Happy Sunday!

On Friday, Milwaukee Mayor Cavalier Johnson and Mayor Nikola Dašić of Kragujevac sealed a formal Sister City agreement, culminating in a vibrant celebration of Serbian-American culture.

This week at the State Department has been eventful. The Pavlovic Today was the first to break the story about the US position on the Kosovo Central Bank decision to suspend the Serbian dinar on February 1st.

Let’s dive in.

The Biden Administration has taken a strong position on Kosovo Central Bank decision to suspend Serbian dinar, backing Serbia’s right to provide financial assistance to members of the ethnic Serb community in Kosovo.

“We urge the Government of Kosovo to revisit this decision, consult with the affected communities, respond to the concerns expressed by the international community, and provide ample time for its decisions to be implemented in order to mitigate the impact those decisions will have on its citizens,” a State Department spokesperson told The Pavlovic Today on Tuesday evening. 

In a rare statement, the State Department expressed concern for the Serbian population in Kosovo.

“We are concerned that regulation adopted on December 27 will negatively impact the ethnic Serb community in Kosovo,” a spokesperson told The Pavlovic Today.

The State Department underscored that, in accordance with Kosovo law and the commitments made under the Ahtisaari Plan, Serbia “has the right to provide financial assistance to members of the ethnic Serb community in Kosovo.”

Against the backdrop of escalating tensions in Ukraine and Palestine, Kosovo emerges as a geopolitical hotspot. President Biden notably underscored the strategic significance of the Western Balkans during his recent call to bolster Ukraine against Russian aggression.

“If we leave and Russia is able to continue the attack and collapse Ukraine, what do you think will happen in the Balkan countries?,” asked Biden.

In response to these geopolitical pressures, the United States has thrown its weight behind advocating for the integration of the entire Western Balkans into the European Union. With North Macedonia, Albania, and Montenegro already ensconced within NATO, EU-NATO nexus in the Western Balkans is seen as the stability factor against Russia and China.

In Ohrid last year, the European Union and the United States celebrated what appeared to be a breakthrough in relations between Belgrade and Pristina. However, since that moment of optimism, tensions have continued to escalate, with Kosovo Prime Minister Albin Kurti undertaking a series of unilateral actions against Belgrade. These moves have drawn disapproval from the United States, prompting harsh measures such as decision to cancel Kosovo’s participation in the European Defender 23 military exercise . Yet, to this day, Kurti persists unchecked in his actions, seemingly unfazed by American disapproval.

At the heart of the impasse lies the Association of Serb-majority municipalities, a pivotal component of the Brussels Agreement of 2013, which the Kosovo government has failed to implement. Despite persistent urging from the United States for Kurti to fulfill his legal obligations, his responsiveness remains wanting, perpetuating the stalemate and exacerbating tensions in the region.

“We continue to urge Kosovo to fulfill its commitment to establish an Association of Serb-majority Municipalities (ASM),” the State Department spokesperson told the Pavlovic Today.

“The ASM is the primary mechanism through which Serbia could transparently provide financial support to institutions and individuals under Kosovo’s legal framework,” the spokesperson further clarified.

What gives the State Department confidence that Kosovo PM Albin Kurti will take the US position on the Kosovo Central Bank decision to suspend the Serbian dinar seriously? The Pavlovic Today asks Principal Deputy Spokesperson Vedant Patel.

“We believe, Ksenija, that constructive engagement and sincere good faith efforts by both Kosovo and Serbia will bring lasting benefits for its citizens including economic growth and ensure long term regional stability,” responded Patel. “We want to see progress on implementation of past Dialogue agreements. We also believe that this is in the best interest for all impacted parties.”

On Monday, January 29, 2024, the European Union Special Envoy Miroslav Lajčák is scheduled to meet with Serbian President Aleksandar Vučić in Belgrade, marking a pivotal moment in diplomatic efforts regarding the Kosovo issue.

Aligning closely with the stance of the United States, the EU has echoed concerns regarding the Kosovo Central Bank decision to suspend Serbian dinar. Despite concerted pressure from the Western alliance, Prime Minister Kurti has yet to demonstrate a willingness to address these apprehensions, prolonging the impasse.

Every Sunday, The Balkan Voice Newsletter will be brining you an insider’s perspective on US policy toward the Western Balkans, featuring weekly coverage, State Department briefings, exclusive interviews, and more.

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Ksenija Pavlovic is the Founder and Editor-in-Chief of the Pavlovic Today, The Chief White House Correspondent. Pavlovic was a Teaching Fellow and Doctoral Fellow in the Political Science department at...