Pristina faced pressure to resolve currency issue, PM Kurti alleged Serbian troop movements near border, and electoral authorities set date for referendum on removal of ethnic Albanian mayors in north.

Govt maintained firm stance on currency issue. During 13-15 March trip to Kosovo, U.S. Special Envoy Gabriel Escobar urged govt to suspend new regulation banning use of Serbian dinar, primary currency for cash and commercial transactions among Kosovo Serbs. PM Kurti 19 March insisted he would not reverse decision, saying Central Bank’s move was designed to tackle “financing of terrorism and other illegal activities”. Kosovo and Serbia chief negotiators 25 March met in Belgian capital Brussels to discuss issue but failed to reach agreement.

Prime Minister accused Belgrade of troop movements along border. PM Kurti 21 March shared footage of Serbian Army units near Kosovo border, claiming Belgrade was “waiting for the best possible opportunity to invade Kosovo”; Belgrade 22 March dismissed accusations as “disinformation campaign”. NATO-led force same day said situation is “calm but fragile”.

Authorities backed referendum on removal of ethnic Albanian mayors in north. Central Election Commission 9 March approved referendum on whether to dismiss ethnic Albanian mayors in four Serb-majority northern municipalities, whose election in April 2023 (boycotted by Serbs) triggered violent protests. Vote slated for 21 April, after which govt is expected to announce new elections.

New currency regulation restricted use of Serbian dinar, sparking outrage among Kosovo Serbs and criticism from international actors. 

New currency rules came into force, fuelling tensions. Regulation establishing euro as only currency permitted for cash transactions came into effect 1 Feb; move bans financial institutions from using Serbian dinar, primary currency for cash and commercial transactions in Kosovo’s Serb-majority communities. European Commission 1 Feb warned that “short transition period for the regulation’s implementation, combined with a lack of information and practical solutions for all affected communities, risk seriously complicating their lives”. Authorities 6 Feb announced one-month transition period; Kosovo police, however, 3 Feb confiscated 4mn Serbian dinar and vehicle transporting it to distribute social benefit payments from Serbia, 7 Feb prevented entry of cash-transfer truck into Kosovo. Hundreds of Kosovo Serbs 12 Feb protested new regulation in North Mitrovica town. 

UN Security Council held briefing on currency issue. Speaking at extraordinary session of UN Security Council, Serb President Aleksandar Vučić 8 Feb argued new regulation “disables all medical, educational, social, cultural and other institutions that enable Serbs to live with a minimum of human dignity”; PM Kurti insisted regulation doesn’t prevent Belgrade from providing financial support to Kosovo Serbs, but “seeks to ensure the transparency and legality of cash imported into Kosovo”. Head of UN Mission in Kosovo Caroline Ziadeh said actions “exacerbate an environment of insecurity and mistrust”.

Pristina and Belgrade resolved license plate dispute in positive step toward normalisation, but sparred over currency; Kosovo Serbs in north launched petition to remove Albanian mayors from office. 

Normalisation process between Serbia and Kosovo saw progress and setback. Serbia 1 Jan enforced Dec decision allowing cars with Kosovo license plates to enter its territory, though insisted this did not equal recognition; in return, Kosovo 4 Jan ended requirement to cover Serb license plates with stickers. EU 7 Jan welcomed “positive step” toward normalisation. Simultaneously, EU 1 Jan opened visa-free travel to Schengen area for Kosovar citizens. Despite progress, Central Bank 17 Jan announced decision to suspend Serbian dinar beginning 1 Feb, after which Euro will be “only currency allowed” in Kosovo; Serbia 19 Jan condemned measure. EU Special Representative Miroslav Lajčák 30 Jan urged sides to step up normalisation efforts ahead of June 2024 EU parliamentary elections.

Kosovo Serbs launched petition to remove Albanian mayors from office in north. Hundreds of Kosovo Serbs from northern municipalities 17 Jan started petition to remove four Albanian mayors from office, who were elected in April 2023 municipal polls boycotted by local Serbs. Process began after Pristina issued administrative order in Sept 2023 allowing removal of mayors through petition process as first step toward holding new election. 

Germany bolstered NATO-led force. Germany 16 Jan increased troop contribution to NATO-led force KFOR from 80 to 300 soldiers, citing “worsening security”.

Discussions on normalisation process between Kosovo and Serbia continued amid breakthrough on license plate dispute.

Efforts to normalise Kosovo-Serbia relations persisted. Belgrade 14 Dec told EU that March 2023 agreement with Pristina to normalise relations was “not legally binding”, prompting PM Kurti 22 Dec to accuse Serbia of withdrawing from deal. EU Special Representative Miroslav Lajčák 21 Dec promised EU would formalise “Serbia’s commitments” from March agreement by Jan 2024; he added that Kosovo could advance without Serb signature on EU and U.S. proposal for creation of Community of Serb municipalities – which enables self-governing association for Serb municipalities – as it is Kosovo’s “internal document”. Kurti 22 Dec responded with proposal to draft new proposal on the “Community” and sign normalisation deal with Serbia at European Council summit in March 2024.

Belgrade moved to allow Kosovo license plates. Authorities 15 Dec ended amnesty for use of Serb license plates registered before 1999, which marked end of Kosovo-Serbia war. Serbia 25 Dec decided to allow vehicles with Kosovo license plates to enter its territory; EU same day welcomed move, calling it “a positive step” toward normalisation. Dispute over license plates had long stirred tensions between the two.

EU pushed for progress on normalisation with Serbia, NATO mulled expanding peacekeeping force amid tensions in north, and Kosovo Serb participation in Serbia’s Dec poll remained uncertain.

EU reiterated normalising relations with Serbia “essential”. In 8 Nov reports on EU enlargement, EU Commission reiterated normalisation process “essential” for both parties, pledged for “more serious commitment” on both sides; EU report on Kosovo also called on authorities to organise “fully inclusive” local elections “as soon as possible” in Serb-majority northern municipalities. Meanwhile, EU 13 Nov confirmed existence of proposal for establishing Community of Serb Municipalities (CSM); FM Donika Gërvalla 24 Nov said European CSM proposal was “good basis” for discussions.

Kosovo warned of continued threat from Serbia. Following deadly attack in northern Kosovo late Sept, PM Kurti 19 Nov warned of continued threat emanating from Serbia. NATO Sec Gen Jens Stoltenberg 20 Nov confirmed NATO is considering “more enduring increased presence” in Kosovo, while warning Belgrade to avoid another military build-up near border. German FM Baerbock 29 Nov announced deployment of “150 additional troops” to NATO-led force in Kosovo.

Uncertainty over Kosovo Serb participation in Serbia’s elections persisted. After Serbia 13 Oct scheduled snap parliamentary elections for 17 Dec, Organization for Security and Co-operation in Europe (OSCE) 3 Nov received Serb request to support participation of voters living in Kosovo; OSCE made support conditional on Pristina’s approval. After PM Kurti 19 Nov insisted on need for “special agreement”, Serbia 22 Nov changed tack, allowing voters to cross border to cast their ballot.

Six arrested in Pristina at protest against Head of Hague-based War Crimes Court. Protesters 29 Nov reportedly used smoke grenades to protest at visit of Ekaterina Trendafilova, President of Kosovo Specialist Chambers, Hague-based court with jurisdiction over crimes “either commenced or committed” in Kosovo 1998-2000; police subsequently arrested six members of Social Democratic opposition party.

NATO reinforced peacekeeping force following deadly clashes in northern Kosovo; Serbia and Kosovo leaders met in Brussels amid intense international pressure.

Tensions ran high in northern Kosovo as NATO bolstered troop presence. NATO reinforced its peacekeeping mission in Kosovo following deadly attack on Kosovar police officers in northern Kosovo late Sept. Notably, UK 1 Oct announced deployment of around 200 soldiers, Romania 3 Oct promised some 100 troops and Germany 6 Oct pledged 155 troops. Meanwhile, U.S. 2 Oct welcomed Serbia’s announcement to withdraw some troops from border but emphasised continued concern about “cycle of rising tensions and sporadic violence in northern Kosovo”.

EU and U.S. urged Pristina and Belgrade to resume dialogue. Leaders from EU and Western Balkans nations 16 Oct held ninth Berlin Process summit in Albanian capital Tirana, aimed at boosting cooperation and reconciliation to advance EU integration. During summit, European Council President Charles Michel and German Chancellor Olaf Scholz urged Pristina and Belgrade to return to EU-mediated dialogue on normalisation. Serb President Aleksandar Vučić did not attend, instead travelling to China for Belt and Road Forum for International Cooperation. PM Kurti and Vučić 26 Oct met on margins of European Council in Belgian capital Brussels, but were unable to reach agreement; France, Italy and Germany 27 Oct called on Kosovo to launch procedure to create Association of Serb-majority Municipalities and on Serbia to “deliver on de facto recognition” of Kosovo.

Fragile calm in north shattered as group of heavily armed Serbs clashed with Kosovo police, leaving one officer and three Serbs dead; coming weeks could see more violence.

Heavily armed Serbs clashed with Kosovo police. Kosovo Police officers 24 Sept arrived at Serb-majority Banjska village in northern Kosovo after receiving reports that two trucks without license plates had blocked bridge. Around 30 heavily armed Serbs ambushed patrol upon arrival, killing one police officer before forcing their way into nearby monastery; shootouts ensued as police mounted “clearance operation”, leaving three Kosovo Serbs dead. Minister of Internal Affairs Xhelal Svecla same day said police had “regained control” of area, made several arrests and seized large amounts of military-grade weaponry including mortars, grenade launchers and anti-tank rockets; weapons indicate Serbs in north are preparing for a fight, raising risk of further escalation in Oct.

U.S. warned of Serbian military build-up along border amid rising tensions. PM Kurti 24 Sept blamed “Serbian-state supported troops” for attacks; Serb President Aleksandar Vučić denied accusation and condemned killing of police officer, but added that gunmen were local Kosovo Serbs who “do not want to suffer under Kurti’s terror anymore”. Former VP of Serbian List – largest Serb political party in Kosovo – Milan Radoičić 29 Sept assumed responsibility for attack, claiming he acted alone without informing Belgrade. U.S. 26 Sept said attack “was coordinated and sophisticated” and that “the quantity of weapons suggests this was serious, with a plan to destabilise security in the region”. U.S. 29 Sept accused Serbia of military build-up along border while NATO allies authorised additional forces, warning of “increasing tensions”. 

EU-mediated Kosovo-Serbia dialogue failed to yield progress. Ahead of escalation, EU High Representative Josep Borrell 14 Sept mediated talks in Brussels, Belgium’s capital, between PM Kurti and Serb President Aleksandar Vučić to advance normalisation process, afterward saying “it was not possible to bridge the differences”; he noted Vučić’s acceptance of EU’s compromise proposal but said “Kurti was not ready” to move forward on establishing Association/Community of Serb municipalities in north, key provision of 2013 and 2015 Brussels agreements. Kurti same day claimed his sequencing plan was “the only proposal on the table”.

Pristina took further de-escalatory steps in Serb-majority northern municipalities, though tensions remained high; EU stepped up pressure on Pristina and Belgrade to resume normalisation efforts.

Kosovo police further reduced presence at municipal buildings in north. Authorities 3 Aug announced 25% reduction of police presence around municipal buildings in north, second such reduction in two months, while PM Kurti next day described security situation as “calm”. NATO-led force KFOR 4 Aug and EU 10 Aug welcomed move. Tensions simmered, however, after authorities in North Mitrovica town 22 Aug ordered Serbia’s parallel govt institutions to “vacate” their premises within three days; EU 24 Aug condemned move and town’s mayor 25 Aug postponed deadline by two weeks.

EU maintained pressure on Pristina and Belgrade to de-escalate. Following reduced police presence in north, Pristina called for removal of EU’s punitive measures, imposed in June. EU 10 Aug demanded additional de-escalatory steps, however, while stating readiness to impose “punitive measures” against Serbia unless it too works to de-escalate. French President Emmanuel Macron 28 Aug threatened Pristina and Belgrade with “review” of EU visa liberalisation and economic cooperation amid growing EU pressure on sides to resume efforts on normalising relations. EU Special Representative Miroslav Lajčák same day met with PM Kurti, 30 Aug met with Serb President Aleksandar Vučić ahead of possible trilateral meeting in Sept.

Pristina promised steps to reduce tensions in Serb-majority northern municipalities, and PM Kurti announced acquisition of Turkish combat drones.

Govt agreed to reduce police presence at northern municipal buildings and hold elections. Amid stepped-up pressure from European Union (EU) on Pristina to de-escalate tensions in Serb-majority northern municipalities, which soared after govt late May installed newly-elected ethnic Albanian mayors, EU Special Representative Miroslav Lajčác 10 July met with Deputy PM Bislimi in Slovakian capital, Bratislava. Following meeting, Pristina 11 July announced reduction of police presence around municipal buildings in north by 25% and expressed support for “the holding of new elections”; EU High Representative Josep Borrell 12 July welcomed news but said EU expected further de-escalatory steps. In meeting with Serb President Alexsandar Vučić, NATO Sec Gen Jens Stoltenberg 19 July urged Belgrade and Pristina to “prevent escalation and engage in the EU-facilitated dialogue”; Vučić same day requested “a more significant role for [NATO-led force] Kosovo Force (KFOR) in easing tensions”. Chief negotiators for Kosovo and Serbia 19 July met separately in Brussels with Lajčác, who reportedly saw “need for additional coordination” before trilateral meeting occurs.

Serbia condemned Kosovo’s acquisition of Turkish drones. PM Kurti 16 July confirmed purchase of Turkish-made Bayraktar drones, saying security spending is making Kosovo safer; KFOR next day reiterated its “primary authority over the airspace above Kosovo”. Serbian Defence Minister Milos Vucevic 21 July accused Kosovo of acquiring “offensive weapons”, including drones, and warned that Belgrade is “carefully watching what is happening”.

Tensions continued to spiral in Serb-majority northern municipalities as European Union (EU) and U.S. ratcheted up pressure on Pristina and Belgrade to defuse situation.

Situation deteriorated further in northern Kosovo. Following protests late May in four northern Serb-majority municipalities, which broke out after authorities seized municipal buildings and installed newly elected ethnic Albanian mayors, protests and violent clashes continued. Notably, Kosovo Serbs 13 June targeted police with stones following arrest of an individual accused of organising attack on NATO forces 29 May. Month also saw increase in explosions and other attacks, primarily targeting govt institutions: notably, two bombs 19 June exploded near police station in Zvečan town. Meanwhile, PM Kurti 14 June announced Serbian armed forces had detained three Kosovo police officers, fuelling tensions further, though Serbia 26 June released them. EU High Representative Josep Borrell 23 June expressed alarm at reports of extrajudicial arrests of Kosovo Serbs and subsequent “heavy rhetoric from Serbia”, warning escalation is “becoming dangerous”.

Month saw flurry of EU and U.S. diplomatic activity aimed at defusing tensions. International actors urged de-escalation between Kosovo and Serbia, with particular pressure exerted on Pristina to suspend police operations in north and have mayors temporarily perform duties “in premises out of the municipal buildings”. EU Special Representative Miroslav Lajčák and U.S. Special Envoy Gabriel Escobar 5 June also reiterated calls for fresh polls to elect new mayors in northern municipalities during talks with Kurti, who 12 June sent Borrell five-point plan to calm tensions. Borrell 14 June warned Kurti’s plan had failed to address “key elements that triggered the current crisis”, 22 June hosted series of crisis management meetings with Serb President Aleksandar Vučić and Kurti, without immediate breakthrough. EU 28 June warned Kosovo it is preparing number of punitive measures, which are “temporary and reversible” if sufficient steps are taken to de-escalate situation; Kurti 29 June announced willingness to “decrease Kosova Police presence” and “organise early elections”.