Albania, North Macedonia and Montenegro have already officially launched payments in euros through the SEPA area, while Kosovo is not part of it.

SEPA, which currently includes 41 countries, including EU member states, several Nordic countries and the United Kingdom, allows for faster bank transfers in euros, with unified standards and significantly lower costs compared to traditional international systems.

If we were part of SEPA, the annual savings for businesses and citizens are estimated to be around 55 million euros from international transfer fees.

But why is Kosovo not part of SEPA?

The Telegraph has written to the Central Bank of Kosovo to find out why Kosovo is not part of this zone.

The Central Bank of Kosovo stated to the Telegraph that on October 14, 2024, the CBK completed the pre-application phase and officially submitted the relevant documentation to the competent body of the European Commission for this purpose (DG FISMA) and the European Payments Council (EPC).

“The CBK initially submitted the pre-application, based on the relevant draft laws and draft implementing regulations, and updated it on December 20, 2024, when the pre-application was completed with the submission of three laws in their final version after approval by the Assembly of the Republic of Kosovo (Law 08/L-304 on Banking; Law 08/L-328 on Payment Services; and Law 08/L-333 on Amending the Law on the Prevention of Money Laundering and Financing of Terrorism), together with the regulations approved by the CBK Board that were based on these laws.

With the updated pre-application (on December 20, 2024), the laws and 20 regulations issued by the CBK within the framework of this process for their implementation (which enter into force simultaneously with the entry into force of the relevant laws), as well as all the necessary information regarding the legal framework and technical aspects, which address the requirements set by the EPC for SEPA membership, have been submitted. This process was supported by World Bank experts, who have also assisted the countries of the region," the announcement states.

Furthermore, it is announced that the documentation submitted by the CBK has been received by the European Commission, which, after several written communications and official meetings, has reviewed it and submitted several informal comments, indicating that the final application can only be made after the laws enter into force (publication in the Official Gazette).

The CBK further emphasizes that from this preliminary assessment, under the assumption that the laws and with them the relevant regulations enter into force, suggestions of a technical nature have been provided, which, when addressed, meet the condition for final application, but final application depends on the entry into force of the three laws in question.

"Since these laws are currently under review by the Constitutional Court within a series of laws, despite the fact that none of them have been contested in terms of content (but parliamentary procedure), and even though the Law on Banks has actually been in second reading (following all procedural steps), final application is not possible."

As a result, waiting for their entry into force remains a key step to enable the completion of the application and final assessment by DG FISMA and EPC," the CBK's response to Telegrafi states.

The Central Bank of Kosovo says that, depending on the promulgation of the laws, the CBK is prepared to proceed with the submission of the final application for SEPA membership to the EPC, addressing the informal comments received at this stage, and therefore expects to receive approval during 2026, and within the specified deadline after the technical and infrastructural adjustments of the banking system, the connection with the SEPA area will be realized.

"Although the concrete timeline remains complicated due to uncertainty over the duration of the process in the Constitutional Court/the epilogue of the entry into force of these three laws, all preparations were made in a very short time, which was also recognized by the institutions of the European Commission, where the initial goal upon submission of the updated pre-application on December 20, 2024 was for the process to be concluded within 2025, as happened with Albania and some other countries.

"But, unfortunately, the complications caused by the failure to publish the laws and consequently their failure to enter into force, presented this challenge that had a direct impact on the expected result, for which a lot of work was done both domestically and with international partners. However, the CBK remains convinced that there will be no restrictions from the European Union to continue this process, as soon as legal circumstances allow this, in the most optimal timeframe," the CBK response states.

Related to the finalization of these laws in the Constitutional Court, there was a verbal clash between the acting Minister of Finance, Hekuran Murati, and Arben Mustafa from the Democratic Party of Kosovo.

Murati, in a Facebook post, speaking about the reasons for non-membership in SEPA, said that this is because the laws that were a prerequisite for membership and that the Parliament had approved at the end of last year, were blocked by the PDK in the Constitutional Court.

The acting minister even said, "Can someone ask Uran Ismail why they blocked Kosovo from SEPA?"

The reaction from PDK was immediate. Arben Mustafa from this party.

"The government minister who has placed Kosovo under EU sanctions and who has violated the Constitution at every step, thought of asking Uran Ismajli about some laws in the Constitutional Court," Mustafa wrote. /Telegraph/

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