The EU transfers over 5 million euros to the budget of Kosovo

 European Commission headquarters

 Today, the European Commission transferred another 5.25 million euros to Kosovo's budget to help it mitigate the impact of the COVID-19 pandemic and the rapid increase in energy and food prices, the EU office in Prishtina announces, Gazeta Express reports, Albanian media reports.

Today's transfer brings direct EU support to Kosovo's budget within the sustainability contract signed in 2020, in a total of almost 26 million euros.

"While the worst of the pandemic crisis is behind us, Kosovo and the EU have been affected by the increase in food and energy prices. Through this budget support payment, we help Kosovo's financial liquidity for the actions undertaken to support small businesses, agriculture, and vulnerable groups, to face the financial difficulties in the current situation", this office announces.

Budget support is a form of EU support where the EU rewards governments for the progress they make in implementing their strategies and achieving the targets they have set for themselves. The previous EU payment related to the stability contract was €20.5 million, disbursed in December 2020.

The EU encourages the government of Kosovo to address weaknesses in the social assistance system to better target poor families, some of whom are currently ineligible to benefit from this system. Since disposable incomes are reduced especially for vulnerable groups, budget allocations for the social assistance system must be well-targeted and transparent.