EU concerned over fallout of Kosovo central bank decision

The Central Bank of Kosovo issued a decree in mid-January making the Euro the only legal currency as of February 1, effectively banning the Dinar which is widely used in majority-Serb areas. A large number of Kosovo Serbs rely in income from Serbian institutions and companies for their livelihood.

“The EU is concerned about the consequences that this decision might have on the daily lives of Kosovo Serbs and other communities throughout Kosovo due to absence of prior consultation, in particular on its impact on schools and hospitals, given the apparent absence of alternatives at this moment,” a press release from the European External Action Service said.

“The EU notes that the regulation will also affect the financial support that Kosovo Serbs receive from Serbia. … The short transition period for the regulation’s implementation, combined with a lack of information and practical solutions for all affected communities, risk seriously complicating their lives,” it said.

“The EU urges Kosovo to ensure a sufficiently long transition period and to find a negotiated solution to this issue in the framework of the EU-facilitated Dialogue,” the press release said.