HEADQUARTERS PRESS BRIEFING ON KOSOVO

HEADQUARTERS PRESS BRIEFING ON KOSOVO

The United Nations Mission in Kosovo (UNMIK) was a live example of two institutions –- the European Union and the United Nations -- working together to achieve a common goal, Andy Bearpark, Deputy Special Representative of the Secretary-General and European Union Representative in Kosovo, told correspondents this afternoon at a Headquarters press briefing.

Mr. Bearpark was briefing correspondents on the role of the European Union in the Province's economic development and on the related cooperation between it and the United Nations.  In the context of that cooperation, an exhibition was being opened here in New York to show exactly how that collaboration was developing. 

Two years after the bombing, continued Mr. Bearpark, the province was going through a transition phase.  In political terms there was now a constitutional framework and "we are looking forward to Kosovo-wide elections in November", he said.  "In economic terms what we are seeing is the move from emergency reconstruction and reconstruction proper to sustainable economic development".

Mr. Bearpark went on to say that the reconstruction job in Kosovo was largely complete.  The province now had roads, a functioning airport, a working power supply system and telephones.  The challenge now was to create a sustainable economy and to provide jobs for all Kosovars.  "This is an enormous challenge because of the lack of investments throughout the 1990s and even prior to that", he said.

Mr. Bearpark said that this weekend the Security Council had visited Kosovo, and while it was able to see for itself that progress had been remarkable, it was also clear that such progress had been largely fueled by aid donors who had been reconstructing houses, bridges and the like.  Also, a lot of the economic activity taking place focused on trading rather than creating jobs in the manufacturing sector.  There was nevertheless, progress in the latter area as well. 

"We have put in place some of the legislation that is required to enable foreign private-sector investors to come in and to start putting money into factories and plants and create employment again”, continued Mr. Bearpark.  One very good example earlier this year was an Italian firm, which was able to invest money in a cement factory.  That factory had now doubled its workforce and was producing concrete lamp posts and concrete street furniture for a large part of the Balkans.

Based on such positive developments, Mr. Bearpark went on to say that "what we are doing is trying to create an economy that fits in with European values and which enshrines the necessary European legislation because whatever the future of Kosovo, that future lies within Europe".  It was therefore essential that the Province played its part and had systems that were compatible with what was happening in Europe. 

One example of that, continued Mr. Bearpark, "is that we will be introducing the euro in Kosovo at the beginning of next year".  The Province would therefore

be one of the very few places outside of mainland Europe that would be able to do that.  "Another example is that just this month we are moving towards a new a form of taxation based on value added tax (VAT), which is the taxation that applies throughout the Union", he said.  "So through using particular standards, which have now been enshrined, we hope to see that necessary and sustainable economic development.”

Mr. Bearpark concluded by saying the European Union's commitment to Kosovo had been enormous and it was one that would be carried forward into the future.  That commitment worked in all directions.  While it was based on the future economic development of the Province it was also a commitment to work with the United Nations in what must be one of the Organization's most challenging missions.

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