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2015 Pecs J. Int'l & Eur. L. 44 (2015)
Free Movement of Capital in Kosovo - Compliance with EU Criteria in the Light of Non-Contractual Relations

handle is hein.journals/pjiel2015 and id is 46 raw text is: P6cs Journal of International and European Law - 2015/1 Free Movement of Capital in Kosovo - Compliance with EU Criteria in the Light of Non-Contractual Relations FLAMUR MRASORI Lecturer, University of Pristina, General Advisor to the Governor of Central Bank of Kosovo, formal member of Kosovo's delegation on SAA negotiations between Kosovo and EU Since the free movement of capital as one of the fundamental freedoms of the Internal Market of the EU is an important sphere of the financial integration process of Kosovo in the EU, its implementation in Kosovo will be presented in the light of Kosovo's non-contractual relationship with the EU. In this regard, the implementation of European standards in terms of ensuring this freedom by Kosovo will be treated through a brief background, an analysis of the EU Progress Reports related to Kosovo (from 2005 to 2013), through a presentation of peculiarities and similarities of Kosovo's financial system as compared to other countries, and through a presentation of the current legal position of Kosovo in terms of overall financial integration. Keywords: free movement of capital, financial integration, financial system of Kosovo, non-contractual relation 1. Introduction The historical aspect of financial integration in the European Union (EU), presents two important developing trends regarding this field: the first one is the establishment of the continuous cooperation of the EU member states with the purpose of expanding the basic freedoms of the internal market; and the second being the continuous effort of the aspiring EU integrated countries to harmonize their respective legislation with that of the EU. In this context free movement of capital in Kosovo belongs in the second trend, although an additional factor which is non-contractual relations needs to be considered as well. In this paper, the definition and the judicial effect of the free movement of capital in the EU framework will be treated initially, then Kosovo's advance in the legal harmonization process in non-contractual relation conditions with the EU, the understanding of Kosovo's specific non-contractual relationship with the EU, the challenges, similarities, differences, advantages and disadvantages of Kosovo's financial system regarding the free movement of capital, and finally the Kosovo's current legal position in the financial integration field in general. Based on the fact that there is a lack of specific research in this field, the research methodology can be considered 'imposed', since the reference material for this paper constitutes EU primary legislation (the treaties), European Court of Justice (ECJ) judgments, primary and secondary legislation of the country, and the Progress Reports of the European Commission for Kosovo. Apart from these, second hand sources have been taken into account as well, which in one form or another are related to the free movement of capital field (texts and works published in journals). -44-