“KOSOVO’S EXPERIENCE WITH THE EUROIZATION IN ITS ECONOMY”

Abstract

Euroization is the adoption of a currency, respectively of the Euro currency from another country, in this case Europe. Euroization in Kosovo is a very complicated , but also a very interesting one for researching the issue on how the Euro currency ended up in our country, so what Kosovo’s journey was to ending up in Eurozone, or even on who decided to use the European coin. After the 1998-1999 war and arrival of United Nations Mission in Kosovo (UNMIK), main challenge for Kosovo was the selection of the stable monetary framework and rebuilding of the financial sector. Even the big emigration of ethnic Albanians in Western Europe mainly in Germany, associated with a high grade of monetary shipments from abroad (remittances), had their impact too. After the arrival of Euro in 11 countries of EU in 1999, then Greece in 2001, Kosovo and Montenegro that aren’t members of EU, followed this process. Kosovo has achieved to get the Euro currency with the support of Central European Bank (ECB) and with central banks of member countries of EU. Banknotes and euro coins have successfully been provided from the central banks of member countries of EU, by completing so the euroization process. Now after more than a decade, the euro currency has deepened in the roots of the Kosovan economy, by facilitating many financial processes of the abroad world, respectively has increased the possibilities of foreign investors in order to be present with their businesses in our country and has facilitated local businesses to have more accurate financial-business contacts with the abroad world, where automatically has an impact in the export increase and local import.