The tension between Kosovo and Serbia has escalated as Kosovo police closed six branches of a Serbia-licensed bank in line with the ban on the use of the Serbian dinar currency in the country. This decision was made by the government in February, requiring areas dominated by the ethnic Serb minority in Kosovo to adopt the euro currency and abolish the use of the Serbian dinar. The move was postponed for three months due to pressure from the EU and the US, concerned about the impact on the ethnic Serb minority in northern Kosovo.
While most of Kosovo uses the euro, parts of Kosovo’s north continue to use the dinar, especially the areas populated by ethnic Serbs who rely on financial support from the government of Serbia, often delivered in dinars in cash. Brussels and Washington are urging both countries to implement agreements reached between Serbian President Aleksandar Vučić and Kosovo Prime Minister Albin Kurti in February and March last year. However, the normalization talks facilitated by the EU have made little progress, especially after a shootout in September between masked Serb gunmen and Kosovo police that resulted in four deaths.
Both Serbia and Kosovo have expressed their desire to join the EU, but the bloc’s foreign policy chief, Josep Borrell, has warned that their refusal to compromise is jeopardizing their chances. The history between Serbia and Kosovo dates back to the 1998-99 war between Serbian forces and ethnic Albanian separatists in Kosovo. This war resulted in the death of around 13,000 people, mostly ethnic Albanians, until a NATO bombing campaign pushed Serbian forces away. Kosovo declared independence in 2008, which Belgrade does not recognize, further contributing to the ongoing tensions between the two nations.
The closure of the Serbia-licensed bank branches in Kosovo by the police has added fuel to the fire of the long-standing conflict between the two neighboring countries. The decision to ban the Serbian dinar and transition to the euro in certain areas of Kosovo has sparked backlash from Serbia, leading to increased tensions in the region. The EU and the US are closely monitoring the situation, advocating for dialogue and compromise between Kosovo and Serbia to reach a peaceful resolution to their disputes and improve their chances of joining the EU.
As the conflict between Kosovo and Serbia continues to unfold, it is evident that the implementation of the ban on the Serbian dinar in Kosovo is a significant point of contention. The reluctance of both countries to compromise and move forward with the agreements reached in previous talks is hindering progress towards normalization and reconciliation. The international community, particularly the EU and the US, is actively involved in mediating the situation and encouraging both parties to find common ground for the benefit of peace and stability in the region. The closure of the Serbia-licensed bank branches in Kosovo is just one example of the complex issues at play in the longstanding conflict between Kosovo and Serbia, highlighting the need for sustained efforts towards resolution and cooperation.
