Weekly Brief

Albania
Turkey supports Prime Minister Rama’s reelection via investments amid the country’s highest public debt-to-GDP in the region. Turkey’s 60 million Euros donations aim to help build a hospital in the city of Fier before the elections in April, without legally obtaining the building site yet. In February, Turkey will send a delegation from the Turkish Trade ministry to help modernize the county’s customs. Meanwhile, pandemic pushes public debt close to 80% of GDP from 66.2% in 2019.

Bosnia-Herzegovina
The country’s corruption index worsens, energy project with Croatia gets approved, and EU representative for refugees visited Bihac. The corruption index is the lowest since 2012, dropping to 35 on a 1-100 scale. The adopted Southern Interconnection Act enables the construction of a new gas pipeline to Croatia, with the town of Imotski as the point of connection. EU representative for refugees failed to convince authorities of Bihac to temporarily reopen the Bira camp due to local fear of migrants.

Croatia
UNHCR pressed Croatia to halt unlawful border pushbacks; President left military commemoration over Fascist Insignia; NGOs called for a ban on Ustasha rhetoric. UNHCR revealed the authorities had been unlawfully returning migrants to Bosnia-Herzegovina and Serbia. President Milanovic canceled his participation in the 1993 Maslenica military operation’s commemoration as some participants appeared with World War II Fascist Ustasha symbols. The civil society organizations urged lawmakers to adopt a law banning and criminally prosecuting the use of Ustasha rhetoric and symbols.

Kosovo
Albin Kurti was banned from participating in the upcoming elections; Kosovo-Israel diplomatic relations about to formalize; the EU is reforming the Kosovo justice system. The Central Election Commission, the Election Complaints and Appeals Panel said the conviction of a crime three years ago made former Prime Minister Kurti an ineligible candidate for the upcoming elections. Diplomatic relations with Israel will be formalized at a virtual ceremony on February 1st. The EU Ambassador Szunyog launched the Justice Sector Program running until January 2024 with a budget of 7 million Euros.

Montenegro
President signed a disputed Law as Prime Minister calls for better diplomatic relations with Serbia; a probe launched on Financial Minister. President Djukanovic signed the Law on the Freedom of Religion, pointing out that now conditions exist for assessing the Law’s constitutionality. Prime Minister Krivokapic called Serbian Prime Minister Brnabic to visit Montenegro, despite the former government’s expulsion of Serbian ambassador Bozovic. The Special State Prosecutor’s Office has launched a probe into Finance Minister Spajic’s interest in issuing a 750 million Euros Eurobond in December 2020.

North Macedonia
The country considers tax exemption for the local IT sector and making several state-owned enterprises profitable amid public debt decrease. Prime Minister Zaev announced plans to reduce corporate income tax in the IT sector from 10 percent to zero in 2023. The authorities are determined to sell or find a private partner for Post of North Macedonia, thermal power plants Negotino and Oslomej, Railways of North Macedonia-Transport, the military equipment supplier Eurokompozit, locomotive and wagon manufacturer Kolska, and tobacco factory Tutunski Kombinat Prilep. The country’s public debt decreased by 0.8% due to repayments of short-term loans and a 2015 Eurobond issue.

Serbia
The President unveiled a monument, the Defense Minister met the NATO-led KFOR commander, and Chinese investors want to construct an oil refinery. President Vucic unveiled a monument of the Serbian state’s founder, Stefan Nemanja, as a new landmark of Belgrade. Defense Minister Stefanovic stated to Major General Federici that the KFOR is the only legitimate armed formation in Kosovo, which should provide a safe environment for all ethnic groups there. Chinese investors are interested in launching a four-year construction of a 2.1 billion Euros ($2.6 billion) oil refinery in Smederevo in April, producing fuels under the Euro 6 standards.