UNMIK/PR/940
PRISTINA – SRSG Michael Steiner today chaired the tenth ordinary session of the Economic and Fiscal Council. The EU pillar presented a progress report on the Free Trade Agreement with FYROM following meetings between representatives of the office of the Prime Minister, UNMIK Customs and EU Pillar with FYROM officials. It was reported that FYROM officials had declared their intention to fully implement the agreement which should have taken effect on 25 March 2003. “We should monitor the implementation for the next 7 days,” the SRSG stated, “and in case the Macedonian side does not comply with the agreement I am ready to take further action expeditiously.”
The Council was in full favour of the TMC initiative for the “Kosovo Award for Outstanding Journalistic Performances”. This will provide € 25.000 as fund for a period of 3 years.
The EFC discussed extensively the budget development and implementation issues in relation to fiscal year 2002 and the years 2004-2006. The key issues discussed for fiscal year 2002 were the determination of the final figure and the usage of the surplus of about €107 million. The EU Pillar presented an urgent request for funding investment need for the electricity sector. The Council declared that this is an issue, which requires immediate consideration in the context of the surplus decision. It was agreed that in order to allow further steps to be taken the Government would give its view on the critical items of the request immediately after its next session. The Council also agreed that the rest of the KEK investment needs required in-depth discussion. An initial list of spending priorities together with its underlying principles will be presented and discussed at the next EFC.
With regard to the fiscal years 2004-2006 the Council noted that a more detailed analysis of the macroeconomic projections and the budget ceilings would be presented at the next EFC. However, the presented projections were considered to be sufficient to provide preliminary expenditure ceilings from which to start the budget 2004-2006 process. With the transfer of responsibilities the budget implementation and development has now become entirely the responsibility of the MFE with the objective to operate a single budget process. The SRSG emphasized that the process had to respect his responsibilities being workable and clear for both the Transferred and Reserved Agencies.
Other matters discussed at today’s Economic and Fiscal Council included status’ reports on the Law on Public Financial Management and Accountability as well as the Property Tax Law. The EFC further received a report by DSRSG Andy Bearpark on the reorganisation plan for the EFC secretariat. The next Council meeting was scheduled for Tuesday, 22 April 2003.