Kosovo’s Growth Policy Priorities: Maintaining and Improving Achievements Dr. Andreas Wittkowsky Deputy Head, UNMIK EU Pillar MTI Conference “Partnerships for Economic Growth” 15 March 2007 UNMIK EU PILLAR

Achievements since 1999  Emergency reconstruction  Macroeconomic stabilisation  Key infrastructure rehabilitation  Basic economic legislation  Government institution building  Independent regulators  Privatisation of SOEs  Incorporation of POEs UNMIK EU PILLAR

Regional Integration into the SEE/ wider European markets  Trade: bilateral FTAs, enlarged CEFTA 2006  Energy Community  Transport: MoU on Regional Transport Network, ECAA  Investment Protection  SAp Tracking Mechanism UNMIK EU PILLAR

Growth Philosophy 1.Best possible environment for private business to flourish… … taking into account institutional and resource constraints. 2. Mobilization of traditional sectors:  Agriculture  Energy & Mining  Privatisation UNMIK EU PILLAR

Business Environment USAID study 2005: “Best environment in Western Balkans”  Fast and cheap business registration  Stable financial system  No currency risk  Modern legal/ regulatory framework  Competitive tax burden UNMIK EU PILLAR

Trends 2006 Positive:  Growth 3-5% (ca. €1,100 GDP p.c.)  Deflation -0.5%  Private sector is driving growth But:  Structural trade deficit €1bn UNMIK EU PILLAR

Kosovo Policy Priorities Maintain, improve achievements …  Enabling environment Macroeconomic stability Property rights enforcement Reliable regulatory framework  Regional integration (policy anchor)  Effective civil service  Infrastructure  Education … boost Kosovo’s image abroad ! UNMIK EU PILLAR

International Support  Investment promotion  Trade facilitation (CEFTA implementation, export promotion)  Enhance institutional capacities (desirably on the job) UNMIK EU PILLAR