks to encourage public-private partnerships and mixed investments in the power sector in line with the conclusions of the investment generation study.

Information society and media

• Implement the legislation on electronic communication networks and services and strengthen the position of the independent regulator.

Financial control

• Under the coordination of the Ministry of Finance, develop and implement the principles of decentralised managerial accountability and functionally independent internal audit in accordance with international standards and EU best practise through coherent legislation and adequate administrative capacity.

• Strengthen the operational capacity and functional as well as financial independence of the Supreme Audit Institution.

Justice, freedom and security

Drugs

• Design and implement effective legislation and strategies against drugs trafficking and drug abuse.

Fighting against organised crime and terrorism

• Design and implement a comprehensive strategy to fight organised crime, financial crime and terrorism. Strengthen local capacities to investigate organised criminal activities. Strengthen judicial capacities to prosecute and try organised and financial crime cases.

• Develop a weapon collection strategy, complete and enforce small arms related legislation.