By PEN Strategy Consulting Group
Kosovo’s path toward European Union membership has entered a crucial phase. With its 2022 application for EU accession and the launch of visa-free travel in 2024, the country is not only reinforcing its political commitment but also reshaping its socio-economic landscape. The Reform Agenda under the EU’s Reform and Growth Facility (RGF) for the Western Balkans—adopted by the Government of Kosovo in October 2024—is a cornerstone of this transformation. It offers both a roadmap and a results-driven mechanism to accelerate convergence with the EU.
The EU’s Growth Plan for the Western Balkans envisions deeper regional integration, strengthened fundamentals of democracy, rule of law, and economic competitiveness—ultimately opening doors for these countries to progressively access aspects of the EU single market. The Kosovo Reform Agenda reflects a clear alignment with this vision. It is designed to address structural challenges and build resilience in five key policy areas: governance, green and digital transition, private sector development, human capital, and rule of law.
Advancing the Fundamentals of EU Accession
One of the EU’s central criteria for accession is the effective functioning of democratic institutions, rule of law, and market economy. Kosovo’s Reform Agenda responds to these expectations with measurable steps. In governance, the agenda focuses on enhancing civil service professionalism, strengthening public finance management, and ensuring transparency in public procurement. These reforms directly support Kosovo’s alignment with EU standards and improve its performance in key political and economic indicators.
Similarly, in the justice sector, Kosovo has committed to reforms that tackle inefficiency, corruption, and public mistrust. By strengthening the judiciary’s integrity and accountability, and improving enforcement of anti-corruption laws, Kosovo is directly contributing to the EU’s expectations under the “fundamentals first” principle. These steps are essential not only for accession but also for the legitimacy of institutions domestically.
Boosting Economic Convergence and Resilience
Kosovo’s GDP per capita remains below 30% of the EU average in purchasing power terms. The RGF targets this imbalance by prioritizing economic growth through productivity-enhancing reforms. The Reform Agenda proposes expanding renewable energy production, improving energy efficiency, and reducing administrative burdens on businesses—key measures for attracting foreign direct investment and fostering innovation.
The private sector in Kosovo, primarily composed of micro and small enterprises, has long suffered from limited access to finance and fragmented regulatory frameworks. The reform agenda includes initiatives to support start-ups, promote export-oriented industries, and establish intelligent transport systems aligned with EU standards. These are structural investments that not only enhance the competitiveness of Kosovo’s economy but also strengthen its ability to participate in regional and EU value chains.
Human Capital as a Driver of Integration
Education and labour market reforms are fundamental to Kosovo’s long-term growth and cohesion with the EU. The agenda addresses the urgent mismatch between skills and market demands, particularly among youth and women. Digitalization of the education system, investments in early childhood education, and revamped vocational training frameworks are key components of Kosovo’s effort to align with the EU’s social and economic models.
Increasing women’s labour market participation—currently one of the lowest in Europe—is both a gender equality issue and an economic imperative. The Reform Agenda recognizes this by including specific targets and support systems for inclusive growth.
A Strategic Fit Within the EU’s Enlargement and Investment Frameworks
Kosovo’s Reform Agenda under the RGF is not operating in isolation. It aligns with the EU’s Economic Reform Programme (ERP), the National Development Strategy 2030, the IPA III financing instrument, and the Economic and Investment Plan for the Western Balkans. It also reflects guidance from the Economic and Financial Dialogue between the EU and Kosovo.
This strategic coherence is essential for maximizing the impact of donor support and ensuring accountability. Importantly, the agenda includes specific deliverables and a multi-annual budgeting mechanism, which makes it not just a policy wish list, but an actionable investment and reform plan.
Conclusion: Kosovo’s Reform Agenda as a Political and Economic Accelerator
The EU Growth Plan for the Western Balkans is as much about shared values as it is about shared markets. Through its comprehensive Reform Agenda under the RGF, Kosovo is demonstrating that European integration is not merely a diplomatic aspiration—it is a national strategy for inclusive development, institutional modernization, and sustainable prosperity.
By tackling critical reforms in governance, economic competitiveness, rule of law, and social inclusion, Kosovo is not only aligning itself with EU standards but actively shaping its European future. The Reform and Growth Facility is therefore not just a financial instrument; it is a strategic accelerator of Kosovo’s European integration journey.
PEN Strategy Consulting Group
Advancing public policy, governance, and regional development through strategic research and innovation.
