Analysis of the 2007 annual action programme for Kosovo (under UNSCR 1244) under the pre-accession instrument in preparation of the review of the relevant multi-annual indicative programme

Executive summary Compared to the other countries of the Western Balkans, Kosovo is in a special position as its status is not yet fully recognized internationally. Its relationship vis-àvis the European Union is also special insofar as the Union is on various layers deeply involved in Kosovo state building. The Unions’ financial assistance is therefore of exceptional strategic relevance. The instrument for Pre-Accession Assistance (IPA) provides financial assistance to Kosovo in the process of transition and approximation to the EU. Kosovo has access to two of the five IPA components, the Transition Assistance and Institution Building Component and the Cross-Border Cooperation Component (only from 2008 onwards). The 2007 Annual Action Programme covers solely IPA Component I, ”Transition Assistance and Institution Building.” The allocation for the IPA-I component in 2007 amounts to € 62 million.1 They are distributed to political requirements (€16.7 million), socio-economic requirements (€ 32.8 million) and European standards (€ 6.5 million). Regarding the Political criteria the overall priority set in the Annual Action Programme 2007 is the support of the implementation of the status settlement. Assistance. The assistance has to be targeted and at the same time be very flexible in order to adapt to quickly changing political circumstances. Strengthening the rule of law and enhancing political accountability will be of utmost importance. Concentrating on public administration reform and on judicial sector reform is a good strategic choice. As many institutions in Kosovo have still to be built up or consolidated and a lot of additional tasks and requirements will come along with the implementation of the settlement, the financial resources spent in this area might, however, be too small and leave a widening gap between resources and needs. Regarding the Economic criteria, the priorities set in the Annual Action Programme 2007 focus on the enhanceme