Search
In the autumn of each year, the European Commission adopts its “Enlargement package” – providing a detailed assessment of the state of play and the progress made by the enlargement countries on their respective paths towards the European Union, with a particular focus on implementing fundamental reforms, as well as clear guidance on the reform priorities ahead.
Separate chapters are developed for the knowledge economy, i.e. the areas that the Western Balkans Info Hub focuses: “Science and Research” (chapter 25) and “Education and Culture” (chapter 26 which includes also a focus on higher education) as well as the chapter “Enterprise and Industrial Policy” (chapter 20 which includes a focus on innovation in the business sector) are referenced below. Further chapters address topics including fundamentals such as the functioning of democratic institutions, rule of law, economic criteria, etc., intellectual property law, digital transformation, enterprise and industrial policy, green agenda and sustainable connectivity, agriculture, external relations and many more.
For the full report on Kosovo see the Report and Factsheet.
Chapter 25 – Science and Research
Kosovo* is at an early stage of preparation. It made limited progress, taking further steps towards a strategic approach to research and innovation. Funding of innovation support measures has started.
The Commission’s recommendations from last year were implemented to a limited extent and remain largely valid. In the coming year, Kosovo should, in particular:
→ intensify efforts to establish a positive trend in its Horizon Europe participation and make progress in developing a smart specialisation strategy;
→ adopt the law on innovation and entrepreneurship and create a system to reliably provide research, science and technology and innovation statistics, so it can join the European Innovation Scoreboard;
→ ensure a structural increase in public funding for the research sector, with clear and accessible data available to the public.
The EU provides significant support for research and innovation. All Member States can participate in the EU’s research and innovation programmes and benefit from them, especially where there is scientific excellence and solid investment in research and innovation.
There has been no major progress in terms of legislation. The Law on innovation and entrepreneurship and the Smart Specialisation Strategy remain in draft version. The financing of scientific research is not separately identified; it is part of a general budget for higher education institutions, which is funding scientific research and innovation as well as Universities. Funding of innovation support measures has started but needs further strengthening. Kosovo* is encouraged to make use of the opportunities made available by the European Institute of Innovation and Technology. Kosovo’s participation in the EU framework programme for research and innovation remains low. Since the launch of Horizon Europe in 2021, Kosovo has submitted 171 project applications of which 15 were successful amounting to EUR 1.59 million in funding, resulting in a success rate of 9.36%. Kosovo became a member of the European Digital Innovation Hubs Network in April 2025 with the inauguration of its first European Digital Innovation Hub.
Chapter 26 – Education and Culture
Kosovo has some level of preparation in the field of education and culture. There was some progress, mainly with the adoption of by laws for the Law on early childhood education and with growing budget allocations for early childhood education, including for related infrastructure. However, the quality of education needs improvement, especially preuniversity education. Children from vulnerable groups continue to be marginalised, in particular children from the Roma, Ashkali and Egyptian communities.
The Commission’s recommendations from last year were partially implemented and in the coming year, Kosovo should, in particular:
→ continue to implement the roadmap outlined in its education strategy for 2022-2026, assess the progress and update/revise the strategy for post-2026;
→ strengthen vocational education and training (VET) governance, institutionalise quality assessment of teachers and schools and improve digital skills;
→ systematically apply quality assurance mechanisms at all education levels, especially for basic/pre-university education.
The EU supports cooperation in education and culture through funding programmes and the coordination of Member State policies through the ‘open method of coordination’. The EU and the Member States must also prevent discrimination and ensure quality education for children of migrant workers, including those from disadvantaged backgrounds.
On public spending, Kosovo’s planned budget for education and research for 2024 was EUR 474 million (4.5% of GDP, compared to EU average of 4,6%). The actual expenditure amounted to EUR 447 million, 94% of the planned amount. Budget allocations for early childhood education and care increased to a projected 9.03% of the overall education sector budget for 2025. Following positive developments in early childhood education and care, the Ministry of Education, Science, Technology and Innovation (MESTI) has started the implementation of compulsory pre-primary class (children aged 5) for the academic year 2024/2025. In March 2025, the government approved the Strategic Document and Action Plan for Early Childhood Intervention 2025-2030, with a special emphasis on children with developmental delays and disabilities. Despite some progress in strengthening education and promoting inclusivity, children with disabilities continue to lack adequate support, which affects approximately 8% of those aged 2-17.
Although Kosovo is making efforts to improve the quality of basic/pre-university education, the implementation of Kosovo’s education strategy for 2022-2026 lags behind. Funding for basic public education continues to decrease, dropping by 4.7% from 2023 to 2024. Kosovo took part to the Teaching and Learning International Survey (TALIS 2024). Kosovo is participating to PISA 2025. The most recent PISA 2022 results show that the average 15- year-old student in Kosovo has almost 4.5 years of learning behind peers in the EU. While a slight increase was observed in pre-school enrolment, the number of pupils in primary and lower secondary education continued to decline. Girls account for 48.4% of all pupils in primary and lower secondary education. The attendance among Kosovo Roma, Ashkali, and Egyptian children is much lower, with only 31% of them reaching upper secondary education as compared to 87% nationwide. Many LCs (Learning Centres), which provide supplementary educational and psycho-social support to children of these communities, have closed due to a lack of financial and institutional support. New textbooks for the Albanian language and mathematics were adopted for the 2024-2025 school year.
A new Law on textbooks remains to be adopted. In December 2024, Kosovo launched an advanced teaching license exam and continued investing in teacher training. However, progress stalled in integrating the EU-developed peer[1]led quality assurance model into the national system. Although some municipalities still apply the model, its broader rollout has been delayed due to the introduction of new teacher licensing legislation. The 12 VET dual education profiles piloted over the last two years continue to be implemented. The first dual VET graduates will finish their studies/training in 2025. However, the concept document on a new VET Law still needs to be finalised. In smaller municipalities, the limited availability of companies capable of hosting VET students risks excluding a significant portion of youth from dual education opportunities. To ensure inclusivity, parallel models of VET education, specifically school-based VET, should be maintained and harmonised. In June 2025, Kosovo joined the European Alliance for Apprenticeships (EAfA). National, regional and local stakeholders should be activated to join EAfA to support VET and apprenticeships through pledges.
On higher education, in July 2025, the Kosovo Accreditation Agency became a member of the European Quality Assurance Register for Higher education, demonstrating Agency’s quality assurance processes full compliance with the European standards and guidelines. Kosovo is not a member of the European Higher Education Area (Bologna process). There are three higher education institutions from Kosovo, which participate in the European Universities Alliances as associated partners. Progress was made in advancing digital education, including through the roll-out of the national platform Shkollat.org and the establishment of a Department of Technology and Digitalisation at the Ministry of Education. However, digital literacy in Kosovo remains well below the EU standards and gaps remain in teacher training, connectivity, and access to devices, particularly for children from disadvantaged groups. Sustained investment and stronger governance are needed to align digital education reforms with EU priorities on inclusion, employability, and the green and digital transitions.
Kosovo benefits from the international dimension of the 2021-2027 Erasmus+ programme. Kosovo is not taking part to the European Education Area working groups 2021-2025. Following Kosovo’s accession to the e-Twinning programme in January 2024, teachers and school staff across early childhood, primary, and secondary education institutions have gained access to an online platform for collaboration and project development at both national and international levels. In January 2025, Kosovo became a member of the Electronic Platform for Adult Learning in Europe (EPALE).
In March 2025, Kosovo became a candidate member of the European Educational Research Association (EERA). Regarding youth, Kosovo continued implementing its Strategy for Youth 2024-2032.
The implementation of the first action plan under the Strategy, covering the period 2024-2026, is however still in an early stage and facing various challenges, including limited coordination and lacking youth engagement.
Kosovo has adopted its first National Sports Strategy 2025–2030 and continued to participate in the European Week of Sport. Kosovo still needs to develop a culture strategy. The Law on art and culture was adopted. Kosovo is not a party to the 2005 UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions. Kosovo takes part to the culture strand of Creative Europe, but it cannot participate in the MEDIA strand until it aligns the Law on the Independent Media Commission with the EU’s Audiovisual Media Services Directive.
Chapter 20 – Enterprise and Industrial Policy
Kosovo is moderately prepared and made limited progress by continuing to implement the 2030 strategy for industrial development and business support.
The Commission’s recommendations from last year were implemented to a limited extent and remain largely valid. In the coming period, Kosovo should, in particular:
→ move forward with the implementation of the strategy for industrial development and business support for 2030, and the sustainable economic growth pillar of the national development strategy for 2021-2030;
→ urgently improve capacity at the Ministry of Industry, Entrepreneurship and Trade;
→ complete the establishment of the two separate investment promotion and SME support agencies, and ensure that both are sufficiently resourced.
EU industrial policy strengthens competitiveness, facilitates structural change and encourages a business-friendly environment that stimulates small and medium-sized enterprises (SMEs).
As regards enterprise and industrial policy, Kosovo has a comprehensive strategy for industrial development and business support 2023-2030 in place. Kosovo needs to dedicate additional resources and close financing gaps for its successful implementation as the implementation rate of planned activities is below 40%, with 28% not implemented at all. A new Law on bankruptcy was adopted in 2024, further aligning the legal framework with the EU acquis on insolvency proceedings, preventive restructuring frameworks, the discharge of debt and disqualifications. The law on sustainable investments entered into force in September 2024. The adoption of the strategy to reduce the informal economy is delayed. The establishment of the beneficial ownership register began in August 2025. The government continued its dialogue with the private sector through formal platforms. The Ministry of Industry, Entrepreneurship and Trade increased support through grants for SMEs as part of the implementation of the strategy for industrial development and business support 2030.
Concerning policy instruments, the Kosovo Investment and Enterprise Support Agency is being transformed into the new Agency for Support to Enterprises and Innovation within the Ministry of Industry, Entrepreneurship and Trade, as per the new Law on sustainable investments. The establishment of the Agency for Investments and Export is facing delays. While the two agencies are expected to play an important role in assisting companies and attracting FDI, as well as in providing after-care services for investors, the delays in the functionalisation of the agencies leave these issues unaddressed. Industrial parks, two of which are turned into eco-industrial areas, succeed in internationalising domestic enterprises as suppliers to FDI establishments.
Weak institutions and a lack of timely and professional responses to legitimate requests by businesses remain a major challenge. Inadequate capacities and resources, prolonged administrative procedures and insufficient inter-ministerial coordination perpetuate the lack of a functioning filing system/institutional memory within Kosovo’s authorities. This presents obstacles for SMEs to access business support services and obtain permits and licences, which are further exacerbated by excessive and time-consuming paperwork. Kosovo continued to extend services available on its e-government platform, at too slow a pace though to lower sizably the administrative costs to enterprises (see also chapter 10) and contribute to reduce informal business practices. On dispute settlements, the Commercial Court has improved its efficiency in solving cases. Online mediation remained a viable tool for dispute resolution. Self-employed persons face a low tax burden and incorporated SMEs benefit from corporate income tax incentives.
Access to finance remains a barrier to the growth of micro, small and medium-sized enterprises (MSMEs). Efforts to diversify the financing resources, including by updating its legal framework to allow for private equity investment funds, venture capital or Business Angel Networks, needs to continue. Small businesses continued to benefit from robust support in accessing bank finance through extensive credit guarantee schemes and public credit lines offered by the Kosovo Credit Guarantee Fund. By September 2025 the Fund has expanded enabling loans worth EUR 944.2 million to MSMEs in the sectors of production, service agriculture and trade, including start-up firms and women-owned businesses. Kosovo participates in the SME Pillar of the Single Market Programme. Kosovo has yet to align with the EU Late Payment Directive.
In the area of sectoral initiatives, Kosovo’s Strategy for tourism 2024 – 2030 and action plan for the first two years of its implementation are in place. A first monitoring report on activities implemented in 2024 was published in June 2025. A strategy for natural resources is under development.
For more information on other chapters see the Report and Factsheet.